UTG report takes fresh look at freight in city regions

The greening of urban freight and logistics is central to decarbonisation strategies both nationally and within city regions, says a new report by the Urban Transport Group.

The report, Delivering a Greener Future, highlights how freight is vital to the effective functioning of the UK economy, bringing great economic and employment benefits, and ensuring access to goods when and where they are needed – largely in cities.  

But, it says, road freight – which currently accounts for almost 80 per cent of goods moved in Great Britain – also brings many negative impacts for cities, such as carbon emissions, air pollution, congestion, damage to highway infrastructure and noise, and threatens road safety.  

Road freight traffic makes a significant contribution to carbon dioxide emissions and air pollution. In 2019, transport accounted for 27% of the UK’s domestic greenhouse gas emissions, making it the largest emitting sector. A third of this was from freight, split equally between heavy goods and light goods vehicles.

The report draws attention to innovations that are making freight operations safer, more sustainable, quieter and more efficient, such as the conversion of passenger trains to support high speed parcel delivery to city centres; the use of riverboat services to deliver medical supplies to the NHS in London; and zero emission vehicles in local authority fleets. 

Ultimately, the report calls for sustained support for urban freight at a local and national level to encourage modal shift to rail and water, decarbonise road freight and improve road safety. 

Laura Shoaf, Chair of the Urban Transport Group, and Chief Executive at West Midlands Combined Authority, said, “With a greater recognition of the scale of the climate crisis and a global pandemic which accelerated changes in how we receive goods, particularly via e-commerce, it was time to take a fresh look at freight issues in our city regions.

“Our report finds that freight has a role to play in decarbonised urban areas, and can contribute to shaping cities that people want to be part of. But for that to happen we must deliver environmental and safety improvements and become more efficient and smarter – especially as local and transport authorities – in how we move and coordinate the movement of freight in our city regions. This must be underpinned by national support.” 

The report states: 

“The way in which goods are delivered has the potential for both positive and negative impacts on the places that people live, work and spend time in. To maximise the positives and minimise the negatives, we need to make the greening of urban freight and logistics central to wider national and urban decarbonisation strategies and to make freight work for cities in a way that is safe, smart, clean and good for local economies, the environment and communities.” 

The report recommends:  

Investing in infrastructure for modal shift: encouraging freight into urban areas by rail or water wherever possible; creating a more extensive network of rail and water-connected distribution sites; exploring other distribution hub formats beyond rail and water; and by consolidating orders through consolidation centres. 

Incentivising modal shift: reviewing the fiscal regime for road haulage to ensure it covers more of its indirect and direct costs and which incentivises safer and greener operation, and thereby improves the competitive position of rail and water. A more interventionist approach to rail freight is also required to incentivise the rail sector to widen the scope and extent of its services.  

Greening urban freight: with national Government developing a clear plan for delivering zero emission HGVs and the infrastructure necessary to support them, and local government and the wider public sector decarbonising its own fleets. Cycle logistics infrastructure should also be supported and expanded.  

Improving the safety of urban freight: by reviewing the regime for road safety that reflects the disproportionate impact of goods vehicles, through a new UK road safety strategy which will help to deliver on targets for collision reduction; and to set and enforce vehicle standards at the national level.