Transp rt News September 2016
Frost & Sullivan's GIL 2016: Silicon Valley Event Uncovers Innovative Service Models Within the
Intelligent Mobility Ecosystem Page 40
Better Journeys on the Way for Rail Passengers Across the West Midland Page 28
Failure to Correctly Fit Bulldog Grips Causes Significant Damage to Cargo Page 44
US Regulation for More Efficient Trucks Means Europe's Lawmakers Need to Speed Up Page 18
Plus: First Aberdeen Bypass Junctions Open / Governments Must Clamp down on Rogue Lithium Battery Shippers / Two Thirds of London Councillors Support Gatwick Expansion – the Only Scheme That Needs No Taxpayer Funding
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Welcome to the 4th edition of a brand new publication, Transport News INTL, which promises to cover all modes of transport. This September edition of Transport News INTL takes a look at the latest news, deals, appointments, research and news that concern the transport sector. In terms of transport security, the Road Haulage Association is mindful of the safety of hauliers at Calais. In other security enhancing news, the International Air Transport Association (IATA) announced that IATA’s Cargo-XML messaging standard will be utilised by the U.S. Customs and Border Protection Agency (US-CBP) to collect advance cross-border data on US export shipments. Staying on the theme of security, recorded cargo crimes in the Europe, Middle East and Africa (EMEA) region continue to show an alarming rate of growth, with the 598 new freight losses recorded in Q2 2016 representing a 92.9% increase year-on-year, according to the Transported Asset Protection Association’s (TAPA) Incident Information Service (IIS) database. For the first time, we have a special section on freight transport, which includes the news that over 79% of ladies are keen to get behind the wheel of a lorry, according to Freight Transport Association figures revealed in late August. The US Environmental Protection Agency (EPA) recently published the second phase of greenhouse gas standards for the trucking sector, which will enable America to have the cleanest and most fuel-efficient trucks in the world. I hope you enjoy the journey.
TRANSPORT NEWS SEPTEMBER 2016
Environment Contents
4. News 10. 12. 14.
AVIATION Commercial Aviation: Growth Opportunities for Metal Additive Manufacturers Boom Two Thirds of London Councillors Support Gatwick Expansion – the Only Scheme That Needs No Taxpayer Funding Morrison Express Launches Rickenbacker International Airport (LCK) Service Offering
FRIEGHT & LOGISTICS 16. Big Increase in Cargo Theft 'a Great Cause for Concern' TAPA Says 18. US Regulation for More Efficient Trucks Means Europe's Lawmakers Need to Speed Up20. 19. Revealed: These Cyclists Are Invisible to Truck Drivers in Their Cabs 20. Europe Shows Ambition on Cleaner Road Transport – now it must Deliver 22. 24. 26.
OVERVIEW Brexit Speculation? No Comment Says BIFA Calais – Lives, Livelihoods and the UK Economy at Risk Warns RHA IATA Cargo XML Standard Accepted by the U.S. Customs and Border Protection Agency
RAIL 28. Better Journeys on the Way for Rail Passengers Across the West Midlands 30. Frost & Sullivan Applauds ASC for Excelling in the Rotation Rate Sensors Market 32. Intercity West Coast Rail Franchise Must Not Miss North Wales Connection 34. 36. 38. 40.
ROADS Companies Mastering Autonomous Driving, Connectivity and Electrification to Emerge as Leaders of the Future First Aberdeen Bypass Junctions Open Frost & Sullivan Recognises the Drive and Vision of Kiira Motors Corporation in Redefining Mobility in Uganda Frost & Sullivan's GIL 2016: Silicon Valley Event Uncovers Innovative Service Models Within the Intelligent Mobility Ecosystem
SHIPPING 42. A Fare Point 44. Failure to Correctly Fit Bulldog Grips Causes Significant Damage to Cargo 46. Governments Must Clamp down on Rogue Lithium Battery Shippers 48. Deals
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How Uber Turns Around Its $1.2bn Loss - by Delivering Things Uber must get serious about delivering packages as well as people if it wants to make money, says global courier ParcelHero. he news that taxi App Uber has run up losses of over $1bn in the first half of 2016 comes as no surprise; says the international courier ParcelHero.com. The global taxi industry is scarcely large enough to warrant the investment in technology Uber has made developing its crowdsourcing App, says ParcelHero: and it must make good on its plans to extend its UberRUSH courier services to new markets urgently.
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ParcelHero’s head of consumer research, David Jinks MILT, says: “The entire global taxi industry is only worth $22bn, according to many transport exports. That means the potential to make a significant profit on its ongoing technological investments is going to be very hard to achieve. In contrast, the domestic global courier sector generates around $246 billion. That’s a much bigger market to move into.” Jinks goes on to say: “The company launched UberRUSH – essentially an Uber for things instead of people – in the US last year. It’s also been developing its UberEATS food delivery services in a number of international
TRANSPORT NEWS SEPTEMBER 2016
cities delivering food. But it’s really not been in an uber-rush to launch in key markets such as the UK. The UK’s £7.1bn courier market is surely a particularly ripe one for Uber to tap into. This latest set of figures must mean it will take the plunge and launch its crowdsourced courier service here in the UK very soon. It has a great group of drivers sitting idle for periods of the day when they could be delivering locally.” Jinks concludes: “There are some challenges facing Uber in London; but the potential for its UberRUSH service could liberate businesses in cities: giving them the potential to offer the same speedy deliveries only Amazon Prime customers expect currently. The move will boost local retailers and help turn around Uber’s losses.” Parcelhero’s recent report - The Uberfication of Deliveries – outlines the radical opportunities Uber-style crowdsourced deliveries will bring to urban areas.
News
1 Million Trucks Transported by Eurotunnel Le Shuttle Freight in 2016
Air Charter Service Expands Its OBC Offering in Asia
Le Shuttle Freight, Eurotunnel’s Truck Shuttle service forges ahead and sets a new record. On 9 August 2016, Le Shuttle Freight transported its millionth truck for the year, almost one month ahead of the same milestone in 2015.
Leading aircraft charter specialist, Air Charter Service, has expanded its OBC offering in Asia by developing its specialist team and network of couriers. This expansion will be led by Hugo Liu who will be based in the company’s Hong Kong office.
ince November 2015, Truck Shuttles have set new records month-on-month against the same periods in previous years. This millionth truck is yet another testament to the enduring dynamism of the business.
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Jo Willacy, commercial director for Eurotunnel,
stated: “In choosing to make the crossing with the Channel Tunnel, hauliers and truck drivers benefit from an enlarged, secure and comfortable environment. It is through the provision of this quality of service that the Tunnel remains the most attractive means of transport and has retained its position as the industry leader.”
A little over a year ago Air Charter Service relaunched their On Board Courier division with significant investment, pledging further funding over the coming years. After an impressively busy first year, the company has seen the need to have OBC specialists in Asia, to compliment the team at their headquarters in Europe. Oliver Weigelt, ACS’s time critical manager, said of the development: “This new operation for our OBC service is the first in what I hope will be further regional developments across the globe in the next few years. Asia is a booming market and this local presence will really boost our business in the area. It allows us to have OBC expertise in another of ACS’s offices which, in turn, helps our main team here in Frankfurt immensely. “We had an outstanding 2015 for On Board Couriers and this year is, so far, proving to be an even better one. We are on course to arrange more than 1,000 OBC jobs in 2016 which, from an almost standing start last Spring, is a phenomenal achievement, and we’re very excited about the opportunities that this expansion in Asia brings.”
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Urgent Action Needed for Scotland's Roads to Improve A new report published says proper maintenance of the roads network is vital for economic prosperity and for people to get around safely. owever, roads authorities, locally and nationally, urgently need to be more innovative, develop robust ways to compare relative efficiency, and engage better with road users. Sharing roads maintenance services on a regional basis can offer significant benefits but progress in developing this has been slow and there is still no clear plan or timetable to deliver it in practice.
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Councils maintain most of Scotland's roads network. The proportion of these roads classed as being in acceptable condition has remained constant at around 63 per cent over the four years 2011/12 to 2014/15. Councils' spending on maintenance fell by 14 per cent over the
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same period. There is a wide variation among councils and concern that current surveys do not always pick up damage to lower road layers. Accounts Commission chair Douglas Sinclair, said: "The state of our roads is a major concern for the public. Surveys show that they remain dissatisfied, despite these concerns being flagged up in our two previous reports. Their voice needs to be listened to. "Councils face increasing pressures and challenges but progress in developing a shared services approach for roads has been disappointingly slow. They can and should collaborate much more to secure better value for money."
Transport Scotland maintains motorways and key trunk routes where spending fell by four per cent between 2011/12 and 2014/15. The proportion in acceptable condition also fell from 90 per cent to 87 per cent over the same period. Transport Scotland spent ÂŁ24 million less on structural maintenance in 2014/15 than it considered necessary to maintain road condition at current levels. Auditor general, Caroline Gardner said: "A wellmaintained roads network is vital for Scotland's economic prosperity. We cannot afford to neglect it. What is needed is a longer term view which takes into account both the need for new roads and the proper maintenance of what we have at present."
News
Hazzard and Ó Muilleoir Tour Stena Line Port Operations Infrastructure Minister Chris Hazzard and Finance Minister Máirtín Ó Muilleoir in late August toured the Stena Line’s port operations in Belfast. The Ministers had the opportunity to see the impact of significant investment by Stena Line in their operations in the North including their recent £5million ship refit investment programme. nfrastructure Minister Chris Hazzard, whose department has responsibility for ports policy said: “Our ports are the gateway to the global economy so it is essential that they are effective and efficient. This enables them to compete internally and connect with the rest of the world. Stena Line’s significant investment demonstrates a clear commitment to their operations here in the North and the key role they play in the maritime sector.
