Motor Transport 5th June 2017

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Sharp ■ Informed ■ Challenging

5.6.17

the NEXT GENERATION SCANIA

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NEWS INSIDE Lucky seven

Kinaxia acquires Maiden’s in seventh deal in five years p3

Purchasing power

Gatemore adds to shares to halt DX Menzies deal p6

Future freight

Governments should plan for autonomous trucks p8

Under pressure

Are PCNs just another business expense? p10

OPERATORS IN THIS ISSUE Absolutely ............................................p3 Clipper Logistics....................................p9 DHL Supply Chain .................................p3 DX Group ..............................................p6 Great Bear Distribution ........................p12

Freight industry is not ready for relaxation of rules, says FTA

EU proposes to relax cabotage By Carol Millett

The EU is proposing to relax cabotage rules to allow HGVs on foreign runs to make unlimited deliveries and drop offs over five days rather than the existing limit of three internal movements in a member state over seven days. The proposal is contained in the EU’s Mobility Package, announced last week. Another key proposal is for drivers working out of their home countries for more than three days to be paid the local minimum wage to prevent so-called “social dumping” by operators based in low-wage countries such as Poland and Romania. This saw protests outside the EU’s headquarters in April. Other proposed changes include a ban on drivers taking their weekly 48-hour rest in their cabs, the removal of the need for transport companies

NOT SO SOCIAL: Transport workers protest against ‘social dumping’ in front of EU headquarters in Brussels, Belgium Image: Wiktor Dabkowski

to keep a representative in countries through which their drivers are travelling, and a cut in the level of evidence needed to prove drivers are being paid the local minimum wage. No reference was made to France’s plans to charge €40 (£35) to foreign drivers travelling through France, which is being challenged under existing EU legislation.

FTA head of licensing policy James Firth raised concerns about the cabotage proposals. “Five days is a working week. This proposal allows total freedom of movement and is an extreme relaxation of current rules and a liberalisation for which the UK freight industry is not prepared, particularly considering the existing disparity in fuel duty.”

MT remembers former editor Former Motor Transport editor Andrew Brown has died, aged 62. Brown was editor of MT from 1995 to 2007. During his time, the Motor Transport Awards expanded significantly in size and scope to become the industry’s Oscars that we recognise today. Brown also recognised from an early stage a number of issues facing the haulage industry, including the Working Time Directive (WTD) and in the lead up to the legislation being enacted, organised a series of popular Motor Transport WTD Conferences. He was a staunch defender of MT’s independence and shepherded the title through the cost-cutting that followed the recession after 9/11 and the growth of online publishing. After stepping down from the editorship, Brown became special projects editor for the road transport titles for several years. He is survived by his wife Lu and children Joshua and Hannah.

Kuehne + Nagel...................................p12 Maiden’s of Telford ................................p5 Menzies Distribution .............................p6 Suttons Group .....................................p28

OUT OF THE RED: Europa Worldwide Group smashed through the £100m turnover barrier and returned to profitability in 2016. The group also boosted its turnover by a fifth. For the year ended 31 December 2016, Europa recorded turnover of £116.4m (2015: £96m). Pre-tax profit saw a significant jump last year, rising to £2.3m from a loss of £1.6m in 2015. Turnover increased in all divisions with year-on-year increases of 47% in warehousing and 17% in road transport. Europa said the year had seen the business recover from the “disruption” of the company's restructure in 2014/15.

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Show report: Microlise p14 Highwayman p18 Focus: Politics p20 Profile: Ryder p25 Interview: Suttons p28 MT Awards shortlists p32-38 Careers Hub p41

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31/05/2017 16:06:05 30/05/2017 16:06


News

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AJ Maiden & Son becomes haulier’s seventh purchase

Kinaxia bowls over Maiden’s By Chris Druce

Kinaxia Logistics has snapped up its seventh haulage firm in just over five years, with Telford-based AJ Maiden & Son, which trades as Maiden’s of Telford, joining the stable. It already owns Bay Freight (acquired January 2012); William Kirk (September 2013); NC Cammack & Sons (May 2014); Foulger Transport (March 2015); Lambert

Brothers Haulage (March 2015); and Panic Transport (Contracts), acquired in February. Palletforce and TPN member Maiden’s of Telford was formed in 1931 and today provides general haulage, including contract distribution, pallet distribution and warehousing and storage. Maiden’s of Telford MD John Maiden, who will remain at the business alongside son AJ Maiden, said: “We are pleased to be joining Kinaxia as this gives us an opportunity to maintain the family values and customer service levels that have been developed over the past 86 years while providing a secure future for the business.” Kinaxia Logistics director Peter Fields said: “We are proud to welcome Maiden’s of Telford to Kinaxia Logistics and anticipate that its distinctive family culture and established levels of customer service will fit perfectly with the decentralised way that Kinaxia operates.”

Fields added that he expected to complete another deal later this month. According to Kinaxia, taking into account this latest acquisition, it now has 900 staff with a annual turnover of £75m. It operates 450 vehicles and has 850,000ft² of warehouse space. William Kirk, Foulger Transport and Lambert Bros are, along with Panic Transport, all members of the Palletline network. MT understands that Panic Transport is working its 12-month notice period because, according to Fields, “Palletline felt Kinaxia didn’t fit with what it does”. The other hauliers are not believed to be affected. Kinaxia also bid for Palletline member ABE (Ledbury) earlier this year. The business was bought by Palletline in February. The Panic Transport deal saw principal Kevin Johnson join Kinaxia, which was set up in 2010 by Peter Fields and Graham Norfolk, the latter being the founder of corporate finance firm Acorn Capital Partners.

NEW WEDGES: Transdek has supplied Nisa Retail with 10 wedge double-deck trailers. The trailers, which will be operated by DHL Supply Chain, will run from Nisa’s Scunthorpe DC. Nisa Retail head of logistics Lee Vickers said: “We distribute substantial ambient volumes into the South from Scunthorpe, and the introduction of Transdek trailers has allowed us to cut 25 trunks a week.” Nisa Retail said the purchase will help save more than £400,000 and 730,000kg of CO2 every year. Nisa dispatches 2.7 million cases a week across the UK. Transdek has also supplied four hydraulic double-deck lifts, which have a bi-fold bridge plate designed to enable safer and easier access to the rear doors of trailers after docking.

Absolutely integration under way Courier Absolutely is on course to fully integrate air freight carrier MayDH within the next few months. The London-based business, formerly A-Z Couriers, said the acquisition in March was a “great deal”, adding that it would be moving the MayDH business into its site near Heathrow in the coming months. Absolutely MD Jeremy Thompson said: “It doubles the size of our international air courier business from £2m to

£4m, giving us greater buying power in the market and puts the business into a larger, more efficient operation.” He added that Absolutely has numerous contracts to move large cardboard cutouts seen in cinema foyers around the world. Thompson said MayDH “has a particular specialism in this, so it’s a good fit”. Thompson said the acquisition was part of a strategy that will see more in the coming years and inject “significant growth” into the business.

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“ We’ve just bought 11 new Scanias. They’re the ultimate vehicle for me. Solid, reliable and tough, I can’t see a time when I would buy any other marque. When people see that we invest in a top-of-the-range product, that confidence cascades down through the whole business. We have a long term R&M contract and the service is just great. I do a lot of analysis and on ‘whole life cost’ our Scanias easily outweigh the competitors.” Ricky Hemmings Managing Director Ardula Ltd.

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31/05/2017 16:54:38


News

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Shareholder still opposed to Menzies Distribution acquisition

Gatemore adds DX shares to halt deal By Emma Shone

The DX Group shareholder leading the charge against the company’s proposed acquisition of John Menzies’ distribution arm has increased its holding in the company by 10%. Gatemore Capital Management has upped its shareholding in the company from 11% to 21% to strengthen its position against the proposed deal and DX’s management team. DX froze its shares on the Alternative Investment Market (AIM) on 30 March after announcing it was in talks to buy Menzies, a move that Gatemore described as “very unusual” and a “face-saving exercise”. The move came after

Gatemore Capital Management called, for an extraordinary general meeting (EGM) to vote on the removal of DX’s board chairman Bob Holt and non-executive director Paul Murray after the company reported a 90% decline in value over two years. Gatemore Capital Management managing partner Liad Meidar told MT: “We believe in the company long term and we believe it’s clear that we’re going to be able to defeat the deal. So we wanted to take the opportunity to build our stake. “And we want to send a stronger message in case they don’t understand already that the deal is going to be defeated at the EGM [a date for which

has not been set yet].” Meidar added he thinks Gatemore has started to change the attitude of other shareholders who were keen to sell as soon as the business’s value increased again. He said: “Some shareholders were fatigued. They’ve suffered a 90% decline in value. It’s a small part of their portfolio and they want to sell at the next up point they can achieve. But we’re taking the view that it’s a very good asset we have here, and it’s being mismanaged. And slowly the shareholders who took that first view are starting to appreciate what they’re sitting on, and the tone has changed.” DX had not responded as MT went to press.

Menzies buys EM News for £5m Meanwhile, Menzies Distribution has strengthened its hold on the Irish market by purchasing the remaining 50% share in Irish news and magazine wholesaler EM News Distribution. Under the terms of the £5.46m deal, Menzies has upped its 50% interest in the company to 100%, buying the remaining half from Irish retailer Eason. EM News Distribution’s 193 employees join Menzies Distribution, along with 44 directly-owned vehicles from a fleet of 201. Menzies has a fleet of 1,600 vehicles and a staff of 3,500. The deal is the latest in a string of acquisitions by Menzies. It bought distributor AJG Parcels in June 2015, Oban Express in November 2015 and Thistle Couriers in February 2016. It is also building its portfolio of retail logistics contracts, including a three-year national contract for WH Smith’s national network of 1,200 stores, and a UK-wide contract with catering equipment supplier Nisbets. Menzies Distribution finance director Paul McCourt said: “Taking full control of EM News Distribution gives us the opportunity to bring our expertise to bear on serving the newstrade sector across Ireland.”

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31/05/2017 16:12:23 22/05/2017 15:25


News

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DVSA scheme live in autumn?

