Halton Cements its Reputation as Distribution Capital

DESPITE the global economic downturn, the sector has grown in real terms over the past two years as companies look beyond domestic markets to try and boost sales. Halton’s excellent location, alongside its superb road, rail, air and shipping links, have made it an attractive location for many international logistics and distribution companies. Equidistant between from John Lennon Airport and Manchester International, air freight operates to all major European destinations, making it easy to see why Halton has attracted companies such as Sobart Group, DHL, UK Mail Grouo and TDG Ltd.

The Borough already has considerable capacity in warehousing and logistics solutions, with eighty logistics businesses in the area distributing a diverse range of products. However, in 2004, the Borough Council endorsed a new distribution gateway, which eclipses anything formerly available. The Mersey Multimodal Gateway, or 3MG, is a massive redevelopment of the Ditton Strategic Rail Freight Park, and will see over £100m invested over the next five years to realise the site’s potential as one of the largest distribution gateways in Europe. Creating up to 5,000 new jobs and covering roughly 180 hectares, 3MG will lie at the heart of a region that contains over 8 million people, and will offer direct rail access to the West Coast mainline. The redevelopment is hoped to attract a range of new companies to the area, including blue-chip retailers and further high-tech manufacturers.

The Gateway will build on existing assets to create a sustainable flagship distribution hub that will help support a number of local, regional and strategic objectives to help achieve the sustainable movement of goods as outlined in the Northwest Regional Freight Strategy and Halton’s Local Transport Plan (LTP). By transferring freight from road to rail, congestion will be significantly reduced, as will the emissions of carbon dioxide and nitrous oxide - with one freight train roughly equivalent to the emissions of 50 lorry journeys. The redevelopment is expected to be completed by Spring 2012 and includes key partners Halton Borough Council, the Stobart Group, the Northwest Development Agency, Government Office North West, and Network Rail.

3MG is perfectly located to ensure accessibility to all areas, and benefits from direct access to the A562 dual carriageway. This provides direct routes to Liverpool, Runcorn, the M56 and the A5300 Knowsley Expressway (connecting to the M62). 3MG is therefore well located to serve the distribution market of the entire North of England and the south of the country via the M62 and M6. Moreover, planned investment at Ditton and elsewhere on the national network will further enhance site access by rail. 3MG also offers direct access to and from the Liverpool branch of the West Coast Main Line, the UK’s most important rail freight line.

Alternatively, Liverpool John Lennon Airport is a 15-minute HGV drive west of the site, handling over 5,700 tonnes of freight during 2006. In the opposite direction, Manchester International Airport is a 40-minute HGV drive away and operates the UK’s fifth largest air cargo terminal, handling almost 150,000 tonnes of cargo (2006).

 Most recently, the gateway has won a £9m share of the Regional Growth Fund, which was established after the government announced that the Regional development Agencies were going to be scrapped. The grant has been awarded to the 3MG partnership to help further develop the rail infrastructure in the region.

Simon Jenkins, senior Vice President at Prologis, said: "Rail freight has an important role to play in the distribution of goods to, from and within the UK, so we are delighted to see that the government is actively supporting the principle of moving freight from road to rail."

The news was also welcomed by Freight on Rail, a partnership of the rail freight operators: Rail Freight Group, Campaign for Better Transport, Network Rail and the transport trade unions.

Philippa Edmunds from the group said: "This project ticks all the right economic, environmental and safety boxes, creating green jobs in a region which needs government regeneration support."

Edmunds added: "Shifting long-distance freight off the road on to rail, which produces 70% less carbon dioxide emissions than the equivalent road journey, is essential if we are to reduce transport's carbon emissions by 80% by 2050.

"Long-distance road freight needs to be transferred to rail and water by 2050 in order to fight climate change effectively."

For more information on investment opportunities in Halton, visit our Halton Borough Council pages.