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![]() Railhub Archive | ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() ![]() Department of TransportSir George Young welcomes new findings on transport infrastructure, business costs and business location
from improvements in transport infrastructure, according to new research published today. The study, carried out by Ernst & Young, analysed the impact of transport infrastructure on business costs and business location. It is released to coincide with the publication of the Governments Green Paper Transport: The Way Forward. The research was jointly funded by the Departments of Trade and Industry and Transport. It surveyed 250 large companies and reviewed previous studies. The research shows that over the last five years: - many businesses have seen congestion and journey unreliability as problems which can affect efficiency, although they have been effective in responding through more efficient use of infrastructure, and other measures such as better vehicles and driving techniques; - businesses which have contracted out distribution to specialist haulage and distribution companies have experienced constant or falling road transport costs. Firms running their own fleets, companies who distribute mainly in urban areas, and service sector companies are more likely to have experienced increases in costs; - The degree to which new transport infrastructure has affected firms costs is difficult to evaluate. However, 62 per cent of companies interviewed said they had benefited from particular transport infrastructure improvements completed within the last five years; - rail freight has become significantly less competitive; - proximity to the transport infrastructure was important for getting a location on the short list of possibilities, but other factors such as labour and property costs were more important in choosing between locations; Commenting on the findings, Transport Secretary Sir George Young, said: The Government has attached a high priority to improving our understanding of the extent to which transport affects competitiveness. This study has helped clarify several of the issues which were central to the Transport Debate. Good transport infrastructure affects businesses operating costs and the location decisions of companies. I am confident that our rail privatisation programme will considerably improve the competitiveness of rail freight. The Government recognises the importance of effective use of transport infrastructure rather than the provision of additional infrastructure. Sir George also confirmed that additional research will further improve the understanding of the links between traffic growth, transport infrastructure and economic growth. NOTES TO EDITORS 1. The study is further discussed in the Green Paper Transport: The Way Forward (CM 3234), which was also published today. 2. In the second Competitiveness White Paper (CM 2867), 1995, the Government made a commitment to undertake research based on case studies of the impact of the transport infrastructure system on business costs and business location decisions. 3. The Ernst & Young study sought answers to three specific questions; namely what businesses saw as their transport costs and how important they were to total business costs; how firms think that these costs have changed over the last five years and how much of any change is due to infrastructure changes; and how have firms responded to changes in transport costs. 4. It is intended that the Standing Advisory Committee on Trunk Road Assessment (SACTRA) should undertake a further study into the links between traffic growth, transport investment and economic growth. 5. The report Transport Infrastructure, Business Costs and Business Location was prepared jointly for the Department of Trade and Industry and the Department of Transport by Ernst & Young. Copies of the study are available from Melanie Kill at Ernst & Young, Becket House, 1 Lambeth Palace Road, London SE1 7EU (Tel. 0171-931-5072). The main report is priced at #25. # = pounds sterling
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