Motor Transport 22 May 2017

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22.5.17

the NEXT GENERATION SCANIA

PREMIUM REDEFINED AUTONOMOUS REFUSE: Volvo Group debuted a self-driving FM refuse truck in the UK last week to demonstrate its potential safety and environmental benefits for urban areas. It has been developed and tested over the past two years in collaboration with Swedish waste and recycling firm Renova. Volvo Group chief technology officer Lars Stenqvist said: “There is amazing potential to transform the swift pace of technical developments in automation into practical benefits for customers. Our self-driving refuse truck is leading the way in this field globally and is one of several exciting autonomous innovations we are working with.” The first time the automated refuse truck is used in a location it is driven manually while the on-board system monitors and maps the route with the help of sensors and GPS. On entering the area a second time, it knows exactly which route to follow and at which bins it has to stop.

■ For the full story, visit freightinthecity.com.

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NEWS INSIDE Hey Mr postman

Royal Mail parcel sector growth a disappointment p3

All change please

Stobart Group CEO Andrew Tinkler steps down p6

In the city

Metro mayors could complicate things

p10

OPERATORS IN THIS ISSUE Arla Foods...........................................p28 Bibby Distribution ...............................p18 DHL Express (UK) ..................................p6 Stobart Group........................................p6 Lomas Distribution ..............................p28 McGee Group.......................................p28 Mick George ........................................p28 O’Donovan Waste Disposal ..................p28 Royal Mail.............................................p3 Turners (Soham)..................................p28 Wincanton ................................... p6, p10 XPO Logistics ......................................p20

Bell said she made no apologies to all the ‘dodgy, difficult, nasty, dishonest operators’

TC Bell: no regrets

By Chris Druce

Senior traffic commissioner (TC) Beverley Bell told delegates at the Microlise Conference in Coventry last week she had no regrets about dealing robustly with the “various villains” she had encountered in her 17 years as a TC. Speaking at her last public engagement before she steps down and hands the senior TC role to Richard Turfitt from 1 June, Bell who became TC for the North West in 2000, said: “The British public expect their regulators to be robust.

And if we can’t be, who’s going to be?

“So I make no apologies to all those dodgy, difficult, nasty, dishonest operators that I’ve put out of business.”

Bell said the institution’s current focus, enshrined in its strategic objectives, was to deliver a much better service for the British transport industry than TCs have been able to

provide in the past. “We are asking the DVSA and TCs to work together to concentrate on the serially and seriously non-compliant.

“When I appeared before the Transport select committee I spoke about the DVSA targeting that soft underbelly of small operators that are easy to target,” she said, adding that most of them are fine.

“It’s some of the larger

organisations that don’t get things right. Often it’s down to the directors because they think ‘oh, it’s fine’.

“We look forward to working with the DVSA as it starts to target, much more than it has in the past, the serially and seriously non-compliant,” Bell said.

She added that when she first become a TC the wait for a compliant operator to get an O-licence was nine weeks, something that hasn’t changed 17 years on. She suggested you get what you pay for.

“You know how much an O-licence application is,” she told delegates. “It is about threepence-halfpenny in old money, and it means the TCs have been for a number of years under resourced.

“We meet as commissioners with the industry and we know that you would happily pay a little bit more for a better service,” she said.

Bell also called for the legislation underpinning the O-licence system to be updated as much of its dates from the 1980s and 1990s. “You only have to watch Ashes to Ashes to see how much life has changed since then,” she said.

■ See page 24 for Bell’s thoughts on her time as TC and senior TC and the challenges ahead for the industry.

PREMIUM REDEFINED

News Extra p18 Focus: Business barometer p21 Interview: Beverley Bell p24 Show preview: Tip-ex Tank-ex p26 MT Awards shortlists p34-40

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News

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FTA: French president must reverse driver fee The FTA has called on France’s new president Emmanuel Macron to reverse his predecessor’s decision to charge a €40 (£34) driver fee.

The fee, set to come into force next January, targets “posted workers”, defined as EU workers operating outside of their country on a temporary basis and employed by a foreign company.

The fee will be used to maintain a database that will handle all documents required by French authorities for posted workers – including drivers.

The FTA condemned the measure as a restrictive practice and warned that it would “severely curtail” the ability of UK logistics operators to work effectively on the continent.

FTA head of European policy Pauline Bastidon said: “The €40 fee per driver is excessive and protectionist measure designed to close the French transport market to any operator established outside of France.

“It will disproportionately increase the cost of operating in France and could have negative consequences for international transport to and from the country,” adding that the charge is “nothing more than a tax benefitting the domestic French market and is one that our members wholeheartedly oppose”.

Turnover fell 2% to £7.6bn in Royal Mail’s UK division

Royal Mail growth a ‘disappointment’

By Emma Shone

The FTA has also called for the EU to speed up its legal challenge regarding France’s decision last year to require foreign truck drivers to be paid the French minimum wage and to appoint a representative in France.

“The FTA is calling on the EC to react strongly and speed up its ongoing legal case against France to ensure that trade can continue to flow across borders in a seamless manner and to protect the integrity of the single market.”

“Macron’s government will have the power to reverse this decision, and we urge him to do so, to ensure the EU’s trading routes remain open and frictionless to all operators,” Bastidon added.

The growth in Royal Mail’s parcels division is disappointing in the context of a booming e-commerce market, according to David Jinks, head of consumer research at Fastlane International.

Jinks’ comment came after Royal Mail’s annual results showed an increased business performance was reliant on its expanding overseas division. The operator, which Labour said it would renationalise if it wins next month’s general election, saw both turnover and volumes for its UK parcels division increase by 3% year-on-year for the year to 26 March 2017 despite an decline in the UK business’s overall turnover.

Jinks said recent figures from the ONS showed this growth wasn’t sufficient. He said: “This is against an e-commerce home delivery market increasing by 19.5%.

Royal Mail’s core UK division (UKPIL) revenues should not be falling in this climate.”

Turnover fell 2% to £7.6bn at UKPIL during the year, with the growth in parcels negated by declining letter volumes.

Addressed letters, in particular, fell 6%.

The loss from UKPIL was “more than offset” by growth in GLS, Royal Mail’s overseas operation, according to the operator. The division’s turnover rose 9%, from £1.5bn to £2.1bn.

Royal Mail CEO Moya

Greene said the growth was both organic and through acquisition, as the business bought a business in Spain and California. Royal Mail also bought a third business, US-based Postal Express, in April.

Greene said: “Its expertise and focus on B2B parcels in multiple geographies – now 41 European countries and seven US states – positions it to be a greater force for growth.

“We will continue to invest in careful and focused international expansion by GLS. “We have made good progress against all of our strategic priorities. This has been a more challenging period for UK businesses and we have come through it well.”

Palletforce adds notifications to customer delivery service Palletforce has added to its delivery offering with new notifications. Last month the network started to notify its customers when a consignment was out for delivery.

It has since built on that progress and can now notify a customer when goods have been delivered, complete with the name of the person who signed for the delivery.

Palletforce said this new technology offering will help members attract larger customers and those running 22.5.17 MTR_220517_003.indd 3

just-in-time operations.

Palletforce IT director Dean Hughes said: “Technology is playing an increasingly important role in our extremely competitive sector.

“This new level of delivery notification is significant for our members. In addition to adding tangible value to their current client base, the technology will undoubtedly help them attract new business in areas where significant growth is possible,” said Hughes.

THE GOLD MEMBER: TPN has launched a new livery, which comes with the strapline THE Pallet Network. The refreshed livery is being sported by a number of members including TPN Gold Performance winner Express Logistics (Harrow), TWE Haulage and SCS Logistics. TPN MD Mark Duggan told MT the new livery is being gradually rolled out across TPN’s members. “Members have responded very positively to it. The re-livery was driven by its members who were keen that not only the TPN brand but also the full name be shown. It’s popular because it modernises the brand while keeping the TPN logo,” he said. Duggan said the network is continuing to expand following its management buyout last year. “Last year we shifted more than 3.5 million pallets and this year we are running way ahead of that,” he said.

MotorTransport 3 18/05/2017 16:13:39

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17/05/2017 11:40:30

News

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Andrew Tinkler has been at the helm of the business since 2007

Stobart Group CEO steps down

By Chris Druce

Andrew Tinkler has stepped down as CEO of Stobart Group, the business he has headed since it listed on the stock market in 2007.

During his tenure, Tinkler, who retains a place on the business’s executive board, has divested several business units including the automotive and transport arm of the group, Eddie Stobart Logistics.

He has also faced boardroom battles, which saw the departure of executive chairwoman Avril Palmer-Baunack after a short tenure, and made difficult decisions concerning its chilled business (the rump of which was Innovate).

Tinkler will head the newly formed investment company, Stobart Capital. It was described in a statement as a business that will “operate

independently of Stobart Group, with access to external capital and expertise, but working closely with the group’s management team.

“Investment opportunities will be presented to a new value creation board, a subcommittee of the Stobart Group board, for evaluation.”

Tinkler is succeeded by Warwick Brady, ex-chief operating officer of Easyjet, who joined Stobart Group as deputy CEO in January.

Stobart Group chairman Iain Ferguson said: “Stobart Capital will allow us to harness our entrepreneurial skills and identify value-creating opportunities. I would like to thank Andrew for his tireless contribution to the group over the past 10 years, and I look forward to working with Andrew and Warwick.”

Stobart Group made £113.3m after reducing its stake in Eddie Stobart Logistics from 49% to 12.5%. Its 12.5% share in the newly listed Eddie Stobart Logistics was worth £71.5m at the point of admission to the Alternative Investment Market last month.

Ahead of Eddie Stobart Logistics rejoining the stock market, William Stobart stepped down as a director (MT 24 April).

Wincanton gets its act together after restructure Wincanton is confident in its growth prospects for this financial year as it begins to see the benefits of the disposal of its records management arm and the termination of loss-making contracts in its Pullman Fleet Services business.

Chief executive Adrian Colman told MT the operator was focusing on “good value propositions” for customers in the retail and consumer market, as well as capitalising on the growth in the construction and e-commerce sectors.

“We’ve got our act together and we are giving good propositions to customers, and they like it. The retail and consumer market is facing a lot of challenges, not least with currency post the EU referendum, so they are looking for providers that can give good value solutions that will drive savings,” he said.

He attributed the company’s 2.6% drop in turnover to £1.11bn in the year to 31 March 2017 (2016: £1.14bn) to the loss in revenue following the

disposal of its records management business in 2015, as well as the tail-end of loss-making home shopping contracts in its Pullman Fleet Management business.

Pre-tax profit dropped from £65.8m in 2016 to £45.4m in 2017, but Colman said the former included a £32.5m gain from the disposal of its records management business. “If you exclude that disposal then its gone up quite substantially,” he said.

Wincanton expects turnover and pre-tax profit to increase this year, following several contract wins from companies such as Wilko, Wickes (see page 10) and Ikea. It also secured extensions with Screwfix and Britvic.

Colman said: “A lot of these wins were in the second part of the year, so the effect on the revenue is not noticeable in the final months of 2016/2017.

It’s going to be more noticeable in 2017/2018, so I’m relaxed about the revenue trend.”

