Transport Challenges in 2012

Transcription

1 Transport Challenges in 2012 Issue One July 2011 Contents Page Introduction to the Challenge 2 Traffic Management Timetable 4 Business Impact & Planning 5 Policy Update 7 Further Information 8

2 Introduction The Summer of 2012 will be an exciting time for London, with the Queen s Diamond Jubilee, the Olympic Games and Paralympic Games taking place between July and September. DHL is committed to ensuring the period is a success for our customers by driving business continuity initiatives through what will be a challenging period of operation. It is clear that these major public events will cause disruption to the transport network and that the supply chain industry and those who rely upon it may be heavily affected during this period. Traffic management measures and restrictions including dedicated Games Lanes, road and junction alterations, diversions, parking and loading restrictions, artificial bottlenecks and increases in the level of parking enforcement will all have a major impact on supply chains. Indeed on some key routes the goods delivery window will be limited to between midnight and 6.00am. In addition to the traffic management measures, a suite of security restrictions will be enforced during the Summer of 2012 when London will go into Lockdown Mode. This will include an increase in roadside stop and search activities, restrictions on the importation and movement of hazardous goods, such as petrochemicals, and security cordons around sensitive areas such as the IOC Hotels. Moreover, all goods destined for Olympic venues will be subject to security screening and all carriers making these deliveries will be subject to a Vendor Certification Program, which will require a host of security upgrades to supply chains and criminal record checks for employees. Locations immediately adjacent to Olympic venues will also be subject to delivery and security constraints in the guise of Local Area Traffic Management and Parking Plans It is DHL s key objective to ensure that adequate planning, support and response measures are in place throughout the period, to enable our customers to continue with business as usual, and to cope with the anticipated increase in business volume and activity that will naturally occur as a consequence of the estimated 800,000 additional visitors per day in London. DHL is actively engaged with key stakeholders, including Transport for London (TfL), the ODA and the Boroughs to ensure that we can have an input to decisions which will minimize the impact for our customers. 2

3 Introduction What next? DHL has been working with key stakeholders since 2010 to raise visibility of the likely impact the events in London in 2012 will cause. DHL is actively working with its customers on a site-by-site basis to develop plans to support their business operations during the summer of It is likely that a number of different scenarios will be implemented to minimize disruption to DHL s customers, including earlier forecasting; pre-stocking; utilising consolidation centres and agreeing revised delivery schedules to take into account the restrictions being imposed. Interesting 2012 facts: 10.8 million tickets for Olympics and Paralympics 17,800 athletes 22,000 media Increase in consumer spending expected to top 750 million Up to a 1,000 boats will gather on the Thames to celebrate the Queen s Diamond Jubilee. 3

4 Traffic Management Timetable Traffic management measures and restrictions will be implemented as part of the Olympic and Paralympic Route Networks (ORN & PRN). Further information on ORN & PRN can be found by here. Ongoing Design and development of plans by the Olympic Delivery Authority (ODA), in conjunction with local and highway authorities. October October 2011 Publication of local proposals, on a borough by borough basis. Summer 2011 Publication of Traffic Regulation Orders (TROs) and commencement of a statutory formal consultation process on TROs and ongoing engagement with local authorities, businesses, residents and other affected stakeholders. July 2012 Operation of the ORN and other measures designed to ensure the successful outcome of the major sporting events. September 2012 Removal of the ORN and PRN measures. 4

5 Business Impact Assessment and Operational Response Planning With the detail of the traffic and security restrictions having begun to emerge during the early part of 2011, DHL Supply Chain now has a well established and comprehensive project in place for assessing the impact to our own and our customers businesses and planning accordingly. DHL s Approach Our objective for our customers is to ensure: Business as usual for our customers throughout the Games period for routine volumes That the anticipated spike in volumes that the Games generate is managed to service-level expectations That operating costs are managed and controlled as closely as possible to normal levels. 5

6 Business Impact & Planning Customer Briefings Ongoing The process commenced in May with a series of briefings to over 300 operational management and leadership personnel, detailing the traffic management and security measures to be enforced during the summer of 2012 and the operational and business challenges we face. Immediately afterwards we commenced a customer communication process, and our individual account teams are now actively briefing customers. At the same time we started to assess the impact on a site-by-site basis. Each operational site team is currently looking in detail at the restrictions and specifically assessing the potential impact to its operations and customer service. In many cases this is complete and the findings are being discussed with our customers, and in conjunction with our customers we are beginning a process of solutions planning. Impact Assessment Supporting these efforts is a central project team that is responsible for monitoring and communicating further developments in the detail of the Olympics restrictions and assisting DHL Supply Chain operations and customers in all aspects of the impact assessment process and solutions planning process. DHL Supply Chain has significant operational scale, and whilst many of our operations will face severe challenges through the Games period, there are equally many that will be less affected. We will ensure that this scale is brought to bear in providing support and solutions to our customers; cross-operational equipment and capacity utilisation, joint solutions, and management peer support will be amongst the many benefits of this scale that are provided to our customers during this period. 6

7 Policy Update DHL continues to work closely with political stakeholders to ensure that we remain up to speed with directives as they become available. Night-time deliveries essential Night-time deliveries are expected to form a major part of logistics companies' plans next summer bringing with it severely restricted goods delivery slots. The Freight Transport Association (FTA) argues that if businesses adopt best practice and work night-time deliveries into their long-term plans the benefits of transport cost reduction, more reliable deliveries and lower emissions will far outweigh the initial costs and effort. The FTA, in association with the Noise Abatement Society, has pioneered the development of quiet delivery techniques that could be used to allow deliveries to take place at times currently restricted due to planning or noise abatement reasons. It is intended that these be used during the Games period to allow more deliveries to take place at night. The FTA are promoting night time deliveries following their Managing deliveries and servicing during the Olympic Games conference early in May. Given day-time restrictions being placed on certain roads in London (not to mention increased congestion), night deliveries represent a vital option in allowing logistics providers to continue to serve their customers. FTA Policy Manager Natalie Chapman said: "We have seen from previous Olympics that getting transport logistics right is essential to overall success. FTA will be working with TfL and the ODA to ensure that the unique challenges presented to our members by the Games - essentially more freight to deliver and less time to deliver it in - are manageable. Night-time deliveries could be a win-win for the Games and logistics." Route Consultations During May, TfL issued their second wave of consultations on route changes and restrictions planned for London. We are going through all the consultations and responding where appropriate. 7

8 Further Information You can find out further information by speaking to your DHL Account Manager. Alternatively you can call +44 (0) Visit: 8