Leicestershire MPs urge Transport Secretary to stand in way of plans for huge Rail Freight Hub
Two Tory MPs have asked Transport Secretary Mark Harper to stand in the way of plans for a vast rail freight hub in the Leicestershire countryside. South Leicestershire MP and his Hinckley and Bosworth counterpart Luke Evans fear the 440 acre development will have a huge impact on the local countryside and roads. Tritax Symmetry wants to build the £550 million Hinckley National Rail Freight Interchange between the tiny village of Elmesthorpe and Hinckley. The terminal would have a daily capacity to accommodate up to 16 trains measuring almost half a mile long. There would also be a new slip road onto junction 2 of the M69. The developer says the site could contribute an estimated £316 million to the economy each year and generate around £24.65 million of annual business rates. It has said it could eventually create 8,400 jobs. The buildings would go up on fields south of the existing Leicester to Hinckley railway track and to the west of the motorway. There would be new sidings and freight transfer facilities on a 34 acre plot alongside the track – which is part of Network Rail’s ‘F2N’ freight route between Felixstowe and Nuneaton. A development consent order – a kind of planning application for what is considered a ‘Nationally Significant Infrastructure Project’ – will be submitted to the Planning Inspectorate and the Secretary of State next year. Alberto Costa – the MP for South Leicestershire where the site would be located – has previously raised the plans in Parliament, and has been supported by Bosworth MP Dr Luke Evans, whose constituency borders the site. Their letter to the Secretary of State expresses concern over the rail hub’s environmental impact on nearby Burbage Common, a site of Special Scientific Interest, the site’s effect on local roads, and the potential disruption for passenger train services at nearby Narborough station. Both MPs have also surveyed their constituents in South Leicestershire and Bosworth seeking local views on the rail hub’s impact, with Mr Costa planning a further survey in the New Year. Mr Costa said: “As I have mentioned in Parliament previously, the sheer size and scale of the proposed Rail Hub could have a hugely detrimental impact on our local environment and infrastructure in this part of Leicestershire, and therefore the Government needs to be made aware of the considerable concerns my constituents, and those in Bosworth, have over these plans before taking any decisions.” Dr Luke Evans said: “Following news that Tritax have concluded the consultation into the viability of a Rail Freight Interchange in Hinckley I have also written to the developers to request a list of any amendments made to the proposals previously shared with us.
Innes England: Tough East Mids commercial property market could bounce-back after shock of ‘Trussonomics’
Management at one of the region’s leading commercial property agencies are hopeful the market will start to improve this year following the economic meltdown caused by the short-lived Liz Truss Government. According to the 16 th annual Innes England Market Insite report, 2023 could see the green shoots of recovery after total regional investment in commercial real estate dropped 44 per cent last year to around £1.36 billion. In a virtual presentation to industry professionals, Ben Robinson, head of the company’s investment consultancy, said: “As we begin 2023 we are cautiously optimistic that despite the re-rating of commercial property yields at the end of last year, transaction activity will return as investors quickly become acclimatised to the new norm.” Transactions across the region in the first half of 2022 had continued at much the same level as the previous year, when volumes ended at record highs. He said: “However, this strong investor momentum started to fade in the second half of the year as the market began to absorb the effects of the first significant rises in interest rates since the financial crisis, before falling away sharply following the further shock of ‘Trussonomics’.” “As the era of cheap money came to a rather abrupt end towards the latter part of the year many investors adopted a wait-and-see approach whilst commercial property yields re-rated across all sectors.” That was reflected in the drop in transaction volumes in the second half, with only £239 million worth of deals across the whole East Midlands market. He added: “However, we expect the market to recover following a quiet start to the year as investors look to take the opportunities of a thinner market while it lasts.” Innes England director Peter Doleman said a record start to the year for warehousing and distribution properties gave way to a decline in the second half – but it was not at crisis levels. Leicestershire