The Ministry of Defence (MoD) needs the capability to transport personnel, equipment and stores from the UK to operational theatres across the globe. This capability known as Strategic Lift, can by delivered by sea, land or air. Its annual cost to the MoD is almost £800 million a year.

The Strategic Defence Review of 1998 highlighted an urgent need to improve the UK's Strategic Lift capability to support the expeditionary policy. In the short term, the improvements were to be delivered through the acquisition of Roll-on Roll-off (Ro-Ro) container ships and the leasing of C-17 large transport aircraft. In the longer term, ageing transport aircraft were to be replaced by the new A400M transport aircraft.

The MoD has made good progress in improving its strategic sea-lift. The Ro-Ro ships have proved to be very effective and the acquisition of Landing Platform Dock (Auxiliary) vessels has also been useful.

Progress in improving strategic air-lift has been less good. The leasing of four C-17 large transport aircraft has greatly increased strategic air-lift capability. The MoD is purchasing the four aircraft when the lease ends in 2008 and a fifth C-17 aircraft. Given the tempo of current operations, there are likely to be substantial benefits in acquiring additional C-17 aircraft, but a quick decision may be needed as the C-17 production line might be closing in the near future.

The MoD plans to acquire 25 A400M military transport aircraft which were originally planned to enter service at the end of 2009. The programme has experienced a 15 month delay which has required the MoD to extend the lives of some of its ageing air transport fleet. Several transport aircraft have been lost during current operations. The MoD should consider acquiring additional A400M aircraft, given possible future losses, to maintain the pool of 25 A400M aircraft.

A key role for the A400M will be to transport the Army's Future Rapid Effect System (FRES) medium-weight armoured vehicles quickly to trouble spots around the globe. There is concern that FRES is increasing in weight during its development. The increased weight of FRES could lead to it becoming too heavy to be transported by the A400M, or could substantially reduce the distance that the vehicles could be transported. The weight of FRES needs to be closely monitored to ensure that the UK does not acquire a new generation of armoured fighting vehicles which cannot be deployed rapidly overseas.

In addition to providing air-to-air refuelling, the MoD's elderly tanker fleet also provides a Strategic Lift capability by transporting passengers and freight. The MoD announced in early June 2007 that it had decided to proceed with a Private Finance Initiative deal to acquire new tanker aircraft, although the contractor still has to raise the required funding. The MoD needs to work closely with the contractor to ensure that the deal can be finalised as quickly as possible, as the current tanker aircraft are coming towards the end of their lives and the new aircraft will provide greatly improved air transport for UK Service personnel.