DHL Express (UK) absolved of tachograph offences blame Deputy TC for Scotland Richard McFarlane said DHL Express (UK) was not to blame for failing to notice six drivers had created false tachograph records. The deputy TC found limitations with DHL’s drivers’ hours analysis system absolved it of any blame.

Some 253 false drivers’ hours records, committed by six agency drivers who worked on a double-manned route between DHL Express (UK)’s operating centre in Bellshill and East Midlands airport, were discovered by the DVSA last year. The drivers were employed by agency Global Logistics, and were contracted to work a 16-hour shift. They were issued with timesheets that they were required to complete to get paid.

The examiners found the start and finish times on the timesheets did not correspond with what the tachograph records claimed.

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At a public inquiry (PI) last year, for which a decision has recently been issued, it emerged the drivers’ hours compliance system the firm was using had limitations in analysing double-manned journeys. It would recognise a double-manned journey if two driver cards had been inserted in the vehicle and if driver cards had been changed, but would not detect if a driver card had been removed over the course of the journey.

The company said it was unsure why drivers had chosen to delay the insertion of their cards into the second slot of the vehicle unit, when on most occasions there was no apparent reason to do so.

McFarlane found there would have been nothing in the reports to alert former transport manager Henry Dorricott about any shortcomings in drivers’ hours recording on the route. They were

only found by a different system used by the DVSA. All six drivers have since been blacklisted from working for any DHL company; compliance systems have been improved; and better lines of communication between all levels of management have been put into place.

It has also introduced a new

tachograph analysis system.

McFarlane determined that the timesheets could not be regarded as a true picture of the hours worked. “I am not persuaded that the six drivers or any of them were not involved in a scam to hide the hours by falsifying their records. Discrepancies between the analysed raw data

and the timesheets are explained by drivers maximising their pay claims.”

McFarlane took no action against the company or Dorricott. He said, aside from the former drivers’ hours analysis system, DHL Express (UK) had appropriate systems in place to ensure proper records were kept.

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17/05/2017 11:45:28

News

motortransport.co.uk

RHA and FTA fear newly elected mayors could implement contradictory regulations

Metro mayors could complicate industry

By Carol Millett

Metro mayors must harmonise measures to avoid introducing contradictory regulations, associations have warned.

The warning from the FTA and RHA came after the election this month of six metro mayors who hold enhanced powers in their regions to make decisions on a range of policies including transport.

Both associations are seeking meetings with the new mayors to help them understand the needs of freight operators before they roll out transport policies.

FTA national policy head Chris Snelling told MT: “With the metro mayors’ enhanced powers we are in danger of seeing a move towards the localisation of the regulation of operators in each of these regions.”

Pointing to the London mayor Sadiq Khan’s introduction of policies such as the Ultra Low Emission Zone and Direct Vision Standard, Snelling added: “What we have seen in London are banner

policies to catch the public eye and which go off on individual tangents and are not applied nationally. That inconsistency is a concern and something we want to avoid in these regions.”

Snelling warned that plans for Clean Air Zones (CAZs), outlined in the government’s draft Air Quality Plan last week, could vary from region to region as metro mayors exercise their devolutionary powers.

“The metro mayors could make their own plans on CAZs with each one regulating for different types of Ultra Low Emission Vehicles, for example. That would put a huge burden on freight operators,” Snelling warned.

The FTA is also concerned that the six mayors could be under pressure to deliver policies at speed. “Since they are elected mayors with a high profile there may be greater impetus to deliver on their manifestos within their fouryear tenure,” he warned.

RHA national policy director Jack Semple said: “There is a danger that not having UK-wide rules from central government, which require a high standard of evidence, will result in poorly researched measures and a lack of consistency, which is neither good policy-making nor helpful to the industry.”

Semple also raised concerns about Greater Manchester metro mayor Andy Burnham’s

THE METRO MAYORS James Palmer for the Conservatives (Cambridgeshire and Peterborough) Andy Burnham for Labour (Greater Manchester) Steve Rotheram for Labour (Liverpool City Region) Ben Hoochen for the Conservatives (Tees Valley) Andy Street for the Conservatives (West Midlands) Tim Bowles for the Conservatives (West of England)

(above) manifesto pledge to “focus on high-polluting vehicles, such as HGVS” as part of wider measures to tackle pollution levels in the region.

Semple said: “Andy Burnham needs to be clear about the problem he is trying to solve if he is to deliver measures to tackle pollution.

“Now he is mayor we would be keen to demonstrate to him that new HGVs are ultra low emission vehicles and these vehicles account for 40% of HGV miles in the UK, with that figure rising all the time.

“So any plans to restrict HGVs should be lowdown on his list of priorities.”

Wincanton seals Wickes contract for home delivery Wincanton has won a threeyear contract with Wickes to deliver large bulky items to customers’ homes.

The operation was previously conducted in-house by the retailer, but Wincanton director of home and DIY Paul Durkin said the operator’s experience and specialist equipment would “enhance customer experience and improve efficiency”.

Wincanton will deliver products such as bags of building materials from Wickes’s store hubs across the country.

Wincanton had not responded to a request for comment on who was responsible for the remaining portion of the job. The operator said it has the ability to scale the home delivery operation up or down according to seasonal variation.

Durkin said: “The contract represents a synergy between Wincanton’s retail and construction expertise and Wickes specific transport requirements.

“By effectively using our specialist fleet we will be able to provide efficient home delivery to Wickes customers while ensuring the Wickes customer experience remains marketleading.”

DIESEL DEMANDS: The new government must support the industry in meeting clean air legislation and not demonise HGVs, according to the FTA’s election manifesto. The trade association’s head of national policy Christopher Snelling said government should “support freight and logistics operators as they work to comply with the latest Clean Air Zone regulations, and should not be using the industry as a scapegoat for a problem that is the responsibility of all”. He added there is no environmental benefit to increasing diesel duty on vans and HGVs as, unlike diesel cars, the vehicles have “no realistic alternative”.

The association’s manifesto for election on 8 June also called for modal shift to trains and ships to help the environment, but added that road freight “will continue to play the dominant role in the movement of goods in the UK”. Also on the FTA’s agenda is the protection of free movement of goods to Europe as the UK prepares to leave the EU. It also called for the new government to make the most of the legislative opportunity Brexit could provide, and work with the industry to “assess the possibilities for regulatory simplification”. Other measures the association called for are a cut in fuel duty by 3ppl and opening up the apprenticeship levy to all vocational training.

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17/05/2017 14:08:03

News

motortransport.co.uk

FTA deputy chief executive James Hookham on ambitions for a global Britain

Mainstream or backwater?

The government’s case for leaving the EU is as much about the prospects for growing Britain’s trade with the rest of the world as it is about renegotiating our relationship with the trading bloc currently taking 45% of our exports.

Therefore, the topics covered by the letter G (for global trade) and H (for Heathrow) in the FTA’s ABC guide to Brexit are the capacity and capability of the UK’s ports and airports to handle the hoped-for growth in non-EU freight traffic.

The practical difference between EU and non-EU freight traffic is how it is carried. Nearly all freight movements bound for the continent or Ireland leave the UK on a set of wheels, mainly as driver-accompanied road freight through the country’s ro-ro ports or as unaccompanied trailer movements, mainly across the North Sea.

14 MotorTransport MTR_220517_014.indd 14

Trade with the rest of the world moves as containerised freight through container terminals at the ports of Felixstowe, Southampton, Liverpool, and the London ports on the Thames estuary. A surprisingly high volume of freight is also moved as air cargo on passenger flights, nearly all of it through Heathrow.

International container shipping is currently going through a torrid time, with many of the global shipping lines likely to merge or consolidate into just four or five alliances in which sailings and destinations are expected to be rationalised, as vessel owners struggle to contain huge financial losses.

Their problems are twofold.

First, the world economy has

not grown as fast as they predicted when they placed orders for the new vessels being delivered over the next few years.

And second, these so-called megavessels are enormous and carry two or three times that of a typical container ship of just five years ago (17,000 TEU). This means they can serve only those ports that are deep enough and have sufficient quayside depth and length to accommodate them, together with adequate handling equipment (cranes and parking space) and the fast turnaround times demanded by ship owners.

A sustained growth in global trade would be good for British haulage businesses as the collection and delivery of containers is performed by

domestic road and rail operators, whereas most international road freight is carried by foreign vehicles returning home. So far, Britain remains a mainstream calling point on the Far East sailing schedules where most of these megavessels are deployed. But failure to keep up would result in the ‘backwater’ syndrome, where boxes for Britain are dropped off in Rotterdam, Antwerp or Hamburg and left to continental hauliers to

deliver them over the North Sea or the English Channel to their UK destination.

And nowhere is that political support and understanding needed more in the next few years than in the expansion of runway capacity at the country’s only cargo hub airport, Heathrow. The high number of passenger flights from all over the world interconnecting at Heathrow provides an unrivalled range of origins and destinations for British shippers to consign goods as belly-hold cargo on the same flights, with a large haulage community centred on West London serving this traffic.

Failure to expand Heathrow means the passenger flights will interconnect elsewhere and British imports and exports will need to be trucked back into the EU to pick up flights at Amsterdam, Paris or Frankfurt.

22.5.17 17/05/2017 14:27:12

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Hermes investment offers new job opportunities in Rugby The online shopping phenomenon that has revolutionised the retail sector over the past decade shows little sign of slowing up after a record ÂŁ133bn was spent online with UK retailers during 2016, up ÂŁ18bn on the previous year. The IMRG Capgemini eRetail Sales Index predicts that this strong performance will continue into 2017 and that e-tail will record a further 14% growth over the course of the year.

In light of this progression, it is absolutely imperative that carriers commit to constant investment in their infrastructure, to ensure they have the capability to fulfil increased volumes, especially during those periods of intense activity. Hermes is one delivery company that is devoted to consistently strengthening its network, as demonstrated by its ÂŁ10m investment to add a secondary sortation tier at its Warrington hub in 2015.

7KLV FRPPLWPHQW ZDV IXUWKHU H[HPSOLÂąHG IROORZLQJ WKH GHFLVLRQ WR EXLOG D VWDWH RI WKH DUW DXWRPDWHG SDUFHO GLVWULEXWLRQ KXE ORFDWHG LQ 5XJE\ :DUZLFNVKLUH ZKLFK LV GXH WR RSHQ LQ MXVW D IHZ PRQWKV 7KH PLOOLRQ VXSHU KXE ZLOO EH WKH ODUJHVW LQ WKH 8. DQG UHSUHVHQWV WKH ODUJHVW VLQJOH LQYHVWPHQW LQ +HUPHVÂŞ KLVWRU\ The 270,000 square foot Midlands Super Hub will have the capacity to process up to 1.1 million parcels every day and will increase the firm’s overall parcel processing capacity by 45%, as well as creating more than 200 new permanent jobs. $V WKH JUDQG RSHQLQJ RI WKH KXE DSSURDFKHV +HUPHV LV QRZ ORRNLQJ WR DWWUDFW WKH LQGXVWU\ÂŞV ÂąQHVW WDOHQW IURP DFURVV WKH 0LGODQGV LQ D ELG WR EROVWHU LWV H[LVWLQJ WHDP RI VSHFLDOLVWV 2QH +HUPHV HPSOR\HH WKDW ZLOO EH WDNLQJ KHU SODFH ZLWKLQ WKH ZRUNIRUFH DW 5XJE\ LV 5HEHFFD +HQGRQ ZKR LV FXUUHQWO\ D 7UDQVSRUW 6KLIW 0DQDJHU DW WKH FRPSDQ\ÂŞV KXE LQ 1XQHDWRQ 'HVSLWH EHLQJ D UHODWLYH QHZFRPHU WR WKH ORJLVWLFV LQGXVWU\ VKH KDV DOUHDG\ SURYHQ WR EH DQ LQFUHGLEO\ YDOXDEOH DVVHW WR WKH GHOLYHU\ ÂąUP “I only took my first job in the sector back in 2014 working for APC Overnight, however the following year I noticed that Hermes

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“Looking after four shift managers, eight team leaders and more than 120 drivers, certainly provides the perfect opportunity to push myself.

