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UK manufacturers “stuck in limbo”

LONDON: February 11, 2016. Rhenus Logistics says the UK government’s six-month delay in deciding between a third runway at London Heathrow - or second at Gatwick - is adding pressure on the country’s “chronic lack of export route capacity” for manufacturers.

Heathrow cargoRhenus says all UK seaports are operating at maximum capacity and without other routes manufacturers and the logistics industry are “stuck in limbo” without a third runway at Heathrow.

David Williams, Rhenus Logistics UK managing director noted: “The government has set British companies an ambitious target of exporting £1 trillion worth of exports per annum by 2020. However, in order to achieve this, the UK needs serious investment in infrastructure. We are experiencing an increasing demand for airfreight as UK ports continue to operate at maximum capacity.

“It’s unfortunate to see British manufacturing levels decrease by 0.4 percent in November [last year], however the logistics sector will soon begin to struggle to ship this volume of goods through the existing channels despite the downturn. As Heathrow’s cargo capacity still lags behind Frankfurt, Schiphol and Paris it’s becoming increasingly obvious that there is simply no capability to move any additional goods,” he added.

Heathrow CEO John Holland-Kaye responded: “With expansion, we’ll open up 40 new trading links which will carry more British exports to the fastest growing markets in the world. We’ll help the government rebalance our economy and build a better Britain. The prime minister can say yes and we will deliver.” 

Heathrow reported a 2.9 percent overall rise in air cargo traffic in January compared to 2015. China and Mexico were both up 28 percent; East Asia saw a rise of 26 percent and traffic with Turkey rose 16 percent, said the company.

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