Report recommends speed of adoption to lessen redundancies

Plan for driverless trucks By Carol Millett

Governments must plan to manage the effect of millions of redundancies created by the likelihood of driverless trucks, experts have warned. Automated trucks could slash the demand for drivers by up to 70% in the US and Europe by 2030, according to a report from the International Transport Forum (ITF). The report predicts that up to 4.4 million of 6.4 million driving jobs could become redundant across the US and Europe, which may result in social disruption unless governments manage the transition to driverless trucks. The report, Managing the transition to driverless road freight transport, recommends the creation of a transition

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advisory board to advise on labour issues, the adoption of a temporary permit system to manage the speed of adoption, and the creation of a set international standards, road rules and vehicle regulations for self-driving trucks. It also recommends continuing pilot projects with driverless trucks to test vehicles, network technology and communications protocols. José Viegas, secretarygeneral of the International Transport Forum (ITF), said: “Manufacturers are investing heavily in automation and many governments are reviewing their regulations. “Preparing for the potential negative social effect of job losses will mitigate the risks in case a rapid transition occurs.”

Christian Labrot, president of the International Road Transport Union (IRU), said: “Autonomous trucks will bring many benefits to society, from cost savings and lower emissions to safer roads. Autonomous vehicles will help the haulage sector deal with the current shortage of drivers in many parts of the world. “However we have to remember that drivers will need to be retrained tomorrow, and we must keep attracting professionals into road transport. We need to work together for a smooth transition to driverless technology.” ■ See our Microlise Transport Conference round-up starting on page 14 for more news on platooning and automated technology.

DVSA head of enforcement policy Gordon Macdonald has hinted that the agency’s flagship earned recognition scheme could go live this year, despite the organisation’s chief executive previously appearing to rule this out. Speaking at the Microlise Transport Conference last month, Macdonald said the scheme, which was intended to be live by now, was again

being piloted with operators. The pilot runs until this autumn. “We envisage going live at some point in the autumn,” Macdonald said. At this point, OCRS will be updated and the DVSA will publish earned recognition lists, changes to the DVSA roadside process will be changed, and operators in the pilot will move to accredited status, he said.

Bullwell appoints Bailey as MD Former Axis Fleet Management operations director Nigel Bailey is taking up the role of MD at trailer repair and maintenance company Bullwell Trailer Solutions. Bailey replaces Bullwell Trailer Solutions founder Gary Bulley, who is taking up the

role of head of engineering innovations at parent company Ryder. Bailey is tasked with driving up customer service across the firm’s nationwide network and boosting the firm’s team of specialist engineers to meet demand.

Book a place at LoCity roadshow LoCity, sponsored by TfL, is to host four free interactive roadshows to help operators experience the latest ultra-lowemission commercial vehicles. Sessions include: electric, gas, hydrogen and fuels in action (covering renewable fuels and retrofit solutions). Electric vehicles will be the focus of the first half-day event,

on 12 July at the University of East London. Visitors will be able to see a selection of electric vans and HGVs available to operate; learn about charging infrastructure and understand the commercial benefits of operating CVs. ■ Register to attend at locityroadshows.co.uk.

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Tachomaster developer Road Tech building tracking software for all types of vehicle

Apply hours rules to vans By Emma Shone

Commercial van drivers should be subject to the same drivers’ hours legislation as truck drivers, according to the company behind Tachomaster. Road Tech is in the process of developing virtual tachograph software that enables the monitoring of a driver’s activity in any vehicle. The Hertfordshire firm has built the software in conjunction with a “famous online retailer” that is expected to roll out the system later this year. It requires a driver to sign in on a phone app where he can set his status to driving, resting or at point of arrival. By scanning the vehicle’s QR code, the app links to an onboard tracker that monitors its movements. Road Tech technical services manager Adrian Barrett told MT: “If a person is spending their day driving around and making deliveries, they should be subject to the same legislation as HGV drivers. “I think you’d need to differentiate between these people and, say, a local plumber that drives a few miles in an area every day. But that should be easy enough to do.” He added: “People don’t like legislation because it means they have to do extra work and

they think they’re being hard done by. But that legislation is there to protect people.” Road Tech recently celebrated its 100 millionth tachograph download from its Tachomaster system. The download was sent by longstanding customer Fowler Welch (above), which was presented with an award at a celebration last month. Maureen Ballance, sales manager at Road Tech, said: “The milestone was a testament to the people here. We’re good at keeping our heads down and getting on with it.” Ballance added that the company was not resting on

its laurels. “We’re writing more software and providing more answers to the ever-growing

legislation. Every system that we’ve got, we develop,” she said.

NO STRINGS ATTACHED So confident is Road Tech of its customers’ loyalty, that it doesn’t use contracts. Every business using Tachomaster pays a flat rate of £1 per vehicle per week, on a pay-asyou-go basis. Fowler Welch has been using the system for 10 years. Road Tech sales manager Maureen Ballance told MT: “Our customers stay with us not because they’ve signed a contract they couldn’t get out of if they wanted to, but because of the quality of software and the constant development of it, the backup and support, and the free training. We don’t need to ask our customers to sign a contract because we want them to stay with us because of all of those things, and because they think they’re the best systems on the market.”

Clipper to buy Tesam for £11m Clipper Logistics is buying warehouse and distribution business Tesam Distribution for £11m. The Peterborough firm operates from three sites in and around the city, with a combined coverage of more than 1.1 million ft². It was founded in 1984 and employs approximately 250 people. Clipper said Tesam’s sites are “attractively located with highly competitive cost bases”. The operator wants to increase capacity at Tesam’s HQ in Peterborough by adding mezzanine floors and new racking and handling space. This, Clipper said, will help it fulfil its new operations, after more than a year of regularly winning new contracts in the retail distribution sector. Tesam MD Stephen Smith will become a consultant to Clipper Logistics when the deal is completed, with all other management staff remaining employees. Clipper Logistics MD Steve Parkin said: “Tesam is a profitable business that we have known for some time.”

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

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01/06/2017 12:14:34


News extra Should PCNs be regarded as just one more business expense that hauliers have to take into account?

Hauliers under pressure not to stand and deliver By Laura Reeve

Increasingly competitive kerbside demand, coupled with the lack of adequate loading and unloading facilities, has been worsened by conflicting government directives, making life difficult for companies delivering to towns and cities, according to experts. For example, London’s population reached a record high of 8.7 million in 2015, and is expected to reach 10 million by 2030. The knockon effect to congestion levels will be an increase of 60%, according to TfL.

Peak traffic

Commercial vehicles make up 28% of traffic in London and represent 16% during the morning peak. While this situation is not exclusive to London, the capital is most

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affected by these issues. James Hookham, deputy chief executive at the FTA, summarised the situation: “The dilemma for delivery businesses is that they are there to perform an essential economic function. They have little choice about changing their behaviour in relation to fines. The destination to which the goods are being delivered is obviously fixed. “Often, those premises are only occupied and open for deliveries at certain times during the day and, because of other restrictions on operation and travel, the delivery windows available to many businesses are limited.” When a vehicle stops to deliver goods it can be exempt from parking regulations, but if loading and unloading is not seen to be taking place or the

activity takes longer than the maximum 40 minutes permitted, a parking ticket might be issued. Often these are overturned on appeal, but only after significant time has been wasted on administration.

Not a good fit

Operators also report that various initiatives and regulations often don’t fit well together. Planning for the cycle superhighways in the capital has been criticised for not taking other business activities into consideration, while the installation of electric vehicle charge points and TfL’s cycle hire docking stations are further diminishing the already precious kerb space available to hauliers. Councils use a standardised code system when classifying penalty charge notices (PCNs),

which are split into a two-tier pricing structure. Almost all infringement codes relating to freight sit within the higher band of £130. The result is that some operators are receiving PCNs amounting to hundreds of thousands of pounds a year. The FTA has even labelled a group of its members the

‘millionaires club’ because they were each incurring fines exceeding £1m a year.

Business cost

PCN charges are routinely treated as a business cost and some large operators have felt it necessary to employ staff purely to administer them. Overall, the number of

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nationally, followed by Nottingham, Birmingham and Manchester. A problem for the transport industry is that the number of PCNs issued to commercial vehicles is not quantifiable. Reported statistics relate only to total PCNs issued so cannot be used to determine trends for the delivery industry. Given the minute level of detail collated for other areas of transport, this is perhaps surprising. TfL said the information cannot be provided because different categories of vehicles are not distinguished at the time of issuing PCNs.

Consolidate, retime

PCNs issued is decreasing. The last reported figures from London Councils showed that 4.6 million PCNs were issued in 2015/16, a decrease of 5.47% in the past five years, but there are significant variations between councils. The City of Westminster has almost halved the number of PCNs it issued, while Harrow

and Kingston upon Thames have each increased theirs by more than 50%. Wandsworth, which has been at the forefront of trials aimed at reducing commercial vehicle congestion, has reduced PCNs by 16% over five years. Outside London, Brighton and Hove issues the most PCNs, ranking in the top 10

The main initiatives being hailed by various authorities in answer to commercial vehicle congestion are consolidated deliveries before entering cities and retiming, so that deliveries are made outside of peak hours, something TfL advocates. ‘Virtual’ loading bays are being trialled in Wandsworth, which will allow operators to book restricted kerb space in advance. The problem with all these options is that none of them are viable alternatives. Retiming trials in 2007, and others subsequently, were deemed successful, but 10 years on and with the London Olympic Games a fading memory, the concept is still far from being the norm. The Brewery Logistics Group’s (BLG) members operate approximately 1,000 vehicle days a week inside the M25,

and historically receive collective PCNs in excess of £2m a year. Through a combination of managing PCN appeals, working with councils to develop solutions, and implementing driver training and behavioural incentives, BLG members have slashed the number of PCNs received by 75% over the past 10 years, from 1,540 in August 2007 to just 387 in August 2016.

