Jersey’s freight logistics market is performing well but there is room for improvement, according to a draft report published by the Jersey Competition Regulatory Authority (JCRA).
The JCRA commenced the Market Study in September last year, working with specialist consultants Fisher Associates to examine the health of the freight and logistics market and, where necessary, make recommendations for improvement.
Today the JCRA has published its Consultation Paper and the Fisher Associates Draft Report, which is now open for further consultation before delivering its final conclusions and recommendations in June.
The study focused on two areas: to understand the current structure of the market; and to draw any lessons from comparable markets internationally. The research effort included extensive interviews with industry stakeholders, a visit to Jersey to see operations at first hand, and compared Jersey to other similar jurisdictions including Shetland, the Isle of Man, Bornholm in Denmark and Menorca in the Balearic Islands.
The draft report considers three key themes:
- Barriers to competition – lack of warehousing and transit storage for distribution activities at Port of St Helier because of the physical constraints of the area.
- Lack of diversification – the market is performing well but there are threats to future resilience. This includes Jersey being heavily dependent on a UK-based supply chain, and there is opportunity for greater trade with France .
- Understanding and driving improvement – developments in IT and technology present challenges to traditional practices but also offer opportunities to improve efficiency, enhance customer service, better understand how well services are performing and reduce waste.
Peter Hetherington (pictured), Senior Economic Case Officer at the JCRA said, “This has been an extremely positive exercise so far and we are optimistic that the consultation period that has now opened for further comment and insight will lead to a valuable and honest assessment of what is a critical market for Jersey.
“At the end of the process we will have a better understanding of how well the freight logistics sector serves Jersey’s strategic needs, and where there may be opportunities to improve competition and ultimately benefit consumers.”
Within the report are several proposed options related to each of the three key themes and the JCRA is inviting comments on those and any other aspects of the Study, or additional issues that consultees wish to raise.
The JCRA has issued an Consultation Paper alongside the report setting out the consultation topics and process and questions. Any comments should be made by 5pm on 1st April.
