Motor Transport 18th September 2017 by Motor Transport

Sharp ■ Informed ■ Challenging

18.9.17

NEWS INSIDE Come together

THE NEW SCANIA

RHA calls for MPs’ support for tough times ahead p3

Bread and butter

Abbey closes haulage to focus on tanker business p6

Taking aim

Illegal London waste operators targeted

p10

Low notes

Yodel fails to turn profit in eighth consecutive year p12

OPERATORS IN THIS ISSUE Abbey Logistics Group ...........................p6 DHL Supply Chain ..................................p6 DPD ....................................................p22 Eddie Stobart ........................................p3 James Hall............................................p3 Kammac ...............................................p6 Samworth Brothers .............................p19 Yodel...................................................p12

Eggleton will become NFT chief executive from 1 January 2018

Management rejig at chilled specialist Concept

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Notes

By Carol Millett

Chilled food logistics specialist NFT is to restructure its management team, which will see chief operating officer Ross Eggleton (right) become chief executive in January. As part of the restructuring, current CEO David Frankish will become vice-chairman responsible for strategic customer development and acquisition and merger opportunities. He will also become a senior advisor to NFT’s private equity owner EmergeVest. Eggleton, who joined from supermarket group WM Morrison earlier this year, has taken on the role of deputy chief executive with immediate effect ahead of his move to the full role from 1 January. He is tasked with strengthening and expanding the firm’s

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customer base in the chilled food sector and developing services at its 230,000ft² temperature-controlled handling and DC at Tilbury Port, which opened last year. The group, which operates from 15 UK sites, has a customer base that includes Sainsbury’s, Asda and Marks & Spencer. It employs approximately 2,500 staff and operates 650 trucks and 800 trailers. David Frankish joined NFT more than 30 years ago, leading an MBO of the firm, formerly owned by Northern Foods, in 2006. Under his leadership the business has expanded from an annual turnover of £52m in 1995 to £220m. Heath Zarin, NFT chairman and EmergeVest MD, told MT: “David has been instrumental in developing most of NFT’s

strategic customer relationships, as well as our acquisition of NR Evans. He will focus on these important areas.” He added: “We would like to thank David for all he has contributed to NFT’s success and we are pleased to welcome him as a senior advisor to EmergeVest. We are confident in Ross and his ability to lead NFT through its next phase of strategic development.”

BRIGHT SPARK: Volvo claims its liquefied natural gas (LNG) FH and FM trucks are up to 25% more fuel efficient than conventional spark plug engines. The new trucks are fuelled by more than 90% LNG plus a small amount of diesel as an ignition fuel, which the manufacturer refers to as a ‘liquid spark plug’. At an event revealing Volvo Trucks’ vision for the future, the manufacturer said: “You get the same efficiency, performance and robustness as a diesel engine, and that’s important. We have 15% to 25% better [fuel] efficiency compared with the spark plug engines. Performance-wise, you have similar driveability to the Volvo diesel engines.” Volvo Trucks also displayed its concept diesel-electric hybrid vehicle (pictured) at the event at the Slovakia Ring. The vehicle’s hybrid powertrain generates and stores energy when the truck travels down a hill or brakes. This energy then powers the truck on flats or low gradients.

The availability of UK warehousing stock could come under increased pressure should the UK default to World Trade Organisation(WTO) rules in the wake of failed Brexit negotiations. Just-in-time supply chains, particularly for automotive spare parts, would seek to mitigate import delays and trade tariffs by keeping more stock in the UK after Brexit. Parts ranging from truck tyres to brake pads would all be affected under WTO rules, and suppliers could seek to increase UK inventory by holding items within UK borders. Speaking at the BT Fleet Solutions Forum in London last week, Julia Saini, global vice-president for mobility at Frost and Sullivan, said there was potential for shortages. “Distributors could spend on additional warehousing stock to mitigate these delays and suppliers would have to absorb price increases, through profit margins or passing the costs on to customers,” she said.

THE NEW SCANIA

News: FTA Brexit column p13 Focus: Business barometer p14 Highwayman p15 Feature: Driver CPC p18 MT Awards Winners p22-25

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14/09/2017 17:07:20

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Owned or used under license.

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News

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VICTORIOUS VOLVOS: Spar wholesaler James Hall has bought eight new Volvos to serve more than 600 UK stores. The operator bought six 4x2 FM tractor units and two 6x2 FE rigid trucks, with 410hp and 320hp respectively. James Hall fleet engineering manager Ian Farnworth said the low-entry cabs on the FM, supplied by Thomas Hardie Commercials Preston, were particularly suited to the business’s operation. “The FM has very low entry, which suits a multi-drop operation,” he said. “Every vehicle we have is potentially operating in a multi-drop environment.”

HGV driving test figures down 11% year-on-year The number of people taking HGV category C and C+E driving tests has fallen 11% yearon-year and is almost a quarter lower than a decade ago. After three years of improving fortunes for the transport sector, there were 58,018 tests taken in the year to 31 March 2017, compared with 65,127 the previous year. Tests at category C and C+E were on an upward trajectory, since reaching a low of 43,589 in the year to 31 March 2013. The pass rate through this period remained approximately 50% across both categories. However, a decade ago (2006/07), 75,975 category C and C+E tests were taken, representing a decrease of 24% in 10 years.

