Motor Transport 6 June 2022

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Sharp ■ Informed ■ Challenging

NEWS INSIDE Driver shortage easing But industry still suffering

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HGVs take Euston load?

Station waste may go by road p4

Microlise round-up Tesco backs hydrogen

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OPERATORS INSIDE Brighouse Pallet Services.............................. p3 Brit European Group....................................... p8 DawsonGroup...............................................p10 DHL .............................................................. p3 DPD .............................................................. p4 KB Event ......................................................p24 Owens Group................................................. p3 Seal It Services ............................................. p3 Tesco ............................................................ p8

COme + VISIT the

6.6.22

ONLY AT THE RT EXPO STAND OUT40

ROAD TEST: trials of the eActros LongHaul on public roads are set to start this year, with the batterypowered truck scheduled to enter series production in 2024. Prototypes of the 40-tonne vehicle, which has a range of approximately 500km on one battery charge and superfast megawatt charging, are already undergoing internal tests. MercedesBenz Trucks is also preparing additional variants of the eActros – dubbed the eActros 300 and the eActros 400 – as early as July, in addition to the eEconic, which is also scheduled to roll off the production line at its Wörth plant next month.

Review considers ‘all options’ for business after largest shareholder members push for sale

Palletline up for grabs? By Carol Millett

The board of Palletline is undertaking a strategic review of all options for investment in the business including a sale, Motor Transport has learned. Potential buyers could include Amazon – a major customer, which is the only pallet network to hold Amazon’s preferred carrier status for inbound deliveries. Other likely contenders include major operators, aspiring to emulate Culina’s ownership of The Pallet Network, which was bought by Culina subsidiary Eddie Stobart in 2018 for £53m. Venture capitalists are also likely bidders. During the pandemic, Palletline saw volumes soar, aided by the resulting online shopping boom. According to the latest figures from the Association of Pallet Networks, the sector saw a 13.2% growth in 2021, delivering 31.5 million pallets. Sources said the move to sell is

boost the value of the network market potential and need for continued expansion to meet the ahead of sale. The idea caused ever-changing market landscape. uproar among members, with many voicing their opposition. This year, celebrating its 30th anniversary, the business is exploring However, Palletline stated that it has the lowest hub rate in the alternative investment options to industry and intends to maintain provide a strong platform for that position. The company plans growth.” to invest more than £12m over the next three years in hub capacity and IT infrastructure projects. Launched in 1992, Palletline being driven by those with the delivers to 29 European countries largest shareholdings who are from 96 UK depots. It handles BY keen to realise the value of their approximately five million pallets stake in the business. a day and has a combined fleet of However, Palletline told MT that more than 6,000 vehicles. its shareholder model does not Asked if Palletline was up for allow for a small number of sale, Palletline group MD Graham members to hold the majority of Leitch said: “In 2021 Palletline the decision-making power and enjoyed its best-ever year, achievthat its shareholders are limited ing a 19.4% increase in turnover. 0330 124 5651 to voting rights of 5% per member. Volumes increased by more than info@hireco.co.uk hireco.co.uk It is understood that in a meet17.6% from 17,000 to 20,000 and ing of members on 18 May, thesource we> finance hit the five million pallets mark > maintain > TRAILER > TRUCK > VAN > source > finance > maintain > TRAILER > TRUCK > VAN > > maintain > TRAILER > source > COCKTAILS > BBQ > ICE CREAM > COCKTAILS board announced plans to raisesource for> finance the first time. > TRUCK > TRAILER > VAN > TRUCK > TRAILER > VAN hub costs by £1.50 per pallet, to “This success demonstrates the

Summer

Commercial Vehicle Show p10 Legal focus: van licensing p14 Viewpoint p16 Finance: electric vehicles p20 Interview: Richard Smith p24



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Training and higher wages making a difference but overall picture still chronic, says Logistics UK

Relief as driver shortage eases By Carol Millett

Higher wages, drivers’ skills bootcamps and speedier HGV driver testing has boosted driver numbers – but the driver shortage remains chronic, according to Logistics UK’s analysis of the latest Office for National Statistics (ONS) Labour Force Survey data. The ONS figures show that the number of HGV drivers in employment has not fallen as significantly as in recent quarters, prompting Logistics UK to express “cautious optimism” that the shortage is improving as newly trained drivers and returning drivers join the ranks. Sarah Watkins, Logistics UK deputy director of policy information, said: “The reduction in

numbers of HGV drivers in employment, generally caused by retirements or shifts into other careers, slowed in the first quarter

of 2022, compared with the second half of 2021, which illustrates how actions such as increased wages for drivers, drivers’ skills boot-

Bumper pay offer ends DHL strike threat Delivery drivers at DHL working for JCB have called off a strike after securing an almost 10% pay rise. The drivers, who deliver JCB parts between factories across the UK, were due to walk out on 23 and 24 May.

