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February 2002
Collision course for congestion scheme?
A potential row could be brewing over the congestion charges proposed by London Mayor Ken Livingstone, which are likely to add to the cost of home deliveries in the area. The charging scheme, which could come into effect within the next two years, would cover a densely-populated area of central London, broadly bounded by major roads such as Park Lane and Marylebone Road. Unless exempted, delivery vehicles will have to pay a flat fee of £5 per day to travel within the controlled area. Controversially, Royal Mail vehicles are currently expected to fall into a special "100 per cent discount" category, but independent parcels carriers may not - giving Royal Mail's parent Consignia a significant commercial edge in the home delivery market. 
The Freight Transport Association is mounting a campaign to exclude all commercial vehicles from the scheme, and fleet management systems specialist Isotrak points out that an operator with a 50-vehicle fleet could face an annual bill of £90,000. "Inevitably, these costs will filter through to consumers and businesses in the city zone," says marketing director Clive Girling. However, Isotrak sees one silver lining in the proposals. If they do include freight vehicles, it wants to see the revenue reinvested in "smart logistics technology" aimed at monitoring and managing payment.
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