I was also put in charge of formulating the peak plan for our hub in Tamworth last year. I started to devise my plan as early as May, oversaw the first vehicle entering the premises during that period, and I was also there to see the last vehicle leave – it was a rewarding experience!�

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was recruiting and I decided to apply,� said Rebecca. “I researched the company in-depth and I noticed that it had experienced a sustained period of growth, which I felt was very reassuring, especially in the existing economic climate. Hermes seemed to have a clear direction and I found that appealing.�

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Recruitment Opportunities Ahead of the launch of its state of the art hub, Hermes is actively recruiting in the Rugby area.

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“Our business has a lot of parallels with Scania. We offer a real quality product – we’re not competing on price – and I believe quality breeds quality. Scania offer a premium product that reflects our own, and that’s obvious to our customers and our customers’ customers. It’s a good fit.”

Gary Billington Managing Director Eco-Readymix

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17/05/2017 12:34:38

Interview: Bibby Distribution

Reaping the rewards Bibby Distribution’s operational review and aim of going back to basics has paid dividends for the haulier’s books. Hayley Pink talks to two of the men behind its successful new strategy

B

ibby Distribution’s 18-month transformation strategy is finally coming to fruition, as the MT Top 100 operator turned a profit for the first time in two years (MT 8 May).

A review of the operation from warehouse to board structure has taken place, with the company aiming to go “back to basics”. This has seen the disposal of non-logistics divisions from the Bibby Supply Chain portfolio – training arm Systems Training in 2015 and agency business Direct Workforce at the end of 2016.

“From a cash point of view and an operational point of view it was a nice idea to have a complementary portfolio of businesses, but in practice, it didn’t work because to run a recruitment business is a completely different beast to running a transport and

18 MotorTransport MTR_220517_018-019.indd 18

logistics business,” explains Bibby Distribution CFO Richard Morson (left). “So what we’ve focused on in the past 18 months is going back to basics – doing what we do and doing it well.”

The refined Bibby Supply Chain Services group now consists of UK transport and warehousing operation Bibby Distribution; freight forwarder Bibby International Logistics; and pallet pooling and packaging business PLS. Bibby Distribution has its own board team that has worked together a number of years, headed up by CFO Morson, MD Duncan Eyre and commercial director Nigel Tullett (above right).

Towards the end of 2015, Bibby Distribution launched its profit improvement plan, which focused on four key areas: organisational ‘rightsizing’; procurement; commercial review; and transport optimisation. Rightsizing was ensuring Bibby’s fixed cost base was able to keep

pace with fluctuations in revenue – one of the key factors that led to the company’s poor performance in 2015.

“If you look back at the business in 2015, the challenge was we’d lost a chunk of our revenue from a reduction in customer volumes and non-renewal of some customers,” says Morson.

He adds that the non-renewing customers were mainly attributed to acquisitions made in 2011/12 that came up for renewal during 2015. “We were too slow in 2015 to react to the decline in revenue with our cost base. We didn’t flex our cost base and reduce our fixed overheads quickly enough to compensate, which is one of the main reasons 2015 was a pretty horrendous year.”

Taking action

The first stage involved some “tough decisions” over reducing headcount in back office functions, as well as a review of its depot network.

Some of the smaller legacy sites have been closed and the business moved to new facilities to accommodate growth and cut costs.

“As far as tough decisions go, we assessed every site and deemed some as not cost-viable,” says Tullett, who has been leading the project.

“Now we’re moving to more strategically located, modern, larger properties – with lower cost per slot for our customers.”

For example, Bibby’s Yeadon, north Leeds site has been relocated to its flagship 280,000ft2 G Park facility at Wakefield on the M62, with all the customers and most of the staff moving across to the new hub. Bibby also relocated another smaller site to its Fusion warehouse at Bury in 2015, as well as opening a Max Park 2 facility in Corby last year to provide a 425,000ft2 combined capacity.

22.5.17 17/05/2017 14:23:26

motortransport.co.uk

The property strategy has started to pay off for Bibby, with the company offering a reduced cost per pallet for customers at these sites.

“This has really helped our contract wins. If you look at some of the wins at the beginning of 2017, such as Tangerine, which has gone into G Park – a fantastic story for us. Not only have we won the warehousing, but also the transport that goes with that,” says Morson.

“Sorting out the fundamental cost base of the business not only made us more sustainable, but made us much more competitive when we are selling.”

The company’s 90 depots have now been brought under one management system.

Previously, with a number of acquisitions having taken place in 2011/12, multiple systems were used at local level. They have slowly been brought together so that by the end of 2016 they were all visible on a central platform, with a dedicated team created at G Park to optimise transport capacity and fill empty legs with new third-party customers.

“This means we can see what every depot is doing and where they are routing transport,” says Morson. “We looked at all the individual legs and are now filling spare capacity.”

Bibby has seen a 3% boost to projected turnover in Q1 this year thanks to this activity.

“Which is great for us, because the trucks and drivers are already paid for, apart from the incremental mileage, so we can offer very competitive rates,” says Morson.

As well as leading the rightsizing exercise, Tullett has also been investing heavily in the right technology and people.

A single telematics system, Microlise, has also been rolled out across its 2,300 trucks and trailers, which the company sees as a key tool for improving driver safety and efficiency.

“Drivers now know what ‘good’ looks like and exactly what the situation is for their assessment,” says Tullett. “We see it as a key driver in terms of improving health and safety.”

As part of its commercial review, key contracts were examined to ensure rate increases were secured if needed, or business exited if in a loss-making position. “There are customers where we’ve had to say ‘we need a tough conversation with you, as this relationship isn’t particularly working’,” says Morson, “which is why you can see the turnover has dipped down. You have to make some tough decisions.”

Tullett agrees: “It’s about the quality of earnings now, which are better than 18 months ago.

Some of them were legacy and not challenged; they had provided a service but no one had got down to the nuts and bolts of it.”

Bibby Distribution’s focus in the next few

DRIVING IMPROVEMENT Driver recruitment remains a challenge for Bibby as it is for the whole industry, with the company still exploring the impact of the apprenticeship levy and how it can maximise its benefits. It places great emphasis on retaining as well as recruiting drivers.

“One of the hardest challenges in our organisation is communicating with the drivers and the warehouse staff.

It's not like a big office where you can just send an email.

These guys are working through the night and on the roads,” says Morson.

To combat this, the company has invested in a new communications app to enable drivers to receive latest news on their smartphones and provide feedback about the operation.

“Drivers are your frontline communication with your customers,” says Morson. “We’ve done a lot of work on staff engagement, listening to our drivers and warehouse colleagues, as they know ways to improve the business.

It’s about getting information flowing back up.”

years is to build on its core capabilities, rather than try to diversify into multiple areas.

Tullett says: “It’s being wise about what we do and not just going helter-skelter after high turnover no matter the cost. It’s being strategic about how we grow the turnover in a sensible and profitable way, which gives longevity for Bibby and our customers.”

Morson reiterates the focus on going back to basics: “It’s using tech, focused investment in people, quality management information, sensible contracts and tough decisions on the cost base.” ■

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MotorTransport 19 18/05/2017 07:59:52

Highwayman

motortransport.co.uk

You never know who could be hiding in the bushes If you have a story for Highwayman, send it to highwaymanMT@ gmail.com

Some of you might not be familiar with the recent appeal in the Upper Tribunal that found that London and the South East deputy traffic commissioner (TC) John Baker was right to refuse to grant permission to Darren Worsley for a new site last June, as it would have presented numerous issues con-

cerning safety and noise.

The restricted O-licence holder wanted to move his operations to a rural site in Farnham, Surrey, but was met with objections from local residents and councils.

However, the case does contain a rather marvellous detail regarding the activities of the deputy TC. Apparently,

LETTERS

COMPETITION TIME: XPO Logistics sent the minions at MT Towers this picture as part of a press release explaining it had bought 86 Euro-6 trucks. That rang a few alarm bells, so on being questioned XPO did tell us that the Euro-6 units were actually Dafs and MANs. Exactly how many of each I couldn’t tell you. But I digress… I can’t tell from this picture, but if this is a Kenworth or Peterbilt then I guess saying it is a Daf is close by virtue of the link to parent company Paccar… but that’s tenuous. And let’s not even get started on comparisons between Euro-6 and EPA 2013. It’s not even driving on the left-hand side of the road! So, if anyone can tell us what this XPO truck is, email highwaymanMT@gmail.com.

last May, Baker conducted a site visit to the proposed operating centre.

“When undertaking the visit” he wrote in his written decision of 7 June 2016, “I introduced myself to [one of the representors] who had been working in his garden close to the access road.”

They had a chat during

which Baker made it clear he could not discuss the merits or otherwise of the application with the gardening representor. The Upper Tribunal described the interaction as “entirely appropriate”.

Next time you’re trimming your front bush make sure there isn’t a deputy TC passing.

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.

RE: ‘Those vital roadkill stats are finally revealed’ (MT 8 May). As interesting as this piece is (yawn) you will probably find the majority of dead badgers “reported” as killed by the road side have actually been killed by farmers who are not allowed to cull, so mask their crime by tossing the dead animal by the road. A very kind man from

the civil service with a substantial amount of time (paid for by the taxpayer) reports and marks down the unfortunate animals’ death as – wait for it – road kill.

The figures supplied are about as much use as a lead and collar for a dog made of fog!

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22.5.17

17/05/2017 14:15:23

Focus: Business barometer

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Confidence growing in manufacturing; goods prices up as service price down; wage and GDP growth depressed

Market upbeat despite Brexit anniversary Sterling’s value

81.4

2013 2014

60

82 77.4

83

2012

91.4

79.9

2011

86.9

80.4

80.6

Effective exchange rate index

80

2009 2010

103.7

100

91.1

VALUE 120 OF STERLING

40

2016 2017

2015

2007

0

2008

20

MANUFACTURING CONFIDENCE 57.3

54.2

54.5

55.7

56.1

53.6

54.2

55.4

53.4

48.3

40 30 20

Manufacturing confidence

April

March

Feb

Jan ‘17

Dec ‘16

Nov

Oct

Sept

Aug

0

July

10 June

Purchasing managers’ index

50

52.4

60

SERVICES AND GOODS INFLATION CPI annual inflation %

3.0 Goods

2.5 2.0

Services

1.5 1.0 0.5 0.0

Next month marks the first anniversary of the Brexit vote. The pound’s value nose-dived after the referendum result but has steadied in recent months, albeit at a much lower level. The Effective Exchange Rate Index (EERI) provides an objective assessment of what has happened to sterling.

