Port of Southampton

Alan Whitehead Excerpts

Wednesday 18th January 2012 Westminster Hall

[Dr Alan Whitehead (Southampton, Test) (Lab)]

It is appropriate that we are discussing Southampton port this morning, one day before the House discusses the national ports infrastructure planning document. That document looks, among other things, at the whole question of the strategic role of ports in the UK and at the requirements for ensuring that our ports continue to play such a strategic role in the best way that we can arrange. That is vital.

UK ports provide 95% of our capacity for importing and exporting goods; 95% of imports and exports go through UK ports. So the best possible deployment of UK ports is essential. Historically, Southampton, with Felixstowe and many other UK ports, has always played a major role in providing that national infrastructure, which, as hon. Members have said, is being maintained and improved predominantly on the basis of investment by the companies that run the ports.

Southampton and Felixstowe are particularly important in terms of national strategic planning inasmuch as they are two of the country’s leading container ports with a large throughput of containers. They are either side of London, in close proximity to major international shipping routes, and are vitally placed for receipt of containers, which then go to the rest of the UK. Indeed, the Government have recognised the importance of those strategic ports in terms of what has happened with assistance not to the ports, but to the infrastructure in the recent upgrade of the rail line from Southampton to the midlands, and the proposed upgrade in road access to Felixstowe port.

The Government have recognised the infrastructure considerations for the same reason that ports recognise what they need to do to maintain their competitiveness, not with one another, but as part of the national ports infrastructure. The Southampton rail upgrade is a good example. The international standard now is high-box containers with a height of 9 feet. They cannot be transported efficiently on traditional rail-based container transport, not least because they tend to collide with bridges. To upgrade to international standards and to maintain competitiveness, it is necessary to prevent containers from colliding with bridges on the way north, which is an upgrade to stay in the same place.

It is interesting to reflect on a debate that I obtained 11 or 12 years ago on the future of Southampton port. I speculated about the level of container traffic that would be required in future for UK ports, and the size of container vessels that would come to the port. I talked then about the prospect of vessels of perhaps 8,000 to 10,000 containers coming into the port, and the necessity of considering how we would deal with larger vessels coming in. Now, Southampton’s main customers are talking about shortly bringing in not 8,000-container vessels, not 4,000-container vessels, which my right hon. Friend the Member for Southampton, Itchen (Mr Denham) mentioned and which was the standard a few years ago, but 13,000-container vessels. If our ports in general cannot take those vessels, that will be detrimental to Britain’s national strategic port planning, not just to Southampton or any other specific port.

As my right hon. Friend said, the issue is not just that container-vessel traffic is distributed around the UK; ports across the channel are able and waiting to take traffic that comes up through the channel to container ports. If those vessels turn right because they cannot turn left to the UK because of their size, containers will be trans-shipped from the continent to the UK at a cost of £100 per container over and above what happens at present when they arrive in the UK. Yes, we would receive our containers, and yes, business might proceed as usual, but at a considerable cost to the UK economy and considerable detriment to our strategic port planning.

It is essential that ports such as Southampton address the issues, and Southampton has done precisely that in its proposed £150 million investment in its container terminal, not a new container terminal, but an upgraded one. Ships already come into the port, and the £150 million is for dredging and upgrading the facilities to ensure that new, larger vessels can come into Southampton and be dealt with.

As my right hon. Friend said, not only has Southampton addressed the issue, but it thought that it had introduced its proposals in good time a few years ago. It is a sad record that the Marine Management Organisation has been less than fully adequate in dealing with the challenge of that proposal. It had to re-issue the consultation; it apparently retreated in the face of judicial review when permission had been given; and more recently it has cast around to see whether it has the power to resist further judicial review and challenge of its inherited powers from the Board of Trade in terms of permissions. Southampton made its proposals not just in good time, but in very good time. However, it is faced with the prospect that, if matters do not now go absolutely right—among other things, the salmon run up the River Test is an issue—it will lose its very last window to put that vital upgrade in place to cope with future business at the port.

