Contribution
It is a pleasure to serve under your chairship, Ms Jardine. No doubt, given what I am about to say, everybody will wish I was confined to four or five minutes rather than 10, but there we go.
I commend the hon. Member for Truro and Falmouth (Jayne Kirkham) for securing a debate on this vital topic. We have seen so many parts of the country represented in the debate, demonstrating that the UK is a proud maritime country with a strong history in global trade, and that maritime is critical to our future. She talked about that maritime history and the key role of ports and our coast for defence, offshore wind and the wider economic impact.
The hon. Member for Strangford (Jim Shannon) talked about the benefits of the cruise ship sector to his constituency and the impact of the Windsor framework and Brexit on trade. The hon. Member for East Thanet (Ms Billington) talked about the sad demise of Ramsgate as a port, and the importance of coastal regeneration and a wider coastal economic strategy. The hon. Member for Brigg and Immingham (Martin Vickers) rightly talked about the critical role that Immingham port plays in so many freight imports, particularly bulk cargo, and how we need to invest in gauge clearance and rail freight. I will be saying a lot more on that.
The hon. Member for Bootle (Peter Dowd) talked about the critical importance of engaging local communities and doing what we can to reduce the impact of the vast number of lorries that serve our ports on local roads. Finally, the hon. Member for Southampton Itchen (Darren Paffey) belatedly started a contest for best port in the country, but alas, we would have to rerun the debate to find out which would win.
Our ports are central to economic growth. They are our domestic industry’s gateway to the global trade network. Ports contribute billions annually to our economy and support thousands of jobs across coastal communities both directly and indirectly. Our ports should be viewed as hubs: the entry point into an effective, joined-up transport system spanning out across the country. They should be supporting British business, not hindering it.
The United Kingdom has 51 major ports. Our port ecosystem handled 423 million tonnes in 2024. Around 86% of our international freight by weight is transported by sea, but still, 70% of freight to and from our ports moves by road, compared with around 10% by rail and 20% by coastal shipping. Roads carry over 300 million tonnes of port freight nationally.
The national policy statement for ports provides the planning framework for major infrastructure projects, and the revised 2025 NPS set out aims to support expansion of port capacity, streamline planning decisions, align with decarbonisation and energy goals and integrate with national transport planning. The Transport Committee’s scrutiny of the NPS found aspects of it unclear or incomplete, particularly its intention to streamline planning decisions for major port developments. The Committee recommended that ports be designed as critical national priority infrastructure, which would help to speed up planning decisions. It also found the NPS to be weak on port connectivity, with insufficient emphasis on rail freight and integration with wider transport networks—a key theme of this debate.
Too often, the onward connectivity from ports around our country is not up to scratch, as the rail line or, more often than not, the road directly linking ports is the weak link in the system. A key barrier to getting more freight on rail is the ongoing lack of electrification. That is not particularly for decarbonisation reasons but simply because freight hauled by an electric locomotive accelerates much faster, which can help to accommodate freight trains amid passenger trains far more easily.
There are many examples of short bits of railway that could be electrified to realise some of those benefits. The three miles of the London Gateway branch that are not electrified are one of the best examples. Many freight operators run freight trains using diesel locomotives for hundreds of miles underneath electrified lines simply because those three miles are not electrified. DP World has offered to pay half of the estimated £20 million cost of electrifying those three miles.
There has been a scepticism in this Government and previous Governments about railway electrification because previous schemes have gone over budget. But Sir Andrew Haines, former chief executive of Network Rail and current chairman of DFT Operator, gave testimony to the Transport Committee that the best way to bring electrification costs down is by committing to a rolling programme so that the supply chain gains maturity. What better way to kick off that rolling programme than with a commitment to doing the three miles of London Gateway? The three miles have relatively little in the way of bridges and tunnels; it is a great opportunity for the supply chain to get started. Who knows? Perhaps the Minister, in his speech, will give that commitment to spend £10 million, matching DP World’s £10 million, make a great name for himself and start a railway electrification revolution in this country that would also benefit Felixstowe, Immingham, Southampton, Middlesbrough, Seaforth container terminal and many other ports. I look forward to hearing that in his speech.
If we want to support business and boost the stagnant economic growth that plagues the country, we must invest not only in our ports but in the roads, railways and networks that connect them to the rest of the country. The private sector is willing to do that: I have outlined DP World’s offer but another good example is GB Railfreight, which has invested £150 million in bi-mode—meaning they can run on diesel or electric—Class 99 locomotives. GB Railfreight has said to me that it would like to run those locomotives on electric power far more than it will be able to when they enter service this summer because of the lack of electrification of our network.
Our approach to this issue contrasts very unfavourably with that of other countries. The Netherlands built the Betuweroute—a dedicated freight-only railway serving the port of Rotterdam—both to boost rail freight capacity and to take freight trains off the existing network, enabling the Netherlands to run its very high frequency passenger services.
Another big benefit of moving freight off the roads is that it reduces the need to invest in some very expensive and disruptive road schemes. The A34 through my constituency, in Oxfordshire, is becoming more and more congested. There are lots of reasons for that but high lorry volumes are a significant factor, notwithstanding the good progress—highlighted by the hon. Member for Southampton Itchen—that DP World has made in getting more traffic from Southampton off the road and on to rail.
Of course, transport is not the only thing holding back our ports. We all saw images of miles of lorries queuing outside Dover. Earlier this year, transport businesses were still describing the ongoing “pure hell” of Brexit paperwork in evidence to the Business and Trade Committee. We need to cut the Brexit bureaucracy and red tape to enable our port sector to really thrive. The Public Accounts Committee found a
“Clear increase in costs, paperwork and border delays”
for UK businesses after Brexit. The National Audit Office similarly concluded that businesses face
“additional costs and administrative burdens”
due to new border processes. At least £4.7 billion has been spent implementing border arrangements, and around 39 million customs declarations have been required annually, adding significant friction. UK ports handled around 10% less cargo in 2024 compared with 2019, the last full year before Brexit. That decline has been attributed to Brexit and wider economic factors.
We need to make importing and exporting more efficient, cutting the time and money wasted at ports on unnecessary forms, checks and mountains of paperwork. To do that, we need closer ties with Europe. That is why the Liberal Democrats are calling for a bold new partnership with the European Union, including joining the single market and customs union. That would tear down barriers for businesses and boost trade with Britain’s biggest market.
Labour may have hemmed itself in with its current red lines on Europe, and who knows what the new Prime Minister—whoever that may be—will do, but we believe we have a significant part of the answer to resolving the country’s stagnant growth. Our ports would be free again to fulfil their potential, removing the bureaucracy and getting Britain trading again. It would also reverse the disastrous series of policy blunders that have put a boot on the necks of businesses, including the rise in employer national insurance contributions.
Our ports should be not the Brexit bottlenecks they are today, but the engines at the heart of economic growth, as so many hon. Members have eloquently articulated. I look forward to hearing the Minister’s comments.