Calculated by the Bank of England, EERI evaluates the pound against a basket of foreign currencies. The composition of the basket is weighted to reflect the amount of trade between the UK and the other countries. The pound’s EERI value is expressed as an indexed number, with 100 representing sterling’s value in January 2005.

The pound’s EERI average for the first four months of 2017 is just 77.4, lower than any of the annual figures since the index was re-based in 2005.

Nevertheless, our chart shows the recent devaluation was not as sharp as during the economic meltdown of 2008/9. Most independent analysts believe sterling is unlikely to sink further, despite the pain of Brexit. But nor do they foresee an upturn, even though the pound has picked up since the snap general election was called last month. According to the Bank of England’s Inflation Report (see below) analysts’ forecasts show sterling’s EERI value remaining broadly stable at 77.6 to 77.4 until Q2 of 2020.

Nov

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Dec ‘16

Jan ‘17

Feb

Mar

Despite the uncertainty of Brexit there is a remarkably upbeat message coming from some quarters. The latest monthly assessment of confidence in manufacturing, the well-regarded Markit/Cips UK Manufacturing Purchasing Managers Index (PMI), rose to a three-year high in April. This monthly survey of purchasing managers in manufacturing asks if their businesses are expanding or shrinking. A PMI score of 50 indicates overall stability; scores below 50 suggest contraction.

The long-run average is 51.6, demonstrating modest growth across manufacturing. The PMI rose to 57.3 in April, reflecting an upturn in manufacturing output and orders. This is attributed to several factors, notably strength in domestic demand, signs of revival in the global economy, plus export growth because UK products are cheaper thanks to the pound’s devaluation.

Growth in manufacturing is welcome in logistics but the PMI report tempers

the news by pointing out manufacturing is only 10% of the UK economy, and it remains to be seen if this growth spurt is sustainable in these volatile times.

Inflation

There has been a fundamental shift in UK inflation. Each month for the past five years inflation in the services sector out-stripped inflation in the price of goods. Indeed, there was deflation in goods prices throughout 2015 and most of 2016. But the tables turned in March this year, with annual services inflation at 2.1% and annual goods inflation leaping to 2.5%, up from 1.9% in February. This is a delayed effect of the pound’s drop in value since the Brexit vote. Price agreements have expired and suppliers’ ability to absorb upstream hikes in the cost of imported products and materials has been exhausted, so goods prices are on the up. It is likely annual goods price inflation will continue above 2% for the remainder of this year.

Bank of England outlook

It’s called the Inflation Report, but the Bank of England’s quarterly forecast covers more ground than just inflation.

It also includes the views of external forecasters, averaging their projections for key economic indicators. One of the core points in the latest report, published this month, is that the Bank now believes wages growth will remain depressed this year. February’s report anticipated average earnings annual growth reaching 3% by Q3, but May’s report downgrades the forecast to 2.25% by Q4. There will be a sharp upturn in earnings, with the Bank projecting annual growth of 3.5% in 2018 and 3.75% in 2019.

The Bank believes Consumer Price Index inflation will rise this year, peaking at 2.8% in Q4 but falling to 2.4% in Q4 2018 and 2.2% in Q4 2019. This drop comes from the pound’s loss of value having washed through the data by then, evidently overcoming the inflationary effect of that wages growth.

External forecasters anticipate the same trend but don’t believe the drop in inflation will be quite so swift. Weak GDP growth in Q1 prompted the Bank to revise its 2017 growth forecast down from 2% to 1.9%, little better than last year’s growth of 1.8%. External forecasters are more pessimistic, suggesting annual GDP growth will be only 1.3% next spring.

MotorTransport 21 17/05/2017 14:07:39

Viewpoint

motortransport.co.uk

Will the election spell diesel’s end?

W Chris Druce New editor Motor Transport

hatever your political preference, we’re in full electioneering mode and as MT went to press we had sight of the manifestos from all the major UK political parties.

Indeed, the Liberal Democrats stole the stage, for all the wrong reasons, at the Microlise Transport Conference, held last week at Coventry’s Ricoh Arena.

With the breaking news that they would ban the sale of diesel cars and vans and extend London’s Ultra-Low Emission Zone to 10 more towns, conference chairman Quentin Willson didn’t mince his one-word response.

With 1,200 transport professionals in attendance, and a real buzz in the theatre and on the exhibition floor, the conference continues to flourish – a collection of people who keep the UK economy moving despite what’s thrown at them.

But there was no escaping the shadow of the current diesel backlash that the political parties are fanning – despite, as FTA’s James Hookham pointed out on stage, the Euro-6 HGV engine

being the solution not the problem that “shouldn’t be demonised”.

Yes, the UK has an air quality problem, but as the panel of manufacturers on the Truck to the Future session I hosted later that day said – and I paraphrase here – if the government is serious about dealing with the problem, now is not the time to attack the modern HGV, or to penalise a vital industry reliant on the technology that is not the main or only polluter.

Martin Flach, alternative fuels director for Iveco, added it was high time the government put its money where its mouth is and started putting serious financial support into alternative fuels technology and alternatives too.

Meanwhile, the Conservatives have themselves dodged making a decision on diesel, robbing operators of the thing they crave – clarity (at least until after the general election is safely done and dusted).

The industry will adapt, it always does, but it needs to know what’s around the next corner, and its requirements must be taken into account as we seemingly enter diesel’s political twilight.

Let’s learn a lesson from the Bath tipper tragedy

E Kevin Rooney Traffic commissioner for the West of England

arlier this year, the owner of a haulage company and a mechanic were jailed for manslaughter after a 32-tonne vehicle killed four people, including a four year-old girl.

Matthew Gordon, the director of Grittenham Haulage, was sentenced to seven years and six months, while mechanic Peter Wood was sentenced to five years and three months.

It is clear that both the company and the individuals responsible for checking vehicles and driver records comprehensively failed in their road safety responsibilities.

Everything we do must keep all road users safe when they travel. Our role as independent traffic commissioners is vital to this.

Robust regulation, as many industry bodies have rightly identified, promotes road safety and fair competition. But the ultimate responsibility and duty rests with you, whether you’re the operator, transport manager or driver.

As a licence holder or transport manager, you’re legally responsible for the safety of the vehicles and drivers. You agree to uphold these standards when you get an operator’s licence or if you’re accepted as a transport manager. There are no excuses for failing to do so.

After the court case, Avon and Somerset Police

22 MotorTransport MTR_220517_022.indd 22

sent a clear message to the industry – you’re accountable to the public who share the roads with commercial vehicles, whether they are drivers, cyclists, passengers or pedestrians. I fully endorse this message; the consequences of failing to put in place the necessary safety systems and checks can be devastating.

Traffic commissioners do not usually talk about individual cases but the Grittenham Haulage fatality must act as a wake-up call to every single operator, transport manager and driver in the industry. It shows what happens when basic safety principles are neglected.

In his sentencing remarks, the judge said Matthew Gordon and Peter Wood knew they were being casual about safety and said their failures were inexplicable.

Road safety is something we all need to fully commit to – at all times.

■ MT sister title Commerical Motor recently held a round table event looking at the lessons to be learned from the Bath incident. For a full report, see CM 25 May issue.

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, 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.

To apply visit: mtcc.motortransport. co.uk or email roadtransport.pub@ quadrantsubs.com Existing readers can update their address and renew their free copy at mtcc.motortransport.co.uk 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 22.5.17 18/05/2017 12:41:04

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Interview: Beverley Bell

Change at the top

Senior traffic commissioner Beverley Bell speaks to Ashleigh Wight about her experiences and hopes for the future as she prepares to step down from the role at the end of the month

W

hatever their personal opinion of the traffic commissioners (TCs) might be, most operators would agree they collectively perform a vital role in keeping the public and industry safe from rogue operators.

One commissioner in particular, Beverley Bell, was among the first to attempt to change the way TCs are portrayed, and in her role as senior TC has helped shape the way the transport industry is regulated.

Bell is now preparing to step down from her role and hand over to East of England TC Richard Turfitt, but when she was appointed TC for the North West in 2000, the commissioners were generally regarded as, in her own words, “male, pale and stale”.

“They were usually drawn from retirees from the armed forces, and when they appointed myself and [former senior TC] Philip Brown back in 2000, that was a really different approach,” she says. “We were younger people who weren’t looking at this as a few years before retirement, and that’s continued with people like Joan Aitken, Richard Turfitt and Sarah Bell.

“I think our profile has changed tremendously and will continue to change. I think that’s a really good thing.”

Into the industry

A former criminal defence solicitor, Bell got into the industry by prosecuting on behalf of the Vehicle Inspectorate [which later became Vosa and then the DVSA]. She became a TC at a time when the job was antiquated compared with the role of today.

“Everything was on paper. Everything was long submissions,” she says. “Nobody went into a traffic commissioner’s office, but I said ‘my door’s open’. It was all very formal, and the traffic commissioners were not seen as being approachable people. I worked hard to develop that.”

Bell will step down as North West TC and senior TC on 31 May, with deputy TC Simon Evans taking on the role of North West TC. Bell has fond memories of her tenure, describing being a TC as “the best job in the world”. But she admits TCs require a thick skin, particularly when dealing with the most non-compliant in the industry.

“I love going into the public inquiry room and putting operators on the road to compliance,” she says.

“You don’t take this job to make friends, but I’ve made many along the way. However, 24 MotorTransport MTR_220517_024-025.indd 24

you also make enemies. It’s only when you take tough decisions that you learn who respects you and who doesn’t, and who respects the regime.”

Respect is something Bell says must be earned, which is why new TCs are encouraged to visit operators to find out what their issues are and learn about what it is like to operate in a challenging industry.

She says: “I did my CPC when I became a traffic commissioner. I didn’t just do the course, I sat the exam. It was scary because I thought failure was not an option. If a traffic commissioner fails the CPC – what a headline!”

She set out to see whether the transport manager CPC course equipped her to be a transport manager. She says that while it provided enough insight into the construction and use regulations and how abnormal loads should be transported, the course did not go far enough to prepare her to operate commercial vehicles.

“For me, education is one of the most important roles of the traffic commissioners, and that’s why we go out to more seminars than we used to in the past,” she says.

The senior TC position is different to that

of a regional TC. The senior TC tends to be the mouthpiece for all the TCs, which says Bell, can sometimes be challenging because the issues in Scotland or Wales can be very different from those in London.

“A criticism that’s levelled against us is that we’re not consistent. The reality is, the cases are dealt with on their own merits,” she says.

The good times

Her biggest achievement, she says, was revamping the senior TC’s statutory documents, which provide guidelines on how TCs should deal with various issues. All operators should read them, she says, to ensure they are aware of the consequences of breaking the rules, particularly the documents on transport managers and driver conduct.

She has never been afraid to tell the DVSA or the DfT how she feels about a particular issue, which she believes has helped strengthen the TCs’ relationship with both organisations.

“I gave evidence before the transport select committee and told them how it was, not what I thought they wanted to hear, because I don’t have a political agenda. When things were not good between the DVSA and traffic commis22.5.17 17/05/2017 10:27:11

motortransport.co.uk

sioners, I found it appropriate to tell them.

“But having said that, the current position is that we have a good working relationship with the DVSA since [chief executive] Gareth Llewelyn came along.