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“It makes sense to have a strong link between public sector infrastructure priorities and
private investment plans. I want to deliver improved transport links between ports and their hinterlands to core transport routes in the North.” Finance Minister Máirtín Ó Muilleoir added that the visit “is a welcome opportunity to see first-hand the significant contribution Stena Line is making to the maritime sector. This latest investment signals their continued commitment to operations here and highlights the vital role Stena Line plays in maintaining our strategic trade links with the rest of the world. Furthermore, it demonstrates the important impact investing in our infrastructure can have,
not only as a boost to the wider economy, but to local communities who benefit through job creation and skills development.” Paul Grant, Stena Line’s route manager commented: “Stena Line is pleased to welcome both Ministers to its port operations in Belfast. Over the last number of years Belfast has become an increasingly important hub for Stena Line freight and tourism volumes into Northern Ireland so it’s important that we communicate this ongoing development to key figures in the NI Assembly such as Ministers Hazzard and O’Muilleoir.
50 EBRD-Financed Green Buses Hit the Road in Kyzylorda Fifty clean, modern and accessible buses arrived last month in the city of Kyzylorda, raising the quality of local transport for thousands of citizens in this major regional centre in southern Kazakhstan. his is the first delivery of buses under an EBRD project that will ultimately finance a total of 92 new buses and reform the city’s public transport system. The buses were unveiled in a ceremony in Kyzylorda attended by the Akim of Kyzylorda Oblast, Krymbek Kusherbayev, and Janet Heckman, EBRD director for Kazakhstan.
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Janet Heckman said: “We at the EBRD are very proud of our cooperation with Kyzylorda. These 50 new buses – and there will be 92 in total – will tangibly improve citizen’s lives, making the air cleaner, journeys more pleasant and buses more accessible to people in wheelchairs and to parents with prams.
This EBRD-supported project also ensures a reform of the city’s transport system to improve cooperation between the municipal transport company and private sector operators, which will make services more reliable.” The EBRD has already financed projects with similar type of buses in Almaty, Kazakhstan’s largest city. In Kyzylorda, the EBRD has financed, or expressed interest in financing, a wide range of public utilities, from water and wastewater to district heating, solid waste, street lighting and transport. “Close cooperation with the authorities on vital upgrades – combined with reform – is a model we use for regional development here in
Kyzylorda and in other cities in Kazakhstan,” said Ekaterina Miroshnik, EBRD director for Infrastructure in Russia and Central Asia. The loan of up to US$ 18.8 million to Avtobusnyi Park Kyzylorda, a municipal public transport company, owned by JSC NK SPK ‘Baikonur’, was provided not only for purchasing the 92 ‘green’ buses that run on compressed natural gas (CNG) but for depot workshop equipment and public transport service planning, including an electronic monitoring system. To date, the EBRD has invested over €6.5 billion in various sectors of Kazakhstan’s economy. www.transportnews-intl.com
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Which? Confirms Nextbase's Position at the Top of the Dash Cam Market August 2016: Nextbase, the UK’s leading manufacturer of Dash Cams, recently announced that a further two of its Dash Cam models have achieved Which? Best Buy status. The 212 Lite and 312GW are the third and fourth products manufactured by Surrey-based Nextbase to be awarded this prestigious accolade.
he models join the Nextbase 512G and 402G Dash Cams as Which? Best Buys, having all scored higher than the 40 other Dash Cams that underwent rigorous testing. This now sees four out of five of Nextbase’s core Dash Cam range hold the award, while Nextbase remains the only manufacturer to have achieved this status.
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These awards confirm Nextbase’s continued dominance of the UK Dash Cam market. According to data from independent retail analysts GfK, sales of Dash Cams rocketed in 2015 increasing by 395%*, making it the fastest growing area of consumer electronics. Nextbase’s range of Dash Cams now account for 76 per cent of the market by volume. This is more than thirteen times higher than the second largest Dash Cam manufacturer in the UK. ** With a heavy focus on image quality, the company has ensured it is a step ahead of the rest of the market by using the latest sensors, highest quality glass lenses and software
TRANSPORT NEWS SEPTEMBER 2016
developed in the UK. On the top-scoring Nextbase 312GW, Which? noted “The Nextbase 312GW has a raft of impressive technology under its bonnet … it provides clear and detailed footage that will have you covered in the case of a crash, and doesn’t scrimp on features.” Richard Browning, director at Nextbase, commented: “The recent Which? results are testament to the fantastic work the Nextbase team have put in over the past few years and highlights the reliability and quality of our products compared to our competitors. All our products are designed specifically for the UK market and it’s clear that over the last few years’ consumers and businesses alike recognise that image quality is the most important feature on a Dash Cam. We are expecting further growth and success as the market size increases and people become more aware of the many benefits that a Dash Cam can bring, from protecting you in the event of an accident, right through to saving you money on your insurance.”
News
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Commercial Aviation: Growth Opportunities for Metal Additive Manufacturers Boom The ability to lower costs and improve efficiency as well as lead times will drive adoption of additive manufacturing products, services and materials, finds Frost & Sullivan’s aerospace, defence and security research team.
he escalating time and costs involved in aircraft manufacturing have brought additive manufacturing (AM) into the spotlight in the aviation industry. Aircraft manufacturers are breaking away from conventional manufacturing methods and embracing AM for superior lead times, efficiency, and the ability to produce complex geometries that support the fuel-efficiency and cost targets of operators and platform/system/part suppliers.
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Mega factories are decentralising as well, giving AM companies a bigger customer base. These disruptive changes in methods and models in the commercial aviation industry are crucial for it to meet growing demand, especially in the civil aircraft sector. AM companies that can match the high standards in aviation and be a one-stop solution for aircraft parts manufacturers will be best positioned to succeed.
the growth rate of AM products. “By reducing the number of components that a single part can be split into, the weight of the whole part can be decreased considerably, translating to greater aircraft efficiency. Manufacturers can use different materials to further reduce the weight of the part,” said Frost & Sullivan aerospace & defence team leader Arun Kumar Sampathkumar. “Unlike conventional production techniques which use subtractive methods for complex parts, AM diminishes the wastage of materials as well.” AM slashes the time and resource requirements for validation tests, as most of the validations are obtained during the manufacturing itself. Companies that already offer polymer and ceramic AM are expected to expand to metal to leverage emerging opportunities. However, for the market to reach its full potential there needs to be greater clarity in the certification and approval domains.
“Operators, component manufacturers and integrators looking to utilise AM technologies and parts will benefit from proactively reaching out to their regional regulators with a detailed account of their projects,” noted Sampathkumar. “Through such collaborations, they can establish a better framework of guidelines that will encourage compliance with regulations and standardisation of the certification process.”Do, escritic
New analysis from Frost & Sullivan, Global Metal Additive Manufacturing Market for Commercial Aviation (http://frost.ly/iu), finds that the market earned revenues of $723.2 million in 2015 and estimates this to reach $2.23 billion in 2021 at a compound annual growth rate (CAGR) of 20.7%. The study covers AM products, services and materials. Revenues from AM services are expected to grow at a CAGR of 25.4 % and touch $907.97 million in 2021, overtaking
In addition to the focus on lowering manufacturing costs, the hike in R&D budget for more effective components will encourage parts suppliers and OEMs to choose AM over conventional methods. These opportunities in the AM market are expected to attract a large number of entrants with novel technologies and challenge the dominance of tier 1 companies, such as Eos, 3D Systems, Renishaw and SLM, in the long term. Web Address: www.frost.com
TRANSPORT NEWS SEPTEMBER 2016
Aviation
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gabriele gelsi / Shutterstock.com
TRANSPORT NEWS SEPTEMBER 2016
Aviation
Two Thirds of London Councillors Support Gatwick Expansion – the Only Scheme That Needs No Taxpayer Funding Sixty-three per cent of London councillors support Gatwick expansion - compared to 44% for Heathrow – with half (50%) saying the certainty a runway scheme can be delivered has become more important since Brexit according to a You Gov poll published in August.
he polls come after leaders of 11 London councils wrote to the Prime Minister urging her to expand Gatwick. Stewart Wingate, Gatwick CEO, said: “London has united behind Gatwick expansion as the only scheme that gives us guaranteed growth while limiting the impact on the environment. Crucially Gatwick expansion is the only plan that can actually be delivered and - unlike Heathrow - it does not need £5 billion of taxpayer funding. This money could otherwise be put towards vital infrastructure projects such as Crossrail 2, Thames river crossings and new homes. The UK cannot afford decades more of Heathrow delay - let’s get on and build a new runway at Gatwick.”
Fieldwork was undertaken between 29th July and 9th August 2016. The survey was carried out online. Total sample size was 203 and the figures have been weighted and are representative of all London Councillors by political party, council control, region within London and gender.
Gatwick also scored best on six out of seven key indicators YouGov monitored. The indicators were:
A Government decision on whether Gatwick airport should be expanded is expected this year. Gatwick’s second runway will deliver
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Gatwick Airport is the UK’s second largest airport and the most efficient single-runway airport in the world. It serves more than 220 destinations in 80 countries for more than 41 million passengers a year on short and long-haul point-to-point services. It is also a major economic driver for the South East region, generating around 21,000 on-airport jobs and a further 10,000 jobs through related activities.