Manage your PCNs

BLG chairman Mike Bracey said that any company obtaining more than 10 PCNs a week should consider putting someone in charge of managing them. He suggested a comprehensive approach to recording PCN data, including ticket information, appeals and outcomes, driver details, location received, and so on, then using the data as a management tool to identify and tackle recurring issues. Natalie Chapman, head of policy for London and the South East at the FTA, said that while the association supports this approach, the data that is being received by its PCN department is often of such poor quality it is clear that the information is being recorded purely for processing purposes and not for management purposes. Yet, she added, properly recording and interrogating PCN data can identify driver training needs, facilitate better route planning, and can be used as evidence to negotiate with councils where genuine problem areas persist. ■

G4S strategy reduces PCNs

Security firm G4S has unique challenges around the safety of its personnel, with proximity to a collection point being of critical importance. Because of this, it incurred approximately 10,000 PCNs a year between 2008 and 2011, reaching a peak of 16,700 in 2012. G4S employed a PCN manager, and by closely monitoring and managing the PCNs received and implementing strategies to deal with them, it reduced the cost to the business by around £750,000 in six months. G4S also attempted to offset unavoidable PCNs against corporation tax by claiming that parking fines were a business expense, arguing that it could not carry out its trade safely without contravening parking regulations. However, a tribunal ruled in favour of HMRC, setting a precedent for rejecting any future such claims.

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

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MotorTransport 01/06/201711 14:23:14


News

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Former DHL Tradeteam manager Alastair Isbister is aiming to expand the business during his reign

Great Bear names chief exec By Emma Shone

Great Bear Distribution has hired former DHL Tradeteam manager Alastair Isbister as chief executive officer (CEO). Isbister previously held the position of VP business development and account management at DHL Tradeteam for more than seven years. He will report directly to Culina Group CEO Thomas van Mourik. Isbister said his goal was to expand Great Bear Distribution. “I am looking forward to helping take Great Bear Distribution to the next level. It is an exciting opportunity at an interesting time in UK logistics,” he said.

Van Mourik said: “I am looking forward to working with Alastair to take our Great Bear business forward. I am confident that Alastair has the ideas, the charisma, and the energy to help us take the group on to even greater heights.” Isbister replaces Glenn Lindfield, who was CEO through the transitional period when Culina Group bought the business. Lindfield left the business in October 2016 and van Mourik acted as the interim CEO until Isbister’s appointment. Culina Group bought Great Bear Distribution in March 2016, creating a business that has a combined annual turnover of more than £400m.

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Kuehne + Nagel has clinched a major contract to manage GlaxoSmithKline’s (GSK) UK road distribution of consumer and healthcare goods. The operator will be responsible for the inbound supply route and the final-mile delivery of all subsequent outbound shipments for GSK. This new agreement expands Kuehne + Nagel’s fiveyear end-to-end global air, sea and overland logistics partner-

ship with GSK, which it signed in 2016. Under the partnership it operates the transportation of products from the raw materials supplier to trade customers for GSK. Kuehne + Nagel UK national manager Marcus Bennett said: “We are pleased to be awarded the overland distribution business, especially in the UK where the GSK journey began.”

Pallet sector growth continues as APN members report surge “The new KRONE axle and drum brake rolls really well. We are already seeing operational benefits through improved fuel consumption and our drivers say the trailers handle perfectly. Like any national operation, we cover a lot of miles and it’s important therefore to use an axle system which is hard wearing and cheaper to maintain. In this regard, we are delighted to be the first to put the new KRONE Drums to the test!” Matt Lorne. Director, Matt Lorne Transport.

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There is no sign of growth in the pallet sector slowing despite a difficult trading climate, according to the Association of Pallet Networks (APN). The association’s figures for Q1 2017 show that its members moved more than 5.9 million pallets in the period, 7.2% higher than Q1 2016. APN chairman Paul Sanders said its members were seeing year-on-year growth across their businesses, with a 7% increase in next day volumes, 8.7% growth in half pallets and 6.5% for quarterpallet volumes. Sanders said: “We are seeing

no signs of the growth trend abating and, despite a difficult trading environment, members are seeing growth across all their services.” However, he added that the increasing volumes handled by the network would not have a negative effect on their service levels. “Thanks to robust processes and quality operations, this surge in demand hasn’t had a detrimental effect on the quality of the pallet sector offer; members’ service levels remain high, averaging 97.3% since we began our benchmarking service.” 5.6.17 01/06/2017 10:05:55


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News extra: Microlise Transport Conference

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Legal liabilities and lack of collaboration between operators are holding back automated HGV technology and platooning in the UK, according to speakers at the Motor Transport Truck to the Future debate last month

Alternative and diesel fuels

Platooning trials raise operational questions By Christopher Walton

Representatives from MAN, Iveco, Daf and Scania have all participated in platooning trials but remain unsure as to whether it would result in common use of the technology. One primary concern was pointed out by Iveco product director Martin Flach at the Mi c r o l i s e Tr a n s p o r t Conference. “If you can get to the point where a Daf, an Iveco, an MAN and a Scania are all moving together in a line, talking properly to each other… you then get to the challenge of which one is the front vehicle and which one is the middle vehi-

cle – because the middle vehicle consumes less fuel and platooning has to be multioperator to make it work – which operator takes that middle spot in the platoon?” Laurence Drake, business planning director at Daf Trucks, said the industry would learn from automation. “Whether that means we get to platooning or not, who knows?” Flach said the Df T wanted to do something immediately regarding automation and platooning, but there remained a gap between the department’s desire to do something and the ability of

major truck manufacturers to collaborate. MAN Truck and Bus UK MD Thomas Hemmerich said: “Everyone is nearly ready to go for this. But in the UK I see a legal problem – product liability. The big question is what is going to happen if something goes wrong? For me, this is going to be the showstopper as it needs to be clear who carries what liability.” Flach concurred: “The issue will be sorting out where the legal responsibility lies. If you know you are going to crash, how do you go about it? Into a bus stop? Into the other car? Who is making that decision

and who is liable? As an individual you make that decision in a split second; the automated truck will only do what it is told to do.” ■ MAN and operator DB Schenker (pictured) will trial networked lorry convoys for regular distribution work with HGV drivers on board, rather than dedicated testers, from next year. An initial test phase will use unladen two-truck platoons running on the A9 motorway between DB Schenker’s Munich and Nuremberg depots. Tests will then progress to move on to regular distribution work carrying real freight loads.

Truck manufacturers bemoan Brexit deal uncertainties Truck manufacturers have called on the next government to secure a swift deal on Brexit and stop the uncertainties that could result from drawn-out negotiations. Speaking at the Truck to the Future debate, MAN Truck and Bus UK MD T homas Hemmerich said there was a contrast between negative discussions about the effect of Brexit in Europe and in the UK. He said UK operators were 14 MotorTransport MTR_050617_014.indd 14

saying: “This [Brexit] is great.” He pointed to the new unit registrations in the first quarter of 2017 – released by the SMMT last month – which reported 10,406 HGVs above 6-tonne GVW were registered. “Looking at the comparison run-rate, you could have 47,000 units, which is enormous,” he said. However, during the debate, which included representatives from Daf, Iveco and

Scania, the manufacturers said uncertainty created by Brexit negotiations could create insecurity. Mark Grant, UK aftersales director at Scania (GB), told delegates: “I would like to see a swift deal with Brexit. The sooner we know what we have to play with, we can adapt our strategies accordingly to work with the logistics industry. Let’s just get on with it. If we can remove red tape on unneces-

sary legislation and make quicker decisions, let’s do it.” His comments were backed by Hemmerich, who said: “The biggest issue is insecurity for our industry. Whatever decision is taken should be taken fast. It will be a disaster for the whole industry if this drags on with no decisions. We need clear decisions fast. Also discussions about Scotland, in or out. This is ridiculous for us.”

Thomas Hemmerich MAN Truck and Bus UK MD “We are convinced that diesel is the best solution for the time being. But from a political point of view, listening to the discussions and the rumours, the question is – where are we going? I think politicians will set some new laws and regulations, and we will be fast with the e-mobility. I think in 2019/ 2020 we will see zero emissions in London, and other cities in Europe such as Paris are heading the same way.” Martin Flach Iveco product director “In the media, on a daily basis there’s another anti-diesel argument. So operators are now looking at what the alternative is. The two viable alternatives are electric for smaller vehicles, and then on the medium and heavy we use natural gas and biomethane, particularly to reduce CO2, NOx and particulates. But it depends on the vehicle and the job. You could do an electric at 16- to 18tonnes; people have built them and they will work. But they’re heavy and expensive, and you lose payload and range.” Mark Grant, Scania (GB) aftersales director “The industry is being badly represented on the issue of diesel engines. In some parts of London the air going into our vehicles will be dirtier than the air coming out – that’s Euro-6 technology for you. The SMMT and others need to start shouting about the good the transport industry does for vehicle emissions. There isn’t a genuine alternative to diesel at the moment, there’s new technologies coming, but you can’t just say diesel is bad.” 5.6.17 01/06/2017 10:31:06


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News extra: Microlise Transport Conference Current eyesight tests not sufficient to identify potential issues

Night driving concerns raised By Emma Shone

Current eyesight test regulations for drivers may not do enough to protect them against the dangers of nighttime driving, according to the RTITB. Speaking at the Microlise Transport Conference, RTITB lead technical executive Richard Brewer said nighttime deliveries are often a very cost-effective solution for transport businesses and their customers, adding that they comes with risks that should be given due attention. He said: “When I had my driver’s medical I had to look at a screen and read letters off it – a fairly standard eye test.

“But is that enough in regards to eyesight checks? It seems strange that we have people who work on visual display units, and we expect them to have checks every two years to make sure it isn't affecting their eyesight. “But for drivers working in night-time operations, we have a minimal test. So that may be something you want to consider – is it enough?” Brewer outlined numerous reasons why working at night can be more difficult and dangerous for HGV drivers. Among these were the reduced ability to see colours and not being able to see as far, which gives a driver less

time to respond to a changing situation on the road. Brewer cited research from Brake that showed that 40% of collisions take place at night. As only 15% of vehicle miles are travelled at night, he said, this is a significant portion. Brewer also warned operators to be wary of advising tired drivers to turn on the radio, as music played during the night is designed to be soothing rather than stimulating. He said: “We are not programmed to be nocturnal,” he told delegates. “Our body clocks cannot fully adjust to it. If we educate our drivers on these issues then we can keep them safe.”

