Draft Freight Strategy Consultation

5.0 The freight and logistics industry in Central Bedfordshire

The freight and logistics industry are an important employer for people living and working in Central Bedfordshire. According to UK business; activity, size and location published by the Office for National Statistics, around 5% of businesses registered in Central Bedfordshire, (665 businesses in 2022) are transport and storage operators. A further 59% are engaged in sectors that rely directly on transport operations including the construction, manufacturing, agriculture, and retail sectors.

In terms of employment, according to the Nomis Labour Market Profile (2022) 8.5% or around 9,000 people working in Central Bedfordshire in 2021 were employed by transport and storage operators. A further 42% worked in industries that rely directly on transport operations. This breakdown is broadly comparable to that of neighbouring authorities and the East of England region.

According to government statistics on business floor space, a little over two thirds of all commercial space in Central Bedfordshire is devoted to general industrial, storage and distribution (approximately 1.9 million square metres in 2022). A further 7% is used as office space and 12% for retail. The proportion of land devoted to B8 uses (storage and distribution) is slightly greater in Central Bedfordshire (74%) than neighbouring authorities; in Bedford and Milton Keynes this figure is around 65%, and in Luton 43%.

5.1 Primary distribution freight generators in Central Bedfordshire

Primary distribution is where goods are moved in bulk between nodes of the supply chain (for example, raw materials for manufacturing are taken to warehousing). Large goods vehicles and rail are used, and travel is predominantly along the strategic road and rail network over longer distances.

The M1 runs north to south through Central Bedfordshire; the corridor both sides of the M1 is a strategic location for the warehousing and transportation industry, providing fast access to the strategic road network. Several large industrial parks, many home to national and regional distribution centres of large corporations are located close to M1 junctions 9 to 13. Marston Gate located at M1 junction 13 is home to Amazon and Wolseley Distribution Centres, FedEx, Furniture Village, and several logistics companies. The construction of the A5-M1 link road north of Houghton Regis has enabled access for some additional warehousing at Thorn Turn, operated by UPS and Amazon.

In addition, there are industrial estates located on the fringes of the main settlements within Central Bedfordshire such as Stratton Business Park in Biggleswade, Sunderland Road Industrial Area in Sandy, Woodside Industrial Estate in Dunstable and Grovebury Road, Chartmoor Road and Stanbridge Road industrial areas in Leighton Buzzard, all of which are a short distance from the primary route network. These industrial areas are home to a range of many different industrial uses, some of which will generate regular freight movements and others that won't. A plan showing the locations of key freight generators can be found in appendix 3.

Away from the more formal industrial parks and estates there are several small industrial businesses that are located throughout Central Bedfordshire. These tend to be individual businesses or a handful of businesses grouped together that are often located at premises that have been established for many years, perhaps at farms, in town and village centres or in some cases more rural locations. Whilst the type and scale of the industries these businesses cover are likely to generate less freight movements than some of the larger purpose-built industrial units, the freight movements that are generated tend to be more noticeable to residents and can be more problematic when the only access to such premises involves leaving the Designated Freight Route Network.

5.1.1 Minerals and waste

Freight in Central Bedfordshire also includes the transport of minerals by road and pipeline from local quarries. Crushed rock is imported into aggregate rail depots close to Central Bedfordshire. Waste is transported to and from waste management sites within Central Bedfordshire by road. More information on minerals and waste in Central Bedfordshire can be found in Minerals and Waste Local Plan: Strategic Sites and Policies (2014).

5.2 Secondary distribution

Secondary distribution occurs following sorting and break-up of bulk goods. Smaller road-based vehicles transport goods from a single point (such as a national or regional distribution centre) to multiple destinations or customers, including for home delivery.

According to England's Economic Heartland's Freight Study, almost 20% of UK retail sales are made online. This move towards e-commerce is driving other changes within the logistics sector, such as more home deliveries, including same day and same hour deliveries and click and collect. Home deliveries are often carried out by light goods vehicles and vans, which have become commonplace in urban areas.

5.3 Future freight generators in Central Bedfordshire

Central Bedfordshire is located within proximity of the UK logistics and distribution 'golden triangle'; an area bounded by the M1, M6 and M69 which is highly accessible for the whole country. Although Central Bedfordshire is not within this area, the scarcity of available sites and the footloose nature of demand for space in the logistics and distribution sectors means that occupiers will consider locations further along these corridors.

In the case of Central Bedfordshire, there is demand for high-quality modern logistics units, close to the M1 and A1, with a proven market in the Dunstable area with recent development performing well. Elsewhere in Central Bedfordshire, developers are more hesitant. With continued growth in the logistics sector, it is likely that improving market signals will encourage increased confidence and eventually, speculative development.

Provision of more land in locations along the M1 and A1 corridors could potentially allow for greater growth in the logistics sector, drawing in more of the footloose regional and national demand from areas less able (or willing) to meet market demand. The strength of the national market and the lack of new supply elsewhere means that it is difficult to estimate a maximum market demand for new space in Central Bedfordshire; the strength of the national market and the footloose nature means that demand is largely infinite and only limited by infrastructure and environmental capacity.

Due to the demand for new logistics units close to the M1 and A1, older secondary warehousing stock may represent a surplus. Existing sites in strong locations could provide an opportunity for future redevelopment, whereas larger units in poorly connected locations are unlikely to see new investment. Some of this secondary space may serve a purpose for local occupiers. If lost, it is unlikely that stock in poorer locations will be replaced.