Peel Ports Group is urging a more intelligent, efficient approach to getting construction materials into and around the UK, arguing that logistics reform could help jump-start the building sector.

The UK's second-largest port operator is making the case ahead of Prime Minister Andy Burnham's first Budget in October, which it sees as a chance to restore momentum across construction.

The new government has set out what Mr Burnham has described as the biggest council housebuilding programme since the post-war period. In June, it committed almost £10bn to deliver 70,000 new council and social homes in the first phase, within a wider pledge to build 1.5 million homes over this parliament. However, Housing Secretary Angela Rayner told the BBC this month that 'headwinds' mean there is a 'slim chance' of meeting this.

Alongside the housing ambition sits a substantial pipeline of major infrastructure, including Sizewell C, the Lower Thames Crossing, new reservoirs in East Anglia and the Heathrow Airport expansion, as well as essential road upgrades.

Yet the latest official data show activity has slowed. Office for National Statistics figures record construction output falling across April, May and June, with new orders down 11.8% quarter-on-quarter. Separate analysis from Glenigan found project starts down 11% on the quarter and 29% year-on-year, with housing starts alone dropping 25% quarter-on-quarter.

-- Advertisement --

David Huck, Chief Operating Officer at Peel Ports Group, said: "Despite being tasked with an ambitious pipeline of projects, the construction industry is seemingly struggling to overcome a combination of hurdles, from higher material costs to skills shortages, and the government has acknowledged even its own ambitions may not be achievable."

He added: "We believe an obvious place to start is with how vital construction materials get into and move around the country. A more considered, sustainable and better-coordinated approach could open up growth right across the country, and that's why we're partnering with like-minded businesses through our Sustainable Construction Partners.

"Peel Ports Group's Sustainable Construction Partner collaboration aims to create port-centric consolidation hubs that cut cost, carbon and congestion. The programme brings four organisations together at dedicated deep-water hubs, including the Port of London Medway and the Port of East Anglia, which are already supporting delivery of Sizewell C, the Lower Thames Crossing and other major projects across the South East. The partners are also working on a broader study of the UK construction supply chain to identify barriers to efficiency and resilience, with full findings due in early 2027."

Paul Roos, Ecocem's Managing Director for North-West Europe, said: "The UK has a major programme of housing and infrastructure to deliver, and we already have proven low-carbon cement technologies that can help deliver it with significantly less CO2.

"Ecocem has more than 25 years' experience supplying low-carbon cement, including to some of the UK and Europe's largest infrastructure projects. Our technologies integrate with existing cement manufacturing, concrete production and construction processes, delivering the performance the industry needs with significantly lower carbon. The priority now is to ensure these solutions are deployed rapidly and at scale."

Martin Johansen, Managing Director at Mibau Stema Group, said: "As one of Europe's leading aggregates suppliers, we know that a resilient supply chain matters just as much as the materials themselves. Our fleet of self-discharging vessels already moves large volumes of aggregates through deep-water terminals across the North Sea and Baltic, taking pressure off the road network and keeping major projects on schedule.

"Working alongside Peel Ports and our fellow Sustainable Construction Partners, we want to bring that same model to the UK, consolidating materials at coastal hubs so housing and infrastructure projects get what they require without adding to congestion, cost or emissions."