saw a 39 per cent rise in logistics deals last year thanks to its central England location, with notable sites including Magna Park and the Leicester Distribution Park. • The industrial and beds sector again dominated, accounting for 80 per cent of all investment transactions • Nottingham bucked the regional trend with total investment at nearly £500 million) - up 68 per cent on the previous year’s £306 million - thanks mainly to purpose-built student accommodation deals • Leicester saw ‘strong’ levels of industrial take-up at 4 million sq ft, almost 39 per cent higher than last year • Investor demand for city centre offices in Nottingham continued, with notable deals featuring Corum IM’s purchase of EON’s Trinity House for £28 million • The East Midlands had the third lowest net decline in shop closures - and saw retail space take-ups dominated by food and beverage operators • Total investment in Derbyshire in 2022 was just over £300 million, slightly down (23 per cent) on the previous year but still 26 per cent up on the five-year rolling average • Industrial investment dominated in Derby - more than a third up at £243 million. Deals included ICG’s £101 million purchase of two logistic units at Mercia Park, Swadlincote Fellow director Craig Straw, head of Innes England’s business space agency team, said office take-up transactions were down across the region by about 25 per cent but that followed a bumper post-pandemic 2021. Nottingham’s office take-up was the most robust with a strong focus on the city centre. Activity in Leicester and Derby was high on the edge of city and out of town, but big transactions were thin on the ground. Innes England managing director Matt Hannah said shop landlords and tenants had had to make big changes in a year which saw 17,000 UK shop closures. He said: “A third of all closures came from a reduction in branch networks by the nationals and a further third, unfortunately, from the independent sector. “The East Midlands had the third lowest net decline in these numbers which reflect a 50 per cent increase across the country over 2021. The reduction of government support and removal of the rent moratorium played significant roles.” The most significant boost to city centres is the long-anticipated rating reassessment this April which will see an immediate reduction of retailers’ occupancy costs. Mr Hannah said: “Some units we are marketing are showing a 65 per cent drop in the rates payable or, for example, a reduction on one unit from £70,000 a year to £25,000.” This year’s Market Insite report includes Birmingham data, reflecting Innes England’s expansion to the city in 2022.
Plans for 4,500 homes, 3.4m sq ft of employment space and 5,000 Derby jobs set to take step forward
Plans to build 4,500 new homes, 3.4 million sq ft of employment space, and support for 5,000 new jobs in Derby are set to take another step forward next week. The South Derby Growth Zone is being planned for land to the south of the city between Sinfin and Chellaston. The proposals have already received an offer of £49.6 million from the Levelling Up Fund, reliant on a full business case being submitted. Derby City Council cabinet is now set to vote on granting powers for the plans and transferring £500,000 of Homes England Garden Villages funding to the Derbyshire County Council so that it can finalise the business case. The scheme incorporates Infinity Park Derby, a planned 100 acre business park next to the world headquarters of Rolls-Royce Civil Aerospace and within 15 minutes of blue chip manufacturers such as Toyota, Alstom and JCB. It is backed by Derby City Council, the Harpur Crewe Estate and Rolls-Royce along with developers IPD LLP, Wilson Bowden and Peveril Securities, and could offer potential tenants design and build packages up to 500,000 sq ft. Meanwhile the neighbouring Infinity Garden Village would be one of 14 new garden villages announced by the Government in 2017 to try and help meet local housing needs – especially for first-time buyers. In anticipation of the plans the county council is set to gain highways powers within the city boundary to allow work to start on a junction and link road off the A50, which runs along the southern edge of the plans. The city council said without the new junction only around 280 of the possible 4,500 new homes would be possible. Councillor Steve Hassall, city council cabinet member for regeneration, decarbonisation, strategic planning and transport, said the recommendation will be discussed at the cabinet on Wednesday, February 15. He said: “The South Derby Growth Zone is a big opportunity to deliver high quality housing and jobs for Derby, whilst also providing a brand-new transport link in the south of the city. “Entering into these collaborative agreements demonstrates our commitment to the project and to the city.