Driver of the year winner Rafal Kolanko, a driver at Samworth Brothers Supply Chain, has been named Microlise Driver of the Year 2017. Announced at the Microlise Transport Conference last month, Kolanko (pictured, centre) won the mediumdistance driver category before going on to win the overall title. Other award winners include Michael Young from Culina for the short-distance category, and Peter Jones of Chamberlain Transport was

named long-distance driver of the year. Microlise also named two winners in the HGV Heroes category at a dinner the night before the conference. Eddie Stobart’s Robert Brown used his vehicle to shield a car that had been involved in a collision, and climbed inside the damaged vehicle to comfort a young girl. John Harrington from DHL saved the life of an elderly man at the roadside who had suffered a heart attack.

The MAN range has never been bigger

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All Pages

5.6.17 01/06/2017 11:07:52


motortransport.co.uk

Direct Vision Standard criticised amid calls for clarity for HGV manufacturers

Local legislation has become a ‘minefield’ By Christopher Walton

Local legislation, when it comes to logistics movements in the UK, is a “minefield� and TfL’s proposed Direct Vision Standard for HGVs in the capital is “not the answer�, according to leading truck manufacturers. Speaking at the Truck to the Future debate at last month’s Microlise Transport Conference, Laurence Drake, business planning director at Daf Trucks, called on local governments throughout the UK to end the minefield of differing local legislation and standards. He also called for clarity on where HGV manufacturers need to be in five years’ time.

“If we know, then we can get there,� Drake said. “When you look at TfL’s requirements, the danger is they almost become laws because you cannot quote for a tender [without meeting them].� Martin Flach, product director at Iveco, said he did not see the Direct Vision Standard in London, which assesses and rates how much an HGV driver can see directly from

their cab, as being the real answer to improving vulnerable road user safety. The standard, which is under development, rates a vehicle against a five-star scoring system based on the driver’s direct vision from the cab (as opposed to indirect vision via aids such as mirrors and cameras). Flach thinks technology is a more cost-effective way to

save lives. “There is nothing quite like an advanced emergency braking system for forward-facing collisions. So, can you do that for potential collisions at the side of a truck? [This would relieve] the driver of the decision.� Mark Grant, UK aftersales director at Scania (GB), called on local governments to give the industry clear guidelines. “What do councils want? They need to agree it across all metropolitan boroughs and in London. Manufacturers are good at coming up with great designs once we know what we have got to design for. I am a great believer in devolved power but there has to be co-ordination,� he said.

Beware the fuel duty hike The FTA has warned operators to remain vigilant about the threat of a fuel duty hike this year. Addressing delegates at last month’s Microlise Transport Conference, FTA deputy chief executive James Hookham said that at 57.95ppl, the UK’s fuel duty remained one of the highest in Europe, with only the Netherlands levying more. “We should take a moment to acknowledge the fact that number has stayed the same for six years despite the persistent efforts of chancellors of the exchequer to try and increase it,� he added. However, Hookham warned that the political landscape was changing. “The chancellor is undertaking a review of diesel over the summer. He’s moved his budget to the October period now. In regards that number [57.55ppl] we’re going to have to work hard to keep the same going forward,� he said.

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MotorTransport 17 18/05/2017 16:25 01/06/2017 11:06:22


Highwayman

motortransport.co.uk

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

Road haulage firms’ callhandling standards have come into question after a study into hold music. Research conducted by audio branding specialist PHMG, which audited 135 companies in the road haulage sector, discovered the majority were subjecting customers to generic music while on hold.

It said 46% of road haulage businesses still leave customers listening to nothing but generic music – or Magic Radio as it’s more widely known. A further 25% subject callers to beeps (probably better than Magic Radio), while 21% leave them in blissful silence and 5% force them to listen to ringing. Only 1% employ brand-

DUVET DAYS: Senior traffic commissioner (TC) Beverley Bell was, by her own admission, demob-happy at last month’s Microlise Transport Conference as it was her last public speaking engagement before stepping down from the role she has held for 17 years (as TC) and five as senior TC. In a characteristically entertaining speech about her time in the role and hopes for the future, she revealed her immediate plan was to drink gin and eat chocolate biscuits while enjoying a number of old black and white films (Highwayman would like to think it would be 12 Angry Men or the Hitchcock/ Grant/Bergman classic Notorious). “I live for pleasure,” said Bell, who leaves successor Richard Turfitt with big shoes to fill.

consistent voice and music messaging – which PHMG views as the best practice approach to handling calls. What didn’t come up was exactly how many operators leave customers subject to the blissful sounds of Cisco Call Manager default hold music. Which is a shame as you can listen to a soothing hour of it on YouTube.

PHMG sales and marketing director Mark Williamson, said: “Every element of music, whether tempo, pitch or instrumentation, will stir different emotions so traders should ensure they convey the appropriate brand image.” So playing The Wurzuls’ ‘I want to be an Eddie Stobart driver’ might not work for everyone.

OSCAR-WINNING PERFORMANCE: Quentin Willson was, as ever, the consummate professional chairing the Microlise Transport Conference. But even he had a La La Land moment at the black-tie dinner the night before, when the category winners of the Driver of the Year competition were read out (ahead of Rafal Kolanko, driver at Samworth Brothers Supply Chain, winning the ultimate title the next day). In all the excitement, Willson was handed the wrong envelope and revealed the winner of a later category. However, smooth as silk, Willson carried on unphased, joking he had predicted something would go wrong as it had all gone suspiciously well until that point.

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01/06/2017 11:06:06


Focus: Politics

motortransport.co.uk

What’s on offer at this general election? Do you know how the result of Thursday’s election will affect the industry? We’ve got a round up of the big three party’s manifesto transport pledges.

Labour

● Create a £250bn transformation fund to upgrade UK economy and infrastructure over 10 years ● Refocus road building and maintenance programmes to reconnect communities and feed public transport hubs ● Continue to upgrade highways and improve roadworks at known bottlenecks, with urgent consideration for A1 North, the Severn Bridge and the A30 ● Scrap Severn Bridge tolls ● Complete Science Vale transport arc, from Oxford to Cambridge through Milton Park Environment ● Invest in development of low-emission vehicles ● Retrofit diesel buses in towns and cities to Euro-6 standards

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Liberal Democrats ● A £100bn infrastructure investment package with investment in road and rail ● Devolution of infrastructure spending to local areas ● Support for the northern powerhouse and Midlands engine initiatives ● Shift more freight from road to rail ● Develop more links to, and within, the South West peninsula ● Encourage the take-up of electric and driverless vehicles ● A green transport act ● An air quality plan ● A diesel scrappage scheme ● A ban on the sale of diesel cars and small vans in the UK by 2025 ● Extending ultra-low emission zones to 10 more towns and cities ● Reforming of vehicle tax to encourage sales of electric and low-emission vehicles ● Development of an electric vehicle infrastructure including universal charging points ● National infrastructure commission to

take account of environmental implications of all national infrastructure programmes

Conservatives ● Continue a £40bn road and rail investment programme ● Develop the strategic road network ● Improve transport connections ● New lines and stations on the railways, improve existing routes – including for freight ● Continue commitment to a £23bn National Productivity Investment Fund that includes £1.2bn local road funding by 2020 ● Almost every car and van to be zero-emission by 2050 with £600m investment by 2020 to help achieve it.

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31/05/2017 16:22:00


Viewpoint

motortransport.co.uk

Transport sidelined in election Y Christopher Walton Group managing editor Motor Transport

ou may well forget, and God knows I’ve tried to, but on Thursday you get the chance to go to the polls and elect the next government. Yay! I can hear you all cheering already. Sarcasm aside, can you recall such a disappointing; moribund and disengaging election campaign than the one we have had? There has been a sad absence of any decent debate on any type of policy nuance necessary to take the country into the next five years. Transport, logistics, freight and the economy have – once again – assumed their traditional role of annoyed bystander desperate to get in the party. Unfortunately, the main narrative has been one of a foregone conclusion. Our current prime minister continues to claim “there is nothing to see here, I have it all in hand” while the burning fires of Scottish independence, sustained peace in Northern Ireland and a fractured society still caught between Leave and Remain blaze uncontrollably. Rearrange the words While, Burns, Fiddling and Rome and we might actually get somewhere. The decisions made now will affect the logistics industry for years, if not decades, to come.

The FTA’s 2017 election manifesto calls for free access for the UK freight and logistics industry to the EU market post-Brexit – which, let’s not forget, is something we had before Brexit then decided to throw away. The RHA’s manifesto went with the line that its members need to be “clear about the outcomes needed when the UK finally exits from the EU”. Yes, but then what? Freight needs the support of government more than ever before. The challenges of employing staff (no matter what their nationality); crossing goods over borders and simply keeping the economy moving have never been more pertinent. Sadly, none of this has been reflected in this terrible election. ■ It would be remiss of this publication not to note the coming retirement of former MT scribe and current RHA director of policy Jack Semple. He has had a marvellous career and everyone at MT wishes him all the best for the future. Personally, I am always staggered by his eye for detail; his depth of knowledge; and his commitment to fighting the corner for the industry. We need more people like Jack, not less. Come July, he will be missed.

Plan ahead: it will add value when you sell E David Stears Director Menzies LLP

very once in a while, business owners take a step back to think about what their business may be worth. It is generally impossible to know what you can sell something for until a price is agreed, but there are some good indicators. Menzies LLP has conducted a review into transactions involving UK companies in the road transport sector in the past decade. We looked at what multiple of companies’ earnings before interest, tax, depreciation and amortisation (EBITDA) was realised in each sale. The average multiple of EBITDA that vendors achieved was in the region of six times. This is a solid rate of return, which would satisfy the expectations of the majority of vendors. However, this does not mean that every business owner in the sector should expect such a multiple; approximately two-thirds commanded a multiple of between 4.5 times and 7.5 times EBITDA. This variance arises because the values that can be achieved are influenced by a number of factors, such as the strength of the brand, its relationships with customers or the synergies that an acquirer can create within the enlarged entity. Another significant factor is the wider economy, and transaction volumes dipped significantly

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between 2008 and 2012, in line with most other sectors. The values that have been derived also struggled, and the average multiple from 2012 onwards fell to around 5.5 times EBITDA. Business owners do much to maximise value. Getting closer to customers helps to improve retention, while investing in sales and marketing broadens the customer base, limiting dependency on existing key customers. Other things to consider include fuel escalator clauses in customer contracts, making better use of operational and financial data to run the business more effectively and tight management of truck replacement programmes, more important with the introduction of Clean Air Zones and associated penalties for high emissions vehicles. Overall, planning ahead is the most important factor. Business owners can then pass on the expertise required to run the business to existing management teams, while also giving themselves the best chance to avoid the economic lows, or hurried sale situations, that can erode value on exit.

