Supporting partners with evidence on consolidation centres

Friday 1st August 2025

The activities of our freight and logistics sector play a vital role in delivering goods to individuals and businesses, supporting jobs and economic growth. Local authorities across the North are increasingly being asked to consider freight in their planning and policy decisions, often without direct control over the operations themselves.  

Transport for the North (TfN) is working to support our partners in combined authorities and local transport authorities by providing information and data that could help planning and decision making. In our first “Understanding freight and logistics” guide for the public sector, we’ve covered consolidation centres, including what these facilities are, and where they may or may not be suitable.  

What are consolidation centres?  

Consolidation centres are logistics facilities that receive goods from multiple suppliers and combine them into fewer, fuller deliveries for final distribution. They are typically located near urban centres and aim to reduce the number of delivery vehicles entering congested areas.  

While they can offer benefits such as reduced emissions, improved safety, and more efficient use of space, they are not a one-size-fits-all solution.  

Why this matters for local authorities  

Local authorities are increasingly being asked to consider freight in the context of environmental goals and public realm improvements. However, feedback to us indicates there is a lack of evidence available on how consolidation centres work, under what conditions they succeed, and what the role of the public sector is, it can be difficult to make informed decisions.   

We are trying to help bridge that evidence gap.  

What the evidence shows  

In our guide to consolidation centres for the public sector, we’ve outlined the following key insights:  

• Success depends on context: Consolidation centres are most viable where there is a high volume of deliveries, access constraints at the end destination, and where policies limit HGV access to urban areas  

• Financial sustainability is a challenge: Many centres rely on public funding or subsidies. Without a clear business case, long-term viability can be difficult  

• Alternatives exist: Operational solutions such as procurement-led consolidation or micro-distribution hubs may be more appropriate in some settings 

• Local authority levers are limited but important: While authorities don’t normally run freight operations, they can influence outcomes through planning, funding, and engagement.  

TfN’s approach  

Our aim is to provide local authorities with:  

• Clear, evidence-based guidance on the benefits, limitations, and implementation considerations 

• Case studies from across the UK to illustrate where consolidation centres have worked—and where they haven’t 

• Tools and frameworks to help assess local freight challenges and identify appropriate interventions  

By equipping local partners with this knowledge, we support more informed, place-based decision-making that reflects the unique needs and constraints of each area.  

Ready to learn more? Download our new guide, Understanding Freight & Logistics: Consolidation Centres, designed to support the public sector.