FTA Ireland includes tyre efficiency in pre-Budget submission

The logistics and freight sector is at a critical juncture facing many ongoing challenges including growing skills shortages, year on year increased operational costs (exceeding inflation), decarbonisation challenges which are feeding into increased cost of services as well as many other input costs.

In its latest pre-budget submission, FTA Ireland (FTAI) has outlined key policy recommendations to help future-proof the sector while supporting climate goals and economic resilience. It has included the promotion of efficient tyres in the submission.

Tyre Efficiency: Incentivising Simple Switch with Significant Savings
It says that incentivising the use of A or B rated tyres across commercial fleets could deliver notable fuel and emissions savings. According to the SEAI6, every step up in tyre rating improves fuel efficiency by approximately 0.6L/100km.

It says that this means that upgrading from E-rated to A-rated tyres could result in savings of up to 2.6L/100km – comparable to some technological upgrades but at a fraction of the cost. Adding that promoting the adoption of higher rated tyres offers a quick, low-barrier strategy for operators to reduce fuel consumption and emissions, supporting Ireland’s climate goals while also lowering operational costs for the transport sector.

Higher fuel prices negatively impact operational costs
According to the “FTAI Managers Guide to Distribution Costs 20243 ” report fuel accounts for 48.1 per cent (up from 41 per cent the previous year) of operational costs for Heavy Duty Vehicles. The most recent report identified average fuel cost per kilometre at 0.49 cent (an increase of approximately seven per cent on the previous year).

It says that introducing grants to support the retrofitting of telematics systems in up to five HDVs or buses per operator could significantly enhance fuel efficiency, driver performance, and road safety. In conjunction with Eco-Driver training, these systems provide real-time data on driving behaviour, enabling operators to identify and correct inefficient practices that lead to higher fuel consumption.

By incentivising small to medium-sized fleets to adopt telematics, the government can promote more sustainable and safer transport operations, delivering both environmental and societal benefits in line with Ireland’s decarbonisation and road safety goals.

FTA Ireland Initiatives for consideration in the upcoming budget

• Infrastructure For Scaling Up HDV Charging With Targeted Support;
• Reform VRT to Support Low-Emission Light Commercial Vehicles;
• Reforming Weight Limits to Enable Low-Emission HDV Adoption;
• Incentivising Greener Freight: Tolls Reform Under Review;
• Levelling the Playing Field: Tax Relief/Rebate for Low-Emission Fuels;
• Boosting Fleet Renewal: Grants and Scrappage Schemes;
• Eco Driver Training: Low Hanging Fruit Opportunity for Emissions Reduction;
• Supporting Smarter Fleets: Grants For Retrofitting Telematics Systems;
• Tyre Efficiency: Incentivising Simple Switch with Significant Savings;
• Flexible Finance Models: Support for Leasing Low-Emission HGVs;
• Aligning Public Procurement with Climate Goals in Passenger Transport;
• Insurance Incentives for Low-Emission Vehicles;
• Addressing the Driver & Skills Shortage: Building a Sustainable Workforce;
• Road Safety/Enforcement for Safer, Fairer Commercial Fleet Operations.

Transportation and Storage accounted for over €7 billion in Gross Value Added to the Irish economy in 2023. Imports and exports also depend on logistics and supply chain, and in 2022 Ireland exported approximately €197 billion worth of goods and imported around €140 billion.

Over 111,000 people were directly employed in Q4 2023 across a variety of roles. This is equivalent to the agriculture sector employment figures.

Niall Cotton, interim CEO FTA Ireland said: “FTA Ireland is inviting Government, agencies, and industry leaders to work with together on implementing a roadmap that balances sustainability, growth, and operational viability.”

The full FTAI submission can be seen at: www.ftai.ie.