Motor Transport 26th June 2017

Sharp ■ Informed ■ Challenging

26.6.17

the NEXT GENERATION SCANIA

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NEWS INSIDE On the up

NR Evans enjoying boost following NFT buyout p3

Road safety

EVERY WOMAN: Employees from DHL Supply Chain and Kuehne + Nagel were among the winners of the FTA Everywoman in Transport and Logistics Awards last week (21 June). Celebrating 10 years of the event, Everywoman founders Maxine Benson and Karen Gill said much had changed in the industry since its inception, but that there was still work to do for diversity in the sector. Winners included O’Donovan Waste Disposal MD Jaqueline O’Donovan, who was named Industry Champion of the Year. Tracy Ward, contract manager at PD Ports, received the Above and Beyond award in the Freight category, while CM Downton’s Jannette Wallace won the Freight Leader award. The Woman of the Year award was given to Asda Logistics Services change manager Julie McCarthy.

Paramedics call for end to segregated cycle lanes p6

Drinks giant plans to close its secondary logistics department by the end of 2018

Can’t escape EU

EC issues draft freight proposals

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So Close

Close Brothers opens 24/7 Doncaster site

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OPERATORS IN THIS ISSUE Candour Logistics................................p22 Contract Transport ..............................p10 DHL Supply Chain ...............................p18 DPD ...................................................p18 Kuehne + Nagel ..................................p14 NFT.......................................................p3 NR Evans ..............................................p3 Royal Mail ..........................................p19 UPS ....................................................p18

News

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Focus:

DHL Tradeteam begins Carlsberg integration

By Ashleigh Wight

DHL Tradeteam is to begin integrating Carlsberg UK’s secondary logistics operation into the business next month, subject to consultation at the brewer’s sites.

By the end of 2018, Carlsberg UK plans to end its secondary logistics and porterage service, which sees it consolidate deliveries from different drinks suppliers to on-trade retail customers, to concentrate on brewing.

Subject to consultation, the Carlsberg UK sites in Ipswich; Gravelly Park, Birmingham; and Tingley, Leeds, will enter the DHL Tradeteam network next month. This will be Urban

logistics

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followed by Alloa, Clackmannanshire, in August, and its Kendal and Kinmel Park, Rhyl, sites in February 2018.

The Office of the Traffic Commissioner has granted an application for the Gravelly Park, Birmingham, site to be transferred to DHL Tradeteam, where it has permission to operate up to 60 vehicles and 60 trailers.

The deal was cleared by the Competition and Markets Authority in January, which concluded that, with a combined share of the secondary drinks logistics market of 30% to 40%, DHL Tradeteam would experience competitive pressure from other suppliers,

Highwayman

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Parcels

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such as Kuehne + Nagel Drinks Logistics.

A DHL Tradeteam spokeswoman said: “Subject to consultation, it is proposed the remaining Carlsberg UK locations will close, with volume transferring to DHL Tradeteam. Affected staff have been informed and are consulting with the company, Carlsberg UK and unions to discuss their options. DHL Tradeteam remains committed to securing re-deployment opportunities for all effected employees, both in DHL Tradeteam and other DHL operations.

“Carlsberg UK and DHL Tradeteam thank colleagues for their understanding at this Modal

shift

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MT

time and stress the proposal in no way reflects on the quality of work at the sites.”

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Awards

shortlists

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21/06/2017 09:21:39

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Post-NFT takeover, temperature controlled operator is on the up, says new owner

NR Evans enjoying boost Entry open now

By Christopher Walton

Trading at NR Evans has improved by 25% since being acquired by NFT last summer, as it benefits from maturing operations and improvements implemented by its new parent business.

NFT Distribution acquired NR Evans – shortlisted for Temperature Controlled Operator of the Year at the Motor Transport Awards next month – in July 2016 in a deal valuing the temperature controlled specialist at approximately £20m.

NFT chief executive David Frankish told MT: “Since NFT’s acquisition, NR Evans’ trading is up 25%, which mirrors a similar positive performance in NFT’s core business.”

NR Evans filed accounts to Companies House this month that showed turnover for the

financial year ending 31 August 2016 remained static at £41.5m, compared with £41.3m the previous year – but pre-tax profit fell significantly, from £2.2m to £83,000.

The decrease, it said, was due to establishing two new

depots in the year. The average number of employees at the business increased from 371 to 440 during the financial year.

Frankish explained that the depots were two large contracts, operated out of

customer premises, and managed by NR Evans.

“When NFT acquired NR Evans, these contracts were in their infancy. NFT’s strategy included investment to secure the long-term profit of these contracts,” he said.

One contract is an expanding operation managed by NR Evans on behalf of Blackburn-based soft tissue products manufacturer Accrol Papers. Frankish said: “The other contract benefited from the expansion of a customer depot in the retail sector that services a number of Home Bargains stores.

“Both of these operations are maturing well and with the benefit of a number of improvements that NFT has implemented, in addition to organic growth, these operations are now performing well.”

TOP HONOURS: Beverley Bell, former senior traffic commissioner for Great Britain, has been granted a CBE in the Queen’s Birthday Honours 2017 for her services to road safety and the freight industry. Bell, who retired from the role of senior traffic commissioner earlier this year, had built a reputation for being a passionate advocate of the freight industry during her career as a traffic commissioner. Bell told MT: “I am surprised and delighted in equal measure. But this award is not just about my contribution but the contribution of all the traffic commissioners and all that we do to promote and champion this industry – it’s not all about the small minority of operators that don’t observe the rules but about the staff in all those offices who keep the wheels of this industry turning.”

for FTA Driver of the Year

The FTA’s Driver of the Year competition, sponsored by Bridgestone, is now open for entries. HGV and van drivers are invited to enter the competition, which, for the first time, includes a Young Driver of the Year category for those under 30.

Entrants will undergo three days of rigorous tests at Mercedes-Benz, Wentworth Park, from 12 to 14 September, with category winners and an ultimate champion to be named later this year at the FTA’s final Transport Manager Conference at Coventry’s Ricoh Arena on 29 November.

Competitors will be tested on their driving skills, manoeuvring ability, legislative knowledge and their ability to identify pre-use defects of the vehicle.

Entries for Driver of the Year close on 28 July. Drivers can enter themselves or employers can nominate up to three members of staff.

■ Follow on Twitter at #FTAdriver17 and visit transportmanager.fta.co.uk for a full list of conference dates.

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www.tigertrailers.co.uk MotorTransport 3 22/06/2017 14:20:46

YOU

SCANIA HAVE THE BEST

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21/06/2017 09:22:41

“ We’ve just bought 11 new Scanias. They’re the ultimate vehicle for me.

Solid, reliable and tough, I can’t see a time when I would buy any other marque.

When people see that we invest in a top-of-the-range product, that confidence cascades down through the whole business. We have a long term R&M contract and the service is just great. I do a lot of analysis and on ‘whole life cost’ our Scanias easily outweigh the competitors.”

Ricky Hemmings Managing Director Ardula Ltd.

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21/06/2017 09:23:03

News

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Van driver killed in Calais

A van driver has been killed in Calais as a result of a migrant blockage on the A16.

The Polish-registered vehicle collided with one of three HGVs that had been stopped by tree trunks in the road at 3.45am on 20 June. The van caught fire, killing the driver.

The incident occurred

between junctions 49 and 50 of the A16; approximately 15km from Calais. Nine migrants of Eritrean origin are said to have been found in the back of one of the trucks and were arrested at the scene.

The RHA said its “worst fears had become a reality” after years of warning that

migrant activity in Calais would lead to a driver fatality.

RHA chief executive Richard Burnett said: “The lives of innocent people, who want no more than to be able to go about their daily business in safety, are being put at risk by those whose only aim in life is to reach the UK.”