The airport is south of Central London with excellent public transport links, including the Gatwick Express, and is part of the Oyster contactless payment network. Gatwick Airport is owned by a group of international investment funds, of which Global Infrastructure Partners is the largest shareholder. • • • • • • •
Negative impact on quality of life for local residents - Gatwick 54% vs 21%; Built at lowest cost to taxpayers – Gatwick 44% vs 25%; Encouraging vigorous competition Gatwick 44% vs 25%; How quickly a new runway could be delivered - Gatwick 45% vs 27%; Certainty the new runway can be delivered - Gatwick 41% vs 30%; Regeneration benefits to local area Gatwick 37% vs 34%; Economic benefits to UK – Gatwick 27% vs 49%.
the UK the same number of passengers, the same number of long haul routes, better UK and regional connections, and the economic boost the UK needs, all at a dramatically lower environmental impact, at less than half the cost of Heathrow, and with no public subsidy. For further information on Gatwick Airport see www.gatwickairport.com or follow them on Twitter at www.twitter.com/Gatwick_ Airport
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Morrison Express Launches Rickenbacker International Airport (LCK) Service Offering New Ohio facility bolsters service to fashion, electronics, and retail industries while streamlining and expediting transportation processes with major global airfreight carriers.
orrison Express, a leading, global logistics, transportation and supply chain management provider, announced the launch of a new service at the cargo-only Rickenbacker International Airport (LCK) in Lockbourne, Ohio. Located just 10 miles from downtown Columbus, the LCK facility serves as a central hub for many of fashion, electronics, and retail's biggest names.
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“When it comes to freight, turnaround time is everything, and both our clients and airline partners rely on seamless and expedited processes. Rickenbacker is an optimal distribution location for many global brands, and our ability to service their needs was a driving factor in partnering with the CFS facility there," said Tony Medeiros, vice president and general manager of the Americas for Morrison Express. “This 90,000 sq. ft. container freight station, combined with our customised solutions, delivers a competitive advantage for our clients’ importing and exporting needs,” Medeiros added.
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LCK’s strategic location allows for more timely and cost-effective distribution and is able to reach over 70% of the US and Canadian population within 2 days via standard LTL truck service. Morrison Express airline partners Cathay Pacific, Emirates, and Cargolux are now making multiple 100-ton flights per week directly in and out of Rickenbacker International Airport, bypassing traditional gateways such as New York or Chicago. Chris Chespak, director of marketing, said “We are achieving maximum efficiency and reducing turnaround time for landing, unloading, handling, and distribution. By adding this CFS service offering at LCK to our global portfolio, we are pleased to offer our clients other competitive options into and out of the US market.” To learn more about Morrison Express and its global logistics services, supply chain solutions, and industry expertise, please visit http://www.morrisonexpress.com
Aviation
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Big Increase in Cargo Theft 'a Great Cause for Concern' TAPA Says Recorded cargo crimes in the Europe, Middle East and Africa (EMEA) region continue to show an alarming rate of growth, with the 598 new freight losses recorded in Q2 2016 representing a 92.9% increase year-on-year, according to the Transported Asset Protection Association’s (TAPA) Incident Information Service (IIS) database.
f the new incidents reported to TAPA’s IIS for the three months ended 30 June 2016, 43.1% gave a loss value, producing a combined value for products stolen in these crimes of €19,334,815 and a significant rise on the €5,301,828 for the same period in 2015. The Q2 2016 figure, when added to crimes with a value in Q1 of this year, adds up to a loss of €27,314,438 of products in EMEA in the first six months of this year, based on crimes reported to IIS.
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In Q2 2016, TAPA says it recorded cargo losses in 18 countries in the EMEA region, including 21 major thefts involving a loss value of €100,000 or more. Most of these high value losses occurred in the UK, which accounted for eight of the total. Based on all crimes reporting a value, the average loss for cargo thefts in the quarter was €74,941.
recorded crimes in the quarter took place in the UK, mostly in the East of England and the East Midlands. The 70.7% of UK crimes that gave a loss value were worth a combined €11,149,590. TAPA, which also operates highly-respected industry security standards for Facilities and Trucking, is now also looking at a new standard to increase the number and quality of secure parking locations, particularly throughout Europe. Q2 data showed that 527 of the 598 new cargo crimes were thefts or attempted thefts involving trucks, with Theft from Vehicle the most recorded type of incident in 315 or 52.7% of cases. It also reconfirmed that most of losses take place when trucks stop at unsecured parking locations, often when drivers are required to take mandatory rest breaks. In the three months to the end of June 2016, TAPA EMEA was notified of 251 incidents at unsecured parking locations, 42% of all crimes in this reporting period.
TAPA also recorded losses of Metal, Pharmaceuticals, Computers/Laptops, Toys/Games, Phones, Sports Equipment, Cash, Bicycles, Agricultural Materials, and Jewellery/Precious Metals.
The biggest single loss reported to IIS in Q2 involved a violent Robbery of an HGV at a Destination Facility in Northamptonshire in the UK on 15 April and the theft of Toys/ Games valued at €3,111,007. This was one of three seven-figure losses in the three-month period. In the other incidents, thieves in Paris broke into a facility on 26 June and stole two safes containing €3 million of luxury watches, while in April €1 million of hazelnuts were stolen from a warehouse facility in Piedmont, Northern Italy. TAPA’s intelligence on product thefts shows 91.4% of all reported crimes in Q2 2016 occurred in just six countries; the United Kingdom, Netherlands, Germany, Sweden, Russia and Italy. Overall, 47.5% or 284 of TRANSPORT NEWS SEPTEMBER 2016
The use of Violence or Threat with Violence was recorded in 26 or 4.3% of incidents in Q2. There were also 21 cases of truck Hijackings with 10 of these having taken place in South Africa and six others in Italy. TAPA’s IIS also captured information on two incidents of Theft from a Moving Vehicle in the UK and Russia. Data for the last quarter also continued to reinforce TAPA’s message that virtually all products, irrespective of their unit cost, are now at risk of theft from the supply chain. Food & Drink products, the most stolen goods in the whole of 2015 and Q1 2016, were once again the IIS product category with the highest number of losses; 76 or 12.7% of the Q2 total.
Freight & Logistics
Overall, the TAPA Incident Information Services database received information on losses in 18 separate product categories. Seven of these averaged at least one theft a week or more in Q2 2016: Furniture/Household Appliances with 42 incidents or 7% of the Q2 total • Clothing & Footwear - 34 or 5.7%; • Cosmetics & Hygiene – 32 or 5.4%; • Tools/Building Materials – 23 or 3.9%; • Tobacco – 22 or 3.7%; • Car Parts – 18 or 3%; • Tyres – 14 or 2.3%. Thorsten Neumann, chairman of TAPA EMEA, said: “These figures should be a great cause for concern for all Manufacturers and Logistics Service Providers because they clearly show the escalation of cargo crime. People wrongly assume that our crime data relates entirely to incidents suffered by TAPA EMEA members. In fact, very few of these losses were suffered by our members because of the risk management strategies they have put in place, including adoption of the TAPA Security Standards. “The greatest risk is to the industry-at-large and, in particular, companies that have yet to fully recognise the issue of cargo crime. We are encouraged by the growing awareness of the problem among law enforcement agencies in the EMEA region, many of which now report incidents to TAPA’s IIS to help our members prevent such crimes happening to them. However, we also want to stress the importance of companies reporting cargo crimes to the police in the first place because this is another big challenge, particularly with cross-border shipments. It is important that all stakeholders work together and support each other.” Web Address: www.bifa.org
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US Regulation for More Efficient Trucks Means Europe's Lawmakers Need to Speed Up The US Environmental Protection Agency (EPA) recently published the second phase of greenhouse gas standards for the trucking sector, which will enable America to have the cleanest and most fuel-efficient trucks in the world.
tef Cornelis, cleaner and safer trucks officer at T&E, said: “Having already proven that standards are an effective tool for tackling trucks’ emissions, the US is again showing leadership and vision on the ever-growing climate problem of shipping goods by lorries. This is a wakeup call to European lawmakers who have said they will regulate truck CO2 and now need to take action. Either EU regulators step up their game or we will see American trucks overtake European ones.”
Europe’s sustainable transport group, Transport & Environment (T&E), welcomed the standard and urged European regulators to, having already sent the right signal, now step up their game and propose EU fuel efficiency targets for trucks now.
If the EU does not act, US tractor-trailers will be considerably more efficient than EU tractor-trailers by 2027. Fuel savings due to the new standards exceed upfront costs, enabling truck buyers of more efficient tractor trailers to recoup the upfront cost within two years. On average, fuel bills represent one-third of the operating costs of running a fleet.
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According to the EPA, Phase 2 of the US fuel
efficiency standard for trucks will reduce carbon dioxide (CO2) emissions from the vehicles affected by 1 billion metric tons of over their lifetimes. The ICCT estimates the benefits will be over 500,000 barrels of oil savings per day in 2035 and, once the standards will be fully implemented, these fuel savings will increase to over 800,000 barrels per day in 2050. There will be a net $200 billion in savings to US fleets and society as a whole. Stef Cornelis concluded: “This is as much about environmental leadership as about innovation. If the EU wants to remain the world’s leader in truck manufacturing, then the European Commission should table a fuel efficiency standard for trucks in 2017 with a more ambitious 2025 target than the American phase II target. Anything less will mean further stagnation for trucks made in Europe.” Web Address: www.transportenvironment. org
Freight & Logistics
Revealed: These Cyclists Are Invisible to Truck Drivers in Their Cabs Some delivery trucks have a blind spot of up to 1.9 metres while the best in their class have virtually none because of lower cabs and bigger windows, according to a team at a UK design school. Closing that gap could save hundreds of pedestrian and cyclists’ lives.
esearchers at the Loughborough University Design School modelled the sightlines of drivers in 19 bestselling heavy-goods vehicles. They selected trucks with high and low cabs and used data from real-life crashes to recreate risky scenarios. The team reported huge differences in the direct vision – what drivers can see with their own eyes – of best and worst-in-class trucks in all categories, and that ‘lowentry cabs’ out perform all of today’s best performing vehicles.