Why has that judicial review come forward, and why has the Marine Management Organisation, apparently petrified about the possibility of further judicial review, reviewed its powers accordingly? Is it because local amenity groups in Southampton are up in arms? Is it because the Royal Society for the Protection of Birds is worried about the effect on birds? Is it because English Heritage is worried about the effect on the Solent? Is it because Natural England is worried about the natural environment around Southampton? No. None of those organisations has ever objected to the proposal, and none has ever tried to stop it. All agree that the arrangements are satisfactory. Indeed, I understand that no one in the Southampton area has ever objected to the proposal. Nor should they, because the proposal is to upgrade an existing container terminal to bring it up to date with what is required for the port. That is all.

It is astonishing to hear that an organisation from its vantage point 200 miles away has introduced judicial review of the upgrade’s details into the proceedings. It might be said that that organisation wants a level playing field. That appears to be more of a cover than an up-front argument, and it does not require an enormous amount of brainpower to consider what might happen if the port of Southampton were made to go backwards rather than forwards. That is what happens with port management; ports either lose trade or they gain it.

UK trade can be obtained for everyone; it is not a zero-sum game. It is not, however, difficult to conclude that Hutchison Ports believes that delaying or scuppering Southampton’s plans to upgrade its facilities, thereby making it unable to accept larger ships, would directly benefit Felixstowe. A judicial review is a fairly small investment—perhaps £100,000—for what is potentially a large gain. I caution, however, that such a move does not necessarily mean that more traffic will go to Felixstowe. It may not end up in the UK at all, and even if some of it did, in terms of UK plc it is equivalent to one car manufacturer seeking to sabotage another’s production line in the hope that the public will buy its cars, even if some members of the public then buy imported cars. That is the sort of action we are contemplating, and if that is the motivation behind the judicial review, I deplore the fact that it has been requested.

I have reflected on the importance of the port of Southampton to UK plc, and feel that any attempt to obtain such a review should be resisted. We need the ports of Southampton, Felixstowe, Liverpool, Hull, Portishead, Thamesport and others because, as we will discuss tomorrow, they will play a vital role in planning the UK’s future port capacity. The development of the port of Southampton is not only about Southampton but about UK plc making its way and dealing with imports and exports from and to the world. If Southampton fails to get its upgrade as a result of backstairs dealing and, quite frankly, poor service by the body that is required to decide on such applications, that will be of detriment not only to Southampton but to the UK as a whole.

[Dr Thérèse Coffey]

The hon. Gentleman makes the case proudly for Southampton port, as did his right hon. Friend the Member for Southampton, Itchen (Mr Denham). It is a bit of a shame, however, to start impugning commercial decisions. We as parliamentarians want companies to be treated consistently by Government agencies, and in the example we are discussing consistency was not applied. The MMO has ended up paying the costs of the judicial review because it failed to apply the law as it should have done.

[Dr Whitehead]

There is some force in what hon. Lady says. It is a shame, however, that we have to think about the possible motivations behind those who apply for a judicial review. From my vantage point, the conclusion that the prime motivation behind this judicial review did not involve a concern for level playing fields is almost inescapable. Level playing fields should exist for everybody, but someone feeling that they were not applied in their particular circumstances does not warrant an attempt to upset the playing fields for everybody in the country. I hope that we will hear no more about the judicial review, and that mature consideration of what is best for all, including the ports of Felixstowe, Southampton and the others that I mentioned, will prevail.

I hope that this debate, and the efforts made by many of my colleagues from across the south to assist Southampton’s progress with its application, will mean that at this final stage, the MMO ensures that the process proceeds as quickly as possible, and that those involved with UK ports consider what is best for all our ports, rather than individual interests. If that is a result of today’s debate, which I congratulate my right hon. Friend the Member for Southampton, Itchen on obtaining, it will have been a prize worth fighting for.

[Several hon. Members]

rose—