Tuesday 24 January 2023

Riveroak statement after Appeal was refused

RSP's statement is in black

Editor's comments in red

Steer report "Steer Assessment-of-the-value-of-air-freight-services-to-the-UK-economy-Final-Report-v22-Oct-2018-b-STEER can be downloaded from here


Manston: an airfreight hub for London & the Southeast

Manston Airport is a unique and important transport infrastructure asset. An illustrious history as a Battle of Britain airfield and an exciting future as a vibrant hub for international airfreight, delivering economic prosperity and employment across Kent and protecting a strategic aviation resource for the nation.

RSP’s proposals for the redevelopment of Manston Airport as a dedicated airfreight hub have now been approved by the UK Government as a Nationally Significant Infrastructure Project.

Once reopened, Manston will help the UK trade across the globe, importing vital and time-sensitive goods, including fresh fruit and medical supplies, providing air freight operators with a realistic alternative to the overcrowded London airports, easing the considerable road congestion caused by lorries carrying freight through the channel tunnel to European airports and improving resilience and boost economic growth and jobs in Kent.

Ignoring the very real increase in HGV movements along the Thanet Way onto an already overcrowded A2/M2 corridor and the QE2 Bridge across the Thames. As Manston isn’t connected to the fuel pipeline Aviation fuel will have to be trucked from the refinery at Canvey yet again adding to the congestion at the Dartford river crossing

Manston Airport is also unique in that it is deliverable; it will be ready to open its initial phase in less than three years.

Not a spadeful can be turned until the DCO conditions are complied with including the moving of the HRDF. There are a number of conditions that need meeting before development starts. Please read the DCO document pages 35-44. In all 24 conditions MUST be met.



 Upon opening it will:

Immediately absorb the increased demand for air cargo post COVID and Brexit and relieving capacity pressure on key London airports as they focus on passenger markets.

Provide an operating base for UK traffic currently lost to EU airports and create future capacity to meet global freight growth, adapting to changing market requirements using the latest technology.

When fully built, Manston will be able to handle in excess of a million tonnes of freight a year.

Very careful wording here, “will be able to handle” is light years away from “will achieve” in fact the Total tonnage of airfreight in the UK in 2019 (before Brexit and Covid) was 2535422 tonnes and 2020 and 2021 were 21% and 9.38% below that level.

The Development Consent Order – granted August 2022

The Government has granted the Development Consent Order because our plans for Manston are consistent with all relevant Government policies, including the Airports National Policy Statement, the Aviation Policy Framework, General Aviation strategy and Transport Decarbonisation Plan, and recognising the contribution Manston will make to resilience in UK’s under-pressure freight transport sector.

In addition, Manston will make a significant contribution to the decarbonisation of aviation and so is aligned with the Government’s 2022 Jet Zero consultation outcomes.

The Government-approved Development Consent Order provides consent for:

19 widebody parking stands

4 narrow body passenger stands 65,000m2 (750,000ft2) of cargo terminal

100 ha of non-aircraft pavement (247 acres)

57 ha (140 acres) of aircraft pavement 105,000m2

(1.1m ft2) of landside development

8 business aviation hangers

3 recycling hangars and aprons

Securing flight procedures for Manston

Before Manston can reopen, new air routes must be approved through an airspace change process set out in the Civil Aviation Publication (CAP) 1616. The process consists of seven stages and the Manston Airport proposal has already reached Stage 3.

But only after 3 years of work. Doesn’t bode well for the next 4 stages

RSP has developed a number of options for the flight procedures that will be required when the airport re-opens. These options will be subject to a full public consultation, which is currently programmed for early 2023.

Following this consultation, we will be able to submit our proposal to the CAA for consideration, with a decision expected during the course of 2024.

Why Manston?

1. The global air cargo market is growing

Ecommerce giants are transforming the air freight market, with their share of total sales reaching 25% very soon.