Burnett tells MPs they need to get behind industry as it faces three major challenges

RHA calls for support as going gets tougher By Grace Wood

The skills shortage, Brexit and the push towards low-emission vehicles are the biggest issues facing the road transport industry, according to RHA chief executive Richard Burnett. Speaking last week at a parliamentary reception to mark National Lorry Week, Burnett called on MPs to support the industry through the coming challenges. Burnett told attendees that the driver shortage, of approximately 45,000, was still a

concern. “The average age of a HGV driver is 55, and the number of those retiring exceeds the number of those replacing them. “With Brexit looming, the driver shortage is being exacerbated by EU migrant labour heading home because of exchange rates,” he said. According to the RHA, there are 60,000 drivers working in the UK from other EU member states, which Burnett said meant it was ever more important to train homegrown talent. “We need to find

new ways to tackle the shortage and to attract a more diverse workforce,” he added. He also called for the UK government to ensure the Le Touquet agreement, which enables UK border officials to carry out checks in France, is retained. “We must ensure fluid customs procedures at borders to provide ease of movement across Europe, especially at Calais,” he said. Addressing the government’s air quality plan, Burnett said it needed further consideration. “It is Defra’s intention

to see all new engines with zero-rated emissions by 2050 and that’s going to have a dramatic effect on this industry,” he said. To address this, he called for a scrappage scheme for Euro-5 vehicles and older. “We believe clean air zoning structures and any associated tax should be carefully phased. But this isn’t about punishment,” he said, “What’s needed is an incentive, a cost-effective scrappage scheme to encourage operators to replace Euro-5 or older trucks with Euro-6 models.”

Stobart opens training programme to industry Eddie Stobart has opened its previously in-house training academy up to the whole transport industry. The operator opened its training facility at its Appleton headquarters in 2015, where it has been training employees in HGV driving, transport legislation, warehouse and operational training and management development. As of last week (14 September) external operators can now pay for their staff to be trained at the academy. Eddie Stobart said it had decided to open the facility to 18.9.17 MTR_180917_003.indd 3

the industry because of demand from customers, as well as safeguarding the future of the industry. Stobart covers the cost of training its employees and offers a 25% discount a driver training to friends and family members. CEO Alex Laffey said: “Safeguarding the flexibility and agility of our industry is a responsibility we take very seriously. “The supply chain is critical to the success of UK plc and the skill sets required for success are expanding as we adapt to key trends such as the

growth of e-commerce and customer demands for increasingly shorter lead times.” The operator told MT it has increased its training staff by 25% in the past six months in anticipation of increasing student volumes. It will monitor its training resources against demand and has identified employees it can develop into driver trainers if necessary. The training is accredited by organisations including TfL, the Scottish Qualifications Authority and the Association of Lorry Loader Manufacturers and Importers. MotorTransport 3 14/09/2017 16:09:50

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13/09/2017 11:44:47

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Chief executive Steve Granite cites success and progress as reasons for decision

Abbey exits general haulage for tankers By Chris Druce

Abbey Logistics Group is closing its general haulage and pallet network operations to concentrate on the tanker business where it first made its name. In a statement last week (12 September), the firm, which was originally known as Abbey Road Tanks, said it had expanded rapidly in the past two years through its core tanker business, including winning headline-making deals such as with British Sugar. It said it had secured significant contracts in the food, polymers, and nonhazardous chemicals markets, and expanded the range of value-added services it can provide to include warehousing, drumming and reprocessing. Abbey said general haulage and Pallet-Track work accounted for 7% of group turnover, which, in its recently published year (2016), was £45m.

DHL Supply Chain wins police force uniform contract DHL Supply Chain has been awarded an initial six-year contract by West Midlands Police (WMP) to join the National Uniform Managed Service (NUMS). As part of the contract, DHL will design and deliver uniforms and equipment for WMP, based at a DHL site. It will do this via an online shop, supported by DHL’s “expertise in managing the upstream supply chain”. WMP is the second police service, following the Metropolitan Police in 2016, to work with DHL to implement NUMS. 6 MotorTransport MTR_180917_006.indd 6

The general haulage and pallet network – which it joined in 2015 – business will close by the end of October. Abbey employs 68 people – drivers and operational staff – across the general haulage and palletised division. The company said it would now enter a period of consultation with those affected by the announcement to discuss opportunities for transferring to Abbey’s tanker divisions.

Abbey Logistics Group chief executive Steve Granite said: “We continue to make strong progress in our road tanker business in the food sector. In addition, we have expanded our customer base and the range of services we provide to markets, including polymers, minerals and nonhazardous chemicals. “This closure enables us to provide a greater focus on the markets and customers where

our core skills are strongest and we can make a positive effect and bring the most value to our customers. “We hope to transfer colleagues from the general haulage and palletised division into our tankers business to the greatest extent possible, and Abbey will support colleagues through this period of change and provide as much information as possible about future employment opportunities.”

Kammac joins Pallet-Track

Kammac has joined Pallet-Track, taking on the WA postcode, which is being vacated by Abbey Logistics Group (see opposite) at the end of next month. The operator, formed in the 1980s by MD Paul Kamel, has bases in Lancashire, Merseyside, Nottinghamshire and Staffordshire. It employs more than 350 people and specialises in contract logistics, warehousing, distribution, on-site logistics and contract packing, along with keg and cask rental and sale. Kammac said it is working to offer staff affected by Abbey’s decision the opportunity to transfer to the company. It is expecting at least double figures to show interest. Wolverhampton-based logistics specialist Pallet-Track recently handled the 20 millionth pallet to move through its network since 2004. Pallet-Track opened a £10m northern hub in Ashton-in-Makerfield, Greater Manchester, in August.

