UK must prepare for life outside customs union or risk being FROZEN OUT, expert warn

THE UK faces being left out in the cold after Brexit unless the Government takes urgent steps to prepare for life outside the customs union and consequent potential disruption at the ports, experts have warned.

By Ciaran McGrath

PUBLISHED: 22:32, Wed, Apr 11, 2018 | UPDATED: 22:46, Wed, Apr 11, 2018

Portsmouth harbour GETTY

Portsmouth is one of the British ports affected by the uncertainty

Victoria Hewson, of think tank the Institute for External Affairs, made her remarks in the wake of reports that ferry companies were opening up new direct routes between the Republic of Ireland and mainland Europe - effectively by-passing Britain as a result.

Brittany Ferries and Dutch-based shipping company CLdN were among those reported to be taking steps as March 29 – the date Britain quits the bloc – draws closer.

And Irish Continental Group is planning to increase freight capacity by almost 10 times to Dublin and the French port of Cherbourg this summer, up from 120 to 1,155 trucks.

However, some of this capacity will be reserved for tourist vehicles during the holiday season.

Brittany Ferries GETTY

Brittany Ferries are opening up more direct routes between Ireland and mainland Europe

Ongoing debates and uncertainty about leaving the customs union only hold them back.

The IEA's Victoria Hewson

Mrs Hewson, senior Counsel at the IEA’s international trade and competition unit, said: “EU shipping companies are doing what they can to make the most of the opportunities of Brexit for them and to prepare for the UK being outside the customs union.

“We need to make sure we are doing the same thing in this country.

“Our ports and ferry operators need to be able to invest and prepare, but they need certainty from government to do so, and ongoing debates and uncertainty about leaving the customs union only hold them back.”

The extent to which uncertainty over Brexit is unnerving the shipping industry was illustrated last month by the postponing of a proposed route between Great Yarmouth and the port of Ijmuiden by Dutch firm Seaman Ferries.

Queues at ports GETTY

Experts fear Brexit could mean long queues at British ports

And in October, UK Chamber of Shipping chief executive Guy Platten said a hard Brexit could have a significant knock-on effect on freight across the British Channel, warning that small delays at ports would have big consequences.

He explained: “The port at Portsmouth has done a little calculation.

“They reckon if there was just a two minute delay, whilst checks were made, that would add 15 hours onto the day really, in terms of delays.

“If we then put in a hard customs border, then those delays will have quite catastrophic effects on the supply chain at least in the short and medium term.”

In a blog published earlier this year on the website of the London School of Economics, Andrew Potter of Cardiff Business School said Welsh ports were similarly anxious about the impact Brexit would have on freight from the Republic of Ireland.

He wrote: “There remains much uncertainty regarding the processes of trade post-Brexit, which makes it difficult to justify significant financial expenditure at this stage.”