New Integrated Transport Strategy needed to support export growth, state Irish Exporters Association

John Whelan , Chief Executive of the Irish Exporters Association (IEA), warned at Port Association conference today ;
‘’Major job losses in manufacturing industry will accelerate unless a new integrated transport strategy is put in place to enable Irish exporters to effectively transport key imports from the major Asian supply industries into Ireland and manufacture and distribute exports into Europe and America as well as back to Asia .’’

The IEA presented the Associations recommendations on a new Transport Strategy 2011-2013 to Minister for Transport Noel DempseyTD and pointed to the renewed growth in world trade and although Ireland was sharing in that growth, new competitive threats were now evident . Global trade growth has been of the order of 25% for the first 6 months of this year , but most of this is being driven from the rapidly growing emerging economies of Asia, and South America. Ireland recorded growth of approx 5% , hence we are loosing market share . To reach these fast growing distant markets the submission to the Department of Transport by the IEA stresses that a ‘New Integrated Transport Strategy’ for the period 2011-2013 must be put in place as a matter of urgency to improve substantially the logistical efficiency of our transport systems for key materials into Ireland as well as efficient exports out of the country, if Irish exporters are to competitively reach these more distant markets in the future.

The IEA Chief Executive stated;
‘’The question we must ask is will we hold onto manufacturing in Ireland if the main manufacturers believe it is not the best place to distribute from?
A second question we must ask ourselves, what do we do with employees whose employment skills do not match high end manufacturing requirements.’’

The IEA submission document pointed out ;

· There has been a lack of an integrated approach to transport policy and implementation over the past decade . This must be addressed in a New Transport Strategy .
· The National Spatial Strategy called for transport development of the nominate international Gateways. However, very soon after the Spatial Strategy was announced the rail freight lines to Waterford and Cork were discontinued by Iarnrod Eireann . Then the Port of Cork had it’s Ringaskiddy development plan rejected on the basis of not having a rail freight connection.
· Regional airport development was delayed and continues to be deferred by the failure to resolve the funding structure and the separation from the DAA .
· Seaport development has suffered from a failure to produce meaningful port policy to support industry requirements and has been frustrated by planning decisions based on narrow interest group political interference .
· With the emergence of the green agenda , with specific targets to reduce emissions in the freight sector , it is even more essential that a New Transport Strategy integrates sustainable transport initiatives while at the same time enhancing our economic competitiveness.
· In the Sustainable Transport Future document (Smart travel) , a key commitment was to ensure that the Department of Transport deals with freight policy issues in a more integrated manner and would prepare a specific strategy for the freight sector. The commitment in the Smart Travel document was also to reducing the environmental impact of freight while at the same time improving efficiency in the movement of goods and promoting economic competitiveness. Included in this were ;
>Realistic potential of rail freight
>Priority Freight routes
>Developing key logistics centres
>Potential of Intelligent Transport System and services to improve efficiency.

John Whelan went on to say ;
‘’While certain progress has been made in meeting these commitments , they are well below what is needed in the current global trading climate . It is essential that the New Transport Dept Strategy 2011-2013 puts these commitments as a core objective for rapid implementation, if we are to prevent further merchandise market loss and the consequent manufacturing industry job losses.’’

The IEA are very concerned that the emergence of European Distribution Centres will eventually pull away greater and greater proportions of the manufacturing activity , which will become the decision making centres for what product is manufactured where. There is also the secondary concern of ensuring a balanced range of jobs across the skills markets. And finally there is the concern that falling manufacturing volumes will reduce the base of transport and logistics services available, and further reduce our competitiveness as a manufacturing base and make it more difficult to continue to attract mobile international investments.

A review of the Netherlands strategy in attracting international corporations to locate their European Distribution Centres ,shows a very determined and focused approach to an integrated strategy between the Netherlands Foreign Investment Agency( the equivalent of the IDA Ireland), and the seaport , airport, road and rail providers as well as the logistics companies themselves.

The IDA must also review its strategy and ensure that a higher priority is given to European distribution centre value offering to foreign corporations.

Again the IEA recommend a review of the Netherlands strategy between taxation and distribution knowledge of products and physical warehouse distribution centres and an appropriate IDA strategy to attract European distribution centres to Ireland be developed using the Netherlands bench mark practices .

The New Transport Strategy 2011 –2013 must take into account this changed international situation and not merely reflect on internal transport issues. Major competitiveness loss will arise unless the strategy for Irish transport also addresses efficient international connectivity to the growing export markets and the key sources of inward supply.

ENDS