FTA and Modal Switch

SSCF, 14 June 2011

FTA’s Mode Switch Agenda

• Improve the ability of all players in UK logistics to utilise alternative modes - in order to improve the quality and environmental performance of the UK supply chain– Direct benefit to supply chain– Protect long term health of logistics industry– Prevent adverse Government regulation of freight

FTA and Modal Switch

• Freight by Water• Modal Switch Centre

FTA Freight by Water

• Aimed at promoting use of short-sea, coastal and inland waterways services

• Focus on business-2-buisness communications– Promoting and supporting actual utilisation of water

freight services

• Supply chain approach – identify and support areas of maximum benefit

• Maintain separate membership grouping – Working Group formed

• FTA recruiting new members

FbW Activity Areas

• Web based information for industry• Events/member work streams:

– Conferences– Seminars

• Advice to potential customers• Information service for members

– Members area

• Lobbying

FbW - Next

• Relaunch of website within next month– More information about benefits of water freight– Details of water freight service providers– Formalised support for potential users– Improved Members area

• Scottish Event– 7 September– ‘Water Freight Opportunities for Scotland’– MSC, Forth Ports, DFDS and others to speak– Free event, combining with SSCF

Mode Switch Centre

Context

• Freight Modal Choice Study concluded 2010• DfT Freight Modal Choice work now passed to

business to lead – FTA has been asked to take this on

• Rail Freight Council agreed need for further promotion of rail freight

• FTA has taken on Freight by Water – the UK’s Shortsea Promotion Centre

• FTA trialled ‘FastTrack’ consultancy service on utilising rail freight through 2010

Mode Switch Centre proposal

• Independently branded promotion centre for rail and water

• Business funded, FTA managed• Aimed at forming one-stop-shop to raise

awareness of modal possibilities and facilitate new services

• Commercially impartial and able to advise if rail or water are not realistic options – trusted in industry

• Feedback to Government – lessons regarding problems with use of alternative modes, to inform policy making

Modal Switch Centre

• Advice Centre– Confidential telephone/email contact with independent

advisors– Guide client company through achieving modal shift– Contractual advice

• Facilitate new services– eg shared user platforms

• Web portal to promote rail/water, available to all. To provide advice on:– Factors for successful rail/water use– Guide to how to make use of rail/water freight – Service performance information – including comparison to

road– Service/terminal availability

Modal Switch Centre

• Consultancy service– Tailored reports on possibilities of rail for companies’

individual movements– First advice on switch possibilities

• Collate and pass on requests for service– Assist with development of requests for service by users

and disseminate to partners

• Live train/boat service information– Provide information as available, eg train space available

• Feedback on outcome of contacts to industry and Government– Ongoing insight into barriers to rail freight expansion– Informing future Government policy development

Update

• Discussed with industry groups Feb-May:– FTA Rail Council– Freight by Water Working Group– FTA/DfT Customer meeting– One-on-one discussions

• Next Steps: Consultancy project– Refine offering– Market test potential Partner interest and costs levels

End

Current Fees

Category Criteria Annual Fee

Individual and Small Company

Personal Membership and LLP/Ltd companies up to 10 employees

£350

Medium Sized Enterprise

LLP’s and Ltd’s up to 50 employees

£750

Corporate Companies with +50 employees

£1000