“He’s keen on enforcement, and that’s something the TCs are all committed to. Without effective enforcement, we can’t regulate, and it’s good we’re working together on that,” she says.

While Bell will miss the public inquiry work, she says it is sometimes difficult dealing with drivers and operators who commit serious offences.

“It’s difficult dealing with drivers. It’s hard because when drivers commit offences they don’t set out that morning with the intention of committing them. They generally do it because something’s gone wrong in their lives, whether it’s drink-driving, or whether it’s mobile phone abuse.

MAKE IT SIMPLER MT asked what laws outgoing senior traffic commissioner Beverley Bell would change if she had the power to do so, and her response focused on simplification.

“All traffic commissioners have been calling for a long time for a change in the law on the environmental aspects of our work,” she says. “If you want to run an operating centre, you have to advertise in a newspaper circulating in the vicinity of the operating centre 21 days before, and 21 days after the application.

“Newspapers are disappearing. The advertisements can be horrendously expensive, sometimes quite often more than the cost of the application itself.”

She also highlights the confusion over drivers’ hours rules and how many drivers are often unsure of whether they fall under domestic or EU legislation.

“Whether you’re driving a milk tanker and subject to domestic legislation, or whether you’re driving a diesel tanker and subject to EU legislation, both drivers will be equally tired,” she adds.

A rock and a hard place

“They’ll often be having some sort of crisis so they’ll think, ‘Oh, I’ll just answer the phone’, and then they have to pay the penalties, either to the criminal courts or by appearing before TCs. Lots of them don’t know what the implications are.”

Drivers committing hours offences can sometimes be “between a rock and a hard place”, and she encourages operators to make sure they are not placing undue pressure on drivers to satisfy customer requirements.

She says the most satisfying part of being a TC is getting non-compliant operators out of the industry and stopping them from unfairly competing with those who are getting it right.

“But we’ve got to remember we only deal with a tiny number of operators. The majority, again, quietly get on. We’re doing a great job for British industry and getting it right. ” She says that for the most part operators appear before the TC because an event or illness within the business has caused a distraction and led to a temporary breakdown in systems for vehicle maintenance or drivers’ hours compliance.

“It could be that the transport manager has been promoted beyond their ability. It could be that the transport manager has gone off sick and nobody has been doing their job. It could be that the systems and procedures haven’t been working. What we do is provide a set of external eyes, if you like, and look at it, so often we’re giving the solution to operators.”

She adds: “I have an eye for detail. When operators are manufacturing their records, they will forget that the mileage is going backwards. It’s not difficult to see where documents are forged.”

TCs often see businesses that have expanded too quickly and let standards slip because they are keen on satisfying customers. Bell says the answer can sometimes be as simple as ensuring preventative maintenance inspection intervals are not exceeded or making sure drivers are aware of how important the hours rules are.

The difference in the level of compliance between restricted and standard O-licence holders is a major issue for the TCs at the moment, and Bell stresses that all truck operators need to get it right, regardless of the type of O-licence they hold.

22.5.17 MTR_220517_024-025.indd 25

“The difficulty is that a restricted licence holder doesn’t have a transport manager, which seems to me to not be quite right. They might make bread or steel, and they’re very good at making bread or fabricating steel, but they’re asking, ‘how do we do this?’ when it comes to trucks.”

Another thing Bell is keen to see changed is the current flat-rate O-licence fee, which she challenged in her annual report last year. She is concerned that sole traders or small haulage firms that provide very little work for the Office of the Traffic Commissioner (OTC) licensing staff are not getting the value for money they

deserve, while large operators give the OTC huge amounts of administrative work, despite paying the same rate for their O-licence.

“The industry has made it clear through the trade associations that they would prefer to pay a higher fee for better service, because, quite frankly, you get what you pay for,” says Bell.

“When you look at our fees, I think they are not fair. I think they should be distributed more evenly so those causing us the greatest work pay more, so that they get a better service, so that instead of it being nine weeks for a licence, it’s six weeks, or even better, three or four.” ■

MADAM PRESIDENT: Bell served as president of CILT from 2015 to 2016 MotorTransport 25 17/05/2017 10:27:37

Show preview: Tip-ex

motortransport.co.uk

THE MAIN EVENT

Thursday 1 June - Saturday 3- June Harrogate International Centre www.tank-ex.co.uk

Tip top tank T his year’s Tip-ex and Tank-ex shows, which take place at the Harrogate International Centre on 1-3 June, once again promise to be the must-attend event for operators involved in the dry bulk and liquid transport sectors. With around 100 exhibitors across both shows, here are 10 reasons you should join us.

1. Tip-top bodybuilders

Abba Commercials, pictured below, will be showcasing all three of its Predator Ultimate tipper bodies. One in the livery of Huntingdonbased haulier SR Harradine; another a 2017 demonstrator body mounted on a Scania 8x4 chassis; and another on the Edbro outdoor stand.

Aliweld will be launching the Smooth Line Monocoque body, which enables a ribbed body to be skinned without using rivets, allowing customers to choose any height of body with a sleek finish.

Gleeson Truck Bodies will unveil its new G100 lightweight grab tipper with a lower body height and a Binotto B3 front end cylinder for faster tipping, as well as the L100 Gleelight full

26 MotorTransport MTR_220517_026-028.indd 26

Tip-ex and Tank-ex return for 2017, so what can visitors expect to see?

Ashleigh Wight reports

Hardox body, which it claims is giving aluminium bodies a run for their money.

Meanwhile, Thompsons Group will be bringing one of 10 steel Loadmaster bodies it is supplying to Hargreaves Services. Numerous other bodies will also be available on its stand, including the Paymaster trailer.

Elsewhere, Tankquip will be bringing its two biggest sellers to the show – a 54m³ plank bulker and a 32m³ lightweight aggregate trailer.

And if that’s not enough, Wilcox Commercial Vehicles will also have an extensive range of its aluminium rigids and trailers on its stand.

2. Dozens of tankers

At Tank-ex, you can expect to see a range of new models from Feldbinder UK, as well as a selection of units from TIP Tanker Services, pictured below, to demonstrate its range of food, chemical, waste, powder and fuel tankers.

French manufacturer Maisonneuve will be showing several examples including a 25,000litre fertiliser tank, 30,000-litre waste tank, and a 30,000-litre milk collection tank.

Roadvacs will be bringing a whole host of products to the show, such as a Rolba medium

combi unit; a new Roadvacs 4,000 gallon vac tanker; a new Disab suck and blow machine and a Muller 18-tonne City Recycler.

A hygienic unloading system will be on display at Welgro’s stand, operated by an electro-pneumatic system that is controlled from the back of the trailer. It promises faster and better controlled unloading thanks to a bottom valve design combined with an electronicallycontrolled air divider to the discharge pipe and tank.

3. The inaugural Drain-Ex

Tip-ex and Tank-ex have partnered with drainage industry publication Drain Trader to launch the inaugural Drain-ex, which will take place next to the main shows on 1 and 2 June only.

The show, which is aimed at a drainage and water industry, is free to attend and Tip-ex and Tank-ex attendees will be able to enter the show without having to re-register.

4. Safety innovations

With protecting vulnerable road users high on the agenda for the industry and the government, there will be a host of safety systems on show in Harrogate.

Amber Valley Developments will be showing its LED message lights and cycle warning lights, pictured right, its Nimbus dual-colour, dualpurpose range of surround lighting systems for trucks and the revamped Ecoalarm and Ecoalarmalight ranges.

Meanwhile, Trailer Vision will be demonstrating its Omni-Vue camera system, which provides a 360-degree view of the vehicle and features several calibration options to ensure it is suitable for all tippers and tankers.

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Show preview: Tip-ex

London, Truck Align London will be displaying some of its lower passenger door windows to aid visibility of vulnerable road users, including one for left-hand drive vehicles. The window can be fitted to most truck makes and models.

5. Compliance systems

Barry Napper & Company will be displaying its Bluetooth weighing app, which enables drivers to check the weight of a vehicle’s payload using their mobile phone.

On the Continental Automotive stand, the VDO Digital Tachograph 2.2 will take centre stage and the company will be on hand to demonstrate remote tachograph and driver card data downloading.

Maha UK will be premiering its MBT 7250 roller brake tester and MBT 5250 mobile, each of which can test axle weights of up to 18,000kg.

Elsewhere, VPG Onboard Weighing, pictured above left, will be bringing its bespoke overload protection systems, including TruckWeigh and VanWeigh, to its stand. Its 1300 VUE360 BulkWeigh and WasteWeigh systems will also be available, which can be integrated with onboard weighing systems.

6. More manufacturers than CV Show

Some of the biggest truck manufacturers in the UK will be showing the best vehicles for the bulk transport industry. Volvo Trucks’ stand will feature two high-specification FMs: an 8x4 tipper grab (pictured below) and a 6x2 tractor unit.

Scania will have eight trucks on display

motortransport.co.uk

including two tippers – a P450 and P370 – a 4x2 rigid skip-loader chassis and a choice of tractor units. A Range C430 and a C520 will feature on Renault Trucks’ stand, alongside a Range T420 6x2 unit.

Iveco will have a 7.2-tonne Daily with a Thompsons tipper body available to look around, as well as a Eurocargo, a 32-tonne Trakker, and a 44-tonne Stralis Hi-Road.

Over on the Mercedes-Benz Trucks stand will be an Econic 8x4 tipper, an Arocs 8x4 with a low-entry cab and a 3.5-tonne Fuso Canter with tipper body.

Daf will be showing its construction CF range and its LF tipper chassis range.

7. Ancillary equipment

If you’re in the market for sheeting systems there will be plenty on display, including the relaunch of Dawbarn & Sons’ Hydroclear sheeting system, which is claimed to be much lighter and more reliable than its predecessor.

Harsh will be displaying its range of tipping gear, hook-lift equipment and sheeting systems, while Hyva UK, pictured above right, will be relaunching its 32-tonne tipping gear for the aggregates industry – the Alpha Aggregates cylinder.

8. The Protruck auction

Protruck, pictured above middle, will once again be hosting its popular auction with a variety of vehicles available. In previous years the auction has seen sales of 7.5-tonners to 32-tonne steel-bodied tippers, tractor units, and fuel and powder tankers.

It will take place at 10am at the Great

AWARDS SHORTLISTS Tipper Operator of the Year: ■ McGee Group ■ O’Donovan Waste Disposal ■ Mick George Tanker Operator of the Year: ■ Arla Foods ■ Lomas Distribution ■ Turners (Soham)

Yorkshire Showground on Saturday 3 June with lots available for viewing from 30 May onwards. A classic truck auction will also take place on the day.

Protruck will be running a minibus service between the exhibition and the auction site.

9. Awards and Gala Dinner

The Tip-ex and Tank-ex Awards and gala dinner promises to be a great networking event and a chance to celebrate the best in the industry.

Among the awards up for grabs are the Tipper Safety Award, Tanker Safety Award, Show Innovation Award, and Personality of the Year, as well as the coveted Tipper Operator of the Year and Tanker Operator of the Year awards.

After working up an appetite around the shows, guests will be treated to a champagne reception, a three course meal and an evening of entertainment.

The awards and gala dinner will once again take place at the Majestic Hotel on Friday 2 June. To book your place, go to tip-ex.co.uk.