Lack of interest stalls DVSA earned recognition The DVSA has tried to encourage operators to join its earned recognition pilot by dispelling myths about the scheme, which still needs more industry support before it can go live. Speaking at the RHA’s autumn conference earlier this month (7 September), DVSA head of enforcement policy Gordon Macdonald hinted the pilot was still lacking the support from hauliers needed to get the scheme off the ground despite a lengthy gestation. While earned recognition’s start date has moved several times, Macdonald said the DVSA hoped this would happen in spring 2018, but this was dependent on support from operators and IT system

providers. “We’ve made some good progress but we’re finding it’s taking more time than anticipated as it’s being developed, so we’re extending the

pilot to allow more operators to take part.” In an attempt to do some “myth busting” around the scheme, Macdonald reassured

operators that being part of earned recognition would not give the DVSA access to their data systems. “Operators’ systems will automatically send either a monthly email report, or an email notifying them of a KPI breach,” he said. Macdonald also tried to incentivise operators to take part in the pilot with the promise of public recognition of their efforts. He said: “As soon as the pilot is finished, we will publish all the operators that successfully took part, giving them recognition that they’ve reached the compliance standards. Those successful in the pilot will also be given automatic entry to the earned recognition scheme.” 18.9.17 14/09/2017 13:35:33

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13/09/2017 11:53:48

News

motortransport.co.uk

Pallet weight tests repeated after error

DVSA, Environment Agency and Metropolitan Police join forces to combat 150 firms

Trio to target illegal London waste firms

By Steve Hobson

Up to 150 operators believed to be operating illegally in the London waste sector are to be targeted in a joint operation between the DVSA, Environment Agency and the Metropolitan Police. The goal is to put these serially non-compliant operators out of business or force them to run legally. T he DVSA and the Environment Agency have signed a memorandum of understanding (MOU) to work more closely together to put

the spotlight on cowboy waste disposal operators. While the Environment Agency is more concerned about the legality of the load, the DVSA, backed by the Met, is looking for vehicle defects and drivers’ hours offences. Prosecutions can be led by the DVSA or police and traffic commissioners will be informed of any offences. The first in a series of roadside checks, held last week on the Albert Embankment (12 September), marked the start of the agreement and resulted

in a combined team of DVSA and Environment Agency inspectors and police officers pulling over approximately 20 tippers, skip lorries and other waste vehicles. DVSA traffic enforcement manager Russell Simmons told MT: “The MOU allows both agencies to share intelligence and resources and will enable us to target illegal wastecarrying operators. The Met is also getting involved as part of the Industrial HGV Task Force. When we carried out checks with the Environment Agency,

we discovered a lot of operators of common interest to both agencies.” Intelligence on cowboy operators is gathered from hauliers and the public, although Simmons denied the MOU had been triggered by a rise in fly-tipping. The operators’ OCRS is also a factor when targeting vehicles for spot checks. “Roadside checks and visits to operator sites are equally important,” said Simmons. “A spot check will often lead to a site visit.”

Image: PA

TfL head of Surface Transport moves on after seven years Leon Daniels, head of TfL’s Surface Transport, is leaving his role later this year. Daniels (pictured right, with London mayor Sadiq Khan), who has held the role for seven years, is responsible for TfL’s bus and tram services and has played an integral part in the development of the capital as a cycling city. Announcing his departure Mike Brown, London’s transport commissioner, said: “Leon has made a significant contribution to TfL and London and has done this critical job for longer than any of his predecessors. Our 10 MotorTransport MTR_180917_010.indd 10

progress under his leadership has been considerable. “This includes building a bus service that is the envy of all world cities, laying firm foundations for radical change in walking and cycling and helping us to focus on improving road safety and air quality to secure our city’s future.” He added: “Leon led our surface teams through the most successful Olympic and Paralympic Games and, as head of our resilience functions, has provided leadership and support at difficult times.” Daniels’ departure comes as Khan drives through a

Further tests to establish the safe maximum weight of a pallet for tail-lift deliveries have been carried out after the previous results from the Health and Safety Executive (HSE) were found to be inaccurate. Concerns have been growing that delivery drivers are expected to handle pallets, which are sometimes more than 1,000kg, placing them in danger. This was heightened after the death of HGV driver Petru Soimu Pop last November, who was crushed while making a tail-lift delivery to a residential address in High Wycombe. Guidance is due to be updated, but not before the HSE conducts research into the exertion required by drivers when manually manoeuvring pallets. However, MT revealed last month (14 August) there had been a delay after the first test results were found to be inaccurate due to faulty measuring equipment. To address this, the HSE used its facility in Buxton on 7 September to conduct a second series of tests. A spokesman said: “In March, the HSE undertook indicative testing of push and pull forces required in manoeuvring pallets on vehicle beds and tail-lifts, with members of the group present. The results indicated significant forces may be required to move pallets of various weights and that further testing was needed.” A spokesman could not say when the results of the test would be available.

Buchanans programme of cuts at TfL, partly by reducing management layers with a senior management exit programme. As MD of Surface Transport, Daniels is TfL’s fourth highestpaid official earning £343,145 last year, although a TfL spokesman said he was not

departing under the senior management exit programme. Last October, Ian Wainwright, TfL’s head of freight, stepped down from his role as the organisation moved away from a separate freight function, incorporating it into its day-to-day operations.

In our article Principles of growth (MT 4 September), while discussing the issues regarding maximum pallet weights for tail-lift deliveries, we referred to Pall-Ex MD Duncan Buchanan. This of course should have been Kevin Buchanan and we apologise for any confusion this may have caused. 18.9.17 14/09/2017 12:35:50

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13/09/2017 11:55:56

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CEO Mike Cooper said the business’s owners regularly give him ‘a hard time’

Yodel yet to turn profit By Emma Shone

Yodel failed to turn a profit for the eighth consecutive year in its recently closed financial year, and CEO Mike Cooper has admitted its owners regularly give him “a hard time”. The parcel carrier has never recorded a profit, making a pre-tax loss of £50.4m in its latest results, for the year ended 30 June 2016. Asked whether the business had turned things around for the year to July this year, Cooper told MT that while Yodel had not escaped the red just yet, there was a “demonstrable improvement on the year before”. He said: “We have a four-stranded strategy. We’re working on our cost base, our revenues and driving our volumes; a bit of everything. “In the next 12 or 18 months we will turn a profit.”

