Chapter 7 - Aviation and shipping: delivering sustainable growth CM 6234
Aviation and shipping provide a vital connection to the wider world for both passengers and freight, as well as complementing land-based transport within the UK. They raise key strategic challenges in their own right, but also have a direct impact on policies for our other transport networks. We want to support the continued success of the UK in the global economy by facilitating the free movement of people and goods in and out of the country by air or sea, while minimising the effects on the communities around our major ports and airports and on the environment.
The challenge
Aviation
7.1 Aviation is an increasingly important form of transport, both for international travel and for long-distance journeys within the UK. As with other forms of transport, it is economic prosperity that is the primary driver of increasing demand. Advances in technology, competition and cost efficiencies have reinforced this trend. This has resulted in a five-fold increase in air travel over the last 30 years, with half the population now flying at least once a year.
7.2 This substantial growth in air travel has increased accessibility and opportunities for many people and is important to our economic growth, both nationally and in the regions. Demand is expected to continue growing - to between two and three times current levels over the next 30 years. The challenge is to balance the benefits - for people and the economy - of providing for this growing demand against the environmental impacts, both local and global.
7.3 The availability of sufficient airport capacity has the potential to become an important constraint on future growth across the UK without adequate and timely investment. Many airports in the UK are becoming increasingly congested as they attempt to cope with rising passenger numbers. In some cases, the capacity of terminals and runways is at, or near, saturation point.
7.4 The speed of delivery that air freight can offer is an increasingly important factor for many modern businesses, especially where just-in-time practices and high value commodities are concerned. The Air Transport White Paper expressed the Government's wish to accommodate the anticipated growth in the demand for air freight, subject to the satisfactory resolution of environmental concerns, especially in respect of night noise. Major airports such as Heathrow, Gatwick and Manchester will be at the forefront of growth in the "bellyhold" market. Airports such as Stansted, Edinburgh and particularly Nottingham East Midlands are also likely to attract significant volumes of freight-only aircraft.
7.5 The pressure for additional airport capacity needs to be balanced with the environmental impacts of air travel and the associated infrastructure needed to support it.
Shipping
7.6 Some 95 per cent by tonnage of the UK's international trade still travels by sea. Our geography, as an island amidst major shipping routes, coupled with our maritime history, put us in a strong position amongst world shipping nations. But the UK has to work hard to maintain its prominent role.
7.7 Shipping's strengths are in freight rather than in passenger travel. The passenger market is declining, even allowing for growth in the cruise sector, but total freight tonnage at UK ports has increased by 13 per cent in the past decade. The greatest growth is in container traffic - up 60 per cent over the past decade. And economies of scale, in both the ships themselves and in making best use of onward rail transport, mean that this traffic is increasingly concentrated. Some 75 per cent moves through just four ports, all in south-eastern England. It is here that the pressure on surface networks is also greatest. As in aviation, we face the challenge of responding to the pressures on port capacity, taking account of both the environmental impacts and the costs to UK business if direct deep-sea container services are lost to continental ports. Where there is a clear need we will support sustainable port development.
Where we want to be
7.8 We want to contribute to regional and national prosperity by facilitating the free movement of people and goods in and out of the country by air or sea. This will mean maximising the benefits of growth in aviation and shipping while responding to the challenges that this presents. Our starting point is to make best use of our existing airports and ports capacity. Where new capacity is needed we will aim to minimise the effects on the communities around our major airports and ports and on the environment.
Flows of tonnage through major ports in Great Britain, 2003
This map has been produced by DfT's GIS Unit. This map is based upon Ordnance Survey material with permission of Ordnance Survey on behalf of the Controller of Her Majesty's Stationery Office © Crown copyright.
Unauthorised reproduction infringes Crown copyright and may lead to prosecution or civil proceedings.
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What we have achieved
Aviation
7.9 The Future of Air Transport, published in December 2003, endorses a balanced approach. It recognises the importance of aviation to our national and regional economies, and seeks to reduce or minimise the impacts of airports on those who live nearby and on the natural environment. And it sets a goal of ensuring that, over time, aviation pays its external costs. It does not itself authorise or preclude any particular development but sets out a policy framework against which interested parties can plan ahead and which will inform and guide decisions on future planning applications.