It is hoping to raise £20,000 to supply more than 8,000 schoolchildren in Harrogate with illuminated safety strips. These battery-powered devices attach to school bags, coats and wheelchairs, and make children more visible to passing motorists on dark winter mornings.

In addition to a raffle and auction, both held on the night, all the proceeds from the Scaniasponsored casino will also be going to this worthwhile cause.

10. Barbecue

No trip to Tip-ex and Tank-ex would be complete without a visit to the stall of award-winning barbecue chef Andy Annat. Local butcher and restaurateur Annat always puts on a feast and is worth seeking out among the external exhibits. Salad is available for vegetarians. ■ If you would like to donate a prize for the auction or raffle, please email will.shiers@ roadtransport.com.

28 MotorTransport MTR_220517_026-028.indd 28

22.5.17 17/05/2017 10:18:01

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Entry Deadline: 30 June

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The Commercial Motor Awards are rewarding the best of the best in the industry, are you one of them?

Celebrate your company’s achivements with some of the biggest names in road haulage by entering our presitigious awards. Entering is free, and in the lead up to the event, your company will receive editorial coverage in Commercial Motor if shortlisted, plus all the coverage you’ll get if you win!

Not forgetting the opportunity to win a coveted Commercial Motor Award and be acknowledged by the industry as outstanding in your field. Entry is open now! Entry deadline: 30 June

12

26 MARKETPLACE DEALER AWARDS

Main contenders CM profiles the shortlists for the Franchised Dealer of the Year and Technician Team of the Year awards

By Christopher Walton

Franchised Dealer of the Year shortlist

Technician Team of the Year shortlist

NEWS

COMMERCIAL MOTOR DEALER AWARDS 13

RESULTS

And the winners are...

Checkedsafe

Franchised Dealer of the Year Winner:

Aftersales, Workshop and Maintenance Provider of the Year

Road Trucks (Scania) Sponsored by IRTE

Every shortlisted entry gets profiled in Commercial Motor magazine and on Commercialmotor.com – giving your business exceptional exposure to buyers.

Road Trucks (Scania, Northern Ireland) came first in Scania GB’s annual dealer development m competition in 2015 with a 100% score – only the second time this has been achieved. It had the highest MoT pass rate of any Scania dealer in 2015 with more than 98% of vehicles passing first time. In its entry it described itself as having a culture of ‘the customer always comes first’ – shown by Road Trucks recording more 100% scores in the network’s annual Mystery Shop Aftersales surveys in 2016 than any other dealer year to date.

Ford & Slater was responsible for 19.1% of Daf’s total UK registrations in 2015 and with a customer base that includes Ryder, Travis Perkins and DHL, it maintains the highest standards of service and professionalism.

Across 10 sites in central and eastern England – all Daf A status dealers – Ford & Slater offers seven ATFs, genuine Daf parts and TRP all-make parts with £5m of parts stockholding, an accident repair centre and 20 vans for DafAid breakdown response. Nine of its 10 sites are open 24 hours a day and it employs 175 HGV technicians.

Thomas Hardie won the Volvo Truck Dealer of the Year Award 2015, capping 30 years in business, with Volvo singling out the business for “achieving outstanding performance in key business areas”. It achieved an average MoT first-time pass rate for its customers of 97.9%.

All five of its sites were rated by Volvo in its annual retail excellence survey as the top dealer network performer for outstanding customer service. The introduction of Roadcrew Truck and Trailer Parts as a service to its customers means it can offer a range of parts across all makes and won a genuine Volvo parts sales success achievement award in 2015. The firm takes on 10 apprentices a year as part of its apprentice programme.

COMMERCIAL MOTOR 27/10/16

Imperial Commercials Nottingham (ICN) runs a workshop with a team of 12 technicians, three apprentices and four administrators. It recently recruited three more apprentices to replace its technicians who signed up to its internal mentoring programme. ICN has conducted 480 hours of technician training this year, with technicians running at 92% productivity, and year-on-year labour sales up 6.6%.

The firm regularly achieves a top three ranking in the DafAid league table. ICN prides itself on MoT preparation and presentation; it averages 51 tests a month with a 99% pass rate.

Waldron Commercials has sought to provide an exceptional customer service experience over the past 12 months.

During that time the South Wales firm has introduced training techniques for its staff alongside customer service provision, which its team has embraced positively while working in a difficult environment.

Waldron singled out two customers in its entry for the delivery of exceptional customer service – one local authority that experienced a snow plough breakdown on Christmas Day and one operator suffering from piston failure that saved thousands against the cost of a new engine.

For the best online deals, visit commercialmotor.com

ROAD TRUCKS (Scania) has excelled in offering exceptional customer service and product knowledge, and a mystery shopper was impressed with the quality of its facilities. MD John Marks, pictured second left, who received the award along with Colin Sparks, second right, from PM Commercials director Paul May, left, said: “All aspects of the business are doing well and we have a strong management team.” Pictured right is Road Transport Media MD Andy Salter.

Winner: SPARKS HAS a loyal and Sparks Commercial Services knowledgeable workforce who demonstrate a passion and a positive attitude that sets its aftersales apart, with high MoT pass rates for customers. Director Mike Spark, pictured second left, receiving the trophy with Matt Spark, second right, from Shell Lubricants B2B marketing manager Andrew Gibson, left, said: “It’s a fantastic achievement and the result of a lot of hard work.”

Technician Team of the Year Winner:

Imperial Commercials

Finance Provider of the Year Winner:

Close Brothers Asset Finance

CHECKEDSAFE’S INNOVATION has simplified and streamlined the paperwork behind the walk-around check and helped prioritise defects for the workshop. Director Darran Harris, pictured second left, who received the award from CM editor Will Shiers, left, along with Gary Hawthorn, second right, said: “It’s a massive deal for our company, we are pleased as punch.”

COMMERCIAL MOTOR 1/12/16

NOTTINGHAM-BASED IMPERIAL Commercials’ training standards are well above the industry average and its technicians have incredibly high rates of productivity. Service manager Derek Gaunt, pictured second left, who collected the trophy from IRTE Professional Sector Council chairman John Eastman, left, along with Matt Lawrenson said: “It’s great to pick up the award, which is a reward for the hard work and commitment of the team.”

For today’s news, visit commercialmotor.com

Winner:

THE THOMAS Thomas Hardie Commercials Hardie used sales team goes above and beyond when it comes to meeting the needs of its customers both online and on social media. Used truck business development manager Jonathan Bownes, second left, who collected the trophy from Vision Track partner manager Adam Wild, left, along with sales executive Carl Boase, centre, and used vehicle sales director Chris Schofield, second right, said: “We are over the moon at winning.”

Apprentice of the Year Winner:

Auction House of the Year JUDGES SINGLED Winner: Protruck Auctions out Protruck’s auctions at Truckfest and Tip-ex as great ways to develop relationships with buyers. Sales director Mike Gray, pictured second left, who received the trophy along with Karen Summers, centre, and Andy Ward, second right, from Road Transport Media group sales manager Julie McInally, left, said: “We have a great team dedicated to raising standards of professionalism.”

Tom Christie, Northside Truck and Van

Every winner is in a double-page spread in Commercial Motor, highlighting why you were exceptional enough to win the award.

Service to Industry

JUDGES SINGLED out the exceptional apprenticeship programme at Close Brothers and the long-term support it has shown a diverse customer base. John Fawcett, CEO of transport at Close Brothers, pictured centre, collected the trophy from Daf Trucks MD Ray Ashworth, left, and said: “The commercial vehicle industry is a massive part of our business and we want to support it as much as we can.”

Sales Team of the Year

Winner:

CM presents the winners from last week’s inaugural Commercial Motor Dealer Awards, held at a glittering event at the beautiful Heythrop Park, Oxfordshire

Sponsored by PM Commercials

HRVS is an MAN flagbearer that was established in 1997. The dealership said it had “MAN products at its core” across its six UK sites (Ripley, Sheffield, Scunthorpe, Sleaford, Stoke-on-Trent and Leicester). It employs 204 people, of which 128 are technicians – 18 of whom are MAN Master Technicians. Across the group it offers three twin-lane ATFs, full bodyshop and paint facilities, full tachograph and speed limiter centres and access to more than £2m-worth of parts stock. ReMANparts stock runs in harmony with MANTopUsed as it looks to be classleading in its market.

Workshop Innovation of the Year

Winner: THE WINNER of Chris Kelly snr the 2016 Service to Industry award, Keltruck founder Chris Kelly senior, was a unanimous choice by the judging panel.

Judges described Kelly as a pioneer in his field and one of the founding fathers of truck sales in the UK. Kelly, who was unable to attend the ceremony, was earlier presented with his award by Road Transport Media MD Andy Salter.

NORTHSIDE APPRENTICE Tom Christie has spent part of this year on a job swap with a high-profile customer, and judges were impressed by his enthusiasm for the job. After receiving the trophy from managing editor at Road Transport Media Christopher Walton, Christie said: “I’m really pleased to have won – working at Northside is interesting and enjoyable.”

Independent Dealer of the Year Winner:

PM Commercials

JUDGES PRAISED PM Commercials for its enthusiasm, professionalism and commitment to go above and beyond the call of duty as well as the quality of its used stock. PM Commercials director Paul May, pictured second left, who received the award along with Jo May, middle, and Chris Wheldon, second right, from Close Brothers CEO of transport John Fawcett, left, said: “We have an excellent team and this award is for all of them and the professionalism they have shown.”

For today’s news, visit commercialmotor.com

1/12/16 COMMERCIAL MOTOR

Go to: commercialmotor.com/awards to enter!

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17/05/2017 13:49:33

Sector report: Dry bulk

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Building up hope Confidence in the construction industry has fluctuated following the Brexit referendum, but government plans for housebuilding have seen a return to optimism. Simon Jack reports

A

mbitious government plans to invest in the UK’s infrastructure and the long-term need for housebuilding have resulted in a sense of optimism among many in the construction sector and the dry bulk transport firms that support them.

In recent months this has been tempered by uncertainty over Brexit and the forthcoming general election, although there are signs of a return in confidence.

Plans for £500bn-worth of private and public investment were announced in December in the government’s National Infrastructure and Construction Pipeline. This involves 720 projects, with £300bn of the investment scheduled to be made by 2020/21. But with 60% of the expenditure being sourced in the private sector, it remains to be seen exactly how much of this comes to fruition. In addition, there are mixed reports about how well the construction industry is performing.

According to the Office for National Statistics, the sector recorded an output of £11.5bn in February, down 1.7% on the previous month but 0.5% ahead of the same month in 2016.

However, the Mineral Products Association, which represents producers of bulk materials, estimates that sales of asphalt rose 0.1% in 2016, sand and gravel 2% and crushed rock 5.3%.

Glimmer of hope

Hope of a more pronounced upturn came earlier this month from the Markit/Cips Construction Purchasing Managers’ Index, which surveys construction companies about 22.5.17 MTR_220517_031-032.indd 31

purchasing decisions. April saw the steepest monthly increase so far this year, with civil engineering and residential building leading the way.

Major companies in the sector confirm there is a mixed picture. Gerard Cantwell, head of procurement and logistics at Aggregate Industries, says political upheaval caused by elections and referendums often slows growth in construction and the market has been flatter than forecast this year.