Cooper said he believed Yodel’s shareholders intend to continue funding Yodel despite its financial record. He told MT: “Before I joined I talked with the shareholders and they are in for the medium-term. They regularly give me a hard time about the amount of cash that does go in, but that’s what they should be doing.” Cooper added that since joining in January 2016, he had presented shareholders, including representatives of Sir David Barclay’s son Aidan, with a “credible strategy and growth story”, which Yodel is delivering against. “They’re proud of the businesses they’ve built elsewhere, and they want to be proud of the business they’ve built here. They’re not giving me any signals that they’re getting halfhearted about this.”

Tesla to debut electric-powered semi truck next month Tesla’s much-anticipated electric-powered semi truck will break cover next month, with the 26 October revealed as the date it hits the track for a test ride event in California. Tesla founder Elon Musk tweeted that the event was

‘tentatively’ scheduled for next month in Hawthorne, adding: “Worth seeing this beast in person. It’s unreal.” A Tesla UK spokeswoman confirmed the event will be the first time it is seen. Musk has also previously

talked of developing a Tesla pick-up truck. The business recently launched its most “affordable” battery-powered car yet, the Model 3, as it moves its technology nearer to the mass market.

Last month, American engine manufac turer Cummins said it had built a fully-electric power train for HGVs, which will be on sale in 2019. The 140kWh battery pack has a range of 100 miles.

2,000 sign up to RHA cartel action The RHA-led price-fixing compensation action has attracted more than 2,000 hauliers since it went live in June. The association, which is working on the claim before the Competition Appeal Tribunal in London with legal counsel Backhouse Jones and Exchange Chambers, said 650 other hauliers have expressed an interest. The RHA, which has longterm funding from Therium for the legal action, claimed those signed up represented circa-120,000 vehicles at 6 tonnes and above purchased during the cartel period (1997 to 2011). Last year, the European Commission handed out a record €2.9bn (£2.5bn) fine to five major truck manufacturers after it found they co-ordinated truck pricing and colluded on passing on the costs of compliance with emissions rules. MAN, Volvo Group (which owns Volvo Trucks and Renault Trucks), MercedesBenz parent Daimler, Iveco and DAF were found to have broken EU competition rules by forming a cartel to discuss the co-ordination of factory prices for trucks; timings for the introduction of emissions technology; and passing on technology costs to customers. Scania has contested the findings.

Parliament’s Transport Committee members announced The members of the Transport Committee, which will serve under chairwoman Lillian Greenwood, Labour MP for Nottingham South, have been announced. The select committee will comprise a mixture of Labour, Conservative, SNP and DUP MPs: ■ Ronnie Cowan (Scottish National Party) – Inverclyde; ■ Steve Double (Conservative) – St Austen and Newquay; ■ Paul Girvan (Democratic Unionist Party) – South Antrim; ■Huw Merriman (Conservative) – Bexhill and Battle; ■ Luke Pollard (Labour) – 12 MotorTransport MTR_180917_012.indd 12

Plymouth, Sutton and Devonport; ■ Laura Smith (Labour) – Manchester Metropolitan; ■ Iain Stewart (Conservative) – Milton Keynes South; ■ Graham Stringer (Labour) – Blackley and Broughton; ■Martin Vickers (Conservative) – Cleethorpes; ■ Daniel Zeichner (Labour) – Cambridge. At the time of her election in July, Greenwood said: “The DfT needs effective and fairhanded scrutiny, and I believe I have the aptitude and experience to provide it. “This will be particularly important in the months and years ahead. Decisions on Heathrow, HS3 and

Crossrail 2 are seriously overdue. Cross-border issues in the devolved nations remain unresolved.

“There are doubts over the ability of Highways England and Network Rail to deliver road and rail investment

schemes, and there is pressure from the Treasury to rein back on existing commitments.” 18.9.17 14/09/2017 11:31:56

News

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FTA deputy chief executive James Hookham says haulage will need post-Brexit support

Magic up some drivers

The government continues to formulate its Brexit policies and the divisions in the cabinet are the stuff of daily news reports and media interviews. In the meantime, busi businesses are starting to make plans for coping with Brexit, which is now just 18 months away. The need for a transition period for trading arrangements with the EU seems to be gaining ground, even if it is only to buy time to implement the most severe form of new customs arrangements.

Politicians, paperwork

But while politicians can delay or fudge the paperwork at the borders for a few years, what they can’t do is magic 30,000 qualified HGV drivers out of thin air to replace those EU

drivers working and living in the UK and whose employ employment and residency status post-Brexit are still in doubt. The government’s opening offer, to allow EU residents the right to ‘settled status’ if they had lived here for five years, was derided by Brussels as “insufficient” and since then no further details have emerged. T he home secretary announced in July there would be a study by the government’s Migration Advisory Committee (MAC) into migrant workers from the European Economic Area. The formal invitation to submit evidence to the survey was published by MAC last month. It is a dense, figurestrewn document that tries to map the dependency of differ-

ent parts of the UK economy on migrant workers from the rest of Europe. Transport and storage is recognised as a significant sector and there are important statements made about seasonality and the skills levels of such workers. A stand-out statement is that a national skills crisis is only declared if there is a shortage of workers at National Qualification Framework level 6 or above. On this scale truck driving is at level 2. The FTA will be

making a strong case for HGV drivers and logistics generally to be considered a special case and eligible for transitional arrangements, at least in the short term. But we won’t just rant at MAC. A key piece of our evidence will be the latest edition of the FTA’s Skills Shortage Report. This is a sixmonthly update on the driver shortage situation based on specifically commissioned analysis of the government’s own data, but analysed in ways that cast new light on employment patterns in the road freight sector. It was this analysis that first revealed the number of EU drivers working here and that EU nationals accounted for 16% of forklift truck drivers in DCs and warehouses. We will be working with FTA members to supplement this statistical evidence with

real-life case studies of employment patterns in road transport and how drivers are recruited to cover peak periods such as Christmas and harvest time. MAC’s analysis suggests that the workforce increases by about only 1.3% over peak periods, about 6,000, which seems low. This compares with 2.3% in the hospitality sector and 3.1% in agriculture.

