Freight News, Sea

BPA urges rethink of red diesel plans

[ October 2, 2020   //   ]

The British Ports Association says that planned changes to red ‘diesel’ tax rebates on the industry will add additional costs of 3.1% of turnover when they come into effect in 2022. It suggests that an average terminal will be hit with additional fuel costs of nearly £500,000 a year, with bigger operations’ costs running into millions. The Government announced that it would be abolishing rate relief for non-road mobile machinery (NRMM) at the Budget in 2019, however three industries (heating, rail, and farming) would be exempt from the changes due to perceived high impacts from additional costs and impact on modal shift. The report argues that alternatives for most types of port NRMM are extremely limited, and electric versions of equipment, where available, are significantly more expensive and generally less capable. Moreover, electricity networks do not usually have enough capacity for widespread electrification of port operations.