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Of the delivery trucks modelled, the Scania P N3 was found to have great direct vision, which drastically reduces fatal blind spots. It has many of the characteristics of a lowentry cab. The height of the driver – the higher, the worse – is a critical factor in the direct vision performance of a truck. Meanwhile the Man TGS N3 has much larger combined blind spots totalling 2.72m. The team also reported that construction vehicles pose the greatest danger to vulnerable road users –cyclists and pedestrians – compared with delivery trucks and long-haul lorries. Their report calls for European rules to specify what should be visible from the driver’s seat. Transport & Environment has called for the mandating of low-entry cab designs for new delivery trucks, while ensuring
that all other truck types have direct vision performance that’s at least as good as the current best performers. The European Commission is drafting new vehicle safety rules and has indicated it will introduce direct vision requirements for new trucks, but only from 2028. T&E freight director William Todts said: ‘It’s shocking that there are such large differences between perfectly similar trucks. It shows that some truck makers aren’t factoring in cyclist or pedestrian safety when designing new vehicles. The solution is obvious: we need direct vision standards for trucks. With so many people being hit by a trucks, we can’t afford to wait until 2028. This needs to happen much quicker.’ According to the European Transport Safety Council, 4,000 people die in truck crashes in Europe every year. Many of these fatalities, almost 1,000, are vulnerable road users such as cyclists and pedestrians. More than a quarter (28%) of fatal truck crashes occur in urban environments and more than half of lorry crashes involving cyclists and pedestrians in urban areas occur at relatively low speeds. In the UK, local government body Transport for London is set to unveil proposals to require HGVs to enhance direct vision with glass panels in passenger doors, larger windscreens and lower drivers’ positions.
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TRANSPORT NEWS SEPTEMBER 2016
Freight & Logistics
Europe Shows Ambition on Cleaner Road Transport – now it must Deliver The announcement of new CO2 standards for cars, vans and, for the first time in Europe, trucks forms the centrepiece of the EU’s strategy for low-emission mobility and has been welcomed by Transport & Environment (T&E) as a meaningful step in the fight against climate change. But the Commission’s plan is completely devoid of ambition on cutting emissions from aviation and shipping, the sustainable transport group said.
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he announcement of post-2020 fuel efficiency/CO2 standards for road vehicles will help member states meet their 2030 climate targets, which were also
T&E executive director Jos Dings commented: “The Commission distributes the EU emission reduction target for 2030 to member states, and promises European action on transport to give them a helping hand. This is a good plan but whether it works will depend on how effectively the promises are delivered. Cutting transport CO2 emissions will not only tackle climate change but also address energy dependence, cut energy bills and create jobs.” Europe follows the US, China, Japan and Canada in introducing CO2 and fuel efficiency standards for trucks, the fuel economy of which has stagnated for 20 years. T&E welcomes the Commission’s pledge to act on this during this mandate, and make road tolls for trucks dependent on their fuel efficiency.
sation of road transport by 2050. The commitment for a ‘gradual’ phase-out of food-based biofuels is also welcomed, but the detailed plans must await the announcement of the EU’s post-2020 bioenergy, policy due by the end of 2016. The Commission’s continuing support for natural gas trucks as a pan-European long-term solution is surprising given new evidence highlighting the high cost and low potential. However, emissions reductions in vehicles could be offset by increases in aviation and shipping where there is no effective EU action and the Commission has abdicated responsibility to ineffective UN international organisations ICAO and IMO. It is also disappointing that the Commission does not propose any major initiative to revitalise passenger rail, a key tool in decarbonising and electrifying transport. Jos Dings concluded: “While the European Commission has seized the initiative to decarbonise vehicles, the opposite is true
"The Commission distributes the EU emission reduction target for 2030 to member states, and promises European action on transport to give them a helping hand. This is a good plan but whether it works will depend on how effectively the promises are delivered."
Steps towards a California-style mandate for manufacturers to supply ultra-low or zero-emission vehicles are also welcomed along with ideas to measure emissions on the road. Such a mandate provides certainty and economies of scale that will give Europeans a wider choice in electric vehicles, which they currently lack. Zero-emission vehicles will be indispensable in achieving the full decarboni-
for planes and ships despite the importance of European action in these sectors. Double hull tankers, lower-sulphur marine fuels, and carbon pricing for aviation are all policies ‘made in Europe’. Emissions from planes and ships must not be allowed to replace those cut from vehicles.” Web Address: www.transportenvironment.org
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Brexit Speculation? No Comment Says BIFA The British International Freight Association (BIFA) says that it will not be adding to the highly speculative debate on what might happen to trade between the EU and the UK after the eventual completion of the latter's exit from the former.
s there any worth in speculating on the consequences of Brexit before anything tangible has happened and there is little sign of any clear information emerging from Government on the timetable for exit?" asks Robert Keen, BIFA director general.
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"The current torpor is best illustrated by the total lack of communication to have emerged so far from the office of the Secretary of State for exiting the European Union. The 'silly season' is a much used term for a period of the year when a lack of hard news sees coverage of stories that are unverifiable at best and trivial at worst. Whilst there is nothing trivial about Brexit, none of the copious speculation about whether trade between the EU and UK will increase in complexity, carry new risks; grow or decline, is verifiable at present. As Brexit unfolds, there will so many issues affecting visible trade and the work of our members who facilitate that trade. But government seems to be a long way from even getting to the starting line on the Brexit procedure, as well as any fundamental understanding all of the possible permutations and challenges.
TRANSPORT NEWS SEPTEMBER 2016
Only last weekend, the national media reported that Britain's exit from the EU could be delayed until late 2019 because the government is too 'chaotic' to start the two-year process, early next year. The reports indicate that government does not have the infrastructure for the people they need to hire and that anyone who is hired will not have sufficient experience to know, let alone ask the right questions, when they finally begin bargaining with Europe. So we will avoid adding the trade association's voice to what is currently a worthless game of ifs and buts about the potential impact of Brexit on trade. Instead we will focus our efforts and comments on getting the UK government to get on with making the big decisions about matters we do know all about and educating those in government, some of whom are currently making rash statements on the hoof. We need government to deliver strong, calm and decisive leadership on infrastructure decisions for example, such as the expansion of UK airport capacity. Rest assured, when government is ready to fire the starting pistol on Brexit, BIFA will be ready to make the necessary representations on behalf of our members." Web Address: www.bifa.org
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Calais – Lives, Livelihoods and the UK Economy at Risk Warns RHA The British International Freight Association (BIFA) says that it will not be adding to the highly speculative debate on what might happen to trade between the EU and the UK after the eventual completion of the latter's exit from the former.
ne year on and the migrant crisis at Calais has escalated to unprecedented levels of violence and intimidation to the point where the safety of UK-bound drivers and the UK economy is at grave risk. That’s the stark warning from the Road Haulage Association.
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“This is a totally unacceptable situation,” said RHA chief executive Richard Burnett. “In July last year we called for the deployment of the French military to assist the authorities in their efforts to secure the Port area but now the latest reports from Calais claim that the Police just can’t cope. Despite the partial dismantling of the camp earlier this year, current estimates claim that the number of migrants in the area has doubled in the past 12 months to 9,000. “These people have travelled vast distances, from mainland Europe and much further afield. But regardless of their country of origin, they all have the same goal – to reach the UK by whatever means possible. And in the vast majority of cases, that means on the back of a truck. Such is their desperation to reach our shores that many fall victim to unscrupulous people-smugglers, and pay them vast sums of money for what they are told will be a ‘guaranteed’ passage across the Channel. “They are told that as a result of the UK’s Brexit decision, now is the time to make the crossing. If they wait, the crossing will become impossible. The people-smugglers have no interest in the safety or welfare of those who pay for their services – they are just in it for the money. “We have seen other serious changes in the past twelve months,” Richard Burnett continued. “When I visited Calais, most migrant action was confined to the hours of darkness. But drivers now face attacks 24/7. We are seeing migrants, in broad daylight, setting fire to trees in the middle of the road, using the flames as protection as they throw missiles – rocks, bricks, even petrol bombs – at innocent drivers. Drivers who are just trying to do their job. One RHA member, an owner driver from Essex has told the Association that he and his family
TRANSPORT NEWS SEPTEMBER 2016
are desperate for him to stop using the Calais route home but, as he said, ‘I can’t afford not to do it. I have a family to feed.’ “The time for talking has run out,” Richard Burnett continued. “If the situation reached the stage where the police and other security personnel can’t cope, surely the obvious, short-term solution must be the deployment of the French military to secure the Port area. Thousands of HGV drivers use the Calais crossing each day. How much longer can lives and livelihoods be put at such risk? HGV drivers, especially those using this particular route home, appear to be forgotten. But they’re not just drivers; they’re mothers, fathers, sons and daughters. They are absolute heroes. “What other occupation includes running the risk of being threatened with a chainsaw, having a chain tied around your neck, or worse, by increasingly violent migrant hordes? It has now reached the unacceptable stage where these drivers are, quite literally risking their lives each time they approach the Port on the last leg home. “We are calling on the major Dover/Calais route stakeholders to stand together and demand urgent action to address what has become an untenable situation for all Port users; HGV drivers and motorists. The lives and livelihoods of the citizens of Calais are now also at extreme risk.” In conclusion, Richard Burnett said: “First and foremost, lives are in danger. But, as more and more drivers refuse to make this journey because of personal safety risks, the movement of freight from mainland Europe to the UK will slow and the subsequent economic impact of this intolerable situation will soon begin to bite”. RHA staff member attacked by migrants at Calais In early August, a member of the Road Haulage Association's staff was attacked at the Port of Calais last night (03 August) when a boulder was thrown at his car. Commenting, RHA chief executive Richard Burnett said: "Thankfully, although very shaken, our man was unhurt. However, we are now
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entering the peak holiday season when families, as well as hauliers, rely on this key route between the UK and the rest of Europe. Had this been a car with a family on board, probably with children in the back seats, they would have been killed. "l am dismayed that the escalation of these migrant attacks remains so far down the news agenda. Since last summer we have been pleading for more security to be put in place at Calais. We have even asked for deployment of the French military, particularly on the approach roads. Yet UK-bound drivers now run the risk of attacks every time they approach the Port – day and night." Despite the partial clearing of the migrant camp earlier this year, numbers of migrants in the area have escalated dramatically. Reports are that there are now over 7,000 displaced people in the area, their sole aim being to reach the UK at any cost. In conclusion, Richard Burnett said: "We strongly urge HGV drivers and members of the public who experience such acts of aggression too get in touch with us through the Calais reporting line on (+44) 1274 863111. Only by getting first-hand information can we make a difference and get this issue back at the top of the political and media agenda."
