Page 31 - Linkline Summer 2017
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however, no information has been published to date to demonstrate how this will work or to establish if it is in fact a realistic option immediately post-Brexit.
Post Brexit Challenges and Opportunities for the Irish Trade
There are several issues that have to be tackled to ensure seamless logistics and transport operations in the post-Brexit trade:
Guidelines on Import/Export documents: As the documents required for customs clearance procedures may vary, the Irish authorities should develop clear guidelines for SMEs on the documentation needed in numerous trade scenarios (export scenario, import/export for value added activities, transit).
Driving Time: Transport and logistics companies may need to consider changes to current logistics patterns to optimise driving time. New approaches and exceptions to the EU driving time requirements (such as breaks on the border/ during customs clearance) may need to be considered to optimise the transport activities, particularly for journeys using the land-bridge through Britain.
Training for customs clearance experts: A number of trade experts have to be trained to carry out customs clearance procedures for the post-Brexit volume.
Training for drivers: To ensure frictionless customs clearance processes, the drivers should receive training in order to recognise potential issues in a timely manner.
Training for transport and logistics professionals: Employees of logistics and transport companies need to receive training to prepare for post-Brexit customs and administrative procedures.
IT system capacity: The capacity of the IT system handling customs imports and exports would need to be reviewed and possibly improved to handle the increasing amount of customs declarations that will need to be filled as a result of the changed requirements post-Brexit.
Additional goods storage: This would be required for goods waiting for clearance and inspection processes in sea ports and airports.
Waiting / cargo inspection space: Facilities where the documentation and cargo can be inspected need to be in place before the hard border becomes a reality. This may also require chilled storage spaces for goods with special storage / handling requirements.
Brexit may be negatively influencing Irish trade and logistics; however, Brexit can provide a unique opportunity for the Irish exporters to increase export levels to the European Union and create lean transportation routes with mainland Europe.
It is certain that some kind of a border control will have to be put in place as a result of a hard Brexit. The enhanced level of border control will result in time and cost increases for the transportation and logistics sector, and, therefore, it might become more profitable for many to shift from using the UK land bridge to using direct shipping routes for Ireland’s trade with mainland Europe. However, currently the direct shipment opportunities between Ireland and mainland Europe are underutilised. The direct shipment routes with mainland Europe, Benelux countries in particular, require a feasibility study to evaluate the infrastructure capacity, legacy, shipping routes and schedules. This change would require major reorientation in services and possible switch in shipping mode from RoRo to LoLo.
If the modal shift from the road to sea happen, initial investment and further research is required to accommodate the change of logistical patterns:
-Assessment of the current Irish road and sea port infrastructure is required to determine the possible post- Brexit bottlenecks. There may be major infrastructure investments required to accommodate post-Brexit trade. On the land border, there may be a need for additional waiting and inspection areas, possible modifications, and improvements of IT systems. It is highly unlikely that any major capital investments will be made in the transport infrastructure before the EU and the UK post-Brexit trade deal is closed. However, adequate planning and risk assessment can help the Irish private and public sectors to avoid major supply chain disruptions.
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