FEATURE
How a focus on ports is crucial to UK ’ s overseas trading
SUPPLY CHAIN
Viewpoint – PD Ports chief commercial officer Geoff Lippitt .
CHALLENGE
With events such as the cost of living crisis and the war in Ukraine continuing to expose the fragility of global supply chains , now really is the time for ports and government to help businesses to boost supply chain resilience , says PD Ports chief commercial officer Geoff Lippitt .
The ability to import and export goods in and out of the UK is critical in order for the UK to prosper , and survive , as a nation .
We import more than one third of the energy we use and almost half of the food we consume .
While 80 per cent of cars manufactured in the UK are exported , around 60 per cent of the components used to make those cars are produced overseas .
The UK ’ s dependence on global supply chains is not to be underestimated and yet , for many years , this reality rarely featured in the political and media spotlight . Only now are we seeing that change .
As owner and operator of Teesport , PD Ports has a proven reputation for being a reliable and trusted partner , able to reduce the risk of supply chain disruption by offering an attractive alternative to ports in the south that are more vulnerable to congestion and delays .
The port operator has also pledged an ongoing programme of major investment to continue enabling cargo to transit smoothly and efficiently .
This investment includes , says Geoff , the new £ 350m Northern Gateway Container Terminal , which will be capable of handling more than one million containers every year , as well as continued investment in leading-edge equipment and infrastructure to meet customer demand .
Thanks to an innovative partnership with Europe ’ s largest port , Port of Rotterdam , new systems and technology at Teesport are also easing the burden of additional checks on trade with the EU . “ For many businesses , especially those in the north , using Teesport further reduces the risk of supply chain disruption by shortening the distance that goods must travel compared to using ports in the south ,” said Geoff .
“ The shorter distance makes delays caused by traffic congestion less likely and has the added benefit of lowering CO2 emissions .
“ These benefits are further supported by our expanding network of rail freight services , now in excess of 20 per week , offering the capacity to remove around 85,000 HGVs from the roads every year .”
An important strategy for businesses seeking to minimise the impact of supply chain disruption , suggests Geoff , is to build up inventory .
“ That ’ s why many companies are embracing the ‘ just-in-case ’ supply chain model in preference to the perhaps more familiar ‘ just-in-time ’ approach ,” he continued .
56 | Tees Business