Business leaders overwhelmingly in favour of upgrading East to West Midlands rail links, says survey
Businesses are overwhelmingly in favour of upgrading east-west rail links between Leicester & Nottingham and Coventry, according to an industry survey. Transport group Midlands Connect said more than 100 companies – who between them employ 32,600 people –answered its questions on the state of connections between the cities. It said some 93 per cent said they and their workforce would benefit from Coventry, Leicester and Nottingham being better connected, with even more saying it could support the Government’s Levelling Up agenda. The survey said 66 per cent believed if the train line between Coventry, Leicester and Nottingham was reconnected, their workers would use it more. Some 82 per cent felt it would make it easier to recruit, and 73 per cent said it could help them to meet new customers. More than half said it would help their business to grow. Midlands Connect – a division of the Midlands Engine – wants to bring back direct services between the east and west Midlands cities, with a new route through Nuneaton. The changes would allow a direct, twice hourly service between Coventry and Leicester, cutting journey times from 54 to just 38 minutes. It will also create new links from Coventry to Loughborough, East Midlands Parkway and Nottingham. Rail services between Coventry and the other two cities have been poor for the last two decades and Midlands Connect said bringing them back would add more than 2 million extra seats on the region’s rail network every year. Currently, passengers have to change at Nuneaton. Partly because of this, Midlands Connects says, just 3 per cent of trips between Coventry and Leicester are made by rail, compared to 30 per cent of trips between Coventry and Birmingham. Andy Clark, senior rail programme manager at Midlands Connect, said: “The results are overwhelming and show that businesses in Coventry, Leicester & Nottingham want to see improved rail services. They see this investment as an example of levelling up their area and helping their economy to grow. “What the survey also showed is faster and more frequent trains will save businesses money, allow them to recruit more people and grow. “We will use these results as part of our strategic case for investment in the corridor and I want to thank all the firms and organisations who took part in the survey.” Leicester Mayor Sir Peter Soulsby said: "The survey results add to the already overwhelming case to reconnect the railway between these two major cities and help to reduce the reliance on the car. "This project is important to both the local and regional economies and the Government is urged to press on with project development work as a priority within their rail programme."
115 oil and gas licensing applications made in latest North Sea round
More than 100 applications have been received for the latest offshore oil and gas licensing round. A total of 115 bids have been made across 258 blocks, from a total of 76 companies. Described as providing a significant boost to the UK’s energy security, the 33rd UK round opened in October, and offered acreage across the North Sea. It included four priority areas, which have known hydrocarbons, in which there was very keen interest, and could see production in as little as 18 months. They are focused on the southern North Sea. Read next: Humber's offshore wind could power North Sea's energy transition Interest was at a similar level to the last round in 2019, which received 104 applications from 245 blocks and part-blocks. In 2019 a total of 768 blocks and part-blocks were offered, compared with 931 this year. Dr Nick Richardson, North Sea Transition Authority head of exploration and new ventures, said: “We have seen a strong response from industry to the round, which has exceeded application levels compared to previous rounds. “We will now be working hard to analyse the applications with a view to awarding the first licences from the second quarter of 2023.” Bids will be carefully considered, with several necessary consents required after licensing and before production to ensure developments are also in line with net zero proposals. Dr Richardson said it was a key part of the NSTA’s drive to support UK energy security, which also includes licensing the Rough gas storage facility off te East Yorkshire coast, and encouraging operators to look at reopening closed wells. Oil and gas currently contribute around three quarters of domestic energy needs and official forecasts show that, even as demand is reduced, they will continue to play a role. “As we transition, maintaining a clean domestic supply to meet that demand can support energy security, jobs, and the UK’s world class supply chain,” Dr Richardson said. Production emissions have been cut by more than a fifth between 2018 and 2021. Projections indicate the sector is on track to meet reduction targets of 10 per cent by 2025 and 25 per cent by 2027 – agreed in the North Sea Transition Deal in 2021. Since February last year, NSTA interventions have prevented the lifetime emission of 1.4 million tonnes of CO2e, equivalent to taking more than 500,000 cars off the road for a year. Energy and Climate Minister Graham Stuart, MP for Beverley and Holderness, said: “Putin’s illegal invasion of Ukraine has led to volatile global energy markets. It’s fantastic to see such interest from industry in this round, with the awarded licences set to play an important role in boosting domestic energy production and securing the UK’s long-term energy security of supply.”
