Transport drives commercial property investment
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by David Jones
Transport is more critical to investment decisions by
business chiefs than it was five years ago.
This is one of the key findings of a report by Invest
Thames Gateway, the lead international investment agency for the
Thames Gateway.
The Thames Gateway region consists of a 40-mile stretch of land
extending eastwards from east London along the Thames.
In Kent, the principal development areas include Gravesend and
Dartford, the Medway towns, Sittingbourne and Queenborough on the
Isle of Sheppey.
The report, Smart connections says: "The essential role of
transport for borderless business, concluded that cities and
regions must invest in transport infrastructure to remain
competitive in the fight for investment spend and skilled
workers."
It was written by Prof Austin Smyth, head of the Department of
Transport Studies at the Westminster University. His findings
are supported by the opinions of more than 300 senior
international business people, surveyed by leading pollsters
YouGov.
Invest Thames Gateway says: "In the face of a global recession
which has called into question the future of many transport
infrastructure projects, this research reveals the quality of
transport infrastructure in a city or region is front of mind in
four out of five business location decision-makers."
The "face to face" elements of business
afforded by transport networks remain critical to almost half of
senior business people despite the increase in virtual contact
brought about by 21st century IT systems, according to Prof Smyth's
findings.
The report says it will be the ability to deliver integrated
transport systems which will distinguish the regional economic
successes of the future through the ability to provide fast, easy
access to world markets, skilled workers and to bring businesses
together quicker.
The report's key findings were:
- 81 per cent of senior business people rate transport as more
important than ever
- 63 per cent said transport was essential to attracting an
increasingly mobile and demanding workforce
- 52 per cent of respondents cited the globalisation of business
as increasing the demand for efficient and integrated transport
networks
- 46 per cent responded that virtual business is no substitute
for real time face-to-face contact and that holistic transport
systems are essential to bringing businesses together
- Half of respondents cited committed government support to
transport infrastructure as essential to their future investment
decisions.
Gareth John, managing director of Invest Thames Gateway, said:
"The report provides vital insight into the crucial role transport
plays and will continue to play in the future economic success of
locations. The Thames Gateway, which benefits from unrivalled
connections to London and mainland Europe, gives the region the
potential to become one of the UK's most exciting and well
connected business investment location."
According to Prof Smyth's findings, transport infrastructure is
seen as the "X factor" in investors' decisions. Nearly half of
decision-makers said 21st century integrated transport
infrastructure would make or break the economic prospects of a
location.
The essential benefits for business of being able to access
integrated transport networks were cited as: access to potential
customers (56 per cent); access to labour pools (41 per cent);
ability to drive efficient operations (39 per cent) and providing a
high quality of life for employees (28 per cent).
When considering the make-up of transport networks, respondents
defined the ideal investment location of the future as having the
following attributes: Access to integrated transport networks
(combination of road, rail, ports and air) (62 per cent)
- Proximity to international markets (34 per
cent)
- Access to international airports (31 per cent)
- Proximity to a major city (31 per cent)
- Access to sophisticated road and rail networks (29 per
cent)
- Commitment to sustainability (17 per cent).
The report also features a strategic review of integrated
transport infrastructure in the Thames Gateway, UK. The area
benefits from regional, intraregional and international transport
links and serves as a gateway between London and Europe. Its
transport network links major markets within and beyond the UK by
high-speed rail, road networks, ports and air. It is also fully
supported by committed government funding.
The major infrastructure improvements that have been invested in
the Thames Gateway region have already enhanced the region's
overall competitiveness and will continue to contribute to the
economic growth of this investment location.
Tuesday, February 16 2010
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