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IATA Cargo XML Standard Accepted by the U.S. Customs and Border Protection Agency The International Air Transport Association (IATA) announced that IATA’s Cargo-XML messaging standard will be utilised by the U.S. Customs and Border Protection Agency (US-CBP) to collect advance crossborder data on US export shipments.
The new Web Address: data www.rha.uk.net format will make electronic communication between the US-CBP’s Automated Commercial Environment (ACE) system, airlines and other air cargo stakeholders simpler and more efficient. In addition, it will facilitate growth in trade, ensure cargo security, and foster participation in global commerce through advance electronic data submission for air cargo shipments.
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“Airlines, freight-forwarders, shippers and border agencies share the common goals of simplifying processes, enhancing efficiency and maximising safety and security. The key to achieving this is industry collaboration and standardisation on a global scale,” said Nick Careen, IATA senior vice president for airport, passenger, cargo and security. “Having support for Cargo-XML from the US-CBP, one of the world’s largest federal law enforcement agencies, will positively contribute towards the industry achieving its objective - the global adoption of a standard air cargo messaging system.” The US-CBP’s utilisation of the new standards, developed from international regulations, is due to begin within the next few months. The
TRANSPORT NEWS SEPTEMBER 2016
US-CBP is working to reduce the considerable number of Electronic Data Interchange (EDI) message formats currently supported to process international import, export cargo and cargo release information. IATA is assisting in this effort by permitting the US-CBP to publish to the minimal data file specifications for the IATA Cargo-XML messages. Each year millions of tonnes of air cargo pass through US airports, from medicines and crucial electronic components, to the latest consumer products. The US CBP is tasked with ensuring that these goods are safe, present no security issues, are compliant with trade laws, and reach the customer on-time. By adopting a common messaging standard IATA’s Cargo XML – for all air cargo shipments, the industry can be confident that the information being provided to the US-CBP is technically correct. The new messaging standard will also make it easier for US-CBP agents to identify freight which contravenes US legislation. For further information, please visit: www.iata. org/cargo-xml
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TRANSPORT NEWS SEPTEMBER 2016
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Rail
Better Journeys on the Way for Rail Passengers Across the West Midlands Rail Minister Paul Maynard announces a host of extra benefits and services for passengers in the West Midlands. Rail passengers across the West Midlands network are set for better journeys with a host of extra services and benefits under plans announced in very late by the UK’s Rail Minister, Paul Maynard.
Bidders for the new franchise will be required to deliver hundreds of extra services, new ticketing options and much increased capacity. The publication of the invitation to tender details the minimum level of improvements bidders hoping to secure the next franchise will need to include in their detailed proposals.
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Benefits will include: • Space for more than 20,000 additional passengers to travel into London and Birmingham in the morning peak though the introduction of longer trains; • More than 300 extra Sunday services across the franchise by 2021, including 50 new services in each direction between Birmingham and Longbridge and the same between Birmingham and Sutton Coldfield; • More evening services from Birmingham to Lichfield City, Bromsgrove, Kidderminster, Whitlocks End and Dorridge and later Saturday last services from Birmingham to Wolverhampton, Bromsgrove and Liverpool; • A new hourly service from Birmingham and Wolverhampton to Crewe via Stafford and Stoke-on-Trent; • Free Wi-Fi on all main line services by the end of 2019; • New ticket options for part time travellers which provide better value options for customers who travel fewer than 5 days a week; New direct peak time services between Walsall and London. Additionally, there will also be a requirement for bidders to provide at least 60 apprenticeships as part of the franchise. Rail Minister Paul Maynard said: “We are making the biggest investment in the railways since the Victorian era and marks a key step forward in giving passengers better journeys across the West Midlands and beyond. This franchise serves both commuters and long distance passengers and these benefits will deliver extra and smoother journeys for customers using these services.” The current franchise is operated by London Midland and covers a combination of commuting and long-distance services spanning
the Midlands, south-east and north-west as well as services to London Euston and Liverpool Lime Street. West Midlands Rail Ltd (WMR), which has been set up by the 14 Metropolitan, Shire and Unitary authorities from across the wider West Midlands, has worked collaboratively with the Department for Transport (DfT) to design, specify and manage the new franchise. Councillor Mark Winnington, WMR Chair and Staffordshire County Council’s Cabinet Member for Economic Growth, said that the “announcement is a game changer in that it is the first time the West Midlands has had this level of involvement in shaping what a train company has to deliver for local passengers. “The region has come together to grab this devolution opportunity with both hands and we believe that together with the Department for Transport we have set out a railway that brings real benefits not only for passengers but also for local businesses, supporting economic growth and jobs. “The authorities of the West Midlands are united in this and believe the region better understands what it needs from its railway and that having greater responsibility for its management is good for passengers, good for the economy and good for taxpayers.” Bidders are encouraged to include proposals for additional benefits over and above the minimum requirements published. It follows an extensive public consultation which attracted almost 2000 responses. Bidders for the West Midlands franchise have until 29 November 2016 to submit their bids, with the new operator planned to take over the franchise in October 2017. The shortlisted bidders for the franchise are: • London and West Midlands Railway Limited, a subsidiary of Govia Limited (a joint venture between Keolis and Go-Ahead Group); • West Midlands Trains Limited, currently a wholly owned subsidiary of Abellio Transport Group Limited with East Japan Railway Company and Mitsui & Co Limited as minority partners; Web Address: www.gov.uk www.transportnews-intl.com
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Frost & Sullivan Applauds ASC for Excelling in the Rotation Rate Sensors Market Based on its recent analysis of the market for acceleration and rotation rate sensors in the rail industry, Frost & Sullivan recognises Advanced Sensors & Calibration (ASC) GmbH with the 2016 European Frost & Sullivan Company of the Year Award.
ASC boasts exceptional customer satisfaction rates in the demanding acceleration and rotation rate sensors market, thanks to its robust solutions and ability to deliver complete process chains. Its advanced technology and strategic focus on markets with sizeable potential has helped it establish a strong brand within the railway and automotive industries.
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“The Germany-based company has stayed ahead of the curve in an extremely competitive market by broadening its product line and concentrating on key areas in end-user industries. While most rail vehicle sensor suppliers offer solutions related to rail vehicle diagnostics, ASC’s expanded portfolio has products for both rail and railway infrastructure monitoring,” said Frost & Sullivan senior research analyst Krishna Achuthan. “Additionally, its expertise in other major industries, such as automotive and wind energy, has given it a wider market reach.” Over time, ASC’s product line has grown to include sensors for three major infrastructure monitoring systems. These are condition monitoring for the wind energy and industrial markets; structural health monitoring for vibration measurements on bridges and buildings and track monitoring for testing railway tracks and their bed strength. Furthermore, in 2015, ASC launched three new integrated electronic piezoelectric (IEPE) sensor product groups for a wide range of accelerometers in high-frequency and hightemperature applications. One of ASC’s key moves included commencing operations in lucrative, yet untapped markets. It launched a number of sales operations in various regions by partnering with major distributors in
TRANSPORT NEWS SEPTEMBER 2016
Europe and China. This strategy helped ASC increase its sales by 27% in 2015. ASC is now looking to replicate this success in the markets of Israel, United States, and Canada. ASC’s launch of its product line in South Korea and Russia by the end of 2016 will make it a truly global company. ASC’s quality products and delivery of best-in-class customised solutions with minimal processing times are its biggest growth drivers. It has smartly backed its portfolio of standard sensors with custommade products that can be produced in the required quantities. The company is also the exclusive sensor distributor of Honeywell International and Systron Donner Inertial in the Germany, Austria, and Switzerland (DACH) region. “Apart from an outstanding product line, ASC has fostered close customer relationships by offering a superior customer service experience. Its service team comprises an efficient workforce that can repair accelerometers from almost any manufacturer,” noted Krishna. “ASC’s solutions enable the use of first-rate plug connectors and low microphonic cables in areas with small radii and sharp edges, which has allowed it to excel in both repair and calibration service sectors.” By developing the finest products for a diverse user base, ASC has sold to market giants such as Audi, BMW, Daimler, Fiat, MAN, and Iveco in the automotive industry. In the railway industry, it has Alstom, Siemens AG, DB Systemtechnik, and Balfour Beatty Rail, Strainstall and Italcertifer, among others as key customers. Its emphasis on R&D has helped it evolve with current market trends and industry standards and eventually, enjoy considerable success in a challenging market. Web Address: www.frost.com
Rail
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TRANSPORT NEWS SEPTEMBER 2016
Rail
Intercity West Coast Rail Franchise Must Not Miss North Wales Connection The next Intercity West Coast rail franchise (ICWC) must help unlock the potential of North Wales, Economy Secretary, Ken Skates said on 23rd August.
The comments come following the Welsh Government’s response to the recent consultation on the new franchise, set to be renewed by the UK Government in April 2018. The response made clear that in order for North Wales and the North of England to be better connected, the franchise’s offering must respond to the needs of businesses and communities across the regions.
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The Economy and Infrastructure Secretary said: “The importance of an effective, well integrated public transport system which links people with job opportunities on both sides of the Wales-England border is clear. “The ICWC franchise is vital to rail users in North Wales. It operates the only direct service to London, and provides key connections at Crewe and Chester. It also provides access to North Wales’ strong manufacturing base, the three enterprise zones and the upcoming Wylfa Newydd Nuclear Power Station - not to mention the thriving mid and north Wales tourism industry, which is of significant economic importance to the area.
