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Funding cut blow to consolidation centre
Page 6
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Bristol's Freight Consolidation Centre could be in trouble because of changes to its funding. Lucia Cockcroft and Jennifer Ball report.
THE FUTURE OF Bristol's Freight Consolidation Centre (FCC), run by Exel, could be in jeopardy because of new targets designed to recover 25% of its operating costs.
Funding for the scheme, which has successfully cut city-centre congestion and delays since it was launched in May 2004, is currently coming via the European Union's VIVALDI programme, but this is due to run out in March 2006.
Bristol has now been given the task of recovering 25% of the operating costs, based on charges for delivery and remote storage. Nigel Hutchings, regional business director at Business West, warns the FCC could go out of business if retailers are unwilling to come up with the necessary contribution. "That would be a real shame," he says.
The scheme has worked well for those who have used it," he adds, "And it brings big advantages to both Bristol and to the road haulage industry."
A council spokesperson says: -We are on target to reach the target of 25% of operating costs. The aim is for retailers to pay towards the scheme by March next year.
If that does not happen, the cost proposals will form part of the council's medium-term financial strategy and the decision will be down to the members."
Exel stresses that it is not compulsory for retailers to participate and pay a contribution. —lhe contribution is in line with the benefits received, with the council still meeting a large proportion of cost," says a spokeswoman.
At its launch, the 745m2 centre, which serves the city's Broadmead retail centre, was trumpeted as the UK's first urban consolidation centre for retail deliveries and a model for other cities. Its key aims were to improve the environment by reducing the number of vehicle movements into the mall for scheme members.
Since May last year the number of delivery movements into Bris tol's Broadrnead centre has fallen by 66%, and 25,000 truck kilometres have been saved, according to the council.The FCC delivers to 50 retailers in the centre, including Boots, Monsoon and Accessorise.
Friends of the Earth's senior transport campaigner Tony Bosworth says it would be disappointed if the FCC closed as it has helped cut congestion and pollution. "All those involved should think about the environment and quality of life rather than just the financial bottom line," he adds.