M48 Bridge Restrictions: Costs Rise for Logistics

New restrictions for the M48 Severn Bridge are causing significant concerns amongst logistics occupiers on the Newhouse Industrial Estate in Chepstow. The estate serves as a major regional employment hub, totalling circa 2 million sq ft of warehousing across 33 units, covering a core 120 acres with over 2,500 employees.

National Highways announced the need to reinforce the bridge’s main suspension cables and, as a result, need to impose a restriction on the number of heavy goods vehicles (HGVs) that cross between Wales and England, allowing only 7.5tn HGVs to use this route for the next 12 to 18 months whilst necessary remedial work is carried out. Such restrictions, which came into force on the 27^th May, are expected to cause major disruption to supply chains and increase operational costs for businesses in the area.

The imposed restrictions will now force many HGVs to seek alternative routes away from this key crossing with JLL calculating that this will add an additional 14-mile diversion (equating to an extra £66) to each journey by re-routing across the Prince of Wales (M4) bridge, or worryingly, up to a 57-mile diversion through Gloucester, at an extra cost of £171 per trip. Calculated on the average per mile rate for an articulated lorry (source: Road Haulage Services).

The decision to enforce such restrictions was made with seemingly little consultation with affected businesses, which include a number of national logistics operators based on Newhouse Farm Industrial Estate. Key occupiers on the estate include Uniserve, ASDA, Nisbets, Bidfood, Micheldever Tyres and ALUK. These businesses rely on the M48 bridge to transport goods regionally and nationally using the national motorway network.

Whilst we appreciate the safety concern, the apparent lack of communication and stakeholder engagement with such logistics occupiers is incredibly disappointing. Whilst the proposed works are being badged as a short-term restriction, JLL understands that longer term restrictions may be imposed in due course, the detail of which is yet to be revealed. Notwithstanding this, even the short-term restrictions will cause significant headaches for many small and large businesses on the Welsh side of the bridge, including:

• Extended travel and increased expenses – the mandatory diversion via the M4 Prince of Wales Bridge extends each trip by over 14 miles. In addition, alternative paths may be required, potentially forcing transport and logistics companies to navigate lengthy detours through Gloucester.

• Environmental impact and sustainability concerns – increased journey lengths result in higher emissions. This situation contradicts national carbon reduction goals, forcing businesses to accumulate additional mileage at a time when many are investing in eco-friendly fleets and sustainable logistics practices.

• Significant business challenges – this change will lead to escalated fuel costs, accelerated vehicle wear and logistical disruptions.

• Impact on local communities – as HGVs seek alternative routes to the M48, smaller towns ill-equipped for large-scale freight traffic may experience an influx of lorries on their narrow streets, raising concerns about safety and infrastructure strain.

• Broader economic implications – this issue extends beyond transportation, posing a threat to regional supply networks, local enterprises, and overall economic development.
   

We appreciate that the matter is a balancing act and safety of course remains the top priority. However, a more comprehensive interim solution is in our opinion necessary to safeguard both the transport and logistics sector in this location. Motorway infrastructure is already strained locally with the continued delay to the opening of the new M49 junction in Avonmouth and the (now abolished) plans for the M4 relief road around Newport, which would have connected to the M4 at J23A near Magor and helped relieve the regular traffic delays on the approach to the Brynglas Tunnels heading west towards Cardiff.

Tom Watkins, Director in the UK Logistics team at JLL said “South Wales is a great location for logistics, and this is evident with the success of the Indurent scheme at Newport and Owens Transport’s investment into a new 155,000 sq ft warehouse in Magor, so we need to make sure this success continues. It’s been disappointing to hear the lack of consultation with nearby businesses about these bridge restrictions, and there’s now a real threat that occupiers will consider relocating to more reliable logistics hubs such as Newport, or even across the bridge to Avonmouth and Gloucester. In a world of constant uncertainties, it’s difficult enough for supply chain operators to navigate political and economic hurdles, so the lack of communication on these infrastructure changes, and lack of a suitable lead-in time for occupiers to adapt to the restriction, could have a substantial impact on key employment areas in Chepstow and the surrounds.”

Chris Yates, Lead Director in the South West and Wales Logistics team at JLL added “Chepstow is a key logistics and distribution hub for servicing into Wales. However, the newly imposed restrictions on the M48 bridge are threatening the viability of establishing a facility in this location. The market is already under-supplied with good quality available stock and hence we need to protect employment on Newhouse Industrial Estate. We hope that National Highways adopt a more considered approach for the sake of the logistics sector when deciding the longer term solution for the bridge and it is important that they are transparent with businesses on the timeline that they are working on as part of their feasibility and cost exercise process.”

JLL's extensive experience in the logistics sector positions us to help businesses adapt their supply chain strategies during this disruption while also contributing to longer-term infrastructure planning discussions. We believe that with proper coordination between government agencies, infrastructure authorities, and the business community, we can develop approaches that protect both public safety and economic vitality.

To discuss any of the matters discussed above, please contact Tom Watkins or Chris Yates.