Residency status

We have work to do to convince the government that it needs to support the road freight sector through Brexit in recruiting and retaining skilled drivers and other staff from the EU, despite their changed residency status. The working assumption for logistics operators should be that these jobs will probably need to be filled from home-grown talent in the future... just don’t all rush at once!

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Focus: Business barometer

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Weak pound helps UK exports, but outlook is gloomy as eurozone growth looks to outstrip growth in the UK

Uncertainty is the only certainty Exchange rates

STERLING EXCHANGE RATE 2017 1.5

Dollar Euro

1.2

0.9

0.6

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

INTERNATIONAL INFLATION 2.5 2.0 1.5 1.0

Sweden

Germany

Spain

China

eurozone

Italy

0.0

France

0.5 Japan

% inflation over 12 months

3.0

FORECAST UK GDP GROWTH IN 2018 % predicted GDP growth

2.0

1.0 0.5 0.0

Inflation Eurozone

1.5

IMF

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OECD

World Bank

Worrying signals coming out of the Brexit negotiations and strong economic indicators in the eurozone continue to drive down sterling’s value against the euro. August was particularly torrid for the pound, with its monthly average value sinking to an eight-year low of just €1.097. The rate dropped to €1.08 by the month-end and some analysts believe parity with the euro is looking like a real prospect within six months. Much depends on the outcome Sunday’s German election, with victory for Angela Merkel likely to trigger greater confidence in the euro as a safe investment haven. There is also growing pan-European support for French president Macron’s proposal to introduce eurozone financial reform designed to strengthen and stabilise the euro. That would put sterling under even greater pressure as investors desert it in favour of the euro. The trans-Atlantic comparison is not so bad. During the past five months the pound has regained some of its value lost against the dollar and is now relatively stable at just below $1.30. So although money markets are steering clear of the UK, their opinion of the US economic outlook under the new administration is even lower. The most rounded assessment of sterling’s value comes from the Bank of England’s Effective Exchange Rate Index (EERI), evaluating the pound against a basket of currencies, weighted to reflect the volume of UK trade with other countries. The pound’s August average EERI rating was 75.6, about 2.6% down on its index rating in the first half of the year. Inflation seems certain to rise further as the effects of the pound’s plummeting value wash through UK businesses. Just before the EU referendum in June last year, consumer price index (CPI) inflation had been at 0.3%. In its latest inflation report last month, the Bank of England forecast the CPI will peak at 3% in October. After that, the Bank expects the rate to subside to 2.6% in one year and then to 2.2% a year after that, on track for the government’s 2% target. But that forecast was made before the steep decline in the pound’s value in August. It is hard to see what will prevent inflation continuing to

rise beyond the Bank’s October peak projection. The chart shows UK inflation is double the eurozone average and above rates in some other big economies. The only other EU countries with higher inflation are the two Baltic states of Estonia (3.6%) and Lithuania (3.9%). Russia too is at 3.9% and inflation in Turkey is an eye-watering 9.8%. Ireland is at the other end of the spectrum, with inflation at -0.2% in July.

The view from abroad

Away from bitter Brexit wrangling, there is more to glean from foreign perspectives of the UK’s economic prospects. In July the International Monetary Fund (IMF) cut its forecast for UK GDP growth in 2017 from 2% to 1.7%, noting “weaker than expected activity in the first quarter”. Its growth forecast for 2018 was left unchanged at 1.5%. That could be revised in its next World Economic Outlook report, due imminently. The Organisation for Economic Co- operation and Development (OECD) expressed a more pessimistic view in its June Economic Outlook report, suggesting UK GDP will expand by 1.6% this year and 1% in 2018. “Private consumption growth is projected to slow, as higher inflation holds back real earnings,” said the OECD. “Business investment is projected to contract amid the uncertainty and lower corporate margins.” The US-based World Bank was more upbeat in June, forecasting GDP growth of 1.7% this year and 1.5% next year. The European Commission (EC) has pencilled in 1.8% and 1.3% for UK growth in 2017 and 2018 respectively. In its spring 2017 European Economic Forecast the EC analysts wrote: “Business investment is forecast to stagnate as companies react to uncertainty. However, net exports are projected to support growth, reflecting the depreciation of sterling.” All four organisations expect the UK economy to slow next year, with growth significantly below last year’s rate of 1.8%. Most do not foresee this scale of contraction – if any – in the eurozone. UK economic growth has outstripped the eurozone’s for the past five years but the consensus of opinion indicates those positions will reverse in 2017 and the UK will fall further behind the eurozone in 2018. 18.9.17 12/09/2017 16:35:52

Highwayman

motortransport.co.uk

The dog, the driver and...

If you have a story for Highwayman, send it to highwaymanMT@ gmail.com

Grocery home delivery is a tough job, what with all those heavy boxes, difficulties parking, and grumpy customers unhappy about their favourite product being substituted. But one supermarket transport manager revealed to Highwayman that one of the biggest dangers facing drivers is dangerous dogs. In a chance encounter with his opposite number at the Royal Mail, he learned our postal service has the UK’s only database of houses with dogs that bite. “Drivers getting attacked and bitten by dogs is one of

the biggest issues when making home deliveries,” the informant said. “I was speaking to a contact in the Royal Mail, and it has a database of dangerous dog locations. I was going to ask if I could borrow it but I didn’t have the courage and the offer wasn’t forthcoming.”

sodes of pop icon, Madonna, (who in a case of FedEx don’t preach, she’s in DPD), was unable to get a package released because the US parcel carrier didn’t believe she was Madonna. That never happens to Guy Ritchie.

