Congestion hurting Danish business – report – The Post

Congestion hurting Danish business – report

A third of all companies often have to stop production due to transport problems

When will they ever learn? (photo: News Oresund, Flickr)
September 21st, 2017 4:00 pm| by Sarah Johnson

Nobody likes waiting in traffic, but increased congestion on Danish roads is hurting the productivity of many of the nation’s companies, leading to increased discussion about investing in transport infrastructure.

According to a Rambøll survey of over 670 Danish businesses for Dansk Industri, the confederation of Danish industry, one out of every three companies has needed to stop production due to delayed deliveries caused by road congestion and other transport problems.

Attempted adaptation
Danish companies are implementing various measures to counter the delays, such as transporting their goods at night, arranging larger deliveries and allocating more time.

However, these additional measures come at a cost, both financially and temporally.

“Insurance is costly. This is also the case when companies build up larger stocks to avoid that delayed deliveries stop production,” contended Danish Transport Federation head Michael Svane to DI Business.

“It would therefore have an effect on the bottom line for many companies if we could reduce delays.”

Infrastructure a priority
In another, larger DI survey earlier this year, companies said they prioritised investment in the Danish road network over lower taxes and fees, and labour issues.