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Group managing editor Christopher Walton 2163 Group news editor Chris Druce 2158 Group technical editor Colin Barnett 2141 Aftermarket editor Roger Brown 2168 Vans editor George Barrow 2156 Urban editor Hayley Pink 2165 Editorial team Ashleigh Wight 2167 Emma Shone 2164 Group production editor Clare Goldie 2174 Chief sub-editor Rufus Thompson 2173 Layout sub-editor Grace Wood 2174 Key account managers Andrew Smith 07771 885874 Richard Bennett 07889 823060 Display telesales Barnaby Goodman-Smith 2128 Group sales manager Julie McInally 2122 rtmclassified@roadtransport.com Sales director Vic Bunby 2121 Head of marketing Jane Casling 2133 Head of events/MT Awards Kelly Farley 2135 Head of product Andrew Chilvers 2138 Managing director Andy Salter 2171 Editorial office Road Transport Media, 6th Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. 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 5.6.17 01/06/2017 13:51:57


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Profile: Ryder

motortransport.co.uk

Easy Ryder US-based truck rental giant Ryder has invested heavily in the UK but could regulatory uncertainty change that? Steve Hobson talks to Ryder Europe MD David Hunt

S

ince it established its UK operation with 250 trucks in 1971, Ryder has ploughed a lot of money into making its UK business the market leader in truck rental and leasing and is now number three in trailer rental. It has spent approximately £125m every year in the UK for the past decade on new vehicles and annual turnover is up to £260m. After integrating Hill Hire and Euroway, Ryder is now split 70/30 leasing/rental, with 12,000 vehicles on long-term leases and between 2,000 and 3,000 rental vehicles. “Depending on market conditions, I’d like a 3,000-strong rental fleet,” says MD David Hunt (right). “We’re a contracting business with a rental arm supporting our customers. We have to be careful because pride comes before a fall, but we’re proud we’ve taken on two major acquisitions, integrated them and increased the powered vehicle book since 2012 on average 6% a year. In terms of unit count growth, we’ve grown by about 4.5%.” Ryder entered the trailer rental market when it acquired 6,500 units with Hill Hire and, while numbers have declined since then, it has continued to invest in renewing the fleet. “The customer book with those was a mix and we’ve been working through the challenge of refreshing that book,” says Hunt. “We’ve written 2,500 new trailer leases since buying Hill Hire. The trailer book was always going to go down because there was a large amount of old trailers. But we are in the trailer business, we are writing new leases and we have bought 600 rental trailers as well. “Our customers expect that if they’re going to place their leasing business with Ryder they will have support at peak periods. There is a shortage of trailers then and the Christmas peak is getting shorter and steeper.” In 2014, Ryder acquired Bullwell Trailer Solutions to maintain its trailer fleet, and across trucks and trailers now operates from five sites employing more than 300 technicians. Hunt insists that trailers are a separate profit centre and not just seen as an add-on to truck rental and leasing. “We have a dedicated independent team that run trailers separately,” he says. “The operational team is separate, the execution team is separate and it runs the trailers separately from Lichfield. The only thing that is integrated is our sales team. When our sales

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people meet a customer they can say ‘this is the breadth of products I can offer you,’ and then we can call in a trailer expert, a telematics expert, a refrigeration expert.” He says it is possible to make money from trailer rental and leasing despite it remaining a fiercely competitive and price-driven market. “You can now lease a trailer over a sensible life to a sensible residual if you know what you’re doing,” he says. “If you have the right buying power and skills, you can make the numbers work – just. We have buying power, investment grade credit and maintenance expertise. Can Ryder make it work? Yes. Can every single player in the marketplace make it work? Maybe not.” The recent acquisitions have given Ryder a full service capability across rigid and artic trucks as well as trailers, enabling it to become a one-stop-shop for more operators. “In general, our customers are seeing the value when they come to Ryder and say, ‘give me the right solution to all of this. Work it through for me and give me the whole package.’ Our ability to provide that differentiates us from everybody else.”

Selecting marques

Ryder has long-established relationships with Daf, MercedesBenz, MAN and Iveco, but Hunt says it has yet to decide where it will spend its money this year. This is partly because he is concerned about the effect the increasing restrictions on older diesel vehicles entering urban areas – such as London’s toxicity charge (T-charge) – will have on future residual values. “More than half of the total UK registrations of 7.5-tonners are still pre Euro-4,” he says. “We all understand that we’ve got to take responsibility for moving up the food chain, but what’s going to happen at the back end with trucks that are more than 10 years old? “Ryder has invested £130m in the UK in the past decade, we employ 1,500 people and we believe in setting a good example. But we need stability, we need to be able to look forward so that when we make investments we can see how they’re going to play out. We understand there’s a risk in business, but there shouldn’t be regulatory risk. Faced with that sort of risk, what do most businesses do? They don’t invest, that’s the reality because it is out of their control. I can’t see how it’s going to work

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MotorTransport 25 01/06/2017 09:55:54


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motortransport.co.uk

Profile: Ryder

ON THE MOVE The interview with the Ryder management took place in its new UK corporate head office near the NEC in Birmingham. Ryder relocated its head office from Devizes to Birmingham as it outgrew its existing building and to reflect its national coverage. “Ryder was perceived to be a southern-orientated organisation and Hill Hire was seen as northern,” says Hunt. “While we still have the office in Devizes, I want to be national, and most of our biggest customers are based in the Midlands.”

unless the government comes up with a national strategy.” Hunt wants the industry to become more vocal in proposing solutions rather than waiting for regulators to impose piecemeal restrictions on operators. “Regulators could make mistakes, unintentionally,” he says. “Industry leaders have to step up and put their views forward.” While Hunt says Ryder’s US parent is not concerned – yet – about the effect of Brexit, regulatory risk could mean future investment into the UK is delayed. “The overall business environment is supportive of internal investment,” he says. “But if Ryder can’t see how this regulatory framework is going to work, then yes, there would be a question over whether the external investment would continue. Because there is uncertainty over getting a sensible economic return.”

The cyclist hasn’t been seen in the mirrors, but...

Coping with change

Businesses are used to uncertainty and operators have become adept at securing their core fleet on long-term contracts and seeking more flexible resources to cope with peak demand. “They are always going to need a core fleet but also want flexibility,” says Hunt. “The level of flexibility of the core fleet is ever-increasing. If somebody said previously they would carry 70% of fleet as core it’s now 60% or even 50%. The majority of buyers recognise that nothing comes for free, especially if they’re asking for a complex vehicle that is non-standard.” Hunt sees no lessening in the consolidation in the industry, with the big fleets continuing to expand and smaller operators finding it increasingly tough. “We’ve expanded 12% with our top 20 customers from 2012 to 2016,” he says. “The big are getting bigger and the smaller are exiting the marketplace in some way or another.” But how the big fleets acquire their vehicles is constantly changing, with outright ownership and inhouse R&M a declining model in favour of leasing, contract hire and third party R&M. “We talk a lot about this internally,” says Hunt. “We are always trying to read the marketplace and how money is being spent. Does owned mean bought and financed with your own money out of your own bank or does it mean a finance package with a three-year R&M? “It’s very blurred. With interest rates so low, you would expect them to want to use their own money because money is so cheap and the yield curve is so flat. On the other hand, the complexity of equipment means people are saying ‘I don’t want to deal with all of that and if I can have a package that takes care of it for me, then I’ll take it’. Whether they use their own or someone else’s money, they are getting very cheap financing. This is a good time to buy assets because how long are interest rates going to be this low? I don’t think people are too worried about whether it’s on their balance sheet or off it.” When asked who his biggest competitor is, Hunt has an unusual answer: “Ourselves. When we get it right, no one comes close,” he says. “When we talk everything through with the customer and engage in the partnership, we are very competitive; whether it’s tractors, trailers, fridges, tail-lifts, service, when we bring that together, we give best value. We say, ‘here is our team that can give you these different elements’. When it works, it’s phenomenal, and I’m a great believer in that.” ■ 5.6.17 MTR_050617_025-027.indd 27

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MotorTransport 27 01/06/2017 09:56:20


Interview: Suttons Group

Master of ceremonies Family business and logistics giant Suttons Group’s Road Tankers division is headed by Michael Cundy, he talks to Steve Hobson about expansion, Brexit and British Sugar

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idnes-based tanker specialist Suttons was founded by Alf Sutton in 1926 and remains family-owned. The founder’s grandson John Sutton was appointed CEO of Suttons Group in 2013 and the family still form the majority of the Suttons Group board. Suttons Group has two operating divisions: Road Tankers, headed by MD Michael Cundy; and Suttons International, where Barry McNally is MD. Cundy was promoted to the top Road Tankers job in 2014 from his previous role as HR director, an unusual career path in a major 3PL, where bosses are often drawn from the operations or, increasingly, finance departments. After leaving university in 1998 with a business degree, Cundy started “in a fairly junior HR role” with UK Coal, the privatised coal mining operation formerly known as British Coal. “I enjoyed that,” he says. “There were still a lot of people around who had been part of the strikes in the 1980s. The industrial relations platform had changed but there was a lot of history and learning.” Cundy stayed for seven years, progressing through the HR team, before being approached by Suttons in 2005. He was appointed group HR manager, responsible for the UK Road Tankers operations and the International business. “It was a great role for me and a step up in terms of the challenge and opportunity, particularly with the international dimen-

28 MotorTransport MTR_050617_028-029.indd 28

sion,” he says. “I felt at home pretty much straight away with the family and took to it quickly. “I did that for almost three years, and then became HR director on the main operating board. For me that was a fantastic progression that reflected my contribution and the business was good at giving people opportunities.” “I had an aspiration to get in to more general management but I was never quite sure in what part of the business,” he says. “In the summer of 2014 we were well into the acquisition of Imperial Tankers. I was still HR director but I had been appointed implementation director for the acquisition, which we completed in September 2014.