Ambitious pipeline

However, he adds: “That being said, the market is by no means in a bad place, with an ambitious pipeline ahead of the industry, including Crossrail 2, HS2, the northern powerhouse and the Midlands Engine to name but a few.”

There is strong competition in parts of the dry bulk sector, according to Steve Granite, MD of Abbey Logistics Group. The company operates 70 non-food dry powder tankers, carrying products such as minerals, clay and sand, as well as 200 food tankers, carrying sugar, salt and flour. “Demand in the market is steady, but there is some over-supply. This is mainly in non-food among both key players and smaller firms. It is not so much of a factor in the food industry,” he says.

With both sectors, however, it is necessary for firms to differentiate themselves and Abbey does this by making sure the operation, including the equipment used, is tailored to customer needs. “Many companies take the approach of saying ‘we’ve got this equipment available in these depots’. We start with a blank piece of

paper and ask them about their business so that the solution and the tankers fit their needs,” Granite explains.

Abbey can also offer suggestions of where operational efficiencies could be introduced by the customer. The company, which has an ongoing programme of vehicle replenishment, also runs a general tanker fleet for customers with short-term needs but can extend the life of any vehicles being replaced by a few months to cope with unexpected spikes.

“There is not much second-hand equipment available – certainly the tankers that we would consider making use of are very scarce,” says Granite.

Where necessary, tankers can be used for similar products in the same sector and Abbey operates cleaning facilities in some locations.

It also has access to other facilities in the UK.

Food and fuel

Another leading player, Clugston, also uses cleaning stations so it can switch between different food products such as oats, flour and barley and uses tipping trailers that makes cleaning easier. As well as food clients, the company serves construction customers including Cemex and Wincanton and operates 45 dry bulk trucks and 50 tanker trailers as part of a wider tanker fleet that includes fuel transporters.

Distribution director David Heath agrees the non-food market is the most competitive part of the dry bulk sector. “Part of the challenge of the non-food environment is the high cost of assets and rates that do not reflect the capital invested. In food, overall demand is ➜ 32 MotorTransport 31 17/05/2017 10:06:58

Sector report: Dry bulk

less peaky and the rates are more in tune with the specialist nature of what you’re doing,” he says.

Heath says that over the past year the level of demand has become more volatile. “The market isn’t bigger or smaller but there is a greater level of unpredictability with customers unable to take a long-term view,” he comments.

In a sector with high-cost, specialist equipment this has meant supplementing the company’s fleets with rented equipment where necessary – 20% of the trailer fleet is rented to cope with unexpected spikes in demand. Trucks can also be switched between food and nonfood operations as drivers are trained to cope with emptying both types of product.

“It is possible to put product onto a food trailer and transport it using a cement truck,” says Heath.

Improved efficiency

The company hopes to capitalise on its groupwide activities to gain business, as Clugston Group is involved in property development, construction and facilities management. “We THE MAIN EVENT

Thursday 1 June - Saturday 3- June Harrogate International Centre www.tank-ex.co.uk

For the latest developments in bulk transport visit Tip-ex and Tank-ex 2017 at the Harrogate Convention Centre on 1-3 June. For details, go to tip-ex.co.uk

would be able to find a site for a property, build the warehouse, then manage it for a client and provide the transport,” Heath explains.

Industry regulations

Aggregate Industries’ Gerard Cantwell says that attempts to improve efficiency go handin-hand with an effort to meet and surpass industry regulations. “We work alongside our customers and transport partners to reduce travel time, paperwork, CO2 emissions and risk,” he says.

“Tracking systems and technology are making a major difference to the way we operate, by reducing waiting times and empty loads.”

Aggregate Industries uses Simon Gibson Transport, Wincanton and Eddie Stobart as transport partners and Cantwell says: “Haulage firms have a strong record of working alongside the rest of the supply chain, with trials including 360-degree virtual reality inductions for on-site health and safety.”

One of the challenges faced by those involved in dry bulk is to fully maximise use of the fleet.

Although tractors can be relatively easily

swapped, trailers tend to be dedicated to a particular sector, whether it is food, construction or dry chemicals.

Brian Templar, chairman of consultancy Davies & Robson, says: “There are some opportunities to keep costs down, but, unfortunately, bulk carriers are more limited in what they can do in terms of improving productivity than those in general freight. In addition, bulk movements to building sites, for example, do not tend to involve very long journeys.”

Extra revenue

Washing out vehicles adds time and cost to an operation and has to be balanced against the extra revenue, although it is more feasible to switch products on a seasonal basis. “The key thing is to try to keep the vehicles moving all year,” Templar adds.

If vehicles are kept longer than usual to accommodate peaks it is important that their cost has been written down over the years. “It’s about keeping the fleet at an age where you can stand vehicles down without it crucifying you,” he says. ■

TIPPERS As well as dry powder tankers, many building and agricultural materials are transported using tippers.

Demand for these has been mixed over the past few years, according to the Society of Motor Manufacturers and Traders (SMMT). There were 9,356 tipper registrations in 2016, up 15.8% on 2015’s figure of 8,080 but 14.9% lower than the 11,000 registered in 2014.

Scott Burton, a director at tipper bodybuilder Thompsons, says although long-term prospects are good, the market has seen a drop-off since last year’s referendum.

“Since the announcement of the Brexit vote the level of demand has not quite been at the level it was. There are not so many projects starting as before and there is uncertainty among operators, who do

32 MotorTransport MTR_220517_031-032.indd 32

motortransport.co.uk

not know what trucks they should be ordering,” he says.

However, the company is confident enough to build a new factory in Scotland to add to facilities in Croydon and Blackburn. Burton says many operators are looking for bespoke models and around 90% of vehicles are ordered in this way. These increasingly include extra features such as sleeper cabs, on-board cranes and safety equipment.

“In the old days it would mainly be a question of fitting a box onto the back of a vehicle. Nowadays we are helping to build the vehicle from start to finish,” he says.

The way tippers work, particularly when acting as muckaways is becoming more sophisticated.

“Our customers are often no longer just haulage companies. They will take away

material to a recycling centre, sieve it for sand and stone and then deliver it back out again,” says Burton.

Another trend in dry bulk deliveries is the use of walking-floor technology where a moving floor in the vehicle is used to discharge the material without the need to tip the body. The technology is developing and in March the Biker Group took delivery of what is thought to be the first steel-plank walking floor in the UK – a Volvo FM with a body designed by Wilcox Commercial Vehicles. This is being used to deliver surface chippings across the North East and Yorkshire for road resurfacing.

The moving floor, which can empty the vehicle in three minutes, is intended to avoid the danger of a tip-over while unloading and lessen the risk of colliding with overhead cables.

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17/05/2017 13:51:42

MT Awards 2017 shortlists

motortransport.co.uk

Apprenticeship of the Year MT profiles the shortlists for this year’s awards BT Fleet

BT Fleet maintains a large fleet of BT and third-party vehicles at its 64 garages and in 2016 overhauled its vehicle technician apprenticeship scheme to make it “one of the best in the business”. It set itself the goal of quadrupling its apprentice intake to 40 and improving further on its already excellent pass and retention rates.

Unlike most typical two- or three-year apprenticeships, BT Fleet trains its technicians for three and a half years, investing £45,000 in each apprentice – including paying a salary more than twice the year 1 minimum. Apprentices are also given a tool kit, clothing and a tablet PC. Every year, apprentices undertake three one-month residential blocks of training at Warwickshire College, which includes a replica of a BT Fleet garage, and work towards their NVQ level 3 in automotive engineering. Last year, 99% of BT Fleet’s apprentices successfully completed the programme, and every one was offered a full-time job with the company. After qualification they can works towards their NVQ level 4 and 5, with a view to progressing to management roles, and 25% of apprentices were promoted in 2016.

“BT Fleet offers good rates of pay,” noted one judge. “The scheme has very good take up and retention rates,” said another. “And 100% of apprentices are offered a job.”

Cemex

Cemex employs 350 drivers for its fleet of artic cement tankers and bulk aggregate tippers, and with the transport industry facing a shortfall of up to 100,000 drivers, it believes recruiting more driver apprentices is key to filling that void. In 2014 the company created a scheme to recruit and train new young drivers for its specialist construction fleet. It started with an intake of nine, in 2015 this was expanded to 15, and this year the company is recruiting a further 18 apprentices.

Apprentices are put on the payroll as full-time employees from day one and given a driving job on full pay when

34 MotorTransport MTR_220517_034 Apprenticeship.indd 34

Sponsored by they have successfully completed the one-year programme. The bespoke scheme is designed and run in partnership with training provider System Group and Cemex provides driver mentors to pass on the benefit of their experience to the trainees. The course combines on-the-job practical training with external theoretical training and testing to meet the government requirements for approved apprenticeships.

The latest 18 apprentice places attracted more than 300 applicants and a screening process was put in place to ensure the right candidates were selected. In 2016, 80% of apprentices passed their category C test first time. In 2013, Cemex had no logistics drivers under the age of 27, but as a result of the driver apprenticeship, it had 18 drivers under 25 by 2016.

“Fourteen former apprentices are still with company,” said one of the judges.

“There is a good recruitment process and it has attracted lots of applicants.”

Another added: “This is a bespoke programme designed for the company’s needs,” and “the backing of the board is essential, while mentors and coaches are key to successful apprenticeships.”

Royal Mail Fleet

Royal Mail Fleet is responsible for maintaining more than 50,000 vehicles at 110 UK locations. It employs 980 vehicle technicians and recruits more than 30 apprentices every year, 94% of whom go on to become qualified technicians. Over the past 20 years, 250 apprentices have been inducted into the business at a cost of £15m, and the company’s MD and the heads of fleet maintenance and engineering all started as apprentices, a fact noted by our judging panel.

The apprenticeship programme is delivered in association with Babcock International and students spend block release sessions at its academy in Milton Keynes. Under the four-year scheme, apprentices study for level 2, 3 and 4 diplomas and become IMI-accredited technicians. They are allocated a workplace mentor and provided with all their tools, clothing and safety equipment.

Royal Mail Fleet has broadened its target audience to include females and older recruits, and seven of its current 90-strong apprentice cohort are female.

“There is a good mix of young and older apprentices,” our judging panel commented. “The scheme is well structured and recruitment is well targeted,” said one judge. “The scope of advertising [of apprentice places] is good and schools are included for recruitment.” “Pass rates are excellent,” commented another judge.

22.5.17 17/05/2017 09:56:54

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17/05/2017 13:53:24

MT Awards 2017 shortlists

motortransport.co.uk

Team of the Year Sponsored by Hermes

When Hermes created the South West Expansion Team it set it the not inconsiderable task of relocating two extremely busy operations to larger premises. With online shopping volumes surging, Hermes identified at the end of 2014 that it again needed to increase capacity in the South West where it had depots at Portbury, near Bristol, and Nursling, Southampton. A successful move from Portbury to a 43,000ft2 site in Avonmouth and from Nursling to a 60,000ft2 site in Hedge End increased combined capacity from 80,000 parcels to 160,000. The multidisciplinary team, led by Adam Leach, head of property, engineering and fleet, identified, planned and delivered the new locations in time for the 2016 peak, which would have overwhelmed its previous South West sites.