Direct flights to Esbjerg secured for Humberside as Eastern Airways lands double delight
Eastern Airways has landed a dual boost at Humberside Airport with new services for business and leisure. The resident airline is to launch a regular direct flight to Esbjerg in Denmark to support the offshore wind and maritime industries next month, while its Newquay departures will be doubled for the 2023 summer season. Its Jersey schedule also returns, in what is described as a major investment in the Kirmington base. A three-weekly service to the Danish wind energy epicentre will provide a vital link for the burgeoning renewable sector on the Humber, with Orsted and Siemens Gamesa having interests in both areas. It will launch on December 14, with year-round flights on a Monday, Wednesday and Friday, and follows corporate charter work on the route. Read more:Hull blade plant boss has his say on Siemend Energy buy-out proposal Roger Hage, commercial director at Eastern Airways, said: “This is a major dual development for the Humber region as we join the UK centre for renewable energy with Esbjerg. The renewable energy sector is fundamental to the employment and growth in the Humber as the Energy Estuary. With so many key renewable sector companies and an increasing focus on clean-tech energy self-sufficiency in the UK and Denmark, the increasing need to connect the investment, skills and expertise of the regions have never been greater. With Billund little more than an hour from Esbjerg, Legoland and various high-quality leisure destinations in the Syddanmark region of Southern Denmark, we know Denmark will appeal widely given its rich history with the Humber ports region. “Adding to the further investment in operations, crew and infrastructure to support new destination of Esbjerg, we have also doubled the frequency of the Newquay-Cornwall service, improving the access to the UK staycation destination of choice. We are also extending the length of operating season to the popular Channel Island destination of Jersey from Humberside Airport in conjunction with our primary partner Premier Holidays. “We want to ensure the right services are being offered given Eastern Airways is all about supporting the regions of the UK, connecting people and places, so growing our Humberside network and capacity is a crucial part of increasing connectivity and aiding economic recovery where sustainable.” Eastern will operate the mix of new and increased services on one of its fleet of 72-seat ATR or 29-seat BAe Jetstream 41, both offering one of the lowest fuel-burn and emissions in the market. This has included operating on sustainable aviation fuel, another string to the area’s decarbonisation role. Deborah Zost, managing director at Humberside Airport said: “This is excellent news for the airport, local businesses and leisure travellers. The route to Esbjerg is a significant step for the Humber, giving the UK’s Energy Estuary a new, direct and year-round link to this increasingly important renewable energy hub. And more flights to Cornwall over the summer will be warmly welcomed by holidaymakers and businesses alike.” It comes just days after the last flights left Doncaster Sheffield, following the abrupt closure by Peel Group, leaving Humberside and Leeds Bradford as the only operational airports in the region. Scandinavian Airlines had launched a service between Humberside and Copenhagen, the Danish capital, in late 2013, but it was pulled the following April due to lower than anticipated demand. The maiden flight was also cancelled due to adverse weather. In almost a decade huge strides have been made, with Race Bank and the Hornsea Zone, as well as the Hull blade plant all coming online, and more to come. British Airways partner Sun-Air had also stepped in with Aalborg and Billund as destinations in early 2016. Susanne Kruse Sørensen, managing director of Esbjerg Airport, added: “Eastern Airways has been a long-standing partner on this city-pair. The airline already operated corporate charter flights between Esbjerg and Humberside during the last years. The wind energy and maritime sectors are particularly asking for a direct route to ease crew changes and staff deployment on wind farms. Moving to a scheduled route is the logical way to improve service for customers. We are really looking forward to welcoming Eastern Airways in Esbjerg." Ever present since launching with the Aberdeen service in 1997 - carrying North Sea oil and gas workers - Eastern will now serve five destinations from Humberside at peak. Camilla Carlbom Flinn, director of cluster organisation Humber Marine & Renewables, of which Eastern Airways is the latest member, said: “The investment from Eastern Airways is brilliant news for the region’s business connectivity and indicative of the vibrance of the renewables sector. We are delighted that they have joined Humber Marine & Renewables and we expect that our members will enjoy the convenience of this new service to Esbjerg. We wish them every success in this exciting new venture.” Eastern has also announced a new daily East Midlands to Newquay service, complementing the increase to its year-round three-times daily London Gatwick to Newquay service, plus an increase in Newcastle to Aberdeen to twice daily, among various capacity and frequency increases around the network.