No longer sci-fi

Highwayman also raised an eyebrow at the shortening of

Shame, as an exhibit at the recent Cenex event in Millbrook appears to foreshadow a future where it will not only be a bite that those delivering will have to contend with, but also an almighty static shock. My Yorkshire minion discovered an Electric Whippet at the show. The tagline ‘It’s no longer science fiction’, will no doubt horrify delivery staff who wish this K9 monstrosity was fiction – it’s actually a bus if you’re wondering.

Mad Madge

On the delivery theme, one of Highwayman’s favourite epi-

Nicola Sturgeon’s title of first minister to FM in official releases – it was the opening of the Queensferry Bridge this month after all – and subsequent suggestion here in MT Towers that there should be a Sturgeon FM radio station. It goes without saying that my pick on the radio is Volvo FM for its eclectic mix of heavy metal and Abba.

Och aye the noo

...the trout

some lines from former MT staffer and poet Patric Cunnane.

One industry celeb, known to stay fresh-faced by applying her own cleaning products, once told Highwayman “only villains are known by their surnames”. But it was Tony Trout, at Trout Transport, who stole Highwaman’s cold, cold heart recently after a chance encounter. To that end, we will part with

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MotorTransport 15 14/09/2017 09:54:27

Viewpoint

motortransport.co.uk

Are electric vehicles our foes or friends? W Christopher HansonAbbott, OBE Chairman Brigade Electronics

ith the recent news that the UK government is set to introduce legislation to regulate electric vehicle charging points and the unveiling of MercedesBenz’s concept all-electric truck at the IAA Show, plug-in vehicles are gaining publicity. Most of the buzz has centred on cars but the CV market is edging its way towards electric due to the environmental benefits and cost savings. Although initial interest in the Plug-in Van Grant scheme was slow, most researchers and industry commentators believe electric vehicle uptake will accelerate. To encourage growth, the government has extended the plug-in van grant to include vehicles over 3.5 tonnes and invested an extra £4m into the scheme. Electric vans lead the field with big-name firms taking them on. The big seven manufacturers, along with firms such as TNT, John Lewis and Ocado, are among champions of the LoCITY scheme supported by London mayor Sadiq Khan. An environmental benefit of electric vehicles is the quiet motor, but this comes with its own price – namely a hazard increase for vulnerable road-users. Research by the University of

California found a hybrid car is so quiet when driven electrically it creates an unacceptable hazard particularly to the blind, the hearing impaired, the elderly, the young, cyclists, pedestrians, runners – the pre-occupied – all who may have to detect, recognise and locate it all within a second or two. Conventional HGVs were put in the safety spotlight via the See Me Save Me campaign, which said approximately 400 vulnerable road users a year are fatally injured due to lorry blind spots – and we want to intensify hazards by powering them electrically! The European Parliament has voted to introduce mandatory acoustic vehicle alerting systems for all new electric and hybrid vehicles to alert vulnerable road users. MEPs agreed silent but potentially deadly electric and hybrid cars will have to be fitted with artificial sound generators so blind and partially-sighted pedestrians can hear them coming. The forthcoming legislation is aimed initially at electric cars but there is nothing to suggest that electrically powered commercial vehicles might be excused from this requirement.

THE NEW SCANIA

Brexit? Let’s start with Driver CPC P Concept

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rime minister Theresa May’s well-worn expression “Brexit means Brexit” looks increasingly meaningless as the massive complexities of leaving the EU after 40 years become clearer by the week. As the FTA’s regular Brexit column in MT demonstrates, there are still far more questions than answers about the post-Brexit landscape, and uncertainty is starting to affect business confidence. One EU directive that the UK should take the opportunity to reshape, if not scrap, is the Driver CPC legislation, introduced in 2009. As MT pointed out at the time, there are serious flaws in the Driver CPC, which has failed to achieve its original goals of raising the professional standards of HGV drivers and improving road safety. Requiring drivers to sit for seven hours in a classroom, five times a year, with no assessment of what they actually learnt, and no requirement to take courses that are genuinely relevant to their Notes

Steve Hobson Editor Motor Transport

Master

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Editor-in-chief Christopher Walton 2163 Group news editor Chris Druce 2158 Group technical editor Colin Barnett 2141 Aftermarket editor Roger Brown 2168 Vans editor George Barrow 2156 Urban editor Hayley Pink 2165 Senior legal reporter Ashleigh Wight 2167 Reporter Emma Shone 2164 Group production editor Clare Goldie 2174 Chief sub-editor Rufus Thompson 2173 Layout sub-editor Grace Wood 2174 Key account managers Andrew Smith 07771 885874 Richard Bennett 07889 823060 Display telesales Barnaby Goodman-Smith 2128 Group sales manager Julie McInally 2122 rtmclassified@roadtransport.com Sales director Vic Bunby 2121 Head of marketing Jane Casling 2133 Head of events/MT Awards Kelly Farley 2135 Managing director Andy Salter 2171 Editorial office Road Transport Media, Sixth Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Tel 0330 333 9544 Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £125/year. Europe £160 (€235)/year. RoW £160 ($329)/year. Cheques made payable to Motor Transport. Apply online at mtssubs.com

Studio Manager

Creativein Director jobs, a price-led market where cheap and cheerful was deemed good enough by a weak regulatory regime, was not fit for purpose – and still isn’t. Yes there are some very useful Driver CPC courses out there – but good employers were already providing the training their drivers needed in the format best suited to their operations – putting them in a legal straitjacket of the EU directive benefited no one. So once we are free of the EU and can reform our own laws, let’s have another look at Driver CPC. And, while we’re about it, introduce mandatory periodic training for CPC holders so they know at least as much as the drivers they manage.