Judges liked the clear business rationale for the changes but were slightly in awe of the magnitude of the revisions. “Hermes has put a team together and delivered a project. I take my hat off to them as it was a major project and what they have achieved is admirable,” said one. “Certainly it’s something that if you get wrong it’ll really hurt your business,” said another. ”A big risk but it didn’t fall over,” added another member of the panel.

Bibby Distribution

Bibby Distribution’s food and ingredients team is described as “the hidden heroes of kitchens across Britain” because they essentially move food and drink from farm to factory to fork. With more than 300 people in nine locations from Scotland to the South and a fleet of 250 tankers, this was one of the larger team entries in this year’s awards. The company’s commitment to supporting the team – including in fleet (Bibby spent £1.2m on 18 new tanker trailers) – is paying off: the average service length is 10 years. To provide an idea of the scope of the ingredients business, Bibby supplied data for Q4 2016; it moved 10,000 tonnes of liquid chocolate, 2,500 tonnes of preserves, 17,500 tonnes of juice and 2,000 tonnes of milk – one in 12 pints in the UK – during the period.

Judges liked the entry’s clear and concise presentation. “This was always a good business,” said one, pointing out that it has been an unsung kitchen hero for too long.

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WMB Logistics

WMB Logistics, based in Gloucester but operating across Europe, delivers top-of-the-range show motorcycles on time and in pristine condition. Its customers include Harley-Davidson, Ducati, Triumph and BMW and over 10 years it has built a reputation for transporting and setting up motorbikes worth thousands of pounds at major UK and European events with precision but not drama. Planning for each event starts two to three months before, and the team are briefed to provide event support. Vehicles are collected, inspected and cleaned to meet showroom condition. WMB provides set-up at the event (and take-down) with delivery back to the respective manufacturers. Attention to detail extends to developing its own cradles to maximise security and safety of the bikes while in transit, and taking its own forklift trucks for set-up. While the team has a core of drivers and logistics staff, for very big events it bolsters its resources with warehouse and casual staff.

“It is, without doubt, a business that is very good at what it does,” said one judge.

Pall-Ex

Pallet network Pall-Ex’s submission centred around a new operations team brought together to transform its hub operations and reduce any inefficiencies at the two decades-old business. Comprising day and night team operation members, the core were Adrian Bradley, director of operations; Richard Southern, general hub manager; Richard Leedham, hub improvement supervisor; Helen Harris, health and safety manager; and Chris Mason, night hub manager. Having identified areas that could be improved, the team set goals in a series of areas. To achieve some of their targets they had to redesign Pall-Ex’s Ellistown hub in Leicestershire. The results speak for themselves, including: outbound scanning improved 33% (target 30%); inbound scanning 50% (target 30%); a 16.6% decrease in hub discrepancies raised or lost or damaged pallets (target 15%); and reducing the manning cost per pallet by 11p (target 10p).

“An excellent outcome and performance,” said one judge. “There’s real substance to this particular story,” agreed another.

22.5.17 17/05/2017 09:54:12

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17/05/2017 13:55:18 23/03/2017 10:28

MT Awards 2017 shortlists

motortransport.co.uk

Home Delivery Operator of the Year Sponsored by

Hermes

Hermes experienced record-breaking volumes from 2015 to 2016, with peak parcel volumes up 6% year-on-year. This, combined with its 100% client retention rate and numerous technological innovations, meant it was a shoo-in for this year’s MT Home Delivery Operator of the Year shortlist. Hermes has a first-time delivery rate of 95%, compared with an industry average of 93%, and judges praised its tie-up with Co-op stores across the country for making itself accessible to its customers. By using the Co-op stores and others, the MyHermes parcel network continued to expand last year and 92% of the UK’s population now lives within two miles of one of the network’s 4,500 locations. In 2016, Hermes made numerous improvements to its customer service proposition, which saw it bring its average customer call handling time down by 13.5%, while also increasing its first-time resolution rate to 99% (a 5% increase on the previous year).

Last year Hermes became the first parcel delivery operator in the UK to integrate its parcel tracking system with Amazon’s Alexa smart speaker, which allows customers to track deliveries with voice commands. The firm also worked with Starship Technologies to develop self-driving delivery robots, which are being trialled in parts of London.

Judges were impressed by its customer satisfaction ratings and its focus on continually improving these. One judge said: “When it comes to customer service and innovation, Hermes has a stand-out operation across the board.”

Panther Warehousing

Former general haulier Panther Warehousing wowed judges with its transformation to become one of the leading two-man delivery firms in the sector after taking a leap of faith into what it perceived to be a gap in the market. The leap paid off and in its most recently published

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results Panther recorded a pre-tax profit of £1.2m, compared with the previous year’s £254,000. From a turnover of £5m in 2010 to £38m in 2016, Panther’s business growth has been strong and rapid, and its projected turnover for 2017 is £50m.

Panther’s first-time delivery rate of 99.4% was highly praised by the judges, who applauded the company’s dedication to meeting its customers’ needs.

Another strong element of its operation is driver training, which takes place in a bespoke facility built in the shape of a house so employees can practice making safe and efficient deliveries in a real-world environment. Delivering more than 20,000 items in the UK every day, Panther has invested heavily in both its fleet and employees in recent months.

“This company is impressive and definitely one to watch,” said one judge. “It has a desire to deliver for its customers and to find new and innovative solutions to do this with.” “This company is a success story when it comes to business turnaround. Panther has transformed its model, its strategy, and more than doubled its profit year-on-year,” noted one. Another said: “It’s easy to see a gap in the market and fill it, but it’s not easy to make money doing it. Yet that’s exactly what this company is doing.”

DPD

DPD once again impressed judges with its strong business performance and industry-leading innovations. Key to its business success, said the panel, is its recognition that the parcel receiver has become as, if not more, important than its sender. At the heart of DPD’s successes in the past year is its end-customer app Your DPD. The technology allows customers to personalise their delivery experience by changing their preferences in the application. The app received more than one million downloads in its first nine months of operation, and DPD said it has significantly increased its first-time delivery rates. Those using Your DPD have a 97% first-time delivery rate, compared with 94% among those who are not. Another innovation that impressed the judges was DPD’s Precise service, which it launched in 2016. Building on its Predict service, which gives customers a set hour delivery slot for their business, Precise enables customers to select their own hour of delivery. Financially, DPD has continued its strong business performance, with turnover and profit on an upward trajectory, and judges praised the evident pride the business and its customers take in the brand.

One judge said: “This is a leading brand, which its customers are clearly proud to be associated with.” Another said: “The Your DPD app is a cracking innovation. It’s industry-leading and a game changer.”

22.5.17 17/05/2017 09:51:36

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17/05/2017 13:56:47 2017/03/28 12:04

MT Awards 2017 shortlists

motortransport.co.uk

Partnership Award Sponsored by Parcelforce Worldwide and Screwfix

Parcelforce Worldwide has been the sole carrier for Screwfix for the past eight years.

Screwfix’s ‘automated packaging system at its warehouse in Stoke-on-Trent produces four carton sizes for customer orders. This meant shipped items were smaller than the package and without internal packaging to fill the empty space around them, items were susceptible to damage or being lost. In March 2016 Parcelforce implemented a solution that reduced the size of packaging and passed on £325,000 of savings to Screwfix. This included taking two full trailer loads a day off the fleet by reducing the volume of packaging.

Judges said this was a great example of a service issue solved using a partnership approach.

Alltruck and DX Network Services

In its search for a vehicle that would reduce carbon emissions and make the job easier for drivers entering hard-to-access residential areas, DX approached Alltruck. The answer was a 5-tonne box van with a 2,200kg payload and 6m load length and a Fiat Ducato back-toback cab with an AL-KO chassis conversion was chosen. Attention was paid to the development of the aerodynamic cab top with a patented air kit. In all, 30 vehicles are on the fleet, with the 5-tonners achieving a 26% fuel saving compared with 7.5-tonne equivalents. DX is reducing its CO2 emissions by 7.2 tonnes per vehicle, and 216 tonnes across the fleet a year. Another 55 vehicles are on order.

The judges praised the emissions benefit and said the vehicle design was excellent.

Arla Foods and Danone

Arla and Danone are competitors in the dairy sector, but for the past five years they have worked in a logistical partnership to supply products in the most economic, cost-effective and timely fashion with as few food miles as possible. Arla receives, stores, picks and delivers all Danone imported products alongside Arla’s and other manufacturers’ products, sharing a chilled warehouse network and chilled fleet. Over the past five years the partnership has delivered positive developments in shelf fulfilment, helped to contribute to joint environmental targets and provided direct commercial benefits. In 2016 a warehouse management system was introduced, along with an Ireland route to market and a repacking service at its Hatfield facility.

Judges praised the genuine collaboration and long-term thinking demonstrated by both parties.

Cemex and Continental

Cemex and Continental have worked together for the past six years, redefining the management of tyres between the two businesses. Tyres are one of the most important safety concerns at Cemex and its third biggest cost on a

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vehicle. The two businesses worked on testing and finding the optimum tyres for different applications. There is now better tyre pressure control; extended tyre life; better fuel efficiency and reduced waste and damage, particularly with an open-book contract providing control over fixed price costs. There has also been improved safety performance with no incidents in the past two years, and only one tyre blow-out during that time.

Judges singled out the entry for its great detail, saying it was a good story of a long-term partnership.

Meachers Global Logistics, Red Funnel and Steve Porter Transport Group

Last-mile deliveries to the Isle of Wight are among the most challenging in the country, particularly for a 24/7 service. Steve Porter, the largest independent operator on the island, has worked with Southampton operator Meachers and ferry operator Red Funnel since 2012. The trio co-operates on the delivery of inbound and outbound freight, with Meachers trunking Steve Porter overnight groupage loads from the Isle of Wight to DCs in Northampton and Coventry for onward distribution. The operation includes a sustainable DC, consolidating goods bound for the Isle of Wight at Meachers’ central facility in Southampton. Steve Porter’s drop-trailer volumes have risen 28% since the introduction of a bespoke cross-Solent drop-trailer service.

Judges said this was a “great example of three companies coming together to each contribute their expertise to deliver to a challenging part of the country”.

DFDS Logistics and Magnavale

Two years ago Rick Bestwick, a temperature-controlled food specialist owned

by Magnavale, outsourced all its transport operations to DFDS after running them internally for 35 years. This required a huge amount of trust from Magnavale in DFDS and has seen both parties go from strength to strength.

The Rick Bestwick outsource was so successful that the transport operations at fellow Magnavale businesses CM North West and Lancaster Coldstore are now run by DFDS. Since the partnership began, 58,000 deliveries across the UK, Europe and beyond have been conducted. The partnership works both ways, with baking firm Fletchers, a Magnavale customer, signing a five-year joint venture with DFDS to supply storage and transport.

Judges praised the performance of the partnership and the trust between the two parties.

22.5.17 17/05/2017 09:48:16

MOTOR TRANSPORT AWARDS 2017 5 July 2017

Wincanton is proud to sponsor the Partnership Award. Good luck to all those shortlisted

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Industry leading service, committed to the needs of our customers

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As the largest British transport and logistics company, Wincanton works across a number of industries throughout the UK and Ireland. The company prides itself on its commitment to maintaining the highest levels of safety, adding value for customers and consistently delivering industry leading services.

To speak to one of our team, please email getintouch@wincanton.co.uk or call 0844 335 0502

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