An assessment of the ability of cargo buses to improve the efficiency of small businesses' logistics, reduce carbon emissions from transport, and impr

Across the UK, buses provide vital access and mobility for both rural communities, particularly low-income groups, commuters and the disabled, and provide a means to cut congestion and carbon emissions. However, fragmented, and lower density populations make the provision of bus services in remote rural areas more challenging. Many services run with few passengers and their existence is financially precarious, especially as passenger numbers on buses remain approximately 70% of the pre-pandemic level. Identifying new sources of income to improve the financial viability of bus services is an important industry challenge. The COVID-19 pandemic and economic climate (especially high inflation) have placed an existential threat on many rural bus routes that are vital for communities they serve. During 2022, almost one in 10 local bus services ceased in Great Britain despite government promises to improve local transport. This is a significant problem for many local authorities throughout the UK and therefore finding ways of reducing or offsetting operating costs (for example, through the carriage of cargo as well as passengers) is an important research and practical challenge.
A mass of small-scale businesses characterizes rural economies, often distribute their goods to buyers themselves, with transport and logistics a substantial cost financially and in terms of staff time. For instance, food and drink industry producers typically undertake regular deliveries to local and regional buyers but many of these journeys involve small loads. Improving the efficiency of logistics can improve business performance and reduce carbon emissions but requires greater co-operation with other actors for mutual benefit.
Cargo buses carry both passengers and goods on regular services, and they can utilize existing bus vehicles but with dedicated space for the transport of goods. Northumberland County Council highlighted the need to strengthen deep rural aspect in terms of expand the goods delivery beyond food and drink. It also emphasized the need to enhance the financial sustainability of the bus service by improving the vehicle utilization which is currently around 25-30% during the off-peak hours.
The purpose of this project would be to:
1. Map the logistics needs, and deliveries, of small-scale producers in remote rural areas of England against existing bus routes and timetables to identify the most promising opportunities for co-operation and establishment of cargo bus routes. This will involve working with Food and Drink North East (FADNE) and their members.

2. To investigate the practical and legal requirements for the establishment of cargo buses. This will involve liaison with business service operators, local authorities and transport authorities. Attention will also be paid to costs and willingness to pay for cargo bus services.

3. To model the potential financial benefits and costs for small-scale producers across England of adopting passenger buses for cargo shipments and examine the impact on carbon footprints.

4. To undertake a small number of test cargo journeys to establish the proof of concept, to provide a basis for future service development and commercialization.