This is inspiring the growth of specialist freighter hubs. By way of an example, Amazon now has 85 aircraft with a further five on order and are expected to have 200 by 2028. In Europe alone, Amazon is making 38 daily flights serving eight cities.

But have recently withdrawn their aircraft from their hub at Southend and have stated they will truck goods in instead as cheaper

2. The UK is reliant on air cargo for economic growth and resilience

No it isn’t airfreight only accounts for ½ of 1% of all shipped tonnage with less than 1% annual growth over the last 20 years. In fact pure freighters atms have dropped by 50% in the last 20 years with the growth of bellyhold mainly at Heathrow.

Maximising international import/export, post-Brexit and post-COVID, is critical to the UK economy and the UK economy is increasingly reliant on airfreight to achieve this. Air cargo provides the immediacy that the UK relies upon for perishables, medicines and other time-sensitive goods

Dedicated freighters carry over 50% of the world’s air cargo. Airframe manufacturer Boeing forecasts global freighter fleet to grow more than 60% to 3,260 over the next two decades.

Boeing certainly do but their forecast for the UK market is less rosy.

 

Prior to COVID, more than £2 billion was lost to the London and Southeast England economy each year due to air freight diverted to Europe due to lack of capacity. Dedicated freighters could not find suitable slots anywhere in London and the Southeast – leading to 70% of freight flying belly hold in passenger aircraft.

This statement shows a complete lack of understanding how aircargo is managed. Also it should be apparent that during operations Manston would have been a closer airport than Liege (European aircargo hub) but nothing came to Manston despite its inactivity.

COVID has reinforced the cargo sector – and created a cultural shift that underpins the Manston strategy. One key observation from the COVID-19 crisis has been the importance of main deck freighters in airplane fleets and the global air transportation system. Freight use of passenger slots is unsustainable and inefficient, and many passenger airports lack air freight facilities.

Again a lie. Heathrow was the Premier airfreight hub (2/3rds of aircargo came through Heathrow in the belly of PAX) however with lockdown and the grounding of PAX much freight was directed on to pure freighters. Total aircargo dropped by 21% in 2020 due to this lack of capacity. However 2021 showed a partial recovery (only down 9.38% on 2019 levels) as PAX resumed.

In terms of the security of the UK economy, it is clear that cargo hubs can increase our resilience as an island nation: COVID-19 showed increasing critical importance of dedicated air cargo in protecting supply chain dependability.

3. Manston has capacity for growth

Manston has a strategically useful location by road, rail freight, air – and water. It has a full length, existing runway 2,748m (9,016 feet), capable of handling all widebody freighters and with a phased construction plan already developed it can be ready to open in under three years.

Manston has had these advantages ever since the War Department built the concrete runway 1945/46. I wonder why no hard headed business people have taken advantage?

In addition, it benefits from proximity to (but remains just outside of) London and Southeast airspace.

So is Southend where Amazon has just walked away from

The airspace over London and the Southeast is among the busiest and most congested in Europe – with the exception of the airspace over Manston. The London Terminal Manoeuvring Area (LTMA), west of Manston, handles aircraft using Heathrow, Gatwick, Stansted, Luton, Southend and London City airports – plus Biggin Hill and Farnborough airfields.

And Manston will add to if it ever they get granted a licence.

The airspace above Manston is much less congested, with aircraft at a much higher altitude. It also has capacity for significant future growth.

Airfreight – unable to access slots within the LTMA – is regularly trucked through the Channel Tunnel or via ferry to airports in mainland Europe to fly long-haul.

All 3 main airports for freight are well able to give slots to freight aircargo. That is Heathrow (Bellyhold is nearly back to pre-pandemic levels), East Midlands and Stanstead have space available.

 The challenges of Brexit have motivated UK importers and exporters look for alternatives to the practice of trucking through the Channel crossings to and from airports in Northern Europe.

Airfreight is still depressed, 2020 was down 20% on 2019 levels and 2021 down 9.29% on 2019. Trucking is still 4-5X cheaper than airfreight.