Got something to say?

If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 18.9.17 14/09/2017 12:31:47

N E P

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Driver CPC

Regime unchanged I t is unlikely the Driver CPC will change in any significant way as the UK leaves the EU, but that doesn’t mean the regime is without its problems. No doubt some people in the industry voted for Brexit assuming the legislation surrounding the training directive would be ripped up and scattered into the winds over Beachy Head. But the truth is that the government will not dump something that aims to increase safety on our roads and keep us trading seamlessly with the EU. Fleet Source head of training Martin Lamb says: “The Driver CPC regime works and there does not appear to be any obvious reason to change it just because the UK is no longer going to be part of the EU. “Therefore, although the UK is scheduled to leave the EU in March 2019, and the deadline [for drivers] to complete their second block of training is 9 September 2019, initially leaving the EU will have no significant bearing on the UK’s Driver CPC regime. “Much of the transport regulations and legislation is already incorporated in the Transport Act 1968, which is not likely to be revoked just because the UK is exiting the EU.”

Immovable object?

Laura Nelson, MD of regulatory body RTITB, says the Driver CPC is not going anywhere and it seems improbable anything will change. “If we do see a significant change to periodic training we think it’s unlikely that anything would come into effect for several years. Driver CPC is a valuable tool for increasing safety on 18 MotorTransport MTR_180917_024-025.indd 18

The UK may be negotiating its exit from the EU, but one aspect that will remain is the Driver CPC. Chris Tindall reports

our roads, but there are always ways to improve things. To ensure our drivers are receiving quality training, we would like to see training providers and employers deliver different topics every year. Currently, the process allows for occasions where drivers might sit through the same seven-hour course five times in a row. This isn’t an effective way to expand drivers’ knowledge and ensure they refresh their skills and understanding in a breadth of topics.”

Concerns

This sense that some companies and drivers are taking advantage of the Driver CPC’s inbuilt flexibility and repeating modules runs deep in the industry, with almost everyone MT spoke to citing it as a concern. Mark Lewin, training development manager at Novadata Transport Training, says: “Driver CPC is essentially a good idea, but we don’t think it ought to be acceptable for drivers simply to repeat the same course. Ideally, drivers should cover a range of subjects such as correct tachograph use, understanding drivers’ hours regulations and the basics of the daily walkaround check, which will help operators to comply with their undertakings.” However, James Firth, FTA head of licensing policy and compliance information, thinks the problem is overplayed. “Broadly speaking, within the constraints of the directive, the UK

government has implemented the rules in the most flexible way it can. The same cliched arguments of ‘the same course five times’, ‘no test’ and ‘no mandatory content’ have been around since the draft directive was first laid – the FTA does not see a need for change in these areas and to legislate in this area could have unforeseen consequences. “The biggest problem is the straitjacket of seven hours – professional training outfits question whether anything is actually going in during hours six and seven, and we have suggested that five courses of five hours would have the same overall outcome in terms of knowledge retention, if not better.”

Vocational test waiting times

EP Training MD Sean Pargeter says there has been a significant downturn in course take-up among vocational drivers. He believes most companies have now got their employees covered in time for the 2019 deadline, but adds: “There’s also Brexit. A lot of people are holding off to see what will happen post-Brexit. The only people coming through the doors now are those coming back into the industry and those who did the initial Driver CPC and are coming up for renewal. Normally we are rammed. This week, we were lucky to get double figures.” The picture of this aspect of the Driver CPC is complicated. The DVSA says there has been 18.9.17 12/09/2017 15:57:26

a steady increase in the number of driver qualification cards (DQCs) issued and while the figures include bus and coach drivers as well as HGV drivers, it indicates more people are entering the industry. DVSA head of vocational policy Mark Winn says: “The increase in the number of DQCs issued for completion of initial qualification includes new drivers and also some drivers who had acquired rights and chosen to take

certificate of professional competence modules two and four to fulfil their CPC requirements. “The DVSA has worked hard to meet the increased demand for vocational tests and reduced waiting times by recruiting more examiners. “In 2011/12 we conducted 43,894 HGV tests; this increased to 78,237 in 2016/17. This has also resulted in an increase in the number of DQCs issued for vocational driving.” ■

TRAINING FOR TRANSPORT MANAGERS It is obviously important drivers adhere to the regime, but one issue identified is that they are becoming more up-to-date and current with road transport legislation and regulations than their transport managers. “If the DfT were to introduce periodic training for CPC holders, then I would recommend that this could be offered to transport managers as career professional development,” says Martin Lamb at Fleet Source. “In this manner, by identifying the focus and bridging the training gap, you could identify the nature of the training required for CPC holders. “The overall benefits of having their transport manager ‘current and competent’ would be considered beneficial for vocational drivers as this would provide confidence in the capability of their CPC holder from the driver’s perspective and meet the bespoke needs of the CPC holder.” The FTA agrees. James Firth says: “The senior traffic commissioner’s statutory guidance and directions requires that transport managers can demonstrate at licence renewal how they have kept their knowledge up-to-date, and failure to do so can affect their repute. But what is less clear is what is expected in satisfying this requirement. But we need to be careful we don’t make the same mistakes as were made with Driver CPC; there are plenty of operators and transport managers out there now who do it right– they keep themselves up-to-date, usually with support from their trade association or professional body through compliance updates and attending industry events. We don't want to bring in a process that ignores all those existing efforts and requires an expensive and heavily structured and prescribed system.” Novadata’s Mark Lewin also thinks the process need not be compulsory: “CPC can take many forms – reading the trade press and attending seminars or workshops, for example. We also recommend that transport managers, as holders of a CPC qualification, attend a CPC refresher course every few years as it shows a clear professional commitment to the Office of the Traffic Commissioner.” Laura Nelson at the RTITB says it does not mean transport managers would have to follow the same 35-hour programme as drivers, adding: “A training regime would need to be devised based on the needs of a transport manager’s role. We would prefer employers and transport managers voluntarily undertook relevant, beneficial CPC, rather than a mandatory regime being implemented.” 18.9.17 MTR_180917_024-025.indd 19