Shipping
7.10 Shipping is a global industry. We focus on managing and mitigating the risks from shipping through co-operation at three levels: with our immediate neighbours in north west Europe, with our European Union partners more widely, and most importantly, in the International Maritime Organisation. Regulation led by governments only goes so far, so we actively engage with the industry so that it leads in raising standards. Our programmes for Quality Shipping and delivering the highest security standards have further enhanced the reputation of UK shipping. We have been particularly successful in boosting the UK-registered fleet. Our more business-friendly approach, including the introduction of the tonnage tax in 2000, has led to a trebling in size of the fleet since 1997.
7.11 The market has already brought forward a number of proposals for container port expansion which are being considered through the planning system in the coming year. We have already determined that the proposed development at Dibden Bay, near Southampton, should not proceed, and the potential environmental impact was an important factor in that decision.
7.12 Should other ports be given permission to expand, we expect promoters to contribute to the costs of surface access improvements required to service new developments.
What we are going to do next
Aviation
7.13 The Air Transport White Paper concludes that the first priority is to make best possible use of the existing runways. It also supports the provision of two new runways in the South East in the period to 2030 - the first at Stansted (2011-12) and the second at Heathrow (2015-20) provided strict environmental limits can be met. Land at Gatwick will be safeguarded for a new runway in case conditions attached to a new Heathrow runway cannot be met.
7.14 The White Paper also supports development at other airports including a new runway at Birmingham, around 2016, subject to appropriate environmental controls. It supports safeguarding land at Edinburgh for a new runway around 2020. And it supports additional terminal and airside development to make maximum use of existing runway infrastructure at a number of the larger regional airports, and additional terminal capacity at many of them.
7.15 We expect the airport operator to move quickly to develop the detailed design for a new runway and associated development at Stansted, working closely with local communities, airport users and all relevant agencies. At Heathrow we are working with stakeholders to consider how the conditions for further development (limits on air quality and noise and improvements in public transport access) can be met in a way that makes best use of the airport's two existing runways and enables the addition of a third runway as soon as practicable after a new runway at Stansted.
Environment
7.16 We will work to ensure that aviation meets its external costs, including its environmental and health costs. The aviation industry has a responsibility to reduce its impacts under the 'polluter pays' principle. The biggest impact in monetary terms is aviation's contribution to climate change and a solution to that end is set out in the Air Transport White Paper. We expect the aviation industry and international bodies to address the problem seriously, responding creatively to the common challenge of global warming.
Passengers at major airports in Great Britain, 2003
This map has been produced by DfT's GIS Unit. This map is based upon Ordnance Survey material with permission of Ordnance Survey on behalf of the Controller of Her Majesty's Stationery Office © Crown copyright.
Unauthorised reproduction infringes Crown copyright and may lead to prosecution or civil proceedings.
Department for Transport 100020237 2004 gisu040510yrp2
7.17 Well-designed economic incentives are an important mechanism for delivering the Government's environmental objectives, including those for aviation. Potential economic instruments include environmental charges, taxes and trading schemes. These measures use price signals to drive improvements, and can help to encourage the development and use of environmentally beneficial technology. Economic instruments can help ensure that aviation bears the external costs it imposes on society(1). Any such instruments must be legally robust and deliver real environmental improvements.
7.18 There is a range of other environmental factors associated with aviation which are more difficult to quantify in monetary terms. The White Paper sets out specific proposals for the development of new economic instruments. Measures available include noise and emissions-related landing charges, 'en route' charges to address specific pollutants, and emissions trading.
7.19 Emissions trading is emerging as a key instrument in the drive to reduce greenhouse gas emissions. It gives companies the flexibility to meet emission reduction targets by reducing emissions or by buying allowances from the market, thereby combining environmental effectiveness with economic efficiency. It delivers real environmental benefits. We want to see aviation included in the European Union emissions trading scheme in 2008 or as soon as possible thereafter. We will make progress towards this a priority during our presidency of the European Union in 2005. We also reserve the right to act unilaterally or bilaterally with like-minded partners if progress towards tackling aviation greenhouse gas emissions at an international level proves too slow. Finally, we will monitor progress in bringing forward blight and noise mitigation schemes at airports.