However, an offer from DHL of 9.5% plus a £750 bonus was agreed after 80% of the drivers, who are all GMB members, voted in favour of the deal. Stuart Harrison, GMB organiser, said: “GMB members working for DHL for JCB should be rightly proud of themselves. They’ve been under attack for four years – faced changes to their contracts and a whopping pay cut. Now they’re walking away with a big pay rise, a bonus and their heads held high.” Last month the GMB claimed DHL was attempting to impose a real-terms pay cut on its drivers working on a JCB delivery contract,

a claim DHL denied, with the company insisting it had offered an above-inflation pay increase. A spokesperson for DHL Supply Chain said: “We are pleased that a deal has been reached in the current pay negotiations, and the GMB union has called off its planned industrial action at our Stoke transport operation.” n Strikes involving GXO drivers on the outsourced Co-op contract have been suspended after the company put forward an improved pay offer. If the offer is rejected, then the remaining 19 48-hour strikes scheduled throughout June, July and August will go ahead as planned.

Owens becomes shareholder member of Pall-Ex Owens Group has become a shareholder member of Pall-Ex. The Llanelli-based family firm joined Pall-Ex in February after taking ownership of long-standing Fortec member Celtic Couriers in late 2021. Owens employs approximately 1,000 people in the UK and is celebrating its 50th anniversary, which it is marking with a one-off livery. It covers parts of the CF postcode area for Pall-Ex, while Celtic Couriers makes collections and deliveries throughout the SA postcode area for the Fortec network. Commenting on the move, Owens Group MD Ian Owen said: “Being part of the Pall-Ex and 6.6.22

Fortec networks will give the group another service offering for its customers, with a euro-pallet option alongside the standard one. “As shareholder members, we are working with like-minded, dedicated transport companies that are all invested in the success of the network.” n Pall-Ex has promoted UK network director Sue Buchanan to international network director, focusing on global expansion.

camps and improved throughputs of testing by DVSA are beginning to address the loss of skilled workers that we have seen in the recent past.” Figures revealed by Logistics UK’s analysis of the survey indicate that while the number of HGV drivers in employment is estimated to have fallen by 30,300 in the first quarter of 2022, this is much less of a reduction than in Q3 and Q4 2021, which saw falls of 44,000 and 49,000 respectively. Meanwhile, efforts to improve throughput at DVSA testing facilities is making a difference. A total of 26,388 practical HGV tests were conducted in Q1 2022 – an increase of 43% compared with the same period in 2019.

Firms fined after driver injured by falling pallets Two companies have been fined after an HGV driver suffered a fractured neck vertebrae after being hit by pallets falling from his vehicle. Leeds Magistrates’ Court heard how the driver, an employee of Brighouse Pallet Services, was struck by one or two falling pallets when they were being unloaded by a fork-lift truck operator at Seal It Services’ premises in Elland, West Yorkshire. An investigation by the HSE found both companies had failed to put in place control measures to ensure that visiting drivers were moved to a safe location during unloading. Both companies pleaded guilty to breaching a section of the Health and Safety at Work Act. Brighouse Pallet Services was fined £4,000 and ordered to pay £4,806.60 costs, while Seal It Services was fined £50,000 with £4,654.90 costs. n Hermes, which is now known as Evri, has admitted breaching health and safety laws between August 2018 and March 2019 after an employee was crushed to death when using a trailer mover at the Eurocentral parcel sorting centre in Motherwell. MotorTransport 3


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DPD racing ahead of ambitions for all-electric deliveries DPD has confirmed it is now providing an allelectric service to 10 UK towns and cities. The delivery giant is targeting a further 30 locations by the end of 2023 – five more than originally planned and two years earlier than expected. In October 2020, DPD announced plans to create 25 all-electric towns and cities in the UK by 2025. Oxford became its first ‘green’ city last July, with a fleet of 40 electric vehicles based at the new Bicester eco-depot (pictured), delivering over 15,000 parcels a week across the city. The nine other UK locations to achieve all-

electric delivery status are Bradford, Bristol, Cardiff, Hull, Newcastle, Nottingham, Oxford, Reading, Southampton and Stoke.