Getting the top job

“In October 2014, I became MD of UK Road Tankers. The good thing was I didn’t have too much time to dwell on it or think about all the things that I perhaps didn’t know at that stage.” Cundy describes the last two and a half years as “the best but equally the most challenging of my career bar none”. “That’s about the learning curve I’ve experienced since then and just the breadth of things that I’m now involved in,” he says. “I was fairly close to operation from a HR perspective, but the commercial side, spending time with customers, business renewals, new tenders; all those things have been a learning curve. The part I most enjoy is meeting customers, working with them to look at opportunities and trying to understand the challenges they’re facing and how we can support them.” John Sutton works closely with Cundy while giving him “a great deal of autonomy” and being a family business – albeit one that turns over £180m a year – means a flat management structure and short reporting lines. “We’re not a business that’s constrained by unnecessary formality or structure and it helps when we’re trying to do deals because we get quick responses,” says Cundy. “You can get a decision about capital investment or a different commercial approach quickly.” Road transport is a tough and demanding business to work in, which may partly explain why so many hauliers are still family-owned. Cundy says: “There are sectors with significantly higher margins where you can take your money and get better returns. I’ve known the family for 12 years and the heritage of the business means a lot to them.” While Cundy has been bitten by the haulage bug, he knows getting other young people to see past the long hours, stress and tight margins that go with the territory remains an issue. “It sucks you in and it’s hard to get away,” he says. “One of the challenges is how we get more young talent coming through. 5.6.17 01/06/2017 09:37:57


DISCOVER OUR DIAMONDS RETHINK WHAT YOU THINK YOU KNOW.

“A lot of people start on a traffic desk and that means early starts and late finishes and not stopping for your lunch and coming in at the weekends. If people don’t have the appetite they will find something else to do.”

Recruitment after Brexit

Road Tankers employs 550 drivers, of which Cundy says only a small number, mainly working in the South East on Suttons’ fuel operation, are non-UK workers who might be affected by immigration restrictions post-Brexit. He is more concerned about the effect Brexit might have on the UK economy. “We are unclear about what the effect is going to be on our business,” he says. “We are seeing downward pressure on volumes. We’re retaining customers but the volumes are lower. Brexit causes some concern because a lot of our key accounts are European-based businesses and there’s a risk that decisions will be taken to go out of the UK. There’s not a lot we can do if a customer decides it wants to exit the UK and consolidate operations in Europe.” But equally Cundy sees an opportunity for Suttons to be a bridge between the UK and Europe. He says: “We have an infrastructure with the UK road business, the ISO tank business and our short-sea business, which bridges the two. We can work in Europe, between Europe and the UK, and in the UK,” he says. “We’re having a strategic review at the moment. We are committed to the bulk hazardous sector, but that’s not restricted to the UK. A lot of our major accounts are European businesses and for some of those customers we work for in the UK, there’s an international or European requirement. We have to be able to support those businesses with that requirement.” Since Suttons relinquished its long-standing contract with British Sugar to foods specialist Abbey Logistics in 2016, the majority of Suttons’ business has been in hazardous products. “The decision to give up British Sugar after eight years was a tough one,” says Cundy. “It was one of our biggest accounts. I had to make a call on how we supported our range of customers and not just one particular customer, and for me it was the right call. It enabled us to get closer to core customers in the hazardous sector, which is the majority of our work. It was the only food business we operated and it had become more challenging to make the right return with that contract.” That is not to say hazardous products is a highly profitable sector, despite the specialist nature of the work and high cost of the equipment. “It’s not a particularly high margin business but we have a long-term commitment to working in this sector so we have to believe we can make fair and reasonable returns on our investment,” says Cundy. “We are seeing an evolution 5.6.17 MTR_050617_028-029.indd 29

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Interview

of the marketplace and, as we renew a lot of our longstanding accounts, we are having to demonstrate to our customers we can be more flexible than perhaps we have been in the past.” This flexibility might involve less dedicated and more shared user facilities, for example. “Historically customers have been more comfortable having dedicated equipment and labour to be sure of having availability of those resources,” Cundy says. “They were prepared to pay a premium for that, but now our customers’ margins are under pressure so they want us to find ways to reduce their spend without impacting on service. So we might move to a model where it’s a smaller core, but because of the network we’ve created through the Imperial acquisition we’re able to support that core with drivers across a range of disciplines. That reduces the cost for customers because they are paying for what they use as opposed to paying for a contingency that they’re not necessarily going to use. We can still make a fair return but it’s all about how well we plan and execute, how well trained our drivers are so they can operate in different parts of the business.”

Integrating operations

That was the business logic behind the Imperial acquisition, which gave Suttons the capacity needed to deliver this flexibility at an acceptable cost. Suttons has consolidated its network into nine key depots since acquiring Imperial, merging two depots to create its biggest site in Stockton-on-Tees, integrating operations at Suttons’ headquarter in Widnes and consolidating two depots at Willenhall. “We’ve invested to create this network and from a strategic perspective it should create advantages for ourselves and our customers,” says Cundy. “The way we manage that compared with our competitors is our scale. With 550 drivers we can work with those who want to do nights-out and still accommodate those drivers who want more regular shifts. “That’s got to be part of the evolution of our business. We have to do more work on nights and weekends. We have to have the flexibility that allows us to do that. Too often in our business the trucks are sat overnight and on weekends not moving and not generating revenue.” Since the Brexit vote and fall in the value of the pound, Suttons has seen fuel and other costs increase. “Fuel has been continually going up week by week for almost a year,” Cundy says. “We’ve worked with our customers to put mechanisms in place to manage that but it still has an impact on our margins. 30 MotorTransport MTR_050617_028-029.indd 30

motortransport.co.uk

MAKING NEW BUSINESS Cundy says there is scope to win new business in the UK. “I wouldn’t be able to convince our chief executive and shareholders to keep investing in the business if we didn’t think there were lots of opportunities,” he says. “There are opportunities with customers we don’t work with and opportunities to develop what we do with our current customers. There’s scope, perhaps where our competitors feel that their futures lie elsewhere.” As part of the drive to improve utilisation of the fleet, Suttons is looking at complementary areas of work it can add to its core business. “We are looking at the segmentation of the market and if there is transferability of skills,” Cundy says. “We are looking at the breadth of the sectors we operate in and adjacent sectors to see where opportunities exist. We are not talking about moving into general haulage, but at doing more fuels business and developing into specialist areas.”

“We are investing £17m in 200 new tractor units over the next two years. We’re pleased with the deals we’ve done – vehicles are a big part of our costs and that’s something we have to manage. Beyond exchange rates, it’s probably too early to say what the impact of Brexit will be [on that side of the business].” Customers under their own costs pressures are often less than sympathetic when their logistics contractor asks for rate rises, but Cundy says he has been given a fair hearing. “We’re pleased with a number of renewals in the past six months where we have been able to have discussions about the apprenticeship levy, fuel costs and our investment in new equipment,” he says. “Those discussions are always going to be difficult. We’re not going to sit in front of a customer and say, ‘we want an X percentage increase,’ and they’re not going to say, ‘OK, where do I sign?’ “But because of the nature of our relationships with customers, we do have a platform for constructive, sensible discussion. We try to look at the opportunities to do things differently, to challenge the norm and to create value that both businesses can benefit from. That’s what will, in the long term, be key to retaining those customers.” ■ 5.6.17 01/06/2017 09:39:24


Our business is Your business Whether you run a handful of 7.5 tonne boxes, a fleet of 44 tonne articulated trucks, or customised units for specialist applications, you need a partner who understands the direct link between vehicle reliability and company profits. At Enterprise Flex-E-Rent, we believe this means more than simply having the scale and resource to deliver the vehicles you need, when and where you need them. After all that’s no more than you’d expect and is really nothing out of the ordinary (or at least it shouldn’t be). Making a real difference to your business is all about taking the time to understand how you operate, what’s important to you right now, and how this might change in the future. Then, by combining our specialist knowledge with a clear understanding of your business needs, we can deliver a service that’s based on flexibility, expertise and a total commitment to customer service at every level.

To find out more about the difference we can make to your business, call 0800 328 9001 of visit flexerent.co.uk


MT Awards 2017 shortlists

motortransport.co.uk

Livery of the Year Sponsored by

MT profiles the shortlists for this year’s awards Bibby Distribution

What better way to turn heads, asks Bibby Distribution, than turning your trailers into giant packets of sweets? Bibby Distribution began working with its client Tangerine, the company behind brands such as Refreshers and Butterkist popcorn, at the beginning of 2017. Since then, the businesses have put 20 new SDC trailers on the road in brightly coloured liveries designed to look like Tangerine product packaging. The bright colours span down to the chassis and wheel hubs, which are painted to match the digitally printed curtains. Bibby said it and Tangerine benefit from having the eye-catching trailers running on UK roads. At just £1,200 extra per trailer, the company said the advertising benefits are more than worth the investment long-term. Judges praised Bibby’s fast turnaround on the new trailers as well as its commitment to aligning itself with its customer’s brand.

TruckingBy Brian Yeardley

When Brian Yeardley branched out into its specialised events logistics business TruckingBy, it set out to create a livery that remained true to the original brand, but also sold what the division did to onlookers. It did this by sticking with the traditional Brian Yeardley colours of red and white – with the addition of pink to make the TruckingBy name stand out – but adding the graphic of a crowd to depict the nature of its work. Brian Yeardley said the livery, rolled out to vehicles and trailers of different sizes, has played a significant role in raising the profile of the company in the events sector. The judges liked the use of the reflective stickers arranged around the back of the design, so that when headlights catch them the livery lights up like a dressing room mirror. One judge said: “It was brave to use pink lettering on a red background, but the risk has paid off. It’s fresh, striking, and a credit to the brand.”