PROFILE: SAMWORTH BROTHERS SUPPLY CHAIN Brexit, shmexit, as far as Samworth Brothers is concerned. The majority of its drivers have a September 2019 deadline for the next renewal of their driver qualification cards and the UK’s exit from the EU will have little effect. National academy manager Mark Taylor says: “Many of our newly qualified drivers have different deadlines as their licences were acquired after the grandfather rights deadline expired. Driver CPC training is delivered annually to keep our drivers up to date. As we have invested in 10 new training modules, we anticipate these courses will fulfil our training requirements to 2019. We don’t anticipate Brexit having any effect on Driver CPC training in the short term and will continue to deliver this training.” Samworth Brothers refreshes its training courses every year to ensure content remains relevant and useful for its drivers. It now provides: “a suite of Driver CPC training modules” that focus on drivers’ hours; tachograph regulations; driver well-being; vulnerable road users; and working with others. However, the company would like to see improvements to the training requirement. “A more flexible approach to training could be considered whereby training modules of shorter periods would contribute to the 35-hour requirement,” Taylor suggests. “These could be delivered online whereby the candidate is tested on completion. Furthermore, in-cab driver training and assessment modules could also help improve standards while contributing to the training requirement.” MotorTransport 19 12/09/2017 15:57:47

MTR_180917_D02B063 13/09/2017 11:18 Page 2

MEETING THE URBAN LOGISTICS CHALLENGE

S a

If you are involved in delivering or receiving goods in towns and cities Freight in the City Expo is the must attend event for you. This free one day Expo brings together the freight industry, businesses and local authorities all under one roof. You will hear from a line-up of industry pioneers and experts in a packed seminar programme about how they are already tackling the

H g f W d d W c i t t e

issues around urban deliveries. In between seminar sessions, there will be plenty of time for you to browse the two-hall exhibition and meet leading suppliers showcasing the latest in clean, safe and quiet vehicle technology and equipment. Freight in the City Expo 2017 takes place on 7 November at Alexandra Palace, London.

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THIS YEARS EXHIBITORS INCLUDE: Isuzu, Mercedes-Benz, EMOSS, Transdek, Brigade, Volvo, Renault Trucks, Dennis Eagle, TFL (Lo-City), DAF Trucks, Iveco, Ois-fife, Vision Techniques Session Three - The and many, many more! big debate: What makes the ultimate city delivery vehicle?

Session Two LoCITY annual progress review Transport for London will update delegates on the latest air quality strategies in the capital, and HowEXHIBITORS is the freightINCLUDE: and loshow the progress made gistics sector adapting to • Arcola Energy across its LoCITY workfuture city requirements? ing groups in helping the Astra VT What• technology is being • Bradshaw developed todayElectric for urban freight sector transition Vehicles to ultra-low-emission deliveries of the future? • Brigade We hear from a number of commercial vehicles. • DAF Trucks collaborative projects tak• Dawes Highway Safety ing place across UK cities to test latest innova• the Exeros Technologies tion •in real-life delivery Isuzu environments. • Mercedes-Benz Trucks Session One - Thinking ahead

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MT Awards 2017 winner profile Customer Care Award DPD is no stranger to winning an MT award, and its Precise project helped it secure this year’s Customer Care trophy

Cherry on the cake W

ith the launch of its app, its Precise delivery service and significant growth in its Pick-up shop network, 2016 was a big year for DPD. The Your DPD app received more than one million downloads in its first nine months, and allows DPD consumers shopping across its vast range of household name retail customers to build their own profile, set cross-customer delivery preferences and manage their upcoming deliveries. And Precise, so popular with its customers that DPD has a 20-strong waiting list, gives

DPD’s recipients the power to choose when they want their parcel delivered to the hour. So it’s safe to say that DPD continues to lead the industry with its innovative, bespoke technology. And with its third consecutive Customer Care MT Award safely under its belt, we asked the parcel carrier which battleground it had to conquer next. The answer, according to its director of customer experience is... well customer experience. “On the technology front, no one can catch up with us. We’re too far ahead,” said Sinead Croke. “Where could they catch up with us? Everyone is talking about customer experience.

Successful technology companies are always adding little extras, so that’s what we’re doing.” “Dwain [McDonald, DPD CEO] is obsessed with bringing in new things, and every year we have new stuff to enter the MT Awards with. And we’re never scraping the barrel, and no one is ever going to say ‘stop, you’ve done enough now’.”

Tweaks and improvements

Isuzu customer care manager Syan Hancock, second right, presents the trophy to Elaine Kerr, director of sales and CRM at DPD

22 MotorTransport MTR_180917_022-023new.indd 22

The next move, Croke said, is to put the cherry on the cake DPD built itself in 2016 with its app and the introduction of Precise. Quite literally – the carrier has called its two-year project of tweaks and improvements Project Cherry. The project, which the business launched in November 2016, will result in approximately 25 improvements built into DPD’s app and services. Some are new features, some are tweaks, but all are geared towards improving the end consumer’s experience with the carrier. One of the project’s major improvements aims to tackle the issue of misleading GPS co-ordinates, which direct DPD drivers to locations other than the end consumer’s house; a problem particularly prevalent with shoppers in rural areas. DPD intends to solve the issue by allowing 18.9.17 13/09/2017 11:04:38