“In our response to this consultation, we have stressed that North Wales needs and expects an hourly service to London – making return day travel in both directions, and the growth that stems from that, a reality. “I have made it clear to the Department for Transport that, by working together alongside local tourism bodies and businesses, we can further support strong growth in the region’s business and leisure markets. Connectivity is key for our businesses, our jobs and our communities. Improvements to the ICWC franchise services, in conjunction with the new Wales and Borders franchise, presents a fantastic opportunity to help unlock the undoubted economic potential of the area.” The ICWC franchise is currently operated by Virgin Trains, and primarily runs long distance, high speed services on the west coast between London, Liverpool, Manchester, Birmingham, Edinburgh, Glasgow and North Wales. Web Address: www.assembly.wales
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TRANSPORT NEWS SEPTEMBER 2016
Roads
Companies Mastering Autonomous Driving, Connectivity and Electrification to Emerge as Leaders of the Future Convergence on multiple levels will unleash business opportunities for OEMs, tech-companies and mobility providers, revealed Frost & Sullivan’s industry must-attend Intelligent Mobility event. Experts agreed that the mobility industry is facing profound transformation with the convergence of autonomous driving, connectivity and electrification.
Frost & Sullivan’s Intelligent Mobility event identifies growth opportunities arising from convergence as key topic of the industry. Similarly, the line between public and private transportation is increasingly blurred, as customers shift towards more multi-modal preferences using technology enabled solutions.
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“This convergence will be driven by data that revolves around both the car and the consumer. Future-oriented solutions will involve the development of intelligence on all levels rather than focusing on one pillar,” found Frost & Sullivan senior partner Sarwant Singh. “The shift from private vehicles to multi-modal integrated mobility is a further disruption the industry faces: Due to a convergence of social, demographic and technological innovations, we are witnessing a shift from people using cars as the preferred or even only choice to using them as part of a wider system.” With high-profile speakers from industry players such as General Motors, Renault Nissan, Fontinalis Partners, Moovit, BMW, Toyota, Gett, XXimo, Mobility International AG, Arriva, TomTom Telematics, Inrix, Digital Barriers, HORIBA MIRA and BT, the two-day event further established Frost & Sullivan’s pioneering role in thought leadership with respect to the future development within the Intelligent Mobility market. The opening panel on Mega Trends was joined by OEMs, futurists and public policy decision makers to debate the future trends and their impact on mobility. Mr. Singh pointed out that in future, tech companies which offer solutions for autonomous driving will compete with traditional OEMs. This will lead to a disruption of the industry and expects the market to grow to $60bn in 2030. The automation technology roadmaps of 80 percent of the major OEMs are expected to be finalised this year. The pace at which connected services, sensoring solutions and the like develop make it safe to assume that full autonomous functionality can be
achieved within the next decade. During the sessions on the Future of Connectivity and on Autonomous Business Models leading OEMs unveiled that convergence will allow the industry to master the challenges mobility faces today, with pollution and accidents making the issue a political and social one, going beyond customer needs. In the discussion about New Mobility Business Models four leading OEMs exchanged their respective approaches towards shared mobility. They offered a broad spectrum reaching from car sharing, ridesharing and ride hailing to demand responsive solutions and smart parking. The discussed business models provided the basis for a fluid transition to the next panels, evolving around the Future of Corporate Mobility and Integrated Transport Solutions, which is facing similar challenges and choosing comparable modular solutions. In future, fleet management will become more integrated and comprise not only company vehicles, but increasingly car sharing and other elements of the mobility mix. Hence, an integrated fleet management will function complementary to integrated mobility solutions, both aiming for one single platform to provide access to all services and products. “Today’s niche business models will become main-stream, particularly digitally enabled mobility services, which will lead to a convergence of public and private transportation,” concluded Mr. Singh. “Overall, this will lead to a more convenient, user friendly, on-demand transportation network for the customer, which will revolutionise the way we use cars in urban areas in particular.” For more information on Frost & Sullivan’s events and to attend the Intelligent Mobility 2017, please e-mail Jana Schoeneborn, Corporate Communications, at jana. schoeneborn@frost.com. Web Address: www.frost.com
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First Aberdeen Bypass Junctions Open Cabinet Secretary Keith Brown, Council Leaders and Aberdeen International Airport have welcomed news that drivers can now use the Craibstone and Dyce Drive Junctions on the A96 (Inverurie Road) at Aberdeen Airport - the first section of the Aberdeen Western Peripheral Route/Balmedie to Tipperty (AWPR/B-T) project to open to traffic.
hese works involved the construction of a new roundabout to form a new Craibstone Junction and replacing another roundabout with permanent traffic lights to form the new A96 (Inverurie Road) / Dyce Drive Junction. Craibstone Roundabout will connect with the AWPR dual carriageway, once it opens, and also with the new Airport Link Road, which Aberdeen City Council opened in late August.
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Following a visit to Aberdeen late last week, the Cabinet Secretary for Economy, Jobs & Fair Work, said: “Back in December 2014, we announced that the Craibstone and Dyce Drive Junctions would be open to traffic in autumn 2016 and we can confirm that the first section of the AWPR/B-T works, the Craibstone and Dyce Junctions, is now open and operational. “I’m sure this news will be appreciated by local communities, road users and businesses in the north east and across Scotland who have been extremely patient while these works were undertaken. “Early benefits from the project are becoming a reality with improved road safety in this area and better journey time reliability which, along with Aberdeen City Council’s Airport Link Road which will help improve and enhance travel in the local area. “The north east economy needs every stimulus that can be provided and our investment in this project is expected to bring in an additional £6 billion to the north-east economy and create around 14,000 jobs over the next 30 years. We can look forward to the full benefits of these works starting to be realised when the road opens in winter 2017. “More widely, we are committed to making improvements at the Haudagain Roundabout once work on the AWPR project is complete.
TRANSPORT NEWS SEPTEMBER 2016
We have also invested around £10m in a new Inveramsay Bridge on the A96 which opened earlier this year, and have made a longer term commitment to dual the A96 between Aberdeen and Inverness." AWPR/B-T works are expected to continue in the Craibstone and Dyce area until winter 2017, predominately on the construction of a new bridge which will carry the AWPR over the A96. Aberdeen City Council Leader Councillor Jenny Laing said: “The opening of the Craibstone and Dyce junctions is a significant step in the AWPR/B-T project. We look forward to the AWPR/B-T’s completion and unlocking the benefits it will bring to the city and the wider region.” Co-Leader of Aberdeenshire Council Martin Kitts-Hayes said: “It is great to see this key section of the route open to traffic. These junctions will be important for commuters, residents, businesses and visitors in and out of Aberdeenshire, and once the full project is complete will be a key route for travellers using the airport. Fellow Co-Leader Cllr Richard Thomson added: “It is encouraging to see the progress being made across the whole of the AWPR/B-T route, and this will be a particularly wellused section for many people. It gives a real indication of just how transformative the project is for the north-east of Scotland and it is hugely satisfying to see that vision becoming a reality.” Carol Benzie, managing director of Aberdeen International Airport, said: “I’m pleased to see that the new roundabout and junction are now operational. We welcome the improved road system around the airport, as it will alleviate the traffic issues that have created challenges to our passengers and employees in recent years.” Web Address: http://news.scotland.gov.uk/
Roads
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TRANSPORT NEWS SEPTEMBER 2016
Roads
Frost & Sullivan Recognises the Drive and Vision of Kiira Motors Corporation in Redefining Mobility in Uganda Based on its recent analysis of the sustainable mobility market, Frost & Sullivan recognises Kiira Motors Corporation (KMC) with the 2016 Uganda Frost & Sullivan Award for Visionary Innovation Leadership. The company’s vision extends far beyond that of standard vehicle manufacturing processes. Its sustainable mobility solutions provide massive opportunity for vehicle development and commercialisation in a country that is lagging behind in African and global automotive indices.
he focus on developing sustainable electric, hybrid, and solar vehicles will allow KMC to capture the leadership position in an uncontested market space,” said Frost & Sullivan research analyst Ziyaad Hanware. “Furthermore, the establishment of a local manufacturing plant gives it the added benefit of economies of scale, a first-mover advantage, and import cost avoidance, which, in turn, will raise entry barriers in the industry.”
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From an environmental perspective, KMC’s vehicles are proving to be game changers in the Ugandan market. The fleet of 9,000 14-seater buses operating daily in Uganda’s capital city of Kampala produces 96,715 tons of carbon emissions annually. The Kayoola Solar Bus will greatly lower these emissions and help the country move toward costeffective, sustainable mobility with zero tail pipe emissions. The Kayoola Solar Bus is a 35-seater electric bus with a real-time on-board solar charging system. The bus is fitted with two autonomous battery banks installed on either side enabling usage of one battery bank to power the propulsion motor while the other is charged. The bus has a mileage of approximately 50 miles per charge and 7.5 miles range extension harnessed from solar power in transit, with the batteries requiring only an hour to recharge. This makes the Kayoola Solar Bus a green, clean, and noise free transport solution for Urban Mass Mobility representing Kiira Motor’s commitment to transportation technologies that are enhancing environmental stewardship. The Kiira Vehicle Technology Innovation Program has also produced three locally manufactured concept vehicles: • • •
The Kiira EV (2011), a 2-seater electric car; The Kiira EV SMACK (2014), a 5-seater hybrid electric sedan; The Kayoola Solar Bus (2016), a battery electric vehicle with a real-time solar charging system for range extension.
