Logistics UK has unveiled an eye-opening new report, The UK Logistics Network, which highlights the vital importance of the nation’s supply chain infrastructure and the pressing need for long-term investment.
Presented at a parliamentary meeting on 12 November 2024, the report maps out the intricate web of road, rail, air and maritime transport routes that keep goods moving across the UK. However, it also paints a concerning picture of how underinvestment in these critical networks is creating costly bottlenecks, holding back economic growth and operational efficiency.
One of the most striking of these findings is the spiralling cost of congestion on the Strategic Road Network for heavy goods vehicles (HGVs). Between 2015 and 2024, this cost soared by nearly £1 billion, underscoring the urgent need to address capacity issues on the UK’s most essential transport corridors. These bottlenecks are especially problematic in areas where freight must compete with passenger traffic, such as rail freight on the West Coast Main Line and road freight across the Pennines and around the Midlands.
The report highlights the stark disparity in transport infrastructure investment compared to other nations. Between 2016 and 2019, the UK’s transport infrastructure investment grew by a mere 0.7% annually, while Germany (a key competitor) saw an impressive 9% annual growth in the same period. This shortfall has tangible consequences: inefficiencies in freight movement ripple through the entire economy, stifling the UK’s global competitiveness.
The UK’s road network emerges as the backbone of the logistics system, carrying 81% of domestic freight by weight. Nearly half of all traffic on major roads is logistics-related, demonstrating the sector’s critical role in daily life. Rail freight also plays a key role, with just 2% of the rail network carrying 15% of freight tonne-kilometres. The report suggests that increasing rail speeds by 25% could reduce operating costs by £40 million annually - a powerful incentive for targeted improvements.
By formally identifying and prioritising the UK Logistics Network, policymakers could pave the way for transformational change. Strategic investments, guided by insights from the report, could unlock up to £8 billion in annual economic growth by 2030, according to Oxford Economics.
As the report clarifies, a robust and future-ready logistics network is more than an operational necessity; it’s a cornerstone of a thriving, competitive UK economy.