- 9 May 2019
- Transport / Logistics Services
The Freight Transportation (FTA) has called for urgent investment in the UK’s transport and logistics infrastructure to counteract a significant fall in the country’s global competitiveness.
The FTA has just published its Logistics Report 2019 in conjunction with Santander Bank. UK policy director Elizabeth de Jong said: “With profit margins of only two per cent in 2018, logistics companies are very vulnerable to increases in operating, fuel and freight costs. As a low margin activity, we need to see new thinking and innovative solutions to ensure the UK can offer the highly competitive conditions that draw international companies to our shores, while also supporting home-grown businesses.
“Quality of infrastructure is a key priority for any business looking to invest in the UK, but this has been weakening for several years due to underinvestment in the road network, rocketing fuel prices, limited accessibility to all forms of transport, and an overall lack of innovative transport solutions.”
The UK has fallen two places to eighth in the World Economic Forum’s 2018 Global Competitiveness Report. In addition Ernst & Young found that the UK’s transport and logistics infrastructure has become less attractive to investors – falling from an attractiveness score of 80 to 62.
John Simkins, head of transport and logistics at Santander UK, said: “Uncertainty has been the inevitable reality for UK businesses over the last year, especially for those operating in transport and logistics. In order that UK businesses can continue their operations with as little disruption as possible, it is vital that we work closely with the transport & logistics industry.”