These vehicles are important in a market that has been dominated by used imports and beset by a consequent lack of spare parts and service centres. “The rapid urbanisation in Uganda has created a vast market for urban mobility solutions, and the KMC product range makes optimal use of these opportunities,” noted Ziyaad. “KMC’s larger goal is to position Uganda as an economic force by using the automotive industry as a catalyst for industrial development.” The availability of funding for renewable energy projects, rapid project construction timelines, and suitability for remote electrification have fostered an environment conducive to environment-friendly vehicles in Uganda. KMC’s solar-powered buses are an example of the way in which the renewable energy Mega Trend can be leveraged to resolve the needs of today by using the infrastructure of tomorrow. Each year, Frost & Sullivan presents this award to the company that has demonstrated the ability to understand and leverage global Mega Trends, integrating this vision into processes to achieve strategic excellence. The award recognises the efficacy of the recipient’s innovative process and the impact it has on business and society at large. Frost & Sullivan Best Practices awards recognise companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research to identify best practices in the industry. Web Address: www.frost.com
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Frost & Sullivan's GIL 2016: Silicon Valley Event Uncovers Innovative Service Models Within the Intelligent Mobility Ecosystem The ability to summon a driverless Uber is no longer mere science fiction! New and existing technology companies in the automotive ecosystem are striving hard to achieve the vision of a safe car that can not only drive itself, but also leave less of a carbon footprint and boost a passenger’s productivity.
rost & Sullivan’s annual event, GIL 2016: Silicon Valley – Transformational Growth Strategies to Futureproof Your Business, taking place September 11 to 13, 2016 at the Hyatt Regency in Santa Clara, CA, will offer a panel discussion from multiple industry professionals on the different opportunities they foresee emerging from this intelligent mobility ecosystem.
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During the session entitled, Intelligent Mobility: A Rapidly Forming Ecosystem of Automotive and Technologies Companies, Frost & Sullivan will examine the opportunities arising from a combination of autonomous driving, electrification and shared mobility models. For the first time in history, these models present an opportunity to change the productoriented outlook of the automotive and transportation market with new service
In this session, participants will gain insight on the following: •
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An assessment of the features, services and pricing policies adopted in the intelligent mobility solutions currently available; Best practices on positioning new solutions while taking into account the needs of cities, smart homes and the connected car; The framework of a successful intelligent mobility ecosystem and the important stakeholders within the model.
"Even as technology rapidly advances, the aspirational goal of driverless electric mobility seems ever so difficult to realise. Regulations around safety, liability and privacy; roadway infrastructure development; data security and business model issues are likely to push commercial
“In this session, our goal is to explore the potential for value creation through connected and automated driving across the mobility ecosystem and examine the roadmap and business models for implementation.” models. Frost & Sullivan will explore case studies of successful implementations by automotive and technology companies, and provide best practices to identify the correct business models, partners and winning solutions.
TRANSPORT NEWS SEPTEMBER 2016
deployment past 2025. Connected automated mobility, however, is here today and promises to improve safety, reduce carbon footprint and enhance the overall driving experience,” stated Frost & Sullivan mobility vice president Veerender Kaul. For further information on the agenda and to register for GIL 2016: Silicon Valley, please visit: http://frost.ly/kf
Roads
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TRANSPORT NEWS SEPTEMBER 2016
Shipping
A Fare Point Fares on the Northern Isles Ferry Services will be frozen as work to ultimately cut ticket prices continues, Minister for Transport and the Islands Humza Yousaf announced in early August. Prices will be kept on hold for 2017 as the Scottish Government works towards its key commitment of reducing fares on the Northern Isles network.
uture fare levels are already being considered as part of the STAG study into the Northern Isles Ferry Services, but a further report has been commissioned to look specifically at the issue of a new fares policy for the network. Engagement and consultation will be a key part of this work to better understand local views.
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Mr Yousaf was visiting Orkney and Shetland as part of his summer island tour, hearing more about the opportunities and challenges of island life. During the three day visit he engaged with a variety of island communities, helping develop and inform future legislative proposals.
“We have made a key commitment to cut fares on ferry services to the Northern Isles and we continue to work towards that goal. I have commissioned a study to look specifically at fares on Northern Isles routes, with a view to bringing in a new pricing policy and ultimately reducing the cost of ferry travel. The Minister asked his officials to engage and meet with the local councils, elected members, community groups and other key stakeholders to discuss the potential options available. “The Scottish Government is committed to empowering our island communities” the Minister said, hence his visit to meet with local people to discuss the issues that really matter to the inhabitants of the Scottish islands. “Last year’s Islands Bill consultation sought views on island-proofing, additional powers
“The Northern Isles present a number of challenges for a new fares policy. As we have said before, bringing in Road Equivalent Tariff would significantly increase the ticket prices on the majority of services. The presence of a commercial operator on some routes also complicates matters.” Mr Yousaf said: “I’m pleased to announce that fares on the Northern Isles Ferry Services will be frozen for 2017, the second consecutive year they’ve been kept on hold. We want these vital services to continue to be accessible and affordable, so keeping ticket prices on hold next year will help achieve that.
for island councils and the introduction of a National Islands Plan, and the views expressed are currently under consideration” the Minister added. His visit was a fantastic opportunity for him to hear the many and varied views on the future of the Scottish islands. Web Address: www.gov.scot
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Failure to Correctly Fit Bulldog Grips Causes Significant Damage to Cargo Tony Watson, Risk Assessor at UK P&I Club, advises on the correct application of bulldog grips in order to minimise damage to cargo. “Bulldog grips are commonly used for the securing of project cargo, both under and below deck. They are also used on ships on mast stays and crane wires, although swaged connections are now more common” he says.
he single most predominant factor associated with the failure of cargo lashings is the incorrect application of bulldog grips. Failed lashings can result in significant damage to cargoes, and can also pose significant risk to the wellbeing of crew members and the safety of the ship” he continues.
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The Club’s Risk Assessors note that stevedores and shipyards should consider the following: •
• • •
• • •
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The saddle part of the bulldog grip should be applied to the ‘live’ load bearing wire, whereas the U bolt goes around the ‘dead’ tail; A useful way to remember this is by using the mnemonic ‘never saddle a dead horse’; Another good ‘aide memoire’ is Saddle / Stressed, U / Unstressed; The distance between the grips is important and should be about six times the rope diameter; not significantly more or less; The length of the tail is also important and should be greater than five times the rope diameter; The tail should be whipped or bound to prevent it unravelling; The number of grips used depends on the
•
diameter of the wire but at least three should be used for wires up to 19mm; It is important that the tightness of the nuts is checked periodically as the grips have a flattening effect on the wire, resulting in a reduced grip.
“Various tests were carried out several years ago* which showed that a perfectly made up hard eye around a thimble will hold at 90% to 100% of the nominal breaking load (NBL) of the wire before slipping and/or fracturing. If the grips are reversed, (contrary to the often expressed opinion that “it makes no difference”) the wire will fail at around 50% NBL. “By using only two grips (instead of the recommended three), even correctly applied, the wire would slip at around 60% NBL reducing to 50% when reversed or staggered. With one grip, these figures were 25% (correct way around) and 18% (reversed). “The correct method of fitting bulldog grips is hardly ‘rocket science’ but the majority of those seen on board are, in some way, incorrectly fitted. Proper supervision in the builder’s yard should ensure that these are initially fitted correctly. Equally, stevedores/ lashing gangs should be supervised and Web Address: www.ukpandi.com
Shipping
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TRANSPORT NEWS SEPTEMBER 2016
Shipping
Governments Must Clamp down on Rogue Lithium Battery Shippers Geneva – The International Air Transport Association (IATA) in mid-August partnered with leaders of the lithium battery supply chain to demand stricter enforcement of international regulations regarding the transport of lithium batteries.
n a joint letter to Ministers of Trade, Industry and Transport, and Directors of Civil Aviation in the world’s largest lithium battery manufacturing and export countries, IATA, PRBA, the US Rechargeable Battery Association, RECHARGE, the European Advanced Rechargeable and Lithium Battery Association, the Global Shippers Forum (GSF) and the International Air Cargo Association (TIACA) have called for lithium battery safety regulations to be enforced at the point of origin including the initial shipper and the battery manufacturer.
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The letter also called for implementation of cooperative enforcement initiatives between jurisdictions to address situations, where lithium batteries manufactured in one state are driven over a border to be flown from another state. The global associations also called for significant fines and custodial sentences to be imposed on those who circumvent the regulations. “Safety is aviation’s top priority. Airlines, shippers and manufacturers have worked hard to establish rules that ensure lithium batteries can be carried safely. But the rules are only effective if they are enforced and backed-up by significant penalties. Government authorities must step up and take responsibility for regulating rogue producers and exporters. And flagrant abuses of dangerous goods shipping regulations, which place aircraft and passenger safety at risk, must be criminalised,” said Tony Tyler IATA’s director general and CEO.
“The actions of a minority threaten to undermine confidence in legitimate battery and product manufacturers. This a matter of deep concern for our members,” said George A. Kerchner, executive director of PRBA which represents most of the world’s largest manufacturers of lithium ion and lithium metal batteries and manufacturers of products powered by these batteries. IATA and the PRBA have repeatedly called upon governments to address the danger posed by the wilful disregard of the international regulations by rogue manufacturers and shippers and to close existing legal loopholes that prevent prosecutions of serial offenders. Lack of enforcement is increasing pressure on airlines and regulators to unilaterally ban all forms of lithium battery shipments from aircraft. This would add to the cost of global supply chains and consumer goods, and encourage those who flout the law to increase mislabelling of batteries, further increasing safety and security risks. “A ban on the shipment of lithium ion batteries aboard aircraft would put lives at risk by slowing delivery of life-critical and life–enhancing medical equipment and jeopardise the security of many countries because a large number of military applications are powered by lithium batteries,” said Kerchner. IATA (International Air Transport Association) represents some 265 airlines comprising 83% of global air traffic. You can follow them at http://twitter.com/iata2press for news specially catered for the media.
