Hannon Transport Takes a ‘Belt & Braces’ Approach

HANNON TRANSPORT BATTLED BREXIT WITH ‘BELT & BRACES’ APPROACH

With over 25 years’ experience in the European fresh produce transport and logistics sector, Aodh Hannon might have thought he had pretty much seen it all, but he couldn’t have imagined what the last 18 months has brought, as Export & Freight’s David Stokes reports.

In his words, it has been a ‘roller coaster’, beginning with Brexit and followed quickly by a global pandemic; both those issues are still challenging today, but with dedication, determination and a large degree of foresight and advanced planning Hannon Transport is weathering the storm. Although battered and bruised along the way, being exceptionally well prepared, the company has overcome multiple hurdles and today is better placed than ever to face the future come what may. The company, which is headquartered in Aghalee in County Antrim and with depots in Dublin, France and Holland, has many years of specialist experience in the transport of goods - from fresh fruit & vegetables to dairy and horticultural products - between the EU, the UK and the island of Ireland. It currently employs around 500 people and operates an impressive fleet of 285 vehicles which is regularly being renewed and expanded; indeed, an additional 60 new vehicles are to be added to the fleet to cope with increased demand. The company spent the 12 months before the end of the transition period in intensive Brexit preparations, and comments Aodh: “The single biggest issue we faced was lack of certainty - you didn’t know what was coming down the line and we had to prepare for a number of different scenarios and build in multiple contingency plans.” Hannon Transport took a ‘belt and braces’ approach to Brexit, and it worked. “We recruited over 35 in-house customs agents to make sure we had enough capacity to cover any reasonable worst-case scenario when Brexit kicked in on 1st of January. It was a vital part of our risk mitigation. Our emphasis was rightly on our existing customers and ensuring we were able to guarantee a smooth and dependable customs administration service to make sure their goods continued to flow. “In total, we committed over £200,000 preparing for Brexit, not counting the salaries of those dedicated Customs Administrators we employed and trained. Fortunately, we had no huge issues ourselves, mostly because we had prepared so much.”

Arriving at port.

Six Months On…

Adds Owen McLaughlin, Group Marketing Manager: “By its very nature Brexit was always going to be disruptive, but six months on our processes are well bedded in and we are now providing a customsonly service to many new customers who source their own transport but require help with the new processes and the Trader Support Service.” Six months prior to the transition as part of its preparations, the company also opened a base in Rungis International Market in Paris; it’s the largest fresh produce market in the world. Complementing the company’s long established hub at Rotterdam in the Netherlands, the base has helped Hannon Transport to extend its services further into the French, Italian and Spanish fresh produce markets. “Currently, in terms of turnover,” says Owen, “we have seen a significant increase – up 33% - with customers in the food services, meat, fresh fruit and vegetable and horticultural sectors seeking out new suppliers in mainland Europe particularly Holland, Belgium and France because currently the customs overhead is considerably less than Great Britain to Northern Ireland. “In terms of margin however we are coming under significant pressure. The extra business we are picking up is predominantly East-West which impacts the balance between outward and backload required and reduced margins significantly. Like every other business in Northern Ireland, we have also had to absorb substantial and on-going Brexit-related costs which again negatively impact margins. “But we’re in a better position than many as at least we’re getting good turnover and we’re proactively trying to get Northern Ireland products out to Europe by talking to wholesalers and distributors in

Lorries queuing at Port Hoek Van, Holland

Direct door to door link to Europe. On the road at Cuijk in Holland.

Hannon Coach.

Europe. However, there is no denying that stress levels and uncertainty within the industry remain high.

Looking Further Ahead…

Comments Aodh: “A lot of what we carry for Northern Ireland customers is shipped and driven through Great Britain. It’s a very light touch at the moment and the overhead can be absorbed but the end of the grace period for Sanitary and Phytosanitary (SPS) goods in October could just absolutely multiply the problems and the costs. “For us, as it currently stands, everything is made a lot easier by the Protocol. It is important to us as a Northern Ireland business. I think if we were to rip that up or start again, you’d be sacrificing so much more. It can be made to work. “At the moment we are content with where we are. We were grateful to see the deadlines in March deferred. Things could turn on a sixpence however depending on what comes down the line in October and that uncertainty remains another significant risk that we as a business will just have to plan and mitigate as best as possible”

Upsides & Downsides…

While the pandemic and subsequent lockdowns, too, had an impact on business, it wasn’t all bad. “When Covid-19 struck last March,” says Owen, “we did have huge problems initially when the food services sector had to close, but we were then quite fortunate there was a period of great weather, supermarkets began selling more horticultural products than before because garden centres couldn’t open, and then Easter came early, all of which combined to give our business some relief.” However, on the downside, the company’s coach business with its 15-strong fleet has been at a virtual standstill since March last year when the tourist trade was practically decimated. That said, Hannon Coach is still operating a highly successful service between Belfast and Glasgow. “We are very fortunate in having a terrific team of people around us who have worked tirelessly to keep it all together,” says Aodh. “Whatever difficulties or challenges the future brings, I am confident we will plan our way out of it, just as we have up until now.”