DPD Local

Those with a keen eye may have noticed the familiar red and blue livery of DPDGroup’s Interlink Express has been disappearing from the roads. This is because DPD has transformed the Interlink brand into DPD Local and designed a fresh new livery to go with it. DPD said the Interlink Express imagery was

32 MotorTransport MTR_050617_032 LIVERY.indd 32

not in keeping with the modernised DPD logo, which the parcel carrier rolled out in 2015. This, it said, meant people did not make the link between the brands, a problem the business set out to combat with its new livery. The new DPD Local branding features a similar logo to DPD’s, but in a shade of light blue. Judges praised the white and blue livery for its simplicity and strong alliance with the sister brand. Designed for DPD’s fleet of HGVs and vans, the livery was praised for being “very elegant and modern”.

Topps Tiles

Topps Tiles has seen rapid business growth in the UK in the past three years, with the number of stores rising to 358. Part of this evolution was to modernise its fleet, which was struggling to cope with the increased volumes. The business needed to come up with something that could advertise the brand both on the road or parked up outside its stores. Topps Tiles worked with a host of businesses on its new livery, which has been rolled out to 20 vehicles, with the remaining seven expected to be finished by 2018. The livery depicts a person tiling the side of the vehicle, much to the judges’ amusement, in full colour printed curtain. One judge said: “I like the degree of flexibility this livery offers. It can keep the theme while swapping in new information or pictures if it needs to in coming years.” Another added: “This is a simple, logical presentation, but it’s fun, and shows exactly what the business does.”

GBA Services

GBA Fleet Services was launched in 1987 with just one van. Today, it has a fleet of more than 280 vehicles working on its time-critical operation across the UK. The business decided it wanted a new livery to modernise its look on its roving billboards and had to devise a design that would work across its fleet of rigid trucks, tractors and trailers, and vans. The curved look of the bands around the bodywork is designed to give the impression of forward motion, which GBA said is reflective of its time-critical operation. GBA also used the same design for its temperature-controlled fleet but with a different colour scheme, using shades of blue to portray coldness. The judges said GBA’s new livery was a “vast improvement” on its predecessor, and particularly praised its flexibility, working well across all vehicle types. One judge said: “It’s clear the new livery has made the employees feel proud of their brand, which is fantastic.”

5.6.17 01/06/2017 09:53:37


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MT Awards 2017 shortlists

motortransport.co.uk

Technical Excellence Award

The innovative solution.

Sponsored by

Cartwright

fitting a sensor into each tyre to monitor pressure and temperature, which sends the data back to an in-cab display. This warns the driver when pre-set Trailer builder parameters are exceeded by 10% and sounds an alarm when they are Cartwright prides exceeded by 20%. itself on its After a successful trial period, Cemex rolled out the TPMS to its entire innovative, cement tanker fleet and, as a result, has only had one blowout in the past two engineering-led years, which was caused by a metal object in the road causing instant deflation. approach to trailer The company is now installing the system on its 215 aggregate tippers. design, and its entry Judges said Cemex had identified a problem with tyre pressures “and dealt included examples with it”. “They have taken it very seriously,” one added. With the system costing of technical approximately £1,000 per vehicle, one judge praised Cemex’s “big investment improvements to a to improve safety, reduce downtime and improve reliability and fuel efficiency”. range of its latest products. The Streetwise Urban Delivery Solution, Tesco which is an urban with anGroup internal and low-level doors, The trailer Cartwright is moving one ofdeck the UK’s leadingside commercial vehicle body, was developed in response to a requestmanufacturers, from an operator offering for a trailer that trailer and conversion the largest, most diverse would allow itand to “load through range the back our bays and unload today. to the innovative ofatproducts available pavement through the side”. The moving deck lowers between a third and a half of the payload to street level, which has shortened an eight-drop round by n Complete design & manufacturing two hours in trials with major supermarkets. Another example was an Comprehensive range of flexible more aerodynamicndouble-deck tri-temp trailer with arental singleoptions movingwith deck thatthan 6,500 assets n Total fleet managment (CFS) for all makes of trucks trailers combines a 44-pallet capacity with a 10% reduction in drag. As welland as cutting fuel use, the trailer speeds loading by the four-ram, direct-drive lifting n Class leading conversions including A&E, Police and Security, Mobility, Welfare andlifting Racking mechanism for the deck. n Flexiblethe range of for in-house finance solutions. Judges commended entry including “a considerable number of new ideas that are improvements on existing products”, and added there was “good Contact graham-usher@cartwright-group.co.uk detail on the design and implementation of trailers to meet customer needs”. T 0161 928 0966 to find out more. In a straightforward, easy-to-read entry, Tesco described how its five-strong engineering team manages the specification, acquisition, R&M and disposal of Cemex 6,000 assets across 28 depots servicing 3,000 Tesco stores. The engineering Cemex has earned an enviable reputation for making its trucks some of the team has had a number of notable successes in 2016, including increasing safest for vulnerable road users, and in 2014 its engineering team turned its first-time pass rates to 98%, with average vehicle availability rising to the same attention to the perennial problem of tyre failures due to low pressure. Few impressive 98%. operators want drivers to check tyre pressures on their dailywww.ca walk-around rt w ri ght -grou p .c o.u k Drivers’ opinions on how to improve vehicle specs have been sought in a series of driver forums, and this resulted in uprating the tractor checks, so detecting slow punctures that can leadThe to blowouts is a problem. Cartwright Group Atlantic Street, Broadheath, Altrincham WA14 5EW units used to haul double-deck trailers from 400hp to 450hp. Driver feedback Under-inflated tyres was overwhelmingly positive and fuel economy on some routes improved 10%. also reduce fuel efficiency. On its fleet In conjunction with tyre supplier Bandvulc, the engineering team also arranged tyre awareness sessions at every depot, focusing on how drivers can assist in of 290 artic tankers MT AWARDS AD.indd 1 2017/03/28 12:04 tyre management and inspection. These too were well received by the and rigid tippers, transport team. One example of innovation was the development of six Cemex suffered drawbar rigs to improve the efficiency of deliveries to Tesco Express approximately 20 convenience stores. The trailer can be dropped at a large Tesco Extra store blowouts in 2013, so while the truck delivers to the first batch of Express stores. It then returns to the operator the Extra store to transfer the load from the trailer for delivery to a second volunteered to take batch of convenience stores. part in trials of “Tesco’s entry was brief and to the point,” said one judge. “It has not hidden Continental’s trial of behind a glossy presentation,” added another. Judges also praised the team for its tyre pressure “seeking contributions from all parties” and said the entry was “very monitoring system (TPMS). This involves informative with a brief breakdown of methods and figures”.

Better. Built in Britain.

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MT Awards 2017 shortlists

motortransport.co.uk

Temperature Controlled Operator Sponsored by NR Evans

NR Evans has a 30-year pedigree in the time-critical temperature controlled market. It operates an average of 250 vehicles, flexing up to 320 at peak periods, and services an enviable list of blue-chip customers including Müller, Tesco and Lidl. In July 2016 it was acquired by NFT Distribution, which not only recognised the existing and potential customer base in highgrowth opportunity areas, but the potential behind the addition of milk and ambient as well as a way to reduce empty running and food miles by integrating operational activity. Throughout its history, NR Evans has prided itself on an excellent on-time, in-full (OTIF) delivery performance. Over the past 12 months, key customers in discount retail – milk and meat achieve average service levels of 97.5%; 99.9% and 98% respectively. The operator maintains the highest standards of hygiene control; with up-to-date monitoring equipment on all its fridge units and keeps records in according with BRC accreditation. Trailers are cleaned on return to depot, before being presented for loads and are deep-cleaned every six weeks. Turnover has risen 24% in its most recent financial year, from £33m to £41m. This follows turnover increases of 13% and 33% in the two previous financial years. In the past three financial years, turnover has risen 86% cumulatively. The judges praised the financial performance of NR Evans in a demanding market sector.

McCulla

McCulla (Ireland) was established in 1969 by David McCulla, and on the cusp of its 50th anniversary is now under the ownership and direction of the second generation of the McCulla family. Brother and sister Ashley and Carol took joint control of the business in 1992, seeing its turnover increase from £700,000 to £21.7m. That growth has been particularly strong over the past four years, which has seen it rise from £14.1m in 2013 to £21.7m in 2016. It has two facilities – one in Lisburn, Northern Ireland, just 30 minutes from Belfast Port, and one in Ballymount in Ireland, close to Dublin Port. Both sites are maintained to the highest recognised standards, including ISO9002; British Retail Consortium food safety standard – higher accreditation; and European Goods Distribution Practice approval. The business embraces change and invests in its facilities. McCulla prides itself on its innovative, comprehensive and flexible service to the frozen and chilled sector, offering services such as product collection, storage and picking to order as well as transport from Ireland to the UK; Ireland to the continent and the continent to the UK. As well as offering RDC to store supermarket work it also delivers to restaurants and independent

36 MotorTransport MTR_050617_036 TEMP CONT.indd 36

retailers and a hotel and restaurant chain in Northern Ireland. The business has also embraced a range of technology, including a transport management system; telematics system; warehouse management; and stock system and PoD data capture system. The combination of this technology means customers can be provided with real-time location data and fridge temperature recordings, as well as geofencing data showing the progress of a customer’s order, resulting in full visibility and peace of mind at all times. This technology is also in use in the warehouse, where the stock management system provides one supermarket customer with 99.75% delivery accuracy across 1,500 product lines. McCulla runs a fleet of 100 artics and 150 trailers, as well as vans and rigids, and employs 200 people. Staff turnover is very low (less than 3%) with five drivers with more than 15 years of service, and five members of office staff with more than 20 years of service. Its in-house Driver CPC training academy focuses on bringing young people into the business and is responsible for seven younger members of staff joining the business. The judges were impressed with a “highly flexible, innovative, service-led” operator with high levels of compliance and a “great environmental performance”.