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Zedra Appoints Associate Director of Marine and Aviation ZEDRA, global independent specialist in trust, corporate and fund services, has appointed Andrew Wilson as Associate Director of Marine and Aviation, bringing over 20 years’ experience from the aviation, marine, accountancy and finance industry.
ased in the Isle of Man office, Andrew’s appointment follows ZEDRAs continued strategy of significant investment in expanding its range of fiduciary services to both existing and new clients across a growing number of jurisdictions, Andrew will be focusing on the development and growth of a Marine and Aviation global division for ZEDRA, to strengthen existing operations and expand core business opportunities.
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Previously working for the Equiom Group, he provided valuable support for marine and aviation new business and tax compliance. Having trained with a firm of Chartered Certified Accountants in the UK, moving to the Isle of Man and training
marine and aviation, ZEDRA (Isle of Man) commented: “The Isle of Man has a great reputation globally, built upon worldclass expertise in the marine and aviation industry. There are very well established yacht and aircraft registries in the region that support owners and corporate service providers, making it a significant focus for us going forward.” Alan Patrick, managing director of ZEDRA (Isle of Man) commented: “Having previously worked for an expanding multi jurisdiction corporate service provider and with broad knowledge and practical application of offshore and EU legislation, as well as most favourable importation routes for yachts and aircraft, Andrew’s
“As ZEDRA is already positioned in a number of key jurisdictions suitable for marine and aviation structuring, including Cayman Islands, Isle of Man, Hong Kong, Jersey, Guernsey, Netherlands, Singapore, and Switzerland; and with plans for further expansion, I look forward to settling into the ZEDRA team to help continue to add to this offering.” with the Institute of Indirect Taxation in VAT compliance, then graduating with the Institute of Export in World Customs Compliance, Andrew has a strong established reputation within the industry. Andrew Wilson, associate director of
TRANSPORT NEWS SEPTEMBER 2016
background will add great value to our client portfolio. We look forward to offering his expertise and enabling our clients to benefit from his skill set.” For further information, please visit www. zedra.com
Deals
GE Acquires Top Supply Chain Software Provider ShipXpress to Expand Digital Rail Offerings
Inmark Announces Acquisition of Container Resources, Inc.
GE Transportation, the world’s leading producer of rail and transportationrelated products and offerings, announced its acquisition of ShipXpress, a top provider of cloud-based software solutions that enable transportation, industrial, and commodities businesses to efficiently operate with supply chain partners.
Inmark, a leading global provider of comprehensive packaging solutions, announced that it has acquired Container Resources Inc. of Greenville, SC, a leading distributor of rigid packaging in the Southeast.
he deal extends GE Transportation’s portfolio of solutions into the logistics value chain, giving it new offerings for shippers, and expanding its ability to deliver information and transaction services for railroad customers around the world. This acquisition also deepens GE Transportation’s domain expertise, enriching the division with a talent pool of nearly 200 industry, technical, and software development experts.
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“By combining ShipXpress’ innovative software products with GE’s sensing technology and industrial-strength platform Predix, we’ll deliver the industry’s most advanced, scalable cloud-based solution to accelerate the movement of goods and information, and enhance supply chain performance and customer service,” said Jamie Miller, GE transportation president and CEO. “Our combined capabilities will help short-line railroads better analyse their rail operations, car accounting and supply chain information, and deliver a data-rich path to ongoing performance improvement, asset and operations optimisation.”
“We are very pleased to join forces with another key player in the rigid packaging space,” said David Oyler, Inmark President & CEO. “Our acquisition of Container Resources complements our overall rigid package strategy and adds to our capacity and geographical presence.” Over the next several months, Inmark’s management team will be working to ensure a smooth transition for all employees and customers involved in the acquisition process. To learn more about Inmark and its product and service offerings, visit: www. inmarkpackaging.com
"We are thrilled to become part of GE Transportation’s Digital Solutions team and transform the role of rail, truck and other modes of transport in global supply chain management," said Raghu Misra, Co-CEO and Co-Founder of ShipXpress. Added Seth Maerowitz, Co-CEO and Co-Founder of ShipXpress, "Through this integration, we will help our customers achieve the promise of real-time collaboration among trading partners, the industrial internet; greater control, lower costs and increased operational efficiencies."
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Odyssey Logistics & Technology Breaks Ground at New 121,680 Square Foot Intermodal Center, Illinois Odyssey Logistics & Technology Corporation (Odyssey) on 29th August broke ground on the construction of a new 121,680-square-foot metals transload facility in Joliet, Illinois. The facility will be operated by Odyssey’s subsidiary CMI Logistics LLC (CMI).
Situated on 17 acres in the CenterPoint Intermodal Center - Joliet (CIC-Joliet)/ Logistics Park Chicago (LPC), it provides easy access to the BNSF intermodal rail yards through the park’s private, heavyweight road system. The site also provides easy access for flatbed motor carriers bringing metal products into CMI from Interstate 55 and Interstate 80. Dan Leahy and Adam Roth of NAI Hiffman represented CenterPoint in the transaction.
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“This is an investment in the future of our business and will better serve our metals industry clients,” said Bob Shellman, president and CEO, Odyssey. “The additional square footage over our current facility will increase our throughput by 20 percent, provide for a larger container staging area and improve operational efficiencies.”
a route that is less congested. “The new facility makes it much easier for our partner-carriers to get in and out and is something that will have a positive impact on our customers’ logistics and shipping needs.” The new facility features ten docks, six drive-through doors, 16 trailer positions, nearly 6,000 square feet of office space, 51 car parking spots, and reinforced slab floors. The facility is expected to be operational by the early second quarter of 2017. CMI is a wholly owned subsidiary of Odyssey and is North America’s leading intermodal service provider for metal products, including heavy coils. The company moves approximately 35,000 containers annually throughout North America and abroad.
“This facility not only will allow us to continue to grow our domestic intermodal business, it will enhance our international capabilities, serving both our import and export metals customers,” added Shellman.
“The location of CIC-Joliet/LPC provides direct access to the BNSF intermodal rail yards and the interstate system,” said Brian McKiernan, senior vice president of development, CenterPoint. “Developing a build-to-suit facility for CMI and offering heavy overweight shipping options is ideal for their growing operations.” Shellman also added that moving its operation from Chicago to Joliet offers
TRANSPORT NEWS SEPTEMBER 2016
“Our business is focused on the intermodal movement of metals and it is crucial for us to be strategically located near intermodal rail ramps and highway infrastructure,” said Paul Sever, EVP and general manager, CMI. “Having several shipping solutions and a state-of-the-art facility developed in CIC-Joliet is the perfect fit for our business.” For more about Odyssey, please visit www. odysseylogistics.com and www.winthruolt. com.
Deals
C.H. Robinson Expands Global Network, Acquires APC Logistics C.H. Robinson continues to grow its global presence and today announced it has entered into a definitive agreement to acquire APC Logistics, a leading provider of freight forwarding and customs brokerage services in Australia and New Zealand. The two companies have had a long-standing exclusive agent relationship for business in Australia and New Zealand. The agreement is subject to certain customary closing conditions, including regulatory approval. his acquisition allows us to add great talent to our Global Forwarding team and advances the strategy to expand our global network,” said John Wiehoff, chairman and chief executive officer of C.H. Robinson. “We will work hard to successfully integrate the valued employees, customers and suppliers of APC.”
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APC Logistics is a privately held international freight forwarder, providing ocean, air, customs brokerage and consultancy services, currently serving over 3,000 customers and suppliers. Founded in 1974 and headquartered in Melbourne, Australia, APC Logistics employs approximately 300 people and has seven offices in Australia and two offices in New Zealand. APC had $334.2 million AUD (approximately $251 million USD) in total revenues for the fiscal year ended June 30, 2016. C.H. Robinson intends to purchase APC Logistics for approximately $300 million AUD (approximately $225 million USD) in cash. The acquisition is expected to be accretive in 2016 and 2017 and will be financed through cash and funds drawn from C.H. Robinson’s existing revolving credit facility. “By joining C.H. Robinson, we are building on the business we have done together for more than 16 years,” said Tony Considine, chief
executive officer of APC Logistics. “We are extremely excited to have our business be part of C.H. Robinson, a leading global company, and believe this will position us to better serve our customers and foster growth by leveraging C.H. Robinson’s vast network and core service offerings.” C.H. Robinson’s Global Forwarding business currently serves four continents and 37 countries, with approximately 3,500 employees and 109 offices worldwide, and is the #1 nonvessel operator (NVO) from China to the United States. Global forwarding clients leverage C.H. Robinson’s considerable freight volumes to access available capacity at competitive rates. “APC Logistics is a high quality company with a proven track record of success. Combining their expertise and strong customer and carrier relationships with C.H. Robinson’s service offerings and network will create more robust capabilities for our customers and add scale to our business,” said Mike Short, President of C.H.
Forward Air Corporation Announces Acquisition of Triumph Forward Air Corporation in very late August announced that its wholly-owned subsidiary, Central States Trucking Co., has acquired substantially all of the assets of Triumph Transport, Inc. and Triumph Repair Service, Inc. (together referred to as ‘Triumph’ in this story). Triumph is a privately held provider of intermodal, drayage and related services headquartered in Cudahy, Wisconsin. The purchase price was $10.1 million, and the transaction was funded by Forward Air’s cash reserves. During calendar year 2015, Triumph generated approximately $13.4 million in revenue. Triumph is expected to be accretive to Forward Air’s earnings in 2016. Commenting on the acquisition, Matthew J. Jewell, president of CST, said, “We are pleased to add Triumph to our Intermodal segment. Triumph is a high quality provider of intermodal services and a perfect addition to our Midwest operations. This is the fourth acquisition we have made towards executing our plan to grow our intermodal capabilities and footprint.”
Robinson’s Global Forwarding division. “We are excited to welcome the talented team at APC Logistics to C.H. Robinson.” Once the deal closes, C.H. Robinson will integrate APC Logistics into its Global Forwarding division and single global technology platform, Navisphere®.
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