Surface access
7.20 The Government made clear in the Air Transport White Paper that airports are part of our national infrastructure and need to be planned and developed in that context. Transport delivery agencies, regional bodies, local authorities and the devolved administrations will need to take account of likely future airport development when they are drawing up their transport plans. However, we expect airport operators to share our goal of increasing the proportion of passengers travelling to airports by public transport. This can help reduce road congestion, air pollution and other environmental impacts. Operators will need to include adequate provision for surface access measures in their future proposals for airport expansion.
7.21 Further development of Stansted airport will be supported by improvements to the M25, M11 and A120 that have already been announced. Surface access to Heathrow, and in particular the scope for enhancing public transport, is an important component of the work to examine the prospects for expanding the airport whilst meeting environmental objectives.
7.22 Elsewhere, airport operators will also be expected to work closely with the Department for Transport and its agencies, the devolved administrations, transport providers and relevant regional and local bodies to bring forward surface access improvements needed to support future development.
7.23 The White Paper sets out our approach to the contribution we expect airport operators to make to the costs of up-grading or enhancing road, rail or other transport networks and services to cope with additional passengers travelling to and from growing airports. Public funding for specific schemes will need to be considered on a case- by-case basis, having regard to the relevant value for money and broader spending priorities. But airport operators should engage with potential funding partners as soon as the schemes that are needed to take forward their development plans are clear.
Shipping and ports
7.24 Shipping strategy is inevitably heavily influenced by global market trends. We will make every effort - not least through maintaining and increasing our skills base - to ensure that our shipping industry remains a major player globally to support the success of the UK economy. The UK will continue to work proactively in the International Maritime Organisation (IMO) and the European Union for more targeted and effective regulation. We will maintain our lead role in pressing for the highest standards of security in ports and onboard ships.
7.25 We will facilitate the use of electronic aids to navigation, complementing traditional aids where necessary, and building on the General Lighthouse Authorities' own vision statement for 2020. Increasing reliance on GPS has already led to major changes in the provision and operation of aids to navigation. Further new navigation systems are now coming on stream, such as Automatic Identification of Ships (AIS), and, by around 2010, Europe's Galileo satellite navigation programme, in which the UK is committed to playing a full role.
7.26 We shall also encourage UK business to exploit opportunities for greater diversification in short-sea roll-on, roll- off (ro-ro) capacity, reducing the need for long connecting road or rail journeys. This will mean active involvement in European programmes for short-sea shipping, although we shall resist any public funding for shipping services as opposed to infrastructure.
Environment
7.27 Although shipping is often recognised as a sustainable and relatively environmentally friendly form of transport, it is important that efforts are made to reduce the negative impacts it can have on the environment. The UK has played an active part in developing measures to protect the maritime environment, in the forum of the IMO and within the European Community. These measures address a wide range of issues, including ballast water, anti- fouling coatings, atmospheric emissions and an international oil pollution compensation regime. We are currently writing the legislation that will enable the UK to ratify the agreement of annex VI of the MARPOL Convention, which will regulate emissions of sulphur oxides and nitrogen oxides from shipping.
Port development
7.28 By autumn 2005 we expect to have taken decisions on the outstanding proposals for major container port development. At that point we will take stock of how the ports industry is set to meet the country's overall needs in the longer term. We will therefore review our policy framework to keep track of wider changes affecting ports and to ensure we continue to have the right basis for their sustainable development. The review will clarify the Government's role in the ports sector, and address key issues such as:
- how we should respond to forecast global growth in shipping traffic by providing new port capacity;
- how the pressures on capacity are set to vary at the aggregate national level across key sub-sectors such as containers and ro-ro, and the ease with which such pressures might be addressed; and
- how to ensure that the road and rail improvements needed to serve future major port developments are brought on stream effectively.
7.29 We will also update the Project Appraisal Framework for Ports(2), published in 2003, in the light of experience so far.
Conclusion
7.30 The Government is committed to strong aviation and shipping industries playing their part in our economic prosperity while ensuring that the impact on the environment and local communities is minimised. This strategy will provide the framework within which this can be achieved.
(1) In March 2003, the Department for Transport and HM Treasury published a report Aviation and the Environment: using economic instruments which provided estimates of monetary values of external costs relating to climate change, local air quality and noise.
(2) A Project Appraisal Framework for Ports, Department for Transport, April 2003, available for download at www.dft.gov.uk