From 2025 they will instead be able to direct their business to Manston as the only airport offering substantial numbers of slots and capacity.

See above. This statement is wishful thinking

4. Other London and Southeast airports cannot handle the increased demand for dedicated freighters

Both EMA and Stanstead have stated they have capacity both now and into the future

Boeing categorises congestion in London airports as serious. The existing London airport runways will soon be back at capacity, and they are prioritising passenger traffic over freight movements.

Heathrow’s third runway was first proposed in 2006 but will take at least another decade to deliver

Stansted Airport has been granted consent to reduce cargo movements in favour of increased pax movements

Again this is a deliberate misuse of Stanstead’s reduction in aircargo ATMs. What they asked for is permission to change cargo for PAX as aircargo had failed to grow at the forecasted rate and had never reached 2/3rds of the allocated ATMs

Passenger traffic growth will absorb almost all UK runway capacity

Again this is a lie as 4 airports are currently unviable. That is Cardiff, Southend, Doncaster/Sheffield and Prestwick and have struggled to find new owners

Current closest alternative cargo airport with realistic capacity is three hours’ drive from the London M25 orbital motorway

Which is irrelevant as the main central warehousing for freight is centred on the “Golden Triangle” in the Midlands. Manston is 3 further hours away from this “Golden Triangle”.

In addition, there are extreme difficulties in obtaining planning consents for new airports in the UK. So the solution to the capacity crisis can only realistically come from an airport adjacent to, but outside of the London Airport system that is already built and can be ready to go quickly.

Like Southend

5. Manston will be built to be Carbon Net Zero

Aviation, and in particular the cargo sector, is not a luxury that the UK economy can live without and so it is incumbent on airlines, airport operators and governments to work together to protect its vital role in the economy, whilst simultaneously striving towards sustainability.

The Government has made it clear that it requires ‘high innovation’ of aviation to meet carbon reduction targets – something which we have willingly committed to delivering within the terms of the DCO, based upon the significant levels of investment, innovation and testing on alternative aviation fuels and technologies underway in the global aviation community.

The facilities at Manston will be built to make an active contribution to Government carbon reduction targets, with the aim that airport operations are Carbon Net Zero operation by 2035 through the use of smart and energy efficient buildings, the use of electric apron vehicles and autonomous vehicle technology to drive efficiency, the lack of airspace congestion above Manston and much more.

In addition, we are also exploring how we can best utilise the airport’s river connections into central London, the use of bio/synthetic fuel, hydrogen and charging for electric aircraft and whether we would be able to provide any renewable energy surplus to the local community.

Building a strong economic future for Kent

Manston will deliver sustainable economic growth and opportunity in a UK gateway region, supporting regional regeneration, inward investment and employment targets. By Year 5 we forecast 2,150 jobs on the airport site and 13,100 indirect/catalytic jobs.

RSP is meeting with a wide range of other potential partners and stakeholders across Thanet and East Kent to explore opportunities and develop partnerships that will bring additional benefits to local people from our commitment to reopening the airport.

The airport will provide focused training and career development for students and adult learners through progressive education and business partnerships, building on the work established by the Manston Skills and Employment Board (MSE-B) to ensure people from East Kent have the right skills to take the wide range of jobs that will be created by the reopening of Manston.

The MSE-Board considers the future employment and skills needs of the airport following DCO approval, from planning and construction through to operation.

The aim of the MSE-B is to ensure that Manston and associated businesses will have access to well-trained and experienced potential employees across a diverse range of skillsets. The MSE-B will do this by ensuring a comprehensive range of services are available to young people, job seekers and employers in the area around the airport.

In addition to RSP, the MSE-B membership currently includes representatives from:

Thanet District Council

Dover District Council

Canterbury City Council

Kent County Council

EKC Group

Canterbury Christ Church University/EDGE Hub

Kent and Medway Skills Commission

The Education People

Jobcentre Plus

Discovery Park

Thanet and East Kent Chamber of Commerce

Board representation is available to unrepresented local councils and business sectors.