MAXI-MUM RESULTS: Maxi Haulage has delivered one of its largest pre-tax profits in the firm’s history, despite a difficult and competitive environment. The Irvine-based haulage company, a subsidiary of Maxi Caledonian, reported pretax profit up from £1.5m in 2015 to £2.3m in the year to 30 September 2016. Turnover rose from £55.9m to £56.2m in the same period, its most recent accounts show. Speaking to MT, Maxi Haulage MD Alan Miles attributed the profit hike to the company divesting its low-margin contracts in favour of more profitable deals with new customers. It also reduced empty running rates and introduced its triangle strategy. “We used to run quality loads from the North West to Scotland and then run low-margin stuff back down. Last year we changed that, so we now go across to Ireland from Scotland and then to England in a triangle, which allows us to do away with one low-margin backload rate,” Miles said. The company also addressed driver shortages by developing vehicle bases in regions with a greater supply of drivers, such as in Holyhead , north Wales. This year, the company has raised its drivers’ wages by 6%.

Industry backs paramedics’ call to stop segregated cycle lines

By Carol Millett

Industry associations have backed calls from the College of Paramedics to reconsider the introduction of fully segregated cycle lanes in cities.

The College of Paramedics said kerbed cycle lanes make it harder for motorists to pull over to one side to allow emergency vehicles to pass.

Richard Webber, a para-

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medic and spokesman for the college, said every minute that a critically ill patient is delayed in receiving hospital treatment reduces their chance of survival significantly.

Webber said paramedics are reporting increasing delays in cities with kerbed cycle lanes, and he called for town planners to re-think the introduction of fully-segregated

lanes. “If you are trying to get to an emergency call, particularly at rush hour when traffic is slow-moving, you’re not able to use your sirens to any effect to get people out of the way because there is nowhere for them to go.”

“You just end up sitting behind them waiting,” he added.

The College of Paramedics

raised concerns about the design of London’s cycle superhighways, which, it claimed, are impeding the flow of emergency vehicles and creating queues of ambulances outside hospitals, including The Royal London Hospital, which is a major centre for emergency care.

Cities – including Bristol, Edinburgh, London and

Manchester – have introduced segregated lanes, with similar projects in the pipeline for towns and cities across the UK. The Brewery Logistics Group’s chairman Mike Bracey said: “Segregated cycle lanes are creating even more traffic congestion and delays in London and elsewhere for all road users.”

22/06/2017 10:53:13

News extra

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The European Commission has published draft proposals for revisions to road transport regulations

Europe’s new transport laws

By Carol Millett

Europe is on the move, namely in the form of its newly published mobility package. And make no mistake, Brexit won’t allow UK hauliers to escape the proposed changes to road transport law, trade associations have warned.

The proposals from the EC include changes to existing rules on cabotage, drivers’ hours, tachographs, operator licensing, tolling and the minimum wage regulations for visiting drivers.

Although both the FTA and RHA have welcomed some changes, others, such as those around cabotage and drivers’ hours, have raised alarms. The UK government is likely to accept many of the proposals

if they ensure a free flow of trade.

“Operators should know that the mobility package is likely to have an impact on the road haulage sector – even after Brexit,” said RHA deputy policy director Duncan Buchanan. The FTA is advising members to “plan that any – or even all – of these proposals could come into force in the UK, once adopted”.

The key proposals are:

Road tolling

■ Phase out time-based tolls (vignettes) in favour of distance-based tolls.

■ Remove the possibility in existing regulations of exempting HGVs below 12 tonnes from road charging.

ESTABLISHMENT Greater provision of information from hauliers to prove they are established in a member state to prevent so called letter-box companies.

This includes the provision of registration numbers of vehicles, number of employees, assets, liabilities, equity and turnover and risk rating data, which will be placed on the Electronic Register of Road Undertakings.

The RHA said: “The commission is proposing additional rules governing operator establishment. We feel that those states that allow current abuses will simply allow future abuses, while states following the rules will implement them and add to the bureaucracy surrounding establishment.”

■ Variation of charges for heavy-duty vehicles (HDVs) above 3.5 tonnes.

■ Phase out variation of charges according to the Euro emission class of the vehicle.

■ Introduce infrastructure charges according to the CO2 emissions of HDVs as soon as possible.

■ Regulate congestion charging separately.

■ Phase out possibility of revenue-neutral variation of charges according to time of

day, type of day, or season.

■ Level of tolls for light vehicles including vans to be linked to the environmental performance and based on both CO2 and air pollutants.

■ Revenue from congestion charging to be used to address congestion.

The FTA said: “A move to distance-based charging, by phasing out time-based charging (vignettes), will present challenges for the HGV Road User Levy.”

Repute

■ National regulator can request another member to provide information and to carry out checks on operators established in that state.

■ Regulator’s request must be investigated and responded to by member state within 25 days.

■ Clarification that once the time limit for meeting financial standing has expired, an operator must demonstrate it meets the requirements immediately. ➜8

“OUR LIGHTEST TRUCK IS ALSO OUR TOUGHEST.” “We get paid by the tonne, so payload is critical to our business. But so is durability – we don’t get paid at all if they’re off the road. We rely entirely on Scania to maintain our vehicles, and the consistency and quality of their staff and dealer responses are the best in the market.”

Chris Cooling, Group Transport Manager Day Aggregates

YOU

SCANIA HAVE THE BEST MTR_260617_006-009.indd 7

22/06/2017 11:10:03

News extra ■ A transport manager who has lost repute may not be rehabilitated for at least a year.

The FTA said: “Significant infringements detected by the DVSA at the roadside, committed by non-UK operators, are often not followed up effectively by the operator’s own regulatory authority. This proposal will hold other member state authorities to greater account in respect of their own operators.”

motortransport.co.uk

VANS ■ Vans no longer exempt from O-licensing rules as a result of removing exemption for vehicles of 3.5 tonnes and under.

■ Financial standing and establishment rules to apply to all van operators.

■ Financial standing rates for vans are set at €1,800 (£1,585) for the first

vehicle and €900 for each subsequent vehicle.

■ Van operators must have funds available to prove business is solvent and able to meet maintenance obligations.

■ No requirement to specify vehicles to an operating centre.

■ Member states to report annually

to the EC on van activity.

The FTA said: “The introduction of regulations in the absence of effective enforcement will divide the van industry into those who operate according to the law and those who operate according to what they know they can get away with.”

Access to the international market

■ Cabotage rules changed to allow unlimited domestic movements within five days rather than previous limit of three deliveries and drop-offs over seven days.

■ Shippers and freight forwarders who knowingly commission transport services requiring the operator to commit infringements will be subject to sanctions.

■ Carriage of empty containers or pallets will be ownaccount, not hire and reward, unless a contract exists between a consignor and consignee.

■ Operators can operate across an international border using a hired vehicle from a third member state.

■ Operators can hire vehicles from another member state and operate them in their own country for at least four months a year.

■ Member states must ensure vehicles hired by an operator are subject to the same standards and conditions as those the operator owns.

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The RHA said: “The cabotage proposal to remove journey limits is a liberalisation of the market and will increase the attractiveness of nomadic employment practices. Crossborder enforcement of cabotage rules will be more difficult as cabotage will no longer require a loaded inward international journey into the member state where the cabotage will take place – although

it should be noted that cabotage is not likely to be allowed under new arrangements, post Brexit.”

Posting of workers

■ Drivers working in another country for three days or fewer will not be covered by the minimum wage rules when performing international transport.

■ Domestic operations and

cabotage will be covered by national minimum wage rules from the very start.

■ Member states may only be permitted to impose the following obligations on operators: 1. The operator must make an electronic declaration giving journey information and operator details. Declaration valid for operations covering a sixmonth period.

2. Driver must have an electronic or paper copy of the posting document and evidence of the transport operations being undertaken.

3. Driver to have available relevant tachograph records.

4. Driver must have available a paper or electronic copy of the employment contract.

5. Driver must have available paper or electronic copies of last two months’ pay slips.

6. Driver will have right to contact head office during roadside check to ask for documents to be sent electronically.

7. Operator must make available copies of above documents to the host member state in case of control in a reasonable time.

8. No requirement to have a nominated representative in the host member state.

The FTA said: “The proposals go some way to addressing the difficulties in dealing with the administrative requirements of some member states’ minimum wage. Others issues, such as whether the member state can charge the operator a fee for entering into the administrative process, remain outstanding.”