McBurney Transport Group

In 1965, MD Norman McBurney OBE set up McBurney Transport Group, and the business has remained a family-owned and -managed business since. Its temperaturecontrolled division, McBurney Refrigeration, expanded out of an acquisition in 2000 and delivers across the UK and Ireland with sites in Liverpool and Dublin. In 2016 McBurney Refrigeration handled 93,837 temperature-controlled deliveries, stored 1.3 million pallets of frozen and chilled products and achieved KPIs in excess of customer expected targets. Its 30,000-pallet cold-storage facility in Liverpool has five chambers providing cold storage at a range of temperatures, ranging from 4C to -26C. It also has the capability to blast freeze for customers in a 2x26 pallet facility. McBurney runs 290 vehicles and 1,050 trailers – 700 refrigerated and 155 double-deckers. The group owns £53m-worth of fleet assets; it has also invested heavily in technology, so it can share load details, delivery times, KPI reports and scanned signed copies of paperwork with customers 24/7. The business is a two-time winner of Asda’s UK Service Provider of the Year award, most recently in 2015; the sole Irish Sea haulier for one of the UK and Ireland’s largest food manufacturers; and was the only one of four suppliers to achieve an on-time delivery target in excess of 98.5% with a major supermarket. Group net profit has risen for four consecutive years, while McBurney Refrigeration achieved a turnover of £29m and a pre-tax profit of £1.9m in 2016. The judges praised an impressive business with an enviable customer portfolio, strongly backed with testimonials.

5.6.17 01/06/2017 12:17:38


ur business is our business Whether you transport food, flowers, pharmaceuticals or anything else that needs to be kept at a specific temperature, you need a partner who understands the direct link between the reliability of your vehicles and your company’s profitability At Enterprise Flex-E-Rent, we believe this means taking the time to understand how your business operates, what’s important to you right now, and how this might change in the future. Then, by combining our specialist knowledge with a clear understanding of your business needs, we can deliver a service that’s based on flexibility, expertise and a total commitment to customer service at every level.

To find out more about the difference we can make to your business, call 0800 328 9001


MT Awards 2017 shortlists

motortransport.co.uk

Safety in Operation Award Sponsored by Palletline

Palletline’s commitment to safe operation is clear from its safety statistics; it claims to have had 470 days accident free as of 1 March 2017. To highlight its commitment to safety, the company designed its central hub around ensuring safe operation, including de-pedestrianised operational areas; strict one-way traffic operations and a driver viewing area with physical barriers. It was also the first to introduce a 750kg weight limit for tail-lift pallet deliveries to improve driver safety, as well as equip its forklifts with weighing systems to enhance safe vehicle loading. A 30-minute site audit takes place every day, completed by Palletline’s health and safety co-ordinator and another employee, whose awareness of health and safety issues is increased through hands-on involvement. The company says this allows new ideas from other employees to filter through. Training is also a priority, with employees undertaking programmes including manual handling training; forklift truck retraining every 12 months; DGSA training and ADR awareness training. The judges praised a business that has safety embedded into its culture, singling out no time lost to accidents over the past year.

Expect Distribution

After seeing an increase in road traffic accidents in 2014 and 2015, which was affecting profit, Expect Distribution tasked three members of its management team to review its practices and come up with a plan to improve safety. The group’s comprehensive programme included: the introduction of a full-time driver trainer; driver league tables; counselling and retraining for drivers; close-working with agency driver providers; and the introduction of pump trucks for pallet deliveries. The results speak for themselves. Despite an increase in the number of vehicles on its fleet from 82 in 2014 to 90 in 2016, Expect Distribution saw a 63% reduction in accidents involving agency drivers; a 58% reduction in blameworthy accidents involving a third party; and a 36% improvement in claim frequency. It says the programme has helped improve driver retention through a collaborative approach between management and drivers. It also saw a 31% saving in insurance premiums and has received a £10,000 bursary from its insurer to continue to install reversing cameras across its fleet this year. The judges said “improved safety had helped [Expect] improve staff retention rates”.

NFT Distribution

Cemex UK

2016 was another injury-free year in Cemex UK’s driver workforce, with a drop in the number of blameworthy collisions compared with 2015. Over the past 12 months it has added three Mercedes-Benz Econics to its London fleet, which significantly reduce risk to vulnerable road users through fewer blind spots, and has set up a bi-monthly national road transport meeting to develop various safety initiatives to roll-out across its network. Its training programme was overhauled last year and now consists of a three-day online package, designed to raise the standards of new and agency drivers. The operator claims to have had no vehicle rollovers in 2016 following the introduction of inclinometer technology, which prevents the body from raising if the angle is greater than 4 degrees. It also embarked on a training programme to ensure drivers were aware of the risks. The judges were impressed by the very low accident rates because of the business’s focus on driver safety and training.

38 MotorTransport MTR_050617_038 SAFETY.indd 38

NFT Distribution’s Bristol site has seen a marked reduction in the number of accidents over the past few years. As of 14 February 2017, it had 1,000 days RIDDOR-free and no lost-time accidents in 2015 and 2016. It has achieved this through a shift in culture over a number of years and claims colleagues are keen to use the hazard or near-miss forms as they know issues will be dealt with promptly. A weekly site audit is carried out, and line managers are equipped with pocket hazard books to record issues identified during the week. Periodic third-party site assessments are also carried out to note potential hazards off-site. Mock audits are also carried out, with the national health and safety manager attending the site to play the role of an external inspector, such as a fire inspector. This aims to highlight the need for site managers to recall the required information in a live environment. Fleet compliance audits are carried out every six months by the fleet manager or fleet supervisor from another site, which NFT Distribution claims keeps each site striving for best practice, and encourages its depots to share their knowledge. This is also backed up by an FTA audit. Staff attendance has also increased. Just 1.98% of drivers, and 1.24% of warehouse staff, were absent last year. “Excellent initiatives and improvements” at NFT’s Bristol site were singled out by the judges, as well as its use of audits to promote a culture of safety.

5.6.17 01/06/2017 11:59:58


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Careers

motortransport.co.uk

Downton hails recruitment day By Emma Shone

CM Downton has described its latest apprentice recruitment day as a success after more than 30 young people visited its Gloucestershire HQ. Downton has been running its driver apprenticeship programme since 2014 and this year hopes to bring 20 young people onboard, as well as 15 workshop and office apprentices. During the recruitment even last month, potential apprentices were given the opportunity to look around the site and meet representatives from the company and the FTA. Visitors met staff from Daf dealer Imperial Commercials to find out about the trucks, and Downton’s training partner LGS Transport Training. Downton MD Andy Downton said: “We believe in developing young talent and we were impressed with the number of good candidates that attended. We are not looking for the finished article, but we do want people with the right attitude.”

The challenge of the recruitment process

and customer service. UKWA said an accelerated, face-to-face programme is also available. The association’s CEO Peter Ward said: “Following the successful introduction of our Warehouse Manager CPC programme last year, it became apparent there is a need for a lower level programme pitched at those working at supervisor or team leader level in the warehouse sector.”

Management switch up at XPO Logistics Supply Chain XPO Logistics has made three managerial appointments to its Supply Chain sales organisation in Europe, including former managers from DHL Supply Chain and Wincanton. Mark Wilkinson has joined the company to become senior vice president of sales. He has more than 20 years of experience in supply chain. He will report to director XPO Supply Chain – Europe MD Malcolm Wilson.

Pascal Born, who joins after 25 years with Caterpillar, joined XPO as business development director – industrial and automotive. Finally Max Alexander, formerly head of retail sales at Wincanton, has joined XPO as business development director – fashion and e-commerce. He will work, in particular, to expand XPO’s fashion and e-commerce operation, and supporting the firm’s sales teams.

Mercedes-Benz names apprentices of the year Mercedes-Benz said it was “wedded to a philosophy of growing [its] own” talent, after it named its two commercial vehicle apprentices of the year. City West Commercials’ Ben Hassall, right, 18, won the Commercial Vehicle Technician Award. Oliver Warrington, left, 17, from East Anglia’s Orwell Truck and Van, won the award for Parts Operations Specialist. Both of the winners are in the second year of their three-year apprenticeships. Mercedes-Benz Trucks director of customer service Sam Whittaker said: “We are wedded to a philosophy 5.6.17 MTR_050617_041.indd 41

By David Coombes MD, Logistics Jobshop

UKWA develops warehouse supervisor CPC The UK Warehousing Association (UKWA) has developed a CPC course for warehouse supervisors and team leaders, a year after it launched its CPC course for warehouse mangers. The online course is equivalent to level three of the Regulated Qualification Framework, and was developed in collaboration with the Logistics Learning Alliance. With an online learning time of 140 hours, the course covers warehouse operations, leadership,

Staffing Matters

of nurturing and developing the talents of all who work within our organisation. The highly impressive young people confirm the future of our business and brand is in safe hands.”

In recent years the length of time that senior executives stay in a post has increased. There are fewer people looking to leave after a short time in a post. More employers seem wary of candidates who collect positions on their CV but fail to gain experience and see things through to the end. If that sounds like you, my advice is to be careful. Moving companies to get a promotion is normal and part of life. But moving too often looks like a red flag, even when it shouldn’t be. Eventually your CV will make recruiters nervous that you are an immediate flight risk, someone who moves on before your sins catch up with you. As senior managers, you will have led recruitment campaigns, but when you begin to look for a challenge, perhaps only then you will realise you are a little rusty when it comes to the job search. At the senior level, getting to an interview is a sign of success. It means you are employable and your CV is attractive. You are likely identifying your successes and achievements rather than simply where you worked. Remember, it is unusual that your natural brilliance is enough on a job application. An interview means you are fishing in the right ponds. But be ready for rejections at interviews. You will not get every job for which you interview. You shouldn’t feel crushed by an unsuccessful interview, but use it as training and experience for the next one. It is easier said than done, but alter your mind set accordingly to treat triumph and disaster the same. Sometimes you will feel that you did your best, sometimes you will feel like you did your worst. You should accept that this is normal. But always prepare, and visualise yourself in the role prior to interview. What would you do in your first 100 days in the post? It helps to know your strengths and have some examples to mind. Who are you and what can you offer? What is your brand? We all know people who seem to glide through the process; they are the lucky ones. Most of us will have rejection plenty of times before we find the right role. Chin up and carry on!

Tel: 0117 9859 119 logisticsjobshop.co.uk admin@logistics jobshop.co.uk @LJSJobs MotorTransport 41 01/06/2017 11:11:41








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