Progress is also being made at DPD’s remaining 15 original green delivery locations – Birmingham, Brighton and Hove, Cambridge, Coventry, Derby, Edinburgh, Glasgow, Leeds, Leicester, Liverpool, London, Manchester, Plymouth, Portsmouth and Sheffield. DPD expects these to achieve all-electric status two years earlier than planned, by the end of next year. It is also planning for five more towns – Birkenhead, Gateshead, Newcastle-under-Lyme, Rotherham and Shipley – to become all-electric by the end of 2023.

Downgrading of station size will see HGVs, not rail, removing waste

Euston HS2 plan would need 800 trucks a day A decision to reduce the size of HS2’s London terminus station at Euston means spoil will no longer be shifted by rail and may have to be achieved with thousands of HGVs instead. In a written statement transport minister Baroness Vere said a smaller, 10-platform station design at Euston was prompted by the Oakervee Review, which addressed efficiency concerns. She said: “Following the move to the more affordable 10 platform station design, the original plans for the removal of a proportion of construction spoil by rail are no

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By Chris Tindall

longer possible. “In response, HS2 has been working, in close liaison with colleagues from Network Rail, to

consider alternative options for how to remove spoil from the construction of HS2’s Euston station and how it can minimise impacts.” Camden Council has previously raised concerns about the number of lorry movements required to remove 1.2m tonnes of demolition, construction and waste material from Euston and its approach during the redevelopment works. In a report, the council said: “The net effect is up to 800 daily two-way lorry movements in the Euston area during busiest times. “Around 90% of those lorries will be heavy goods vehicles.”

Strict tacho rules were ‘sneaked in’ Road transport solicitors have criticised the government for “sneaking in” tough new tachograph rules during the pandemic. Backhouse Jones described the new EU requirements as the most onerous “since the tachograph was first invented” and said nothing at all had been done to raise awareness of the rules. However, the DfT said it sent three bulletins to operators highlighting the August 2020 changes. According to Backhouse Jones, the rules require every professional driver, regardless of how little EU-regulated driving they undertake, to record every minute of every day – whether driving, undertaking other work, taking rest, on holiday, or even on sick leave. The record must be made on a tacho chart or the driver’s digi-card, or using a printout from the digital device.

Vehicle shortage will stop hauliers meeting London ULEZ deadline The logistics industry is calling for mitigations for hauliers if plans to expand the Ultra Low Emission Zone (ULEZ) to the whole of London by 2023 go ahead. The call follows the news that TfL has been instructed by London mayor Sadiq Khan to launch a consultation on the proposed expansion. Logistics UK is warning that a shortage of ULEZ-compliant trucks is preventing operators maintaining continuity of operation in the existing ULEZ zones. The shortage has been exacer4 MotorTransport

bated by delays to the delivery of cleaner vehicles due to the impact of Covid-19 and supply chain disruptions created by the Ukraine war and microchip shortages. Natalie Chapman, head of policy for the south at Logistics UK, has urged TfL to consider helping hauliers. She said: “Until cleaner vehicles are available, Logistics UK is urging TfL to consider mitigations – such as those being implemented by councils that have introduced clean air zones – for those that have ordered them and are awaiting the delivery.”

