Department for Transport - consultation on draft National Policy Statement for National Networks

On 14 March 2023, the Department for Transport (DfT) commenced consultation on its proposed updates to the National Policy Statement for National Networks (NPS). In the consultation the DfT confirms that it has reviewed the current National Policy Statement for National Network (2015 NPS) “to ensure that it remains fit for purpose in supporting the government’s commitments for appropriate development of infrastructure for road, rail, and strategic rail freight interchanges.”

The NPS sets out the need for, and government’s policies to deliver, development of nationally significant infrastructure projects (NSIPs) on the national road and rail networks in England, specifically roads, freight, railways and strategic rail freight interchanges.

Background

Eversheds Sutherland has acted on behalf of the promoters of all strategic rail freight interchanges (SRFIs) that have been consented under the Development Consent Order regime (East Midlands Gateway, Northampton Gateway and West Midlands Interchange). This briefing note therefore focusses on SRFIs. A SRFI is a large multi-purpose rail freight interchange and distribution centre linked into both the rail and trunk road system. It has rail-served warehousing and container handling facilities and may also include manufacturing and processing activities.

In respect of NSIPs, section 104 of the Planning Act 2008 confirms that the Secretary of State (SoS) must decide an application for a NSIP in accordance with any relevant NPS. The draft NPS is therefore an important and key document because, once designated, it will form the primary policy for making decisions on SRFIs development consent applications in the future.

The consultation paper confirms that the 2015 NPS will continue to have effect for any application accepted for examination before designation of the amendments to the NPS. The amended NPS will therefore only have effect in relation to those applications for development consent accepted for examination after the designation of those amendments but nevertheless is capable of being an important and relevant consideration in the meantime.

We consider the proposed revisions to the 2015 NPS to be key reading for scheme promoters, applicants, developers and advisers, in terms of the opportunities the NPS might present.

Overview: Opportunities

In respect of SRFIs and smaller-scale rail freight interchanges (RFIs), we consider the following to be important changes introduced in the draft NPS:

• there is strong support for SRFIs and RFIs and recognition of the importance of creating and supporting a fully effective network of SRFIs, supported by smaller-scale RFIs, to help enable the sector to reach its full potential (Chapter 2 – National Networks);

• the ‘need’ case has been updated to reflect the growth within the SRFI / RFI sector following and in response to the Covid-19 pandemic, in particular the NPS confirms:

• to meet identified needs there may be a greater demand for updated RFIs and SRFIs in new locations (paragraph 3.91 Chapter 3);
• the government’s commitment to growing the rail freight sector (paragraph 3.101 Chapter 3);
• that a network of SRFIs is needed across all regions, to serve regional, sub-regional and cross-regional markets. The advanced connectivity of SRFIs should, in turn, will provide improved international trading links and international connectivity and enhanced port growth (paragraph 3.102 Chapter 3);
• that the consented SRFIs (since the 2015 NPS) has gone some way towards facilitating an expanding network but, to meet the government’s ambitions for rail freight there remains a need for appropriately located SRFIs across all regions to enable further unlocking of benefits (paragraph 3.103 Chapter 3);
• that the current range of options available to address need are neither viable nor desirable and the government has therefore concluded that there is a compelling need for an expanded network of SRFIs (paragraphs 3.104 and 3.105 Chapter 3);
• new SRFIs should be strategically located to enable a cross-country network which unlocks the full range of benefits that an expanded network can provide. Consideration should be given to proposals for SRFIs in areas where there is currently lesser provision (paragraph 3.108 Chapter 3)

The draft NPS therefore identifies the need for new SRFIs and RFIs and offers strong government support and commitment to the growth of the SRFIs sector, and to new SRFIs in all regions, which is welcome and positive news for the sector.

• another significant and important change in the NPS provides clarity around the delivery of rail terminals alongside warehousing, which has previously been seen as a controversial element of some schemes.

The 2015 NPS states that “. . . The initial stages of the development must provide an operational rail network connection and areas for intermodal handling and container storage. It is not essential for all buildings on the site to be rail connected from the outset, but a significant element should be.” (emphasis added)

The draft NPS confirms that:

• “Applicants should develop rail infrastructure and buildings capable of rail connection from the outset, and consideration of further rail infrastructure to allow more extensive rail connection within the site in the longer term is strongly encouraged”;
• the SoS “recognises that applicants may need to deliver warehousing ahead of the final delivery and commissioning of connections to the rail network coming forward . . . the SoS will want to ensure that operational rail connections are brought forward in a timely manner”
  (paragraphs 4.84 and 4.86 of Chapter 4).

The amendments will be welcomed as an acknowledgment of the commercial practicalities of delivering SRFI projects.

This briefing note provides a high-level overview of the changes introduced in the draft NPS relating to SRFIs and RFIs and the opportunities that such changes might present within the sector. Please let us know however if you would like to discuss the draft NPS further.

Consultation

The consultation is open until 6 June 2023. The consultation document and draft NPS can be accessed here