22/06/2017 11:10:39

News extra

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■ The requirements surrounding deviation from regular weekly rest will now be measured in a four-week period rather than the existing two-week period.

■ A driver would be able to take two reduced weekly rests within a four-week period.

This does not allow any more reduced rests overall, but allows them to be taken more closely. The compensation still has to be taken before the end of the third week after the week in question.

■ Compensation for a reduced weekly rest will no longer be able to be taken in conjunction with a daily rest period, and must now be taken along with a full weekly rest of 45 hours.

■ Regular weekly rest, and any rest period of greater than 45 hours, not to be taken in the vehicle but in suitable accommodation, with adequate sleeping and sanitary facilities.

■ The suitable accommodation must be provided or paid for by the employer, or taken at home or at another private location chosen by the driver.

■ At least one weekly rest or compensation rest in four weeks must be taken at home.

■ A driver in a multi-manned operation may take a 45minute break while the vehicle is driven by another driver.

■ The ferry rest allowance, that a daily rest can be interrupted to move on and off a ferry or train, can now be applied to reduced weekly rest.

■ A driver is allowed to be late starting the next daily or weekly rest period due to

Images: Shutterstock

Drivers’ hours

unforeseen circumstances such as traffic disruption, but may not extend daily or weekly driving times beyond prescribed levels, nor reduce the daily or weekly rest period.

■ Temporary exemptions from the rules in cases of emergency by member states must be justified to the Commission.

■ National penalties imposed must be proportionate to the

seriousness of the infringement.

■ Changes to the national penalty system must be notified to the EC. The RHA said: “Driver rest rule proposals appear directed towards supporting nomadic driver employment practices.

The proposals do not support road safety and are unlikely to address the excessive and variable local enforcement prac-

tices dealing with weekend rest rules.”

Tachograph

■ The next-generation smart tachographs will have to take an automatic location stamp every time the vehicle crosses a border.

■ For existing tachographs, without automatic geo-location, the driver will have to manually enter details of

where and when a border was crossed.

The FTA said: “The requirement to enter details of where and when a border was crossed manually could add a significant burden. The expectation that drivers might have to pull over soon after crossing, rather than progressing to a planned stopping point, could lead to congestion near border crossing areas.”

“IT’S THE BACK UP – THE PEOPLE PART – WHERE SCANIA EXCEL.” “Scanias are tough but it’s their people that make the difference. Our local depot is very flexible and work around what we need. Even those dealers further afield always go out of their way for us. It’s all about the back-up.”

Terry Axon, Director Allan Morris

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SCANIA HAVE THE BEST MTR_260617_006-009.indd 9

22/06/2017 11:11:11

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Kent transport chief: push truck park build Building a huge truck park to ease congestion caused by Operation Stack should “push on at pace” because of the uncertainty caused by Brexit, Kent’s transport chief Matthew Balfour urged.

Balfour, the county council’s cabinet member for transport, said: “I have no guarantees that we’re not going to have problems with HGVs backing up across our roads again.”

Balfour was speaking after a decision was made to postpone a court hearing into plans to build a 3,600-space truck park at Stanford West, due in part to the general election, until autumn.

More than 200 truck and van rentals will be available at new Doncaster site

Close opens 24/7 rental site

By George Barrow

Close Brothers Vehicle Hire (CBVH) has opened a depot in Thurnscoe near Doncaster to provide 24/7 rentals of trucks and vans.

A standing fleet of 25 trucks and 15 vans from a range of manufacturers are on site with a further 200 vehicles being held within its network.

They can be on site within hours if needed, with tractor units, rigid trucks and medium- and long-wheelbase vans available 24 hours a day, seven days a week.

As well as truck rental, other services including driver hire and warehousing are available at the site via partnerships with Talstaff and Stanton Logistics.

These services look to meet the last minute and out-ofhours needs of operators.

CBVH operates a similar 24/7 site at Stanton by Dale, near Derby, which has proved popular, prompting the contract hire specialist to expand its reach north to cover cities including Wakefield, Leeds and Sheffield.

The Thurnscoe site is also

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the base for Stanton Logistics and Talstaff Recruitment, which will provide support to CBVH’s customers with warehousing and additional driver services.

Stanton Logistics MD Chris Mcginley said: “CBVH has worked closely with Stanton Logistics for a number of years and that relationship has given our business the confidence to expand. Having CBVH on site strengthens our offering to customers, as well as theirs, by providing additional vehicles from CBVH and drivers at short notice with the assistance of our sister company Talstaff. We are excited about this venture.”

CBVH sales director Richard Gosling said: “Our customers require the ability to operate 24/7 and we have the solution for them. By having an account with CBVH our customers can access our

CV fleet when they need them, not when the rental company chooses to open.

“All our vehicles are fitted with telemetry so we can offer visibility to our customers and we know the exact locations of all our vehicles. The partnership with Stanton Logistics allows us to offer a second-tonone service when it is most needed.”

It is hoped the Doncaster site will become a one-stopshop for operators. While CBVH account holders are able to access the vehicles almost immediately once the booking is confirmed by their account managers, Gosling believes the 24-hour model could be the beginning of a more flexible and convenient approach to spot hire. “We are looking more into technology and systems used in other markets that could be used in the CV rental world,” he said.

Contract Transport loses £900,000 Birmingham contract haulier Contact Transport, which entered administration earlier this year, went from a £1m pretax profit to a £100,000 loss in 20 months of trading.

The haulier was suffering from creditor pressures and had fallen behind with its HMRC payment arrangements with HMRC when RSM Restructuring Advisory was appointed on 20 April.

A report into the events leading up to the administration said the company reported steady profits for the years 2012 to 2014 and a higher profit of £929,000 for the year ending

30 June 2015 (pre-tax profit: £1.01m).

But it added: “Following a poor winter trade in 2015/16 management introduced changes to the business model, however sales were not as high as anticipated for 2016/2017 and substantial vehicle damage and insurance costs were incurred, which caused cashflow problems.”

Management account details provided by RSM showed that by the end of February 2017 the company was running at a pre-tax loss of £105,000 on an almost £14m turnover.

26.6.17 22/06/2017 09:09:58

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21/06/2017 09:46:11

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Factors the association says have been ignored include restrictive hours and additional mileage

LLCS review in slow lane

By Hayley Pink

The RHA has slammed proposals to revamp the 32-yearold London Lorry Control Scheme (LLCS) for “ignoring” the needs of the freight industry. Operated by London Councils across the capital’s 33 boroughs, the LLCS controls the routes HGVs over 18 tonnes can use at night and at weekends. It has been in place since 1985 to reduce noise pollution in residential areas during the night.

A full-scale review began late last year, with the recommendations drawn up to modernise the scheme (see box) being approved on 15 June at a London Councils Transport & Environment Committee (TEC) hearing.

However, the RHA said: “The report totally sidelines the key points raised by hauliers and misses the opportunity to improve the environment for people and businesses in London.”

The RHA believes key factors have been ignored including the limited extent of the network that is excluded from the LLCS; the restrictive hours of operation, which

KEY RECOMMENDATIONS OF THE REVIEW ■ Raise awareness of the scheme’s purpose, benefits and

rules among key stakeholders. This will involve updating its website and online portal as well as exploring new technologies to make it easier for freight operators to plan and follow compliant routes.

■ Develop noise standards for vehicle and infrastructure design that properly reflect how existing and new technologies could improve the operation of the scheme and the restrictions that apply.

■ Trial the use of CCTV and automatic number plate recognition enforcement.

■ Reassess the scheme’s restrictions, such as routes, hours of control, weight limit, traffic signs and vehicle exemptions, particularly in line with the advancements in vehicle design.

■ Update online systems and processes to improve the day-to-day administration of the scheme.

FORWARD THINKING: The review recommends taking into account advances in technology, such as Daf’s CF Silent (left)

force HGVs to concentrate movements to the morning peak after 7am; and the additional mileage they must travel to comply.

Deputy policy director Duncan Buchanan said: “The freight industry willingly and enthusiastically participated in this process. It will feel let down that the positive contribution it has made has been ignored completely.

“It is not acceptable that the hours of operation of the scheme and the extent of the core network that is available for use have been put in the long grass by this report.”

Natalie Chapman, FTA head of policy for London, acknowledged the massive amount of work undertaken by London Councils during the review process. However, she would like significant proposals, such

as route reviews and pilots for amended operational hours, addressed sooner than planned by London Councils.

Major changes to the LLCS would likely need further public consultations and changes to traffic management orders in boroughs.

“It is frustrating, but it is the political reality,” said Chapman. “We will continue to meet London Councils to

ensure all the things in the document do happen.”

Julian Bell, chairman of London Councils TEC, said: “The review’s findings will help us ensure the freight industry can meet the challenges it faces while continuing to help Londoners get a good night’s sleep.”

During 2015/16, 4,314 operators and 679 drivers were fined for breaching the LLCS.

Bedfords positive over new Struggling to make the numbers fit... again business despite profit loss LETTERS

Write to: Motor Transport, Road Transport Media, 6th floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB. Email: highwaymanMT@gmail.com. Please include your full name, position, address and contact details. Letters published may also appear on our website: www.motortransport.co.uk. Motor Transport reserves the right to edit letters.

I read your article regarding our poor trading results for 2016 (MT 19 June), and as you mentioned we had to divert our entire fleet of 50 trucks away from Calais and send them via Zeebrugge and Europoort to safeguard our drivers, the trucks and the valuable loads they carry.

We did this to maintain the supply chain for customers – a lot of which are contractual – so we cannot increase our freight charges to cover the extra shipping and re-routing costs. This all came to an extra cost of more than £300,000, but it was worth every penny – driver safety to Brian Yeardley Continental is more 12 MotorTransport MTR_260617_012.indd 12

important than profit. Our staff are our business and our family, and we owe it to them to keep them out of harm’s way at all cost; that is the company’s number one priority.

This year Calais is again turning into a very nasty place to have to travel through, especially in the evening. The situation is very serious and it’s worrying that the situation could blow up again.

I fear for UK hauliers if the migrants return in numbers because the way they are trying to stop trucks entering the port could result in someone not coming home to their family.

These drivers are not battle-

hardened front-line troops, they are normal law-abiding people trying to make a living and provide for their families.

These criminal acts are being carried out in the name of desperation by these migrants, but if they committed them in the UK, they’d be in prison.

I cannot see anything being done to help the international transport community as the UK government is more interested in feathering its own nest, and the French do not see migrants as a priority. It looks like another year fending for ourselves and struggling to make the numbers fit.

■ Kevin Hopper, MD, Brian Yeardley Continental

Leeds-based Bedfords Group has made significant progress in adding new streams of business, according to its latest results, despite recording a pre-tax loss of £221,415 last year.

The group, which is owned

by SP & PL Holdings, is made up of Bedfords, LinQ Alliance and RPL Transport, which it bought in 2014. It specialises in transporting printed matter, printing materials, packaging, homeware, kitchen furniture and building and garden products.

Reporting its results for the year to 2 October 2016, the group revealed a dip in turnover to £19.4m (2015: £20m) and a pre-tax loss of £221,415

(2015: £1.09m profit) in the period.

Bedfords said that while net results for 2016 were significantly lower than the previous year, its trading performance had improved markedly in 2016, with all three trading entities winning new customers in existing and new markets for the second year running.

The firm is restructuring its business under the leadership of Lee Nichols, who became MD in July last year.

The restructure also saw chief executive Steff Pfadenhauer, who owns 80% of SP & PL Holdings, take on a part-time role at Bedfords.

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25/05/2017 12:30

21/06/2017 11:25:31

Focus: Urban logistics

motortransport.co.uk

Freight in the City looks at the latest news and technology from urban logistics from around the UK

Birmingham trials app to monitor traffic lights

Shutterstock

A smartphone app, which enables HGV drivers to monitor traffic light signals and drive more efficiently as they approach them, is being trialled in Birmingham. The app, Greenwave, was developed by CheckedSafe in conjection with Idox Transport.

By being aware of when traffic lights will change, it is hoped drivers will adapt their speed to “ride the greenwave” and minimise stops and starts at traffic lights. This should reduce fuel use and emissions as vehicles spend less time idling at red signals.

The 12-month Greenwave pilot, which started in April, forms part of the government’s £20m Low Emission Freight and Logistics trial. It is being run in a consortium led by Idox Transport, which includes CheckedSafe, Amey and Birmingham City Council.

Birmingham is one of a number of

UK cities mandated to introduce a Clean Air Zone by 2020 and the council said it welcomed projects like this that were “creating innovative, practical solutions to improve air quality”.

Civils firm Amey will use the app on 12 Masternaut-equipped refuse trucks over a six-month period on its Birmingham Highways utility contract to monitor the effect on mpg and emissions. It aims to deliver a 10% reduction in monthly fuel costs and emissions.

Tony Matthews, Amey’s transport manager for Birmingham, said: “Amey is involved in a number of initiatives that support Birmingham City Council’s drive to improve air quality and we are delighted to be piloting this technology.

“All of our vehicles are GPS-tracked so we can monitor how driving styles affect fuel consumption, and we are excited to see how this trial will help our drivers adapt even further to limit

the environmental effect of these essential journeys,” he added.

The app is hands-free and uses audio and visual methods to relay data to the driver. It uses traffic signal data to transform fleet driver behaviour by encouraging them to drive in a more efficient manner.

Drivers are awarded a green score each time they drive, based on both their driving style and how they approach traffic signals. Points accumulate over the month with a monthly league board rewarding the driver with the highest score.

K+N trials hydro-electric cooling Kuehne + Nagel (K+N) is operating two Carrier Transicold engine-less refrigeration systems on its Whitbread contract to test their environmental and performance capabilities.

The multi-temperature units are fitted to an 18-tonne Mercedes-Benz Econic and a 26-tonne Daf CF and feature low-noise, Piek-compliant technology suited to urban areas. They run entirely on hydro-electric power generated by the trucks’ Euro-6 engines – removing the need for a separate diesel engine.

Carrier Transicold said this helps reduce environmental impact by cutting emissions and improving fuel efficiency, while also reducing maintenance costs.

Both units have been specified with R452A refrigerant, which has the same cooling capacity, fuel efficiency, reliability and refrigerant charge as R404A, but offers a 45% reduction in global warming potential (the measurement used to differentiate the enviMotorTransport 14 MTR_260617_014.indd 14

ronmental impact of gases).

K+N national distribution manager Andrew Blake said: “Within the lifetime of these vehicles, fleets in major cities are going to be facing stricter rules regarding vehicle emissions.

“After consulting with [hire firm] Petit Forestier, we decided it was the perfect time to put Carrier Transicold’s new engine-less transport refrigeration technology to the test.”

Both vehicles are in daily operation in busy urban environments, transporting ambient, chilled, and frozen produce to the Whitbreadowned Premier Inn chain.

The Daf is based in Wellingborough and delivers to Birmingham and Nottingham, both of which will include a Clean Air Zone by 2020; the Econic – which allows the driver to sit much lower than in a conventional distribution truck – operates in London, which will enforce the country’s first Ultra Low Emission Zone by 2019.

CHARGING AHEAD: Charge Automotive has signed a 15-year lease on a site at Banbury Cross, Oxfordshire, to build its range of affordable electric trucks for the UK. The automotive technology firm’s first assembly plant, a 111,560ft² warehouse, will be close to junction 11 of the M40, with easy access to the Midlands, London and the home counties. Trucks built at the site will range from 3.5 tonnes to 26 tonnes and will be ultra-lightweight and autonomous-ready. They will comply with London’s Ultra Low Emission Zone and proposed Direct Vision Standard. The company said it wants to remove the barriers for electric vehicles by pricing the trucks in line with conventional vehicles.

Ford brings R&D team to London innovation hub Ford is opening a Smart Mobility Innovation office in London so its 40-strong research and development team are closer to academics and technology firms in the capital.

Located at the Here East

innovation hub at the Queen Elizabeth Olympic Park in Stratford, the team will work on cutting-edge trials, including the plug-in hybrid Transit fleet project to be launched later this year.

Steven Armstrong, group

vice president and president of Europe, Middle East and Africa at Ford, said: “Basing our team in the heart of London’s mobility innovation is critical to accelerating learning and development of technologies.”

26.6.17 22/06/2017 09:08:11

Highwayman

motortransport.co.uk

Say my name: is ‘trucker’ an offensive label?

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

Next issue published 10 July ■ MT Awards winners: all the news and pictures from the best night in transport ■ Hall of Fame 2017 ■ Business Barometer and industry news

There are a few words in the English language that are dated, that at the time were socially acceptable but have now fallen out of fashion.

Often they were derogatory (for instance, calling an Englishman a pom, limey or sassenach), but over time have fallen into common parlance as a historic relic of a less tolerant age.

In the road transport industry this etymology is fascinating. For some the term haulier is derogatory, while for others it is a badge of honour.

Likewise, some live and breathe logistics, but for others it’s a term for “the other”.

Yet one thing the industry unifies around is the description of trucker. According to the Oxford English Dictionary a trucker is: one who drives a truck. So it goes without saying that for multi-million pound, and in several cases multibillion pound, businesses the term trucker harks back to something unsophisticated

and lacking nuance, and does not imply complex international supply chains.

Highwayman would argue trucker is a derogatory term for the modern and incredibly complex job of driving a truck for a living.

Some have attempted to embrace the term and spin it in a positive light: I’m thinking of MotherTruckers, the selfdescribed lady truck club, providing: “friendship and support for all lady truckers”.

An initiative that is welcome, necessary and laudable, but you can’t help thinking the name is tongue-in-cheek in its attempt to remove the disparaging associations of the word trucker, rather than embracing the term.

So it was surprising to see the BBC (lest we forget a service we all pay for, thanks to the unique way it is funded) go with the headline “Trucker body to seek cartel compensation” as part of its business coverage.

COOL OPERATOR: Does the image of the swashbuckling trucker, as portrayed in programmes such as Ice Road Truckers, do as much to harm the industry as promote it?

The “trucker body” is the RHA; the same trucker body that represents more than 6,000 member companies operating 80,000 HGVs. These are micro, SME and large

operators, including 82 of the Motor Transport Top 100.

While not an exact science, 82% of the MT Top 100 is roughly responsible for a staggering £22.8bn of turnover.

T he BBC coverage compounds the error by continuing to refer to road transport businesses, and purchasers and operators of trucks, as truckers throughout the article. No wonder the general public has such a poor view of the sector if it believes truck buyers are truckers; no wonder we have a driver shortage or struggle to attract young people to work in it.

If the BBC – and its vast monopoly on the public consciousness and its media consumption – continues to use an inappropriate and, I’ll say it, offensive term in labelling one of the most vital sectors of the domestic economy as truckers we, as an industry, will remain in a rut that no amount of positive PR will reverse.

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MotorTransport 15 22/06/2017 11:12:05

Viewpoint

motortransport.co.uk

Supply chains: it’s better together A Jon Miles Head of UK operations Partner Logistics

partnership approach is the key to a successful supply chain; this is underlined by the fact that Motor Transport has a category devoted to it in its annual awards. Sharing knowledge and information in an honest and trusting way, through open and regular communication, can lead to business breakthroughs. Some of the benefits gained by producers, retailers and customers in food logistics working in partnership are improved efficiency, lower operating costs and reduced CO2 emissions.

Trust and communication on both sides can also lead to innovation and creative developments that might not be possible if both parties are working independently. Collaboration over time, rather than a few years, also leads to long-term commercial benefits rather than short-term gains.

When retailers and logistics companies work collaboratively they will be working towards the same goals; namely cost control, quality delivery, customer satisfaction and loyalty, and improving together as they go. This new era of collaboration represents a win-win for all parties.

As far as the frozen food market is concerned, retailers and food manufacturers are constantly looking for logistics improvements. In a collaborative situation, the logistics provider can help to build the bridge and solution for all parties to improve the total supply chain. If a retailer is looking to reduce costs or improve efficiency, or quality, then it is imperative that it engages with its logistics providers to discuss the challenges and objectives to help achieve a sustainable solution.

The days of one-sided decision-making – from anybody in the supply chain – should be over, so let’s discuss the operation and the objectives of the retailer and food producers and come up with solutions – together.

As a logistics provider I feel that the supply chain working together, as a group, with openness about targets and ambitions, is the only sustainable way to improve the supply chain in our industry and allow all parties to reap the benefits. A collaborative approach, with a sustainable solution, is the only way forward.

the NEXT GENERATION SCANIA

PREMIUM REDEFINED

Brexit: we can’t have our cake and eat it Y Steve Hobson Editor Motor Transport

ou might be forgiven for wondering why – seeing as the UK is now in the process of negotiating its exit from the European Union – MT is devoting so much coverage to EU proposals to change the rules on road transport (see page 7.)

Surely once we are finally free of the yoke of Brussels our sensible government in Westminster will tear up all those pesky European directives on cabotage, drivers’ hours and O-licensing and we can go back to a simpler, easier life?

Well, don’t hold your breath. One thing everyone agrees on – apart from the importance of the right of EU citizens to continue working in other EU states – is that the UK needs to be able to carry on trading freely with our former EU partners. And one thing is for sure – if we want to trade with them we will have to comply with their rules. There is no way we will get to have our cake and eat it – in other words, lower our standards to cut costs and then trade freely with our highly

16 MotorTransport MTR_260617_016.indd 16

regulated neighbours.

The Norwegians call it ‘government by fax’ – in order to trade with the Single Market they have to comply with every rule and regulation dreamt up in Brussels and faxed over to Oslo.

At least the UK currently has a voice among the 28 EU member states in drafting directives – post Brexit we will have a stark choice – comply and trade or sit on the sidelines.

One of the biggest changes being proposed is to introduce O-licensing for vans. This has been debated for many years in the UK and, like all such changes, there are pros and cons. With four million vans on UK roads, one immediate concern is how on earth will the already underresourced Central Licensing Office in Leeds cope with that?

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Group managing editor 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 Editorial team Ashleigh Wight 2167 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 Head of product Andrew Chilvers 2138 Managing director Andy Salter 2171 Editorial office Road Transport Media, 6th 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 Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2017 DVV Media International Ltd ISSN 0027-206 X

Got something to say?

If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 26.6.17 22/06/2017 14:16:29

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21/06/2017 11:28:56

Parcels

Parcelling up

the market As competition in the parcels sector continues apace what strategies are parcel carriers using to boost their share? Carol Millett reports

N

ot many years ago the B2B parcels sector was king, delivering solid margins and a predictable demand, but an explosion in online shopping in recent years has seen traditional B2B carriers, such as DPD and UPS, increasingly targeting the B2C market.

The shift has been rapid. In 2010 B2B parcels claimed 59% of the UK parcels market, with B2C lagging behind at 22%, and consumerconsigned parcels – including home shopping returns (C2X) – at 18%, according to market analyst Apex Insight.

By 2016 B2C’s share was neck and neck, with B2B at 42% and B2C at 43%, while C2X stood at 16% (see box). The contrast between the compound annual growth rates of these sectors in this period is stark, with B2C achieving 18.9%, C2X 4.8% and B2B coming in at just 1.4%.

Comfortable market

So is the market polarising, with former B2B carriers abandoning the B2B market for the lure of the fast-growing B2C market? David Jinks, head of consumer research at online courier ParcelHero, thinks not. “These are both good markets. B2B may not have the same rate of growth, but it is a nice, comfortable market where margins are good and there is always someone there to take delivery of the parcel, unlike home deliveries. In fact, I would say the bigger couriers would just do B2B deliveries if they had a choice, but as the bulk of growth in the parcels market is in B2C, they can’t afford to ignore it,” he says.

18 MotorTransport MTR_260617_018-019.indd 18

DPD UK chief executive Dwain McDonald (below left) echoes this view. While B2B is still a significant market for DPD with more than 40% of its deliveries in this sector, McDonald believes B2C is where significant growth opportunities lie. He says: “We are in both sectors and both are growing, but B2C by far the largest margin. I see nothing changing there in the short- to medium-term, so we have bet the house on the B2C market and we will continue to do so.”

Betting on B2C may not be as high risk as it seems, given the sector’s rapid growth.

However, this growth has created fierce competition in the market. Unlike the B2B market, which is much more fragmented with a host of smaller customers and low churn levels, the B2C parcels market is dominated by a handful of large retailers notorious for driving a hard bargain and shopping around.

Research by Triangle Management Services found B2C shippers tend to switch between carriers frequently.

Between 2012 and

2016 the number of carriers with less than two years’ service increased by 22%. Similarly, Apex Insight found churn remained high in B2C, with 25% of customers having switched in the past year and just 19% having kept the same carriers for three years or longer.

Another cloud on the B2C horizon is the growth of in-housing by customers such as Amazon, which launched Amazon Logistics in 2014, and Argos, which launched its own same-day delivery service in October 2015. Davy Research warns that in-housing by retailers, particularly Amazon, could leave parcel carriers with low-value parcel deliveries.

Not everyone can meet the B2C market’s demands, as the demise of City Link demonstrated in December 2014. B2C market pressures have also driven consolidation. Recent acquisitions include UK Mail Group by DHL owner Deutsche Post, Royal Mail’s purchase of same-day delivery company E-courier and DX Group’s planned reverse takeover of Menzies Distribution following its acquisition of Nightfreight in 2012.

Cutting costs

Could there be more consolidation on the cards?

After all this is a crowded market that includes Royal Mail; Amazon Logistics; Argos; DHL; UPS; FedEx/TNT; DPD; Hermes; Yodel; UK Mail; APC; City Sprint; XDP Express; and more.

“There’s not another obvious contender,” says Apex Insight director Frank Proud (centre). “If you look at the market everyone is now in a fairly settled ownership and although some are struggling, like Yodel, it has cut its losses and is owned by ShopDirect so it’s not desperate for cash; anyway, it’s not clear who would buy it.”

The good news is margins are on the rise as carriers continue to cut costs, raise service levels, introduce technological innovations and deliver greater efficiencies.

Proud says: “Margins were tight, with the retailers taking all the gains, but things are changing and we are now seeing an average of around 5% margin now and that is continuing to edge up.”

One of the strongest performers in the B2C market is DPD, which has positioned itself at the premium end of the B2C segment. The company, which boasts margins of more than 26.6.17 21/06/2017 08:25:23

motortransport.co.uk

THE X FACTOR Last year 18% of all parcels were sent by consumers or small businesses. Known as C2X, the sector has three types of senders, according to Apex Insight’s latest report on the C2X market. It estimates around 130 million C2X parcels were sent last year from private and micro-business sellers via sites such as Ebay, another 120 million were traditional C2C parcels, such as birthday presents, and a further 90 million consisted of home shopping returns, which are increasingly paid for by the retailer.

Royal Mail has traditionally served this sector and still maintains a strong presence. However, with the rise of online shopping, other carriers are piling in with new services. These include locker and parcel shop services, specifically aimed at the burgeoning home delivery returns market. Contenders include Collect+, My Hermes Parcel Shop, UPS Access Point Network, DPD Pickup and independents such as Doddle and InPost.

Parcel brokers have also sprung up in this area, including newcomers Parcel2Go, InterParcel and Parcel Monkey and traditional parcel carriers such as Hermes, UK Mail, Yodel, UPS, TNT, DHL and FedEx. Apex Insight’s report says prospects for growth in C2X are good despite Brexit, largely due to the continued growth of home shopping. However, it warns that the increase in retailer-paid returns could reduce gross margins, as could the increasing presence of large retailers on Ebay, while Royal Mail will put up a fight to defend its traditional C2X business from increasingly price-competitive alternatives.

13%, has invested heavily in new technology.

Innovations include DPD Predict, which offers recipients advanced notification of their onehour parcel delivery window, DPD Precise, which allows customers of DPD’s top 10 retailers to specify a one-hour delivery slot on the day of their choice, and the Your DPD app.

Customer service

These innovations not only tick the all-important customer service box but also help cut delivery costs, one of the bugbears of B2C, where failed delivery attempts can run high.

McDonald says: “Since we launched the app we have had 1.4 million downloads and around 28,000 people are downloading it every week.

“In 2008, 12% of B2C deliveries failed. That is now down to 3% and it’s thanks to innovations like that.”

Royal Mail is also investing heavily in technology. Despite the effect of Amazon Logistics’ launch in 2014 on its parcels business, which forced it to issue a profit warning, the company has rallied, with parcel volumes up by 3% in the year to 31 March 2017, according to its latest annual results.

Royal Mail innovations include specialised tracking services, a tracked returns offer, the roll-out of scanners to all delivery staff and a new computerised parcel sorting system at its Swindon depot.

Royal Mail head of parcels Roger Morris 26.6.17 MTR_260617_018-019.indd 19

(below) says: “There’s a lot of price competition in the market and a number of operators using low-cost business models. That can be challenging so we’re constantly driving efficiencies and better services – investing in technology is one way of doing this.”

He adds: “What retailers are looking for is a blend of quality and price. They appreciate the importance of that, because they look at delivery as an increasingly important part of their retail offer, so they are quality-focused but they also want a competitive price as it is a big part of their costs.”

But how can Royal Mail compete with rival carriers with the additional cost of being one of the UK’s largest employers? Morris argues Royal Mail’s staff make the firm more competitive as customers increasingly demand a highquality delivery service.

“Trust is very important to our customers.

Royal Mail postmen and women are trusted the world over and regarded as the pillars of our communities,” he says. “We are proud to provide the best pay and terms and a superior customer service, and that is something we will continue to do.”

Employment strate-gies in the parcels

sector are under the spotlight after the Work and Pensions Select Committee questioned the use by Amazon and Hermes of selfemployed drivers. HMRC is also investigating the self-employed status of Hermes drivers, while union GMB is bringing lawsuits against Hermes and DX Group challenging the employment status of their self-employed workers.

Proud says carriers have been caught out by the speed of growth of the B2C sector. “What started out as a lifestyle job for their selfemployed workers has quickly become more like a full-time job as parcel volumes have risen and as new services, such as two-hour timed delivery slots, has made the work less flexible,” he explains.

But the writing is on the wall, Proud warns.

“Most carriers use these employment strategies so if HMRC decides to change the self-employed status that could be an issue for everyone.” ■

MotorTransport 19 21/06/2017 08:25:53

Modal shift

motortransport.co.uk

Over land and sea Modal shift has fallen out of fashion – but does that mean no opportunity exists in combining modes?

Louise Cole reports

Images: Shutterstock

T

en years ago modal shift was the policy of choice as politicians and planners fought to avert gridlock on our roads. It is not a term you hear much any more – largely because the policy failed. It is not that other modes do not still deserve and require encouragement, but the idea of deliberately soliciting freight away from roads and on to rail or water had limited appeal, application and reward.

There were some early and well-documented successes for modal shift, perhaps notably the retailers embracing rail services up into Scotland, and construction companies hauling building waste away by river and canal. This work is still continuing and while rail volumes have slipped a little, water has made some hard-won gains in terms of volume.

In 2015, domestic freight moved by water increased by 16% to 31.4 billion tonne kilometres (bnt-k) and accounted for 15% of all domestic UK freight. However, inland waterways traffic was a tiny proportion of this, at 1.5 bnt-k.

20 MotorTransport MTR_260617_020-022.indd 20

FTA head of global policy Alex Veitch says we can make more use of inland waterways, which can solve local problems such as improving air quality and helping local congestion, although it will never be more than a limited solution.

Investment

He says the River Thames is busy with construction and waste freight – useful in construction projects such as Blackfriars Bridge and the Thames Tideway Tunnel – but needs specific investment to free up capacity. “Everyone knows what needs to happen,” he says. “The big problem is infrastructure and capacity – where do you park your barge?”

The FTA’s recent report on inland water freight highlights the need to make water use a planning condition wherever possible, to champion recruitment into the sector, which suffers a skills shortage, and to protect boatyards and wharves. A planning wrinkle has allowed unused wharves to be surrendered for development, which has led to the deliberate non-use of viable structures so they can later be demolished.

Thames traffic has increased, although recent figures are hard to come by. TfL has figures from 2012, and says the data for multimodal traffic belongs to so many different groups it is hard to collect. In 2010 the Thames carried 7.8 million tonnes (representing 5% of the total freight shifted in the capital) and in 2012 8.7 million tonnes, an 11% increase.

The Thames is still the major focus of inland water freight, but other areas such as the Manchester Ship Canal are receiving substantial investment. Owned by Peel Ports, its Manchester Shuttle service, which links the canal with the Port of Liverpool, has seen volumes on the canal rise to 3,000 containers a year.

Domestic traffic by water is largely coastwise (ie from one UK port to another) with 81 million tonnes of freight moving between ports in 2014, a 3% increase. Peel Ports, which also owns the Port of Liverpool, has been active in trying to encourage more imports to come into Merseyside rather than the South. ➜ 22 26.6.17 20/06/2017 16:35:28

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21/06/2017 09:28:38

Modal shift

motortransport.co.uk

GOODS MOVED (BILLION TONNE KM) Year 2009 2010 2011 2012 2013 2014 2015

Road 137 151 157 162 151 136 152

Rail 19 19 21 21 23 22 18

Water 49 42 43 35 29 27 31

Pipe 10 10 10 10 – – –

Total 215 222 231 228 203 185 201

However traditionally this is a chicken and egg game where major freight customers want to know the shipping lines will support it before committing, and shipping lines want guaranteed customer demand.

Peel Ports started its Cargo200 campaign in 2015, calling for importers and exporters whose goods begin or end their journey in the North of the UK to switch ocean freight from southeast ports to the more centrally located Port of Liverpool. It says the initiative, which aims to cut road and rail freight mileage by 200 million miles by 2020, could save UK plc between £350m and £400m annually.

Peel Ports recently announced it had 150 major backers, most recently online retailer Zavvi.com, nutrition brand MyProtein and industrial group Thyssenkrupp.

Warrington-based Candour Logistics, which also backs Cargo200, says 70% of its cargo comes into southern ports and 95% of this is destined for points north of Stoke-on-Trent. By bringing freight into Liverpool instead of Southampton it can halve the distance of its road journeys.

If we look at rail figures for 2015, it can be seen that rail freight is losing ground. Despite freight climbing from 185 to 201 bnt-k between 2014 and 2015, rail has slipped back from its 22 MotorTransport MTR_260617_020-022.indd 22

precarious hold on 22 bnt-k to just 18 bnt-k.

“The debate’s not changed,” argues the FTA’s head of rail freight policy Chris MacRae. “People are still trying to shift to the railways but achieving it with our existing network is really hard.”

He says the strongest areas for rail freight are intermodal container traffic, aggregates and bulk, and some construction materials and retail.

Modern supply chains

The UK’s rail network was developed to serve heavy industry and its capacity and timetables have not easily adapted to the different timelines and agility of modern supply chains. Despite the celebrated moves of major retailers to put their long-haul distribution on rail, in 2015 food products accounted for only 0.3% of rail freight but 23% of road transport.

MacRae says work is being done to lengthen

trains and cut end-to-end journey times.

Improving average speed means better scheduling and greater efficiencies in terminals so trains are serviced quickly. For many companies, being able to achieve the outward and return journeys in one employment shift would make an enormous difference to rail’s viability.

Rail is expensive, even when cost is innovated out. The government’s mode shift revenue support scheme still subsidises new customer movements to make them cost-neutral against road, but it clear this is not sufficient to entice new players into the rail freight market. And rail will still struggle to compete against the demands of the passenger market, which is more insulated against cost. Any move to improve passenger train services can have an immediate effect on rail freight services and much of the industry’s lobbying effort will focus on mitigating this encroachment upon freight capacity. ■

26.6.17 20/06/2017 16:36:12

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21/06/2017 11:22:05

MT Awards 2017 shortlists

motortransport.co.uk

Operational & Compliance Excellence Award MT profiles the shortlists for this year’s awards

John Lewis

John Lewis claims to have seen a 66% productivity boost in its two-man delivery operation after focusing on maximising driver resource while staying firmly compliant. Each site receives an unannounced independent audit every year, testing every aspect of its transport operation including drivers’ hours infringements; licence checks; and record keeping. Action plans are drawn up for each site to follow up on any issues. Driver training is also important to the company and it has developed its Much More than a Driver training programme to pinpoint areas of knowledge where drivers may be weak and provide training tailored to their needs. As drivers are also expected to install products in customers’ homes, they also undergo customer service training.

Some 80,000 product installations were carried out in 2016. Last year its two-man operation moved from eight- to 11-hour driver contracts, reducing the number of daily routes and increasing the number of deliveries per vehicle.

This has made the operation more cost effective, the operator claims, and contributed to 95% of its 1.7 million two-man deliveries last year being classed as on time.

The judges were impressed with the company’s efforts to benchmark its compliance levels against both sector and national averages, helping it keep on top of its compliance. It uses an external analysis bureau to analyse average drivers’ infringements, repeat infringements and OCRS. Drivers’ information is analysed daily to pick up on anomalies and a weekly report is sent to all site managers to highlight their performance.

Hermes

Hermes was praised for its proactive approach to compliance while maintaining a remarkable 95% first-time delivery rate, despite seeing parcel volumes increase to a record-breaking 260

24 MotorTransport MTR_260617_024OP&COMP.indd 24

Sponsored by

million last year. The introduction of an Isotrak system to monitor harsh braking and idle running allowed it to achieve a 1% reduction in MPG across the fleet. This equated to roughly 130,000 litres of fuel, which the judges said was exemplary in the challenging parcel delivery market. Automated gearboxes and more aerodynamic bodies and trailers have contributed to fuel consumption improvements across the board, and it is also exploring the use of electric and CNG-powered vehicles. Its training programme is also expansive and there are schemes for drivers, driver assessors and inbound process managers. The total number of training days completed last year increased to 985 from 839, including 263 days of practical driver training to upgrade driving licences for existing drivers. The company is trialling a Lytx camera system and in the first three months of the trial it claims to have seen a 50% reduction in events that require driver coaching, a 62% reduction in the number of cases where drivers are not wearing their seat belts and a 31% reduction in its risk score. As well as carrying out its own fleet inspections, the company uses FTA audits to ensure its systems are robust. It claimed the results of its inspections are above the industry average, and all of its sites exceeded the DVSA’s expectations.

The judges were impressed with the company’s ambitions to take part in the DVSA’s earned recognition scheme when it goes live, and said that this demonstrated its confidence in its compliance systems. Strong load-fill levels were also praised by the judges, with in excess of 88% of vehicles identified as full in its 2016 December peak.

Cemex UK

All Cemex employees undergo a common training plan to ensure they understand the basics, supported by bespoke training that is tracked to ensure timely completion.

With its vehicles sometimes operating in demanding environments, vehicle and driver compliance is extremely important. It uses the R2C online management platform that has helped it remain in control of compliance documentation, improved the accuracy of its records, and improved visibility. To ensure that it is delivering a high level of service, drivers are taken on customer visits. It says this helps it develop long-term win-win relationships and show that it is empathetic to customer requirements.

Collaboration with vehicle manufacturers and telematics providers has helped Cemex increase both fuel efficiency and payload and reduce empty running. A full redesign of its trailer specification helped reduce weight by 200kg, and a change in telematics provider has seen MPG increase as a result of better reporting at driver level.

The judges were impressed with Cemex’s “bottom up” approach to ensuring it maintains a high standard across its fleet.

26.6.17 20/06/2017 11:05:20

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21/06/2017 09:32:28

MT Awards 2017 shortlists

motortransport.co.uk

Fleet Truck of the Year Sponsored by

Volvo FH

Volvo is celebrating 50 years in the UK, and what better way to mark its golden anniversary than the FH winning the Fleet Truck of the Year award at the Grosvenor House hotel in July? But standing in its way was our team of expert judges, which consisted of some of the UK’s most prestigious fleet operators, and unfortunately for Volvo they weren’t a sentimental bunch! All they were interested in was how good a fleet truck the FH is. They wanted to know how it rated for reliability, driveability, durability, total cost of ownership and driver acceptance. Several of the judges mentioned the gearbox, with one declaring the I-Shift to be “the best automatic transmission on the market”. Others praised the 13-litre engine, with its decent fuel economy getting a few mentions. But while the truck’s ability to sip diesel was spoken about, so was its less healthy thirst for AdBlue. Interestingly, neither the dynamic steering nor the I-Shift Dual Clutch transmission were praised, with one operator deeming both options to be too expensive to be considered on a fleet truck.

Volvo Truck dealerships were in the main spoken about positively, and the manufacturer’s 100% uptime guarantee (whereby if your truck is off the road and no replacement is found, you’ll be compensated financially), got the thumbs-up.

During the judging session the truck’s durability was discussed, with one operator confirming 1 million relatively trouble-free kilometres from his earliest examples. “Decent residual values,” and “the safest cab on the market”, were other positive comments. The general consensus from the judges was that the latest FH, launched in September 2012, has come of age. The few teething problems reported in its early days have been ironed out, making it a worthy contender.

Scania R-series

The Scania 3-series is considered by many to be the greatest Scania ever built, and its passing has been mourned for 20 years. But if the judges’ comments were anything to go by, the current generation R-series could well be about to step into the 3-series’ shoes. The general feeling from the panel was that continual revisions and developments have resulted in this truck getting better with time, with any initial faults now a distant memory. As a result, it is arguably one of the most reliable trucks on the market. Good fuel economy was mentioned on numerous occasions, with one judge declaring that his R-series tractors regularly return 10mpg at 44 tonnes. But while the truck’s efficiency was consistently praised, the Opticruise transmission was not.

“Although the latest version of Opticruise in the Next Generation trucks is excellent, the previous

26 MotorTransport MTR_260617_026FLEET TRUCK.indd 26

generation is not as good as Volvo’s I-Shift,” said one judge. Some noted that the cab was dated too, as was the driving position, while another thought it had “an uncomfortable ride”. But almost all the judges who operate Scanias said these criticisms didn’t bother their drivers in the slightest. “Driver acceptance is unbelievably good,” said one. “They love them,” announced another. Scania dealers scored well too, with comments like “we really appreciate the back-up and service levels we receive” being commonplace. While there were one or two moans about high purchase prices, the jury almost unanimously agreed that superior residual values helped to soften the blow. The current R-series picked up the Fleet Truck of the Year accolade two years ago, and seeing as production is about to cease, this will be its last chance to win again.

Daf XF

The fact the Daf XF’s origins can be traced back to 1986 didn’t escape our judges, but then it didn’t deter them either. While several of them commented that its age resulted in some limitations, most agreed that it didn’t dent theirs, or their drivers’, enthusiasm for the truck. This is a story we’ve heard time and time again, which helps to explain why this and the Daf CF are consistently among the UK’s best-selling trucks, and have been crowned Fleet Truck of the Year more than any other vehicles. In fact, the XF is the current champion, having picked up the coveted award in 2016. Some of our panelists have experienced mechanical issues and breakdowns, with camshafts and turbos both getting a mention. While one complained that his trucks were off the road for a week, most agreed that Daf dealt with problems in a satisfactory manner.

“DafAid is still the best aftersales and breakdown service,” reckoned one judge.

The truck maker doesn’t have a reputation for being an early adopter of new technology, at least not according to some of the judges. This was seen as both a good and bad thing. On the one hand, drivers and operators temporarily miss out on some technical advances, while on the other they know that when Daf does introduce new technology, it’s tried and tested, and is unlikely to go wrong.

The AS-Tronic gearbox was criticised for being outdated, especially when compared with Volvo’s I-Shift. Of course Daf has since introduced ZF’s Traxon on its New Generation trucks, but these are too new to be considered for this award. Despite this, the overall driving experience was described positively.

“Dafs are just a good, sensible, safe bet,” declared one judge. “No transport manager has ever been sacked for buying Dafs,” added another. You’d be a brave person to bet against Daf adding to its bulging trophy cabinet!

26.6.17 20/06/2017 15:47:45

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21/06/2017 09:34:54

MT Awards 2017 shortlists

motortransport.co.uk

Business Excellence Award MT profiles the shortlists for this year’s awards

Expect Distribution

Bradford-based Expect Distribution is in its 29th year of operation, employs 220 staff and operates from three sites running more than 90 vehicles.

Annual turnover for the year to 30 November 2016 was £22m (having risen steadily year-onyear for a sustained period).

Pre-tax profit was £785,096, 43% up on the previous year.

The operator invested £1.75m in its Staithgate Lane headquarters last year, expanding its warehousing capacity by 20,000ft2 at the Premier Point site, typical of a long-term approach to growing the business that impressed our judges. Speaking to MT in April, MD Neil Rushworth said: “We spent a long time in 2016 restructuring Expect and there is a very good feel around the business at the moment. We now have a structure and a team geared for growth and there is lots of opportunity in the market.” The restructuring included closing its loss-making two-man distribution operation in 2015, which accounted for 6% of annual turnover. With a number of new contracts coming on stream, the business has forecast further growth this year, suggesting it’s a business at the top of its game.

“For the size of its turnover, this is very impressive business,” said one of our judges, weighing up the investment including construction of a temperature controlled storage area to meet MHRA regulations. The £95,000 cost should be recuperated within 18 months.

“It’s grown up from being a small Bradford operator with a good reputation to where it is now,” said one judge, impressed that the move had paid off.

“Would I like to buy this business? The answer is yes,” said one of our judges in summary.

Palletforce

The Burton-upon-Trent pallet network has been making plenty of headlines in recent years, from a sale to Heath Zarin’s EmergeVest in 2015 to a significant expansion to its central hub expected to be complete imminently (making

28 MotorTransport MTR_260617_028BUS EXCEL.indd 28

Sponsored by

Palletforce the largest drive-through facility in Europe – capacity will leap from approximately 15,000 pallets a night to double that). Having celebrated its 15th anniversary last year, its 165-strong head office team, led by CEO Michael Conroy, has never been busier. Turnover in the 2015/16 financial year was up 26% at £96.5m, while profit was 8% higher at £3.9m. Palletforce has added six haulier members to its network in the past year, taking it to a network of 88 businesses operating approximately 7,000 HGVs out of more than 100 depots. It has also purchased two of its members (QTR Transport and UK Freight Masters). Its CSR has extended to raising more than £20,000 a year for charity (including the Brain Tumour Trust and the Midlands Air Ambulance service most recently) and even producing children’s books – featuring haulagerelated characters – to raise awareness of environmental issues.

Palletforce has achieved seven Rospa Gold Awards for safety and is part of the Investors in People scheme. It also runs an apprenticeship scheme.

“This is a business that is profitable and expanding. It has demonstrated its CSR goals well and clearly has a robust, long-term strategy in place,” said one of our judges.

Malcolm Logistics

Malcolm Logistics has been both a serial winner at the MT Awards in recent years, taking both Low Carbon and Innovation (alongside SDC Trailers) before being crowned Haulier of the Year in 2016. The business, which returned to family ownership in 2005, has its logistics head office in Newhouse, north Lanarkshire and its warehousing facilities encompass 5 million ft2 across 10 locations, three of which are rail side.

Customers include household names such as Diageo, and it provides on-site logistics for two of the spirit giants in Scotland (in addition to haulage and storage for the client). It also operates the Daventry International Rail Freight Terminal in Northampton.

Group turnover for the year to 31 January 2017 stood north of £212m (a shade down on the previous year’s but against a trend of sustained growth during the past few years). However, pre-tax profit, at £7.6m, was 72% higher year-onyear.

Andrew Malcolm, chief executive of the group (who runs the business alongside brother Walter), was praised by one judge for the “ballsy” way he has run and shaped the modern group. The business has marked 55 25-year service awards in the past three years, which impressed our judges, and in 2016 it gave away five 40-year service awards, suggesting its stated commitment to staff is far more than lip-service. “The financials add up,” said one of the panel. “This is a really good business.”

26.6.17 20/06/2017 10:57:02

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21/06/2017 09:39:56