Manston is the right solution, in the right location, at the right time

 

Appendix 1

Steer report 2017

“Market Analysis

Bellyhold cargo at Heathrow accounted for over 60% of total UK air freight volume in 2017, with forwarders and shippers utilising its extensive intercontinental passenger network. Over 30% of total air freight was shipped on US routes and most of the remainder on Asian routes. Freighter and integrator cargo is concentrated at East Midlands and Stansted, which, in 2017, together accounted for over 20% of all UK freight and the majority of freighter (60%) and integrator (79%) activity. Integrators accounted for over 90% of freight at East Midlands. At Stansted, integrators FedEx and UPS were the largest cargo airlines, although intercontinental freighters such as Qatar Airways, Cargolux and China Southern also accounted for a large share of volume.

In the last 15 years, aside from the decline in 2009 due to the fallout from the financial crisis, total volumes have remained relatively flat, growing with a compound average growth rate (CAGR) of +1.2% over the 15-year period with volumes only surpassing the pre-crisis peak in 2016.

North America was the largest destination market (accounting for 32% of volume), followed by Europe (25%, 18% of which was to the EU) and, South and East Asia (19%). Heathrow, and to a lesser extent Gatwick, handled predominately North American and Asian freight, benefitting from extensive passenger networks. The large European share of volume at East Midlands reflects the airport’s role within its integrators’ networks. Similarly, at Stansted, much of the freight volume is on European and North American routes.”

Trucked freight

2.24 Alongside the business models described above, a significant amount of air freight is transported in customs-bonded trucks between the UK and continental Europe and is classified as air freight with an assigned flight number. Freight is often flown to continental Europe, particularly from Asia, as there is often more available air freight capacity than to UK airports, partly due to lack of available slots for freighter aircraft at Heathrow. The freight is trucked as bonded freight to avoid having to undergo local customs procedures so that importers only need to deal with the UK customs authorities rather than investing in systems to deal with multiple customs authorities. This represents an inefficiency from the perspective of the UK economy as whole. See also the Case Study on consumer electronics imports at the end of this chapter.

2.25 In contrast to goods from Asia, Heathrow stated that goods destined for North America are also often trucked to the UK, in particular Heathrow, from continental Europe in order to take advantage of cheaper rates from the UK on North American routes. As Heathrow is the primary European hub for North American passenger connections, there is a significant level of bellyhold capacity available, which means air freight rates are cheaper compared to other European airports.

2.27 One notable feature of the UK air freight market is the huge importance of Heathrow and its surrounding freight facilities, with most forwarders having major consolidation centres in the vicinity of the airport, as noted in paragraph 2.19 above. Very significant volumes of air freight are trucked to such facilities near Heathrow, processed and then trucked to another airport, either in the UK or in continental Europe, without ever flying in or out of Heathrow itself.

2.28 Another common model is freight arriving from long haul origins (such as China or the US) flown into Heathrow and then being trucked to other airports (e.g. East Midlands) to be flown to continental airports overnight, leading to a symbiotic relationship between the different airports.

2.29 Both of these models mean that the resilience of the road network to and from airports is an important factor in reliability of service. To a large extent, they reflect the constraints on the UK air freight industry"

 


1 comment:

  1. I'm amazed you didn't comment on Manston's Net Zero aspirations. Under current marketing rules companies claiming green credentials such as 'Carbon Net Zero' must show how they are achieving this across all scopes applicable to their business. The airport itself may be net zero if it uses renewables for all energy, transport (including staff and customer movements) and building (concrete production being a major carbon emitter) - all extremely unlikely - but also to claim carbon net zero its operations must also be carbon neutral. This means aircraft, fuel delivery, everything. And also the construction of the airport itself. Put simply, no airport can be net zero, even if built from scratch, until all ATMs are themselves net zero. So called sustainable aviation fuel isn't, large scale electric or hydrogen planes will remain a pipedream for decades, and carbon offsetting has come into serious disrepute. No way is Manston capable of being green.

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