East Midlands Airport: Freeport Development

In a recent announcement, UK Chancellor of the Exchequer Rachel Reeves highlighted the importance of the East Midlands Freeport development, emphasizing its role in driving economic growth and job creation. She stated: “Economic growth is the number one mission of our Plan for Change. This investment will create thousands of new jobs, strengthen the UK’s position in advanced manufacturing and logistics, and boost the economy.”

East Midlands Airport (EMA) is advancing its Freeport plans with a new industrial logistics and manufacturing park, unlocking $1.3bn (£1bn) of investment. Located south of EMA, the site will offer tax and customs reliefs, attracting investment and fostering growth in life sciences and advanced manufacturing. EMA is seen to be the UK’s most important airport for express air cargo which enables seamless trade between UK businesses and the rest of the world, helping to support the regional and national economy.

A planning application has been submitted, with potential for 2,000 new jobs, £132m annual economic growth, and £9m in business rates. EMA’s strategic location and strong transport links make it the UK’s top express freight airport. Air cargo volumes are projected to grow by 54% by 2043.

EMA’s cargo operations have already attracted businesses in aeronautical, automotive, retail, pharmaceutical, and logistics sectors. This new development will further cement its role in global trade and innovation.

Sustainability is central, with adherence to the UK Green Building Council’s net-zero carbon framework. During construction, carbon emissions will be measured and reduced, and operational buildings will meet EPC A+ energy efficiency standards.

Steve Griffiths, Managing Director of EMA, emphasized the significance of this step, stating: “This is an exciting step forward for growth in and around the airport. Our unrivaled cargo operation continues to act as a catalyst for investment, and we look forward to building on its success.”

Tom Newman-Taylor, CEO of East Midlands Freeport, echoed this sentiment, highlighting the transformative impact of the Freeport’s tax sites: “This is a positive first step in realizing the full potential of the Freeport, creating thousands of jobs and unlocking billions in investment.”

Paul Weston, Regional Head, Prologis UK said: “Our partnership with MAG aims to realise the full potential of this strategic hub for international logistics.

“Our shared vision is to leverage the Freeport status and central location of EMA to create a high-impact gateway that drives economic growth, innovation and employment opportunities across the Midlands. By bringing our expertise in logistics developments to the table, we are confident that our partnership will unlock significant benefits for both the local community and the broader UK economy.”

This development underscores EMA’s critical role in driving economic growth and innovation, positioning it as a key hub for logistics and advanced manufacturing in the UK.

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Logistics Industry Support Third Runway at Heathrow

The UK government’s support for a third runway at Heathrow Airport has sparked discussions within the freight and logistics sector. Industry representatives emphasize the importance of expanding cargo capacity to meet growing trade demands. While acknowledging the benefits of increased airport capacity, stakeholders also highlight the need for strategic planning to ensure efficient cargo operations. Key industry figures from the British International Freight Association (BIFA) and FedEx Europe share their perspectives on the potential impact of the expansion on UK trade and supply chains.

Speaking on behalf of its members, Steve Parker, director general of the British International Freight Association (BIFA) said:
“The Government’s backing for a third runway at Heathrow is certainly of interest to BIFA members that offer international logistics services for cargoes moving by air,  and although our members will still be wondering when any spade will hit the ground, they are ready to work with the airport authority on streamlining and improving services.

“Whilst we wait for a third runway, BIFA will focus on the airport’s cargo development. And on behalf of our members, BIFA is already working closely with the airport to support its ambitious plans to deliver a fundamental change to the way cargo operates at the airport. The latest plans and software enhancements were revealed last October. These plans would mean a significant redevelopment of the cargo estate set to commence in the next two to three years, as the airport looks to accommodate rising demand, modernise some ageing first-line cargo handling facilities, and improve cargo flows and efficiency.”

Alun Cornish, Manager Director Ramp and Gateways at FedEx Europe, commented:
Expansion at Heathrow is a step in the right direction for UK growth. To fully realise its potential, it’s crucial that expansion plans include provisions for cargo growth alongside passenger flights. The ability to efficiently import and export goods is essential for UK economic growth, so it’s vital that cargo forms part of the UK’s future airport strategy.

Trade is a cornerstone of our economy, and our research last year revealed that the UK remains a leading exporter to both the EU and other global markets. Increased capacity in UK supply chains would be welcomed and would be a key enabler of the UK’s plans for growth.

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Businesses Urge for Electric Van MOT Deferral

The Association of Fleet Operators (AFP) is calling for an official deferral for MOTs on 4.25 tonne electric vans as some fleets report finding tests “impossible” to book.

For MOT test purposes, this special category of vans is treated as a heavy goods vehicle (HGV), meaning that it has to be tested at one year old rather than three, and also faces a more rigorous examination.

Aaron Powell, fleet and logistics director at Speedy Hire is one AFP member being affected and reports that his company will have to potentially take a number of vehicles off the road.

“These 4.25 tonne vans require a Class 7 HGV MOT test and, between generally poor capacity for HGV testing and few test centres being able to handle electric vehicles, we’re finding it impossble on a practical level to book tests. Our lease provider has spent the last three months trying to find garages with the ability to carry out the pre-testing and source available slots for the test with limited success.

“This is going to have a serious impact on our business because we’re going to have to take these vans off the road and no doubt many other fleets are finding themselves in the same situation.”

Lorna McAtear, vice chair at the AFP, said: “As an organisation and at an individual member level, we’re very much focussed on safety and of course recognise the role that the MOT test plays in ensuring that vehicles operated by fleets are in a roadworthy condition.

“However, it’s questionable whether 4.25 tonne electric vans require HGV tests, an argument we have been making to government for some time. The whole point of this category of van when it was introduced in 2019 was to provide easy access for fleets to an electric equivalent of a 3.5 tonne panel van. These vehicles are simply 3.5 tonne vans with bigger batteries.

“The difficulties members are encountering around their inability to book MOT testing only emphasises this confusion. While the situation is being resolved, we would like to see government and the official bodies involved introduce some form of dispensation, similar to that created during the pandemic, allowing fleets to defer tests for a period of perhaps six or 12 months on 4.25 tonners for the first and second year of testing, giving them time to find and book testing facilities. It is disappointing that businesses working in good faith to electrify their light commercial vehicle operations are being affected in this manner.”

She added that despite a willingness on the part of government to try and overcome issues surrounding 4.25 tonne vans, problems remained.

“As a result of discussions between the Office for Zero Emissions, Driver Vehicle Standards Authority and Department for Transport, the operation of these vans on a practical level is often difficult for fleets due to confusion over whether they have been deregulated from all of the operator responsibilities that normally apply to vans over 3.5 tonnes.

“The government is aware of this and is trying to resolve the situation through the current consultation because there remains widespread belief that the 4.25 tonne concept remains worth pursuing as a means of speeding up van electrification. However, this process is taking time.”

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