Transport Logistics

CHAPTER IV: PROVISION OF LOGISTICS INFRASTRUCTURE

4.1. The need for logistics infrastructure development

The rapid growth of e-commerce demands fast response deliveries. Increasingly, businesses seek

to sustain sophisticated short-cycle and bespoke manufacturing processes to meet customer

requirements directly. The internationalisation of transport activities requires co-ordinated government

action if efficient logistics systems are to be achieved. However, financing transportation

infrastructure is increasingly challenging for governments as private sector carriers and shippers

demand improved facilities to move goods on shorter and just-in-time delivery schedules.

These trends are rapidly and continually changing supply chain functions and demands. These

changes necessitate flexibility, the cost of which will need to be reflected in the cost of infrastructure

provision.

Existing road, rail, air, and port infrastructures are coming under considerable pressure. Much of

the European air freight fleets will require new investment in order to comply with new noise

regulations. Rail networks are coming under increasing pressure to accommodate more freight on key

routes at a time when passenger volume is also increasing. Parts of the European road network are

reaching capacity constraints, particularly in major urban centres and on motorways. The transport

sector, especially road transport, is under increasing pressure to reduce its impact on the environment.

At the same time there is a growing need to improve decision-making processes surrounding

investments in transport infrastructure, with focus being given to system-wide priorities rather than

priorities being determined on a modal basis only. Further, there is a need to increase investment in

new ITS technologies, develop standardised systems and hence improve inter-operating efficiencies

across all infrastructures.