ON TRACK: Woodland Group has opened its second distribution facility at iPort in Doncaster, in response to significant growth. The 130,458sq ft location was secured on a 10-year lease and is now fully operational with six clients under contract. The move follows the opening of a 195,000sq ft fulfilment and distribution warehouse at iPort in February last year. The company said the multimodal freight terminal, iPort Rail, has enabled it to develop carbon-conscious solutions across its supply chains and it has even launched a dedicated rail service through iPort Rail for onsite clients. 6.6.22



Microlise Transport Conference

‘Stop the blame game,’ says RHA Operators need to pay drivers more to end the driver crisis, attract new blood and retain staff, according to RHA’s policy chief Rod McKenzie. Speaking at the Microlise conference, McKenzie (pictured) challenged operators to do more to improve the image of the industry. “Some hauliers claimed they couldn’t afford to pay more; their margins were too tight,” he said. “It’s the supermarkets' fault, or driver agencies. This becomes a blame game and guess what? It ends up damaging our own industry.” McKenzie said this lack of investment backfired at the peak of the driver shortage last year, stating: “Ministers picked up that theme and used it as a stick to beat us with. It’s true: a race to the bottom in terms of best price to customers that by implication means you are shafting your own staff with low wages is no way to run a business. It’s no way to retain staff.” McKenzie also called on hauliers to invest in training to make HGV driving more attractive, and warned that the younger generation would continue to shun the industry until this was done. He pointed to research showing the UK is short of 11,000 lorry parking spaces and urged delegates to sign the RHA’s petition demanding better facilities.

Popular industry event is back after a three-year gap due to pandemic

Microlise chief hails conference return By Steve Hobson

T he Microlise Transport Conference returned to Coventry on 18 May after a three-year gap due to the Covid pandemic. At the event, Microlise chief executive Nadeem Raza (pictured below right) said it was “fantastic to be back”, with over 1,000 delegates in attendance. “We have clearly hit the mark in terms of the subjects people are interested in,” he commented. “There is a good buzz around the place and there are people here I haven’t seen face to face for three years.” As well as workshops on innovation, skills and compliance, the main stage, hosted by TV presenter Spencer Kelly, featured presentations from transport minister Baroness Vere, the RHA, Microsoft, DVSA chief executive Loveday Ryder, and senior traffic commis-

sioner Richard Turfitt, as well as an operator panel with Graham Lackey, CEO of Brit European, Lesley O’Brien OBE, director of Freightlink Europe, and Matt Rhind, distribution director of Tesco.

Switch to electric is on hold, new research reveals A major new survey of over 25,000 senior logistics and fleet professionals has found none have plans to roll out electric vehicles within the next 12 months, although 41% claimed it was part of their longerterm strategy. The research, carried out by Microlise and revealed during the firm’s conference in Coventry last week, also found 26% of operators would switch to electric once the technology was available for HGVs. A further 12% said they already had electric vehicles, while 21% said they were not in their future plans.

Asked which non-electric vehicles they might be planning for their fleets, 34% of operators said they would choose biodiesel, 17% liquified natural gas (LNG), 12% hybrid and just 6% hydrogen fuel cell. However, 30% of those questioned failed to respond. Turning to the current challenges facing the sector, the survey found fuel costs (20%) were having the most impact on hauliers while rising salaries and inflation (18%) and vehicle shortages (17%) were also prompting concern. Other pressures included environmental legislation (16%)

‘Work together on customer solutions,’ industry urged Richard Skidmore, head of customer service delivery at MercedesBenz Trucks, has urged the industry to embrace the benefits of increased collaboration to save costs and improve efficiencies. “We work in partnership with other suppliers, but what we haven’t done in the past is work 6 MotorTransport

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with the end customer,” he told conference delegates. “That doesn’t necessarily mean going to the same meeting with someone from BP, but working on solutions with people at the OEMs, fuel companies, telematics companies, trailer companies and customers.” Mercedes-Benz has seen a grow-

ing opportunity for collaboration since the launch of its multimedia dashboard which hosts different driver apps, Skidmore explained. “We set up workshops with our customers and created apps for partners like Wren Kitchens and Continental that were absolutely ground-breaking,” he said. “We’re

and the recruitment of back office staff (13%). Asked how they were expecting new legislation and increased fuel costs to change their fleet strategy, 37% of operators said they would stay with their current mix while 27% said they would seek alternative fuels. A small number of hauliers (5%) said they would increase the size of their trailers while the same proportion said they would increase their number of small vehicles. Meanwhile 26% of those questioned admitted they were not sure enough to comment. testing a BP fuel app for Wren that allows the driver to go to the petrol station, pick a pump number, fill up and drive off; it’s that simple. The truck knows how much fuel has gone in, and BP knows how much has been sold, so theft is very difficult. