Motor Transport 23 July 2018

Sharp ■ Informed ■ Challenging

23.7.18

NEWS INSIDE Tidy operation

Owens Group snaps up Manchester’s BTS Haulage p3

Brakes’ new vision

Brakes puts MercedesBenz Econic into operation in London p4

The CAZ opposition Industry associations unite to oppose CAZs

p6

OPERATORS IN THIS ISSUE Asda .....................................................p4 Brakes ..................................................p4 BTS Haulage..........................................p3 Canute Haulage Group .........................p10 DX Group ...............................................p4 First Mile ..............................................p6 John Raymond Transport .....................p11 Nolan Transport...................................p11 Owens Group.........................................p3 Sainsbury’s ...........................................p4

Eddie Stobart, Abbey Logistics and Pollock (Scotrans) signed up as haulage providers

Tarmac mixes it up

By Chris Druce

Tarmac is implementing a regional distribution model for its cement and lime division, which will see Eddie Stobart, Abbey Logistics and Pollock (Scotrans) join its lineup of haulage providers, MT can reveal.

After more than six years operating a national distribution model handled by the construction material supplier’s own fleet, with support from Wincanton, Proctors Transport and Lomas Distribution, it is switching to a regional set-up.

Tarmac’s own fleet will still handle approximately 50% of bulk cement and 20% of packed cement distribution following the restructure, supported by five distribution providers signed up to fiveyear contracts, effective from December 2018. They are Abbey Logistics (bulk cement

– Scotland); Pollocks (packed cement –Scotland and North); Lomas Distribution (bulk and packed cement – Central); Wincanton (bulk and packed cement – South West); Eddie Stobart (bulk and packed

cement – South East); and Proctors Transport (packed cement – Barnstone plant in Nottingham).

Tarmac’s lime and powders operation will remain fully subcontracted on a national

basis to Lomas Distribution (bulk lime and powders, and lime tippers) and RR Andrews (powder tipper operations).

Tarmac Cement and Lime MD Mike Eberlin, said: “Our supply chain and logistics operations are crucial to maintaining Tarmac Cement and Lime’s position as the UK’s market leader.

“The new regional operating model will provide enhanced resilience, flexibility, service, cost and safety for our customers, who trust us to deliver the products they need to realise major projects.

“With a demanding pipeline of construction and infrastructure projects coming online across the country, now is the perfect time for us to change.

Our strengthened network capability means we’re able to offer a better, more flexible service to meet customer requirements.”

Transfers at pallet networks ahead of the quiet season Pallet networks Palletways and Palletline have indulged in a flurry of transfer activity ahead of the industry’s traditionally quieter month of August.

This has seen Jack Richards & Son leave Palletways for Palletline.

The haulier, based in Fakenham, Norfolk, will cover parts of Ipswich, Norwich and Peterborough for Palletline after the network tweaked

coverage areas following the departure of Foulger Transport.

Jack Richards MD Peter Brown said: “We were attracted by Palletline because of the member ownership model and success of the business platform.

“The fact that members have a share and say in the running of operation fits with our company ethos of service and loyalty.

“It has been two years of careful planning and consideration to make the investment to join Palletline, which complements our core haulage business and spreads our customer profile.”

Foulger Transport, which is owned by Kinaxia Logistics, has taken on the NR1 and NR35 postcodes in Norfolk for Palletways.

It came as Transol Logistics

replaced Reason Transport at Palletways. Transol is covering the CV1 to 8 and CV31 to 34 postcodes for Palletways.

Transol Logistics director Manish Leel said: “We’re happy to be joining Palletways, with its mature domestic and pan-European networks.”

Reason Transport recently joined rival Palletline working out of its new regional hub in Coventry.

LoCITY chills out p8 Canute’s lowest ebb p10 Focus: warehousing p12 Viewpoint p14 Trailer design p16 Profile: Greenergy p18

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19/07/2018 16:14:24

R TE

S GI RE W O N

6 November 2018 | Alexandra Palace, London As cities strive to improve air quality through the rollout of clean air zones, freight operators must step up to the low-emission challenge or face the prospect of significant fines to enter urban areas.

But which technology should operators be focusing on?

How is vehicle design changing to comply with urban regulations tackling emissions and safety?

What can operators do to adapt their delivery methods to suit modern cities?

Will there be a shift in the design of urban logistics hubs and warehousing?

Our seminar programme will address these and other topical issues. Alongside this, the exhibition takes place in Alexandra Palace’s Great Hall, showcasing the newest vehicles, equipment, and technology to emerge onto the market to make urban deliveries cleaner, safer and quieter.

6 November 2018 Alexandra Palace, London Register for your free place today www.freightinthecity.com

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19/07/2018 09:47:14

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Acquisition part of Owens’ plan to boost geographical presence

Owens Group buys up BTS Haulage

By Chris Druce

Palletforce sees record network revenue and pallet movements Palletforce and its haulier members moved a network record of 3.4 million pallets last year, a 7% increase yearon-year.

The network also saw an initial contribution from its expanded central hub, which can now handle up to 30,000 pallets a day.

Last year Palletforce extended the reach of its European express services to 20 countries, and its investment in technology and services in recent years was credited with aiding members’ growth.

The pallet network, which has its headquarters in Burton upon Trent, achieved a record network revenue of £104.9m in the year to 30 September 2017 (2016: £96.5m).

Michael Conroy, Palletforce

CEO, said: “The latest record figures are a result of quality service and above-market growth delivered by our fantastic members.

“With significant financial backing from EmergeVest and our strategy to attract and maintain the best member companies, Palletforce is perfectly placed to lead and develop the sector with a commitment to being the network of choice for qualitydriven, forward-thinking members. We’ve become more innovative over the past 12 months and have the foundations in place to lead sector consolidation with the new super hub,” he said.

Palletforce won the Best Use of Technology trophy at the MT Awards earlier this month (MT 9 July).

Owens Group has snapped up Greater Manchester-based BTS Haulage for an undisclosed sum. The deal sees BTS continue to operate as a standalone brand within the Llanelliheadquartered Owens Group.

Owens said buying the Carrington haulier complements its objective of increasing its presence and activities in its key geographical markets.

BTS Haulage was set up in 1957 by Neil Gilson. His son Crispin joined the business in 1980, becoming MD in 1990.

It provides transport services to customers throughout the UK, with a focus on deliveries in and out of the North West.

Crispin Gilson will continue to manage the BTS Haulage business.

The enlarged group will operate a fleet of more than 550 vehicles with an annual turnover of approximately £90m.

In its most recently published accounts, for the year to 30 June 2017, Owens

Group (listed as Owens Road Services at Companies House) had an annual turnover of £56m. In the year to 31 December 2016 BTS Haulage was profitable and had annual turnover of £7.6m.

Huw Owen, MD of Owens, said: “I am delighted to welcome Crispin, Neil and all of their colleagues at BTS into the group.

“I have always been impressed with the reputation that BTS has in the market for customer service and with the

quality of its staff and vehicles.

“Neil and Crispin have nurtured and developed their business over the past 60 years based on the same family business values and principles as we have always had within Owens, focusing on excellent customer service.”

Crispin Gilson said: “We believe the time is now right for the business to move to its next stage of development and that being part of the Owens group will facilitate our future growth.”

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23.7.18

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19/07/2018 15:14:02

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New vehicle running on Shell’s gas to liquid green fuel and using low-entry direct vision cab

Brakes goes green and low

By Jack Semple

Brakes has put its first lowentry direct vision MercedesBenz Econic into operation in London.

The truck, pictured, is a response to London’s regulatory emphasis on cyclist safety and air quality. It runs on 100% Shell GTL (gas to liquid), a “paraffinic diesel” that is interchangeable with normal diesel but gives a better environmental performance.

Modifications are not normally required to the engine or fuelling infrastructure and the two fuels can be blended.

Shell has been working to build a market for its GTL, which is made in Qatar. This effort was boosted in 2016 with the adoption of a new standard, EN15940, which covers production from natural gas, biomass or vegetable oil. It said its GTL has a higher cetane

content, starts better from cold, and is better on noise, NOx and particulate matter than diesel.

Brakes head of indirect goods and services procure-

ment Steve Webster told MT the firm had conducted tests with GTL that found a significant NOx improvement over Euro-6 equivalents. The operator has been using the fuel for

nine months, in its Londonbased DAFs (MT 22 November 2017). “We’re still exploring [Shell GTL’s] benefits and the potential suitability to run it in other areas,” Webster said.

A maintenance benefit of the fuel is that Brakes “rarely has to regenerate the catalytic converters, which is a big benefit with an urban fleet”, he said.

The Econic is one of the first in the UK with Mercedes’ new PowerShift automated manual transmission, which delivers better mpg than was previously available, Webster added.

“We’ve only had the vehicle on the road for two weeks. The initial feedback from our drivers is that visibility appears much better, and it’s easier to access. It is early days on a trial of a single vehicle, so no decisions on our future direction have been made,” he said.

■ In a statement Shell confirmed that fuel duty on GTL is the same as diesel, but it is pushing for a lower rate to encourage its use, citing Finland as an example.

Asda to close Enfield DC in bid to boost performance Asda plans to close its Enfield DC in north London, with up to 261 jobs at risk. The supermarket chain, which is awaiting regulatory approval to merge with Sainsbury’s, has entered into a consultation period with affected staff.

The site, which opened in 2010, delivers home shopping to 4,500 customers each week.

However, Asda has since opened automated DCs in Heston (July 2017) and, two months ago, Dartford.

Simon Gregg, vice president of grocery home shopping at Asda, said: “Despite great efforts by our colleagues at Enfield, restrictions on the site mean we are not able to make improvements to meet the

4 MotorTransport MTR_230718_004.indd 4

speed of fulfilment and product ranges that customers expect. Therefore, we’ve entered a consultation process on proposals to close the facility, which involve expanding capacity at Heston and options for colleagues to take on roles in neighbouring stores.”

Speaking to a select committee hearing in May about the merger, Sainsbury’s chief executive Mike Coupe assured MPs that no DCs would be closed as a result of the union.

However, David Madden, market analyst for CMC Markets UK, previously warned that the supermarket groups’ supply chains would be likely targets for cuts (MT 14 May).

ON COURSE: DX Group’s turnaround plan, which was backed by investors to the tune of £4.76m earlier this year (MT 14 May), remains on course with the embattled operator set to trim losses in its current financial year. In a trading update released last week, the operator’s new management team led by CEO Lloyd Dunn said the plan to get the business back on its feet was progressing steadily.

“The directors expect the group to meet market expectations for the year [to 30 June], which includes an underlying loss for the year,” the statement said. DX Group expects net debt to be better than previously anticipated, at £1.1m for the year (2017: £19.1m). DX Freight, which includes the group’s irregular dimensions and weights business, formerly Nightfreight, remains the immediate focus for the turnaround and “continues to gather momentum”. It generated a loss of £18.3m in the previous financial year and its margins have been declining since 2015, although in recent months revenue has increased thanks to the expansion of the operator’s Ikea contract. DX Group made a pre-tax loss before exceptional items of £9m in the year to 30 June 2017 (2016: £500,000 loss).

However, an exceptional impairment charge of £74.4m left the operator nursing a loss of more than £80m. Plans are under way to separate DX Exchange from its secure and courier operations.

23.7.18

19/07/2018 15:31:51

“WE’RE CURRENTLY SAVING 6% ON FUEL.” “Our average comparison figures are 11.26 mpg compared to the previous 10.6 mpg, which is a massive g on our fuel spend. p saving Our drivers love the new NTG R 450s and get quite possessive about them, so we’re looking at getti ing a further ten next year.”” getting David Ward, Head of Operations Operatiions Troy Foods Ltd.

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19/07/2018 09:49:21

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Trade bodies voice concerns over move to charge operators working in urban areas

United against CAZ charges

By Emma Shone

Ministers have agreed that charging operators working in urban areas should be a last resort after four of the industry’s leading trade associations spoke to MPs about preventing HGVs from being priced out of operating in cities.

The RHA, FTA, British Vehicle Rental and Leasing Association (BVRLA) and National Franchised Dealers Association (NFDA) met road freight minister Jesse Norman and environment minister Therese Coffey to outline their concerns about local authorities rushing plans for clean air zone (CAZ) regulations without giving the road trans-

port sector due consideration.

The associations presented a six-point plan to MPs to combat this. The plan, ‘The way forward’, calls for consistency in CAZ standards, smarter use of the roads and a phased approach to mandating cleaner vehicles.

RHA chief executive Richard Burnett said ministers had agreed that local authorities should consider all options and that charging should be a last resort. However, due to devolution, local authorities have the final say on the level of charges.

Burnett said: “If CAZs are not handled properly we will have more vans making deliv-

eries, congestion will increase and so will pollution. CAZs will only reduce emissions if they target polluters proportionately.”

FTA chief executive David Wells said that putting the burden of improving air quality on local areas puts UK SMEs at risk of collapse.

“Government must help local authorities avoid the most damaging effects on the local businesses that use trucks or vans,” he said.

Sue Robinson, director of the NFDA, said a graduated CAZ charging system was key to encouraging operators to play their part and take up cleaner vehicles. She said:

“Action is needed to ensure operators can improve their fleets, not just by purchasing new Euro-6 trucks, but by upgrading to cleaner Euro-5 used trucks to replace old and dirty diesel HGVs.” BVRLA chief executive Gary Keaney said: “The fleet industry can help government to meet its air quality ambitions but we need more support for operators who face cost and operational challenges in upgrading fleets.

“We rely on commercial vehicles accessing towns and cities for deliveries and any clean air zone policy that deters trucks is likely to increase van usage.”

MILE HIGH: London recycling company First Mile has taken delivery of six Isuzu Forward 148hp rigids, boosting its fleet to more than 20. The company ordered its first Isuzu trucks three years ago, and all are based on the 7.5-tonne rigid chassis cab. First Mile head of operations Lukasz Czech said: “The Isuzu truck chassis was ideal for our operations and they are reliable in service and economical to run. We are delighted with their performance and the service from our Isuzu dealer, Cordwallis, which has supported our growth.”

6 MotorTransport MTR_230718_006.indd 6

TCs to take the stage at annual manager event The FTA has confirmed that traffic commissioners (TCs) will headline its transport manager conferences this autumn.

Transport Manager 2018 will be held across 10 UK venues comprising London, Glasgow, Newcastle upon Tyne, Birmingham, Southampton, Doncaster, Yeovil, Peterborough, Knutsford and Chepstow.

The local TC from each location will attend, share their priorities for 2019, engage with attendees on key industry issues and discuss developments and challenges in the logistics industry.

The conferences will cover a range of topics including the recently relaunched Logistics Emissions Reduction Scheme, earned recognition and urban access.

Senior TC Richard Turfitt said: “As transport businesses face the challenges of an everchanging environment it is vital that transport managers are equipped for the future.

“A number of recent incidents illustrate why it is vital to keep up to date and to continue to manage compliance,” he added.

■ For more, visit fta.co.uk/ events or call 03717 112222.

23.7.18

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19/07/2018 09:50:53 24/05/2018 10:20

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LoCITY Grayling backs haulage lowdown

Transport secretary promises Brexit clarity for transport industry

By Steve Hobson

Transport secretary Chris Grayling has praised the road transport industry, promising clarity over Brexit for the sector and acknowledging the shortage of truck parking in the UK. Speaking at the RHA’s 70th anniversary annual lunch in London, Grayling declared that no sector is more important than road haulage and logistics when it comes to keeping the economy running.

“We are grateful for all you do. Getting the right deal for haulage in Brexit is important.

I know you need clarity and

we are working hard to ensure a sensible solution – we have just published the trailer registration and permits bill.

“Trailer registration will address issue of unaccompanied trailers and in other countries trailer registration is essential,” he said.

Grayling also touched the issue of truck parking, stating that Highways England is looking for possible sites right now.

“We will give our formal response shortly. There are advanced plans for the M20 to find a long-term solution – we are moving as fast as we can.

There are concerns over clean air zones (CAZ) and local authorities should explore different options before charging.

“Apprenticeship levy is a cost to business and we will help you to get it back where we can,” he said.

Speaking at the event, RHA national chairman Andrew Howard complained about drivers being refused access to toilets.

He said: “One of my drivers was refused access –this is unacceptable in the 21st century.”

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A monthly look at work to cut CV emissions. This month, Dermott Crombie, chairman of the LoCITY HGV working group and Thermo King VP of strategic initiatives, discusses the importance of the cold chain Just 80 years ago, people in the developed world ate fresh food, in season, grown within 100 miles of where they lived. Outside of those parameters, people ate dried, or pickled food. Today in London, you can eat any food, any day, any season. The big difference is caused by the modern cold chain. Everything is so available, we think little of it. The effect this dietary variety has on the health of London’s population cannot be underestimated. Yet, a modern western city only has perhaps two days of perishable produce on its shelves. Frequent deliveries are key to today’s supply chain.

The LoCITY HGV working group includes the major truck OEMs, refrigerated equipment OEMs, fuel suppliers, emerging technology suppliers, NGOs, logistics experts and various government representatives. Combined, these people are all focused on ways to reduce emissions caused by all forms of HGV transport. The sharing of knowledge is extraordinary.

What has emerged through LoCITY is that solutions may be closer than some people realise. In the transport refrigeration sector, there are several ways to drive the transport refrigeration unit (TRU). Some will think of the integral diesel engine, some with hybrid drive, but that is the least common form of TRU drive within London. Most common is the vehicle-powered TRU. In the smaller vans, these units drive off a 12/24V DC system of the vehicle, so have no separate diesel engine. At the larger end, the truck engine drives an alternator to provide the adequate electric power to drive a large TRU. Multi-temp systems are available in all sectors to allow different temperature cargoes to be delivered at the same time, reducing the number of vehicles on the road.

Geo-fencing allows the switching of operational modes as dictated by emissions zones, if needed. The emissions of vehicle-powered TRUs are defined by the engine. At LoCITY’s Urban Distribution Show at Twickenham on 18 July a state-of-the art CNG-powered truck fitted with an alternator-driven all-electric-drive TRU and three multi-temperature compartments was on display.

There are other systems: cryogenic systems using liquid CO2 have been around for more than a decade and are popular in Scandinavian countries. These systems have the added advantage of being completely silent in their operation. Similar attributes apply to eutectic systems.

LoCITY welcomes more contributors to the conversation, at our quarterly LoCITY meetings.

Contact enquiries@locity.org.uk for more details.

23.7.18

19/07/2018 13:15:11

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19/07/2018 09:52:34

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A bad debt and the loss of its largest client set off a chain of events that led to the sale of Canute Haulage Group

Canute’s lowest ebb?

By Chris Druce

Canute Haulage Group’s demise and phoenix-like resurrection in May courtesy of a pre-pack sale led to shock, confusion and anger. Here was a company with a turnover of £106m in the year to 31 July 2016 and a fixture on the UK road network since 1977.

Its sale to Almtone for £1.3m left unsecured creditors facing a deficit. The firm’s administrator FRP Advisory estimated that creditors could ultimately see a return of 15p in the pound. But that leaves them to shoulder an approximate £5.3m shortfall, and they will not see any money at all until it is liquidated (MT 28 May).

Some 900 businesses have so far registered as creditors.

The resurrection

New owner Almtone shares a common director with Canute Haulage Group in the form of Glenn Marshall, and the Marshalls have controlled the company since its genesis as a building materials haulier.

The other listed director, and sole shareholder of Almtone, is Michael Ventham.

The administrator’s report makes it clear that a pre-pack sale ultimately became the only game in town to secure the

istration. However, as it was executing a load for them, it kept hold of the goods and got its money in two payments.

The MD told MT that the business had invoices outstanding from last September with the operator.

“It’s not very ethical. It’s a big company. It did what it had to do but it has left a lot of debt.

It will need subcontractors and it is going to have to work hard to get confidence back in the market,” he said, summarising the views of many creditors that have contacted MT. firm’s 841 jobs. While a company voluntary arrangement was considered, Canute’s top six customers had insolvency clauses in their contracts.

So, these would likely have been terminated as soon as a CVA was proposed.

Liquidation would have left nothing for the insolvency practitioners to work with, and approximately £4.5m in staff redundancy to be paid.

At the time the directors of Canute Haulage Group were reassuring people there was nothing to see, creditors were chasing unpaid bills, some dating back to last year.

According to records at Companies House, the group

in administration had 23 county court judgments against it and owed creditors close to £207,000 at the point it was sold.

Afloat again

Almtone has also secured the Canute name as part of the deal, so despite the new ownership structure, its livery remains a familiar sight on our roads. It adds up to the feeling among many creditors that the process, although legal, has been unfair on them.

John Jones, director at Swift Driver Recruitment, Newport, said his firm had worked with Canute Haulage Group for 15 years, supplying drivers in and around the area.

He is owed £7,212 by the firm and has had almost no correspondence since.

Jones has been forced to absorb the loss but argued that it cannot be right that “everyone takes a hit” under current legislation, which allows companies to stop trading and essentially start up again the next day, citing saving jobs as an excuse. “The trust is gone now. They don’t pay their bills.

This was all premeditated, preplanned. It’s the manner of it all that has left a bad taste in the mouth,” he said.

A haulier based in the North East, who wished not to be named, was owed £38,500 when Canute went into admin-

The justification

Andy Davies, MD of A Davies Transport, which is owed £3,500 by Canute, said in May: “We may as well all run our businesses this way – build up debt, not pay, and start again.”

Speaking to MT, Canute group sales director David Emslie said: “We have saved 841 jobs. It was a difficult situation and the business was a victim of circumstance brought about by decisions taken by our customer base. It was almost the perfect storm. Much of what occurred was unforeseen and we had little alternative. We have given the business a chance to continue under a new structure.”

Death of the king – the timeline to administration 2015 Long-standing customer William Sinclair Holdings goes into administration leaving the group with a £1m debt. This is addressed via the company’s discount invoicing facility. However, this creates cashflow problems and leads to the sale and leaseback of two large sites.

May 2017 Canute is informed that a major long-standing contract (Wilko) is to be terminated in September 2017. This represents more than 30% of group revenue at this time (£30m).

August 2017 The business’s loss-making materials division is sold to Eddie Stobart.

September 2017 Canute refinances with Aldermore Invoice Finance (AIF), completing on 28 January 2018. Before this, HMRC issues winding-up petitions against the group for £1.55m in respect of unpaid PAYE and VAT. The taxman is repaid and the petitions dismissed following the refinancing.

10 MotorTransport MTR_230718_010.indd 10

January/February 2018 Immediately after the refinancing another large customer quits. A drop in turnover and quiet trading period leads to a cash crunch, which is compounded after a £1m cash deposit is held while Canute transfers to a new clearing bank.

23 February HMRC issues new petitions for £780,000 in PAYE. These are withdrawn as Canute’s directors have issued Notice of Intentions to settle the debt.

15 March AIF makes an application to appoint administrators in a bid to exit the business. A return hearing date is set for 11 April. Efforts to market Canute for sale get under way.

26 March No formal offers for the business are made. The application for interim O-licences under Almtone is begun in case administration is unavoidable.

29 March The group completes another refinancing. The intention is to repay AIF in

full. Personal guarantees secured against the property of Canute directors Arthur Marshall, Noel Marshall and Steve Ely secure £3.9m from Nucleus.

10 April Canute Haulage Group director Noel Marshall issues a statement after staff wages are paid late blaming the move to a new bank.

It comes as the Almtone O-licences enter the public domain. Marshall tells staff that the company’s previous funder had obliged Canute to apply for “a number of changes to be made to our O-licences and structures. Nobody should be alarmed about this process”.

11 April AIF submits a request to withdraw its application for administration. Nucleus attends the hearing and effectively replaces AIF. 11 May The firm is placed into administration with FRP Advisory handling affairs.

12 May Canute Haulage Group is sold in a pre-pack sale to Almtone.

23.7.18

19/07/2018 14:35:10

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Calls to cut CO2 and use diesel

John Raymond back in black

By Carol Millett

Bridgend-based John Raymond Transport has returned to profit for the first time since being acquired by Irish haulier Nolan Transport almost two years ago.

Reporting its annual results to 30 September 2017, the Harlequin Logistics network founder member revealed that while turnover fell 2.7% to £17.4m (2016: £17.9m), pre-tax profit was £89,112 compared with a loss of £91,798 in 2016.

However, the Welsh firm, which has sites in Bridgend,

Cannock and Swindon and operates from six Nolan Transport sites in the UK, France and Ireland, still faces challenges.

The results revealed that

while it had net assets of £230,448, it had net liabilities of £1.7m on the balance sheet.

The results also revealed the departure of MD Paul Johns in June, who had remained at the

firm’s helm following its acquisition by Nolan in September 2016. The firm’s remaining director is Oliver Nolan.

While the company acknowledged that the disparity between its net assets and net current liabilities meant it still faces a struggle, it said its acquisition by Nolan Transport and the changes brought following the review of the business the board remained confident in John Raymond Transport’s future profit.

The company was unavailable for comment.

Chevron realigns lubricants under one brand in Texaco Delo Chevron Lubricants has been renamed Texaco Delo.

Chevron, which operates under the Texaco master brand in Europe, made the changes to align its European heavy-

duty lubricant business with the global Delo brand.

Texaco Delo will leverage its global expertise in ongoing work with international OEMs, channel partners and

end-user customers in developing new and existing products and services.

James Welchman, manager marketing, EMEA, at Chevron, said: “With more international

OEMs and customers requiring access to high-quality products it is important for Chevron to align its commercial lubricants under one globally recognised brand.”

7970

The government has called on the freight industry to reduce its greenhouse gas emissions by 15% by 2025, while conceding that diesel can be a sensible choice for the sector while vehicle technology advances.

The FTA and the RHA voiced their support for the voluntary target, which is based on emissions figures from 2015. In its report on reducing all UK vehicle emissions, ‘Road to zero’, the DfT outlined a range of ways it planned to help the industry hit the 15% target, including an investigation with Highways England into how road congestion can be tackled, and looking at the practical obstacles preventing hauliers adopting measures to reduce emissions.

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MotorTransport 11

19/07/2018 13:19:39

Focus: Warehousing

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UK looks to designs on the continent to ensure buildings promote health and wellbeing to entice and retain staff

Developers target wellbeing The challenge of recruiting and retaining staff is affecting warehouse design. Developers are including features that promote health and mental wellbeing in their buildings to make the working place more attractive, while occupiers are demanding good-quality facilities for warehouse staff.

Knight Frank partner Charles Binks said: “Retaining staff is no longer just a question of paying a bit more. It’s also about creating a better working environment with features such as a decentquality canteen with hot food, gyms and external exercise areas.”

He believes the UK will be influenced by designs being introduced on the continent where buildings have more windows.

Dutch developer Dokvast has taken this approach in a number of buildings including a 645,000ft2 warehouse being constructed for Rhenus

Logistics in Tilburg.

“UK warehouses are usually a tin box with rooflights,” Binks said.

UK developers are also addressing these issues.

Baytree, for example, has created an action plan for development that includes health and wellbeing in the workplace

as part of a wider effort to be sustainable. Its approach is based on the principle that good conditions enhance productivity, while control over noise, indoor air quality and light can have a positive effect on mental health.

These ideas are being put into practice at a 267,000ft2

warehouse Baytree is constructing speculatively in Dunstable (above), which is due to be completed in November.

Baytree operations director Jonathan Fenton-Jones said: “It is without doubt that employers that provide workplaces that take care of employ-

ees’ health and wellbeing are more likely to benefit from increased retention and productivity.”

Baytree is using the international WELL Building Standards that promote buildings that enhance health.

These have also been used by Gazeley at its speculativelybuilt 574,000ft2 Altitude warehouse at Magna Park, Milton Keynes.

Occupiers are also taking account of staff welfare when specifying new warehouses.

Fowler Welch, for example, opened a welfare facility as part of a £2m upgrade of its temperature-controlled depot in Spalding earlier this year.

The facility includes pool tables, sofas and changing rooms.

Similarly, online fashion retailer boohoo.com has installed a gym, exercise studio, leisure facilities and a subsidised canteen as part of an expansion of its Burnley DC.

Trebor joint ventures start in earnest Trebor Developments has bought a 14.5-acre site in Avonmouth, Bristol, in conjunction with its strategic development partner Hillwood. The scheme will be made up of units from 25,000ft2 to 250,000ft2 and will take 12 months to deliver.

Trebor Developments

managing partner Bob Tattrie said it will be the first of a number of joint developments with Hillwood. “We are seeking site acquisitions around the country,” he said.

Also in Bristol, Trebor has acquired a 7.5-acre site (below), with Barwood Capital. The development, next to Bristol

Port, will accommodate a range of units totalling 153,000ft2.

Meanwhile, Barwood has announced plans for a single warehouse of 258,000ft2 in Castleford, West Yorkshire, at the Super G site off junction 32 of the M62. Construction will start in August.

NEWS STORY: Retailers are continuing to invest in their distribution networks despite the overall decline of high streets.

Discount department store TJ Hughes has taken a 170,000ft2 building called Space 170 in Liverpool (above) that will allow it to consolidate several operations into one site. The retailer, which was bought out of administration in 2011 and is now expanding, has occupied the building in the past. After it moved out the warehouse was acquired by private investors and refurbished.

Jon Thorne, a partner with letting agent B8 Real Estate, said: “The deal represents a positive news story at a time when a number of high street retailers are facing difficulties.”

Meanwhile in Sheffield clothing brand Jack Wills has taken a 390,000ft2 building for a global DC. It has signed a 10-year lease with landlord Clearbell Capital and will pay an annual rent of £750,000 for the warehouse, located at Parkway Works, close to the A57.

12 MotorTransport MTR_230718_012.indd 12

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19/07/2018 10:51:43

Viewpoint

motortransport.co.uk

Back to the dark days of fuel theft?

T Nick Hyde Marketing manager Tiss

he title of this piece isn’t meant to be scaremongering. Recent figures show the average price of fuel is going up every week, hitting the industry hard.

We can all recall the dark days at the turn of the century when the cost of diesel sky-rocketed, global media reported on blockades at refineries and hauliers were forced out of business.

Thankfully, fuel costs stabilised, barring the odd global financial crisis and Middle East conflict, which has made them wobble.

But with the average price of diesel standing at 132ppl at the pumps and expected to rise over the coming weeks, is it time to start preparing ourselves for a return to those dark days?

The stark reality is – and something that has taken a back seat on the agenda obsessed with Brexit – fuel prices will continue to rise and

unscrupulous individuals will look at alternative ways of getting their hands on fuel.

According to Visual Capitalist, a black market of stolen fuel is already on the rise in places such as Nigeria and Mexico and is becoming more common in the European market. As it starts to creep in to the UK and continental markets, business owners will need to protect their bottom line.

In 2015 more than £250,000-worth of fuel was stolen in the North West alone. In the same year, there were 20,000 commercial thefts of fuel in the UK, according to Fuel Oil News.

Some might argue the dark days never left us, fuel theft continues and fleets are left with the headache of protecting their most valuable commodity and investing in devices that limit the effect of this crime.

At long last, we’re finally on the road to zero T Steve Hobson Editor Motor Transport

he news that the government has set a target of a 15% cut in greenhouse gas emissions (largely CO2) from HGVs by 2025, based on 2015, is at first sight slightly alarming. While the ‘Road to zero’ strategy pledges to support the industry and fund research to help achieve this goal, the implied threat is that if it looks like the target will be missed, legislation is possible.

Alongside this UK policy the EU is developing Vecto, a software tool designed to estimate the theoretical carbon emissions produced by trucks and trailers. Again, while this is intended to drive voluntary change by operators by enabling comparisons to be made and low emissions vehicles to be specified, once you can measure it, you can manage it as they say. That management could conceivably be in the form of a Euro-7-style limit on HGV CO2 emissions – though how this would be imposed on a tractor unit that could be pulling anything from a 13m urban trailer to a 15.65m double-decker is anyone’s guess.

Decarbonising heavy goods transport has always been nearly as fiendishly difficult a challenge as Brexit without an Irish border.

Despite the claims of Tesla’s Elon Musk, few people believe that battery technology will be ready to power 44-tonne trucks by 2025 – and unless the UK somehow finds a way to generate

14 MotorTransport MTR_230718_014.indd 14

its electricity without burning gas then electric vehicles may be zero emissions at the tailpipe but they are not zero emissions well-to-wheel.

But the answer may well be closer to hand than we realise. Biodiesel and biogas enable conventional internal combustion engines hauling heavy loads to run on fully renewable fuels with 90% lower carbon emissions than conventional diesel and natural gas. While the stuff doesn’t exactly grow on trees, if demand was there, the capacity exists to ramp up production.

Biofuels got a bad press when countries such as Brazil started switching land used to grow food to biofuel crops. But sources of biodiesel such as used cooking oil and the conversion of organic waste using anaerobic digestion into biogas could provide a sustainable long-term solution to decarbonising heavy haulage. Pioneers like Waitrose have already started down this road with their expanding fleet of Scanias running on biogas supplied by CNG Fuels.

And these are just the first steps on what this time might really be a ‘Road to zero’.

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 Deputy news editor Emma Shone 2164 Group technical editor Colin Barnett 2141 Senior content/compliance editor Roger Brown 2168 Reporter Kylie Noble 2167 Urban editor Hayley Pink 2165 Group production editor Clare Goldie 2174 Deputy production editor Jo Saunders 2173 Key account manager Andrew Smith 07771 885874 Display telesales Barnaby Goodman-Smith 2128 Event sales Richard Bennett 07889 823060 Tim George 0755 7677758 Classified and recruitment advertising Head of sales operations Julie McInally 2122 rtmclassified@roadtransport.com Sales director Vic Bunby 2121 Head of marketing Jane Casling 2133 Head of events/MT Awards Stephen Pobjoy 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 £135/year. Europe £163/ year. RoW £163/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 © 2018 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 23.7.18

19/07/2018 14:18:59

Untitled-4 1

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19/07/2018 10:57:02

Trailer design

Negotiating

innovation

Will new EU regulations on cutting CO2 emissions and fuel consumption add momentum to trailer innovation?

Carol Millett investigates

R

ed tape can often be the curse of creativity but there is one piece of legislation on the horizon that the European Commission believes will drive trailer manufacturers to develop more innovative designs.

‘The monitoring and reporting of CO2 emissions and fuel consumption for new HGVs’ legislation will require manufacturers, from next year, to provide emissions and fuel consumption data on all new trucks above 7.5 tonnes.

Similar data for new trailers will follow.

The manufacturers’ data will then be assessed using Vecto (vehicle energy consumption calculation tool), which will calculate truck and trailer CO2 emission values and fuel consumption levels that operators can use to help in their buying decisions. The Vecto data will also be used to create Europe-wide limits on HGV CO2 emissions from next year.

The EU says publishing the Vecto data annually will encourage innovation among HGV and trailer manufacturers as they compete to lower vehicles’ CO2 emissions.

While Iveco alternative fuels director Martin Flach is generally supportive of the legislation, he believes the EC’s plans to use the Vecto data to set Europe-wide CO2 emission limits for

16 MotorTransport MTR_230718_016-017.indd 16

HGVs and trailers as early as next year could hamper innovation. “While the EU’s aim of trying to cut CO2 emissions is laudable, we need time to understand the data coming out of Vecto before defining the CO2 standards, otherwise the danger is we will see manufacturers designing to the standards rather than for their customers and that is more likely to limit innovation,” he warns.

Choked off?

Don-Bur marketing manager Richard Owens also welcomes the thinking behind Vecto but is concerned that innovation could be crushed because of the cost of testing new trailer designs against the Vecto parameters, estimated at £15,000 for the two-day test. He warns: “If testing for Vecto becomes a minimum statutory requirement, it will be a huge headache. We are constantly coming up with operator-specific solutions for our customers. They are always demanding bespoke innovations and then you have a different trailer, and if they all have to be tested it will create an additional cost that will have to be passed onto the client who may say, don’t bother, I’ll stick to what I am already using. So where is the innovation in that?”

Owens also warns that additional cost could also threaten the livelihood of smaller trailer manufacturers and argues that the cost of testing should be either part or fully funded by the government.

Cartwright Group technical director Lionel Curtis is chairman of the SMMT Trailer and Bodywork Technical Committee that has been closely involved in lobbying the EC on the parameters of Vecto for trailers. He agrees that testing the myriad iterations that trailer manufacturers come up with would hamper innova-

tion. However, he believes testing trailers under Vecto will be limited to standard types of trailers. “They couldn’t cope doing it any other way, which is why I am sure it will be based on a small number of trailer types,” he predicts.

Curtis also argues that Vecto will have minimal effect on trailer innovation in the UK, arguing that customer demand for ever-more fuel-efficient trailer designs is already driving that innovation and will continue to do so, with or without government regulation.

He points to design innovations being developed by the Cartwright Group as evidence. “As trailer designers we need to look at the wider picture and take technologies from different industries. One technology we have transferred from the architectural industry is the use of lightweight decorative architectural facade panels. We’ve done tests on how to cut, fix and bond the material and have introduced these to our trailers.”

He adds: “We have also looked at the technology of insulation panels used for homes and offices and transferred that to our refrigerated trailers to replace the fridge panels because they are lighter and provide better insulation.

“We have taken nearly one tonne out of our refrigerated double-decker by reducing weight and improving aerodynamics. It’s not easy. You 23.7.18

16/07/2018 11:46:03

motortransport.co.uk

have to do that and not add cost to the operation.

That’s where innovation is required.”

The firm has also taken techniques used by automotive manufacturers producing similar volumes to the trailer market, such as Bentley and Range Rover, to reduce the weight of trailers by incorporating bonding techniques and self-piercing rivets into the design.

SOFTWARE SOLUTIONS Delivery patterns can make the efficient use of a trailer fleet difficult. Software specialist Mandata has developed a solution in the form of small tracker devices, which are attached to the headboards of a fleet’s trailers. The devices connect to a web portal and tracking app, operated via the Manpack 3 transport management system (TMS).

The technology allows the fleet management team to see where trailers are at any given time, preventing them from becoming lost or left standing idle for days at customer premises or used as stand trailers.

Logistics firm TDW Distribution, which counts Tesco, Rockwool, and Seda Packaging among its clients, has cut its 250-strong trailer fleet by 10% using the software.

MD Robert Williams, pictured, says: “The information provided in real-time enables us to source empty trailers and locate units for inspection.

“In this way, we have reviewed our resources and identified that we could reduce the fleet to run a leaner operation.”

Outside the box

In a similar strategy, Don-Bur has looked outside the trailer market to the world of Formula 1 to help customers cut fuel consumption and CO2 emissions. Earlier this year the manufacturer exhibited a software system at the CV Show that offers operators the ability to identify the optimum aerodynamic configuration of its trailers to minimise fuel cost and emissions.

The software service is the product of an Innovate UK-funded collaboration between Formula 1 aerodynamics consultancy TotalSim, fleet analytics specialist Dynamon, Don-Bur, Wincanton, Truswell Haulage and Hatcher Components.

The project has developed a software application that analyses the aerodynamic performance of a trailer, including any additional aerodynamics fitted, such as trailer skirts or boat tails (below). It then crunches that information with extensive data from a fleet’s telematics system, such as location, the terrain travelled, prevailing weather and road conditions, trailer weights, tyres and any aerodynamics being used, to calculate which permutation will deliver the greatest fuel savings.

Owens explains: “This is an elegant tool designed to create accurate data that is fleet specific, allowing operators to assess products rather than relying on the OEM’s research.”

The system, dubbed ACT, is in soft launch and will be provided as a paid-for service by TotalSim and Dynamon. Operators buying into the service will be able to go online and design the most cost-effective trailer for their fleet, says Owens.

“The system allows operators to play with it, trying, for example, different types of skirts and air tabs or by changing the shape of a trailer so they can instantly see the potential overall saving. So, for example, an operator might want to see what happens if the fleet’s standard 4.2m-high trailer is replaced by a 4.35m-high Teardrop trailer and the calculation might say that mileage will increase 2% to avoid low bridges on route, but overall the change will save the company 9.5% on fuel costs because its current curtainsiders perform like blocks of flats.

23.7.18

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“With that level of bespoke information, an operator can go to the directors and justify the request to increase expenditure on the fleet.”

One innovation that has been proven to cut fuel consumption and CO2 emissions is the longer semi-trailer being trialled by the DfT. Launched as a 10-year trial in 2012, it has been extended for five years to 2027, with capacity upped from 1,800 to 2,800 longer semis.

Size limitations

Could longer semis gain in popularity with the advent of the Vecto data? James Jenkins, sales director at ATE Truck and Trailer, thinks demand for such trailers will always be limited in the UK by their size. “Although there are increasing numbers of them and they do offer a credible alternative and savings in terms of added pallet space, there are still lots of operational issues regarding longer semis, particularly the difficulty in accessing DCs. They don’t suit everyone’s operations,” he says.

Owens echoes this view. “They’re great workhorses but the 44-tonne maximum gross weight, the problems of manoeuvrability, the tri-axle requirement and the obligation to report to the Df T weights, routes and reportable accidents means operators are giving them a miss.”

Long game

Dean Ridgill, marketing manager at Montracon, disagrees. He’s disappointed by the government’s decision to extend the trial. With results showing a 90,000-plus cut in lorry journeys and a reduction of more than 10.6 million vehicle kms, he argues that longer semis should be given the go ahead and believes there is demand. “The results prove it’s a success.

Customers operating longer semis say they are delivering considerable savings,” he says.

“We are getting regular enquiries for longer semis, often from operators who’ve seen them in action and who don’t realise you need a trial licence to operate them.”

Last year Montracon invested £4.5m in a paint plant and shotblasting facility, which was also future-proofed for longer semis. “It would be good to see the government make a decision as we have invested in this happening, as have lots of operators. What happens to the residual value of those longer semis? That’s a concern, particularly to smaller operators,” says Ridgill.

In the meantime, manufacturers are hoping that the Vecto parameters, at least on trailers, are reviewed before the legislation is ratified later this year. “Otherwise we could be looking at a unworkable system,” warns Owens. ■

MotorTransport 17

19/07/2018 15:38:05

Profile: Greenergy

Highs and lows: a recipe for growth

Fuels supplier Greenergy is preparing to build its market share by building on its low prices and high service levels. Steve Hobson reports on a company that is bucking the trend

G

reenergy is probably the biggest transport fuels supplier you have never heard of. While it has around 35% of the UK market, supplying 17.1 billion litres of petrol and diesel last year, it operates no filling stations and its fleet of 150 tankers are usually liveried in either customer brands or that of its own fuel transport operation Flexigrid.

As part of a strategy to boost its share of a shrinking UK road fuels market, Greenergy is now directly targeting fleet operators, offering a combination of lowest cost by cutting out the middleman and consistently high service levels by controlling the supply process from end to end.

Formed 25 years ago, Greenergy supplies some of the leading oil companies which no longer have their own UK refining or import capacity, supermarket forecourts and truck and bus fleet operators for both on-site bunkering and delivery via the Keyfuels and UK Fuels fuel card networks.

It operates almost 1.4 million m3 of tank storage at nine locations around the UK, including the former Shell refinery at Coryton in Essex which is now known as Thames Oilport, and has invested more than £150m expanding its capacity in the past five years. Its total sales volumes have grown from just under 10bn litres in 2011 to 18.6bn litres in 2017. Turnover was £14.9bn last year.

Investing in infrastructure

“While the major oil companies were exiting their infrastructure, we have been investing in it,” says Jenny Sweatman, head of Greenergy UK sales and supply. “We cover the UK from sites as far north as Clydebank and as far west as Cardiff and Plymouth.”

Last year Greenergy bought Irish fuel distributor Inver Energy, which part-owns a terminal at Foynes on the west coast, and it also has a presence in Belfast to give full coverage of the island of Ireland.

While 2017 saw overall growth in demand for road fuels, with an increase in diesel

consumption outweighing a small decline in petrol, Greenergy expects that diesel consumption will fall this year, largely as a result of a sharp drop-off in sales of new diesel cars.

As alternative fuels such as gas and electric take off, this decline will accelerate; add in the economic uncertainty surrounding Brexit and it is no wonder some other fuel suppliers have less interest in investing in infrastructure.

Greenergy imports diesel from refineries around the world, especially the Middle East and Asia where large modern refineries are being built, forcing the closure of older less efficient plant in Europe.

In recent years, there has been an over-supply of diesel on world markets as production capacity expanded more quickly than demand, but since early 2016 prices have climbed steadily.

Greenergy enables operators to buy fuel on spot price, fixed into the future or with a combination of both as a hedge against unexpected price changes.

Greenergy offers competitive prices because of its investment in import and distribution

GOING GREEN WITH BIODIESEL As its name implies, Greenergy has invested heavily in renewable fuel, and is Europe’s largest producer of waste-based biodiesel, made exclusively from used cooking oil at two plants in Immingham and Teesside. It has invested in its biodiesel production facilities and says output increased by one fifth last year.

This puts the company in a strong position as changes to the UK’s renewable transport fuels obligation (RTFO) saw the percentage of road fuel that must come from renewable sources increase from 4.75% to 7.25% in April 2018. The DfT proposes to ratchet up this proportion to 9.75% in 2020 and to 12.4% by 2032, so even with overall demand for diesel fuel falling, the future for biodiesel remains bright.

Interest in running diesel trucks on 100% biodiesel has waned in the face of the dash for gas among operators wanting to cut emissions and Greenergy does not supply any fleet with pure biodiesel.

Truck manufacturers, including Scania with its 13-litre Euro-6 engine rated up to 490hp, now produce fully warranted power plant able to run on up to 100% biodiesel, and this is an alternative route to cutting CO2 emissions rather than converting to liquefied or compressed natural gas (LNG or CNG).

“With the higher supply obligations introduced under RTFO from April 2018, the economics of supplying high percentage biodiesel blends are changing,” says Charlton. “100% biodiesel or specific blends such as B30 or B10 are now economic, and we are in a position to supply those blends today.”

Sweatman adds: “CNG or LNG requires a significant investment for operators and while it may be something they are looking at as part of their seven- or 10-year plan in the short term they can achieve similar benefits with low capital expenditure by using a high bio blend.”

18 MotorTransport MTR_230718_018-019.indd 18

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19/07/2018 13:09:44

motortransport.co.uk

infrastructure and by running its own transport fleet based at 24 fuel distribution sites.

“Our infrastructure investments and supply chain control mean we can import our own lowest-cost product and ensure supply resilience for customers,” says Sweatman. “These are both fundamental to our customer offer.”

Greenergy’s direct deliveries to on-site bunkers are increasing, partly as a result of winning new business but also because more operators are seeing the price advantage of buying their own fuel and installing yard tanks.

“A growing proportion of our volume is direct delivery into on-site tankage at bus garages, train stations, RDCs etc,” says Clare Charlton, Greenergy’s national accounts manager. “We do have a position in the fuel networks but the majority is delivered ourselves direct to customers’ yards.”

Fuel in the yards

Most hauliers with on-site bunkers will also have one or more fuel cards for drivers to use when away from base, and while this is something Greenergy has looked at, it currently has no plans to launch its own fuel card.

“For most customers the main source of fuel is their yard just because it’s cheaper,” says Charlton.

Greenergy’s other advantages are its consist23.7.18

MTR_230718_018-019.indd 19

ently high service levels – almost 99% of deliveries are on time in full – and rapid response times, key drivers for having an in-house haulage operation employing around 400 drivers.

End-to-end control

“We in-housed because we wanted end-to- end control of our supply chain,” says Charlton.

“With a third party we had less control and less visibility and we have expanded our transport operation as we have grown our delivered-in business.

“When the customer picks up the phone they are talking to someone who can see where their truck is and take direct action.”

Greenergy’s tanker fleet is all artics and most deliveries are full loads of 36,300 litres but customers can also order half loads. The company offers a managed service where it monitors stock levels and automatically reorders and delivers fuel when stocks fall to a set amount.

Flexigrid was created as Greenergy’s brandneutral haulage operation, and only a handful of tankers are in Greenergy’s striking green and blue 25th anniversary livery, so most of the trucks can go on to other oil companies’ sites. This approach has also enabled the company to start doing third-party haulage for other fuel suppliers. ■ MotorTransport 19

19/07/2018 13:10:20

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