The continuing economic slowdown in the UK and potentially rising unemployment, particularly in the North East, highlights the need for the government to invest in infrastructure to allow British businesses to remain competitive in a global market, port operator PD Ports has said.
 Shipping lines are increasingly dropping direct calls at British ports in favour of the less congested and more efficient continental ports. The result is fewer British jobs, reduced economic activity and increased prices for UK consumers, it warned.
 The answer, according to PD Ports, is an increased focus on improving the UK’s port and rail infrastructure.
 “Use and access to northern UK ports allows importers to bring cargo closer to the end markets of Edinburgh, Glasgow, Leeds, Manchester and Newcastle,” explains group development director for PD Ports Martyn Pellew.
“Retailers see a reduction in their shipment delays because their products will not be caught up in UK southern port and road congestion. There will be a marked increase in the accessibility of inventory.”
 PD Ports recently obtained planning permission for a deep sea container terminal to be built on the company’s site at Teesport and is already attracting the interest of international shipping lines to make direct calls at the port. The Northern Gateway Container Terminal (NGCT) is expected to create up to 5,500 jobs in the Tees Valley.
 Before construction work on the deep sea terminal has even begun, major retailers have already shown tremendous support for the port and recognised the benefits of transporting their freight by sea closer to the final UK destination. ASDA Wal-Mart is already operating an import centre at Teesport to handle containers prior to onward transport to the company’s distribution centres in the North. Furthermore, Tesco has commenced construction of a 1.2 million sq ft import centre at the port in a move that will create over 800 jobs.
 “However despite these initiatives by private enterprises to invest in the North, the government is showing little support. The future of freight transport in the UK lies in the effective use of rail and port infrastructure. Tesco has already transferred some of its national haulage to rail, while Asda said it had already reduced road miles by 25 per cent since January 2005 and aims to cut another 15 per cent by the end of 2009.
 Not only does sea and rail provide significant cost benefits to retailers, but carbon emissions are significantly reduced compared to road transport. However many strategic rail routes throughout the UK are unsuitable for transporting today’s modern, taller containers, leading businesses to seriously question the Government’s commitment to reducing the country’s carbon emissions and supporting economic growth.
 Teesport is aiming to change accepted thinking on the optimum length of journey by rail for freight. The port’s anticipated distribution area is 70 miles to Leeds, 40 miles to Newcastle and 120 miles to Manchester.  “We want to see the Government recognise that what’s important is to get railways viable and productive on the shorter freight routes” says Pellew.
 A recent report commissioned by the port from Network Rail highlights that that cheapest route from the port to the East Coast Mainline (ECML) would be via Darlington, at £3.5 million ($ 6.4 million). The lines that are being targeted for upgrade are the Tees Valley line from Teesport to the ECML (minimum of ca £3 million  for a limited W 10 level gauge upgrade, but only ca £16 to £17 million to offer all the rail capacity needed by the NGCT), the  ECML north to Scotland (early indications are that this may cost £10 to 20 million), the ECML south  to Yorkshire and the Midlands (£40 million) and the Transpeninne rail route to the North West (£40+million). At this time, plans have not moved ahead because the UK Government has already allocated its investment monies for the period 2009 – 2014.
 “The UK government’s rail investments have been ineffectively based on historic trends in transport and not on the actualities of modern cargo requirements and environmentally responsible goals.  Funding has gone into rail access to southern ports without recognising that use of ports nearer to the end market is far better.  It is northern UK ports like Teesport and Hull that need rail investment if we are to do things better and with improved efficiency,” concluded Pellew. 
 With the sharp rise in the cost of fuel, especially for diesel used in road freight transport, the better use of sea and rail options has become the number one priority for UK businesses. The use of Northern UK ports for northern cargo improves delivery time, helps businesses meet CO2 emission reduction targets and has a positive impact on the financial bottom line of UK businesses and the country as a whole.