The West Midlands is seeing an increasing level of investment in its logistics sector. The region will be home to the West Midlands Interchange (WMI) which at 8 million sq ft, will be the largest freight rail logistics development site in the UK. WMI is being developed by Logistics Capital Partners and Oxford Properties Group as joint venture partners. Smaller projects are also under way across the region, such as Prologis Park Hams Hall and Prologis Park Ryton, near Coventry.
The Office for National Statistics states the area around Birmingham that forms a ‘Golden Triangle’ for logistics has seen a rapid expansion of transport and storage businesses over the last decade. According to Savills, the supply of logistics space in the West Midlands in 2022 was 23 per cent higher than a year earlier.
To bring tangible benefits for the community, the logistics industry faces considerable challenges. The process of winning consent for the development of new logistics hubs is slow and expensive, with many projects taking years to be approved, partly because of resistance to the projects. A common misconception is that logistics will only provide low-wage and insecure employment. The view that logistics will only ever create a detrimental environmental impact also must be challenged.
Opposition to new logistics hubs can be overcome by showcasing the wide range of practical benefits of a larger logistics sector. As online retail grows, additional logistics capacity will be needed to ensure online deliveries are prompt and retail companies can manage increasing demand. Logistics companies can offer investment in local infrastructure and community facilities. For example, WMI is funding road upgrades in its local area, and creating two new community parks. There is an opportunity for the logistics sector to contribute to making the West Midlands a more vibrant place to live and work, with investment generated by projects such as WMI used to finance public facilities. To achieve this, logistics companies need to forge stronger relationships with local government, as well as community groups like sports clubs or youth services.
More needs to be done to promote the quality and quantity of jobs logistics creates.
These jobs are varied, from procurement and supply chain management, to sales, transportation, and finance. Logistics companies provide plenty of ways to train and upskill employees, through professional qualifications, certificates and apprenticeships – which the Apprenticeship Levy is helping to support. Contrary to popular perception, many jobs in the logistics sector are well paid, secure, and offer a variety of benefits under safe working conditions. Logistics companies are also increasingly offering flexible working, allowing their employees to tailor their jobs around family and caring responsibilities. Many West Midlands politicians have already spoken of the value jobs generated by logistics companies, including MPs such as Michael Fabricant, who approved of the expansion of an ASOS depot in his Lichfield constituency.
A larger logistics sector can play a key role in improving the environment and helping the West Midlands achieve Net Zero by 2050, challenging the view that it is environmentally harmful. WMI will play a key role in facilitating the transition from goods being transported by lorries to freight rail, helping to reduce carbon emissions, air pollution and congestion. The West Midlands is particularly well-suited to freight rail, because of the transformative investment in its rail network through the Midlands Rail Hub. HS2 will provide additional rail capacity in the region by having more passenger traffic run on its own track, leaving capacity on the conventional rail network for freight.
At the moment, meeting consumer demand for goods and reducing carbon emissions is difficult – you cannot have next day delivery whilst meeting Net Zero obligations with present-day technology. But because Net Zero is popular and a key priority for politicians, by demonstrating logistics’ environmental credentials, industry leaders can win government and public support. The logistics sector brings a wide range of benefits to the West Midlands. It creates jobs and training opportunities for people with a range of skills, economic growth and investment, and practical and environmental benefits. However, the region cannot take advantage of these benefits unless its local government leaders collaborate with Westminster, and industry leaders promote the industry and the positive impact it has for people.
If there is more consistent engagement between local government, industry leaders and West Midlands residents, there will be fewer dissenting voices when planning decisions are due to be made.
For more information on WMI, please visit: www.westmidlandsinterchange.co.uk
About Oxford Properties Group
Oxford Properties Group (“Oxford”) is a leading global real estate investor, asset manager and business builder. It builds, buys and grows defined real estate operating business with world-class management teams. Oxford has been recognised by Fast Company as one of the world’s most innovative companies for its approach to sustainability. Through innovative development and the deployment of technology and advanced data analytics in its existing portfolio, it’s reduced the carbon intensity of its global real estate portfolio by 35 per cent since 2015, ahead of its 30 per cent reduction by 2025 target.
For more information on Oxford, please visit: www.oxfordproperties.com
About Logistics Capital Partners
LCP is a top ranked pan European logistics development and asset management platform, founded by James Markby, Kristof Verstraeten, and Andrea Benvenuti. The group is established across Europe, with offices and projects in seven countries with strong relationships and projects on behalf of corporate occupier clients including Amazon, Kering, and XPO. LCP is known for its commitment to sustainable development and design, having recently developed a 1.8 million sq ft facility that achieved LEED (Leadership in Energy and Environmental Design) platinum rating, making it one of the highest rated buildings in Europe.
For more information on LCP, please visit: www.logisticscapitalpartners.com