GB Grid can provide the power logistics needs to drive growth, says Logistics UK

Commenting after the Prime Minister’s speech today (29 September 2026) at the Labour Party Conference in Liverpool, Ben Fletcher, Chief Executive of business group Logistics UK said:

“Logistics businesses are currently making every effort to switch from fossil fuels to more sustainable options, but while many are keen to change to electric technologies, access to sufficient grid capacity is proving a significant barrier to doing so, and is something that we have been raising with government for some time. This current lack of grid access is holding back our sector’s ability to drive the economic growth we know the country is capable of.

“As it stands, the existing electricity grid cannot meet the demands of our sector while continuing to service the needs of consumers, businesses, schools and hospitals. Electrifying our industry will be essential to cutting the UK’s carbon emissions, while reducing the country’s exposure to global economic instability and volatile diesel prices. However, fully electrifying road freight alone will require an estimated 32 TWh of electricity a year (the equivalent to around 40% of the power used by UK households), on top of the energy needed to decarbonise logistics hub operations, provide shore power for ships at berth and help to shift to an electric future for air freight and travel. Delivering this energy where it is needed will require substantial new grid capacity, yet currently, when businesses seek new connections, they are often quoted eye-watering sums and multi-year waits.

“From the Prime Minister’s speech, it appears that the planned GB Grid could provide a useful alternative route to delivering these vital upgrades. The test will be whether the new model can genuinely accelerate logistics electrification, reduce costs and better respond to commercial demand. Getting this right will require recognising that logistics is becoming a major electricity user, with substantial new demand at hubs, ports and airports and along the UK’s key freight corridors.”

Logistics UK is one of the UK’s biggest business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, water and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods. For more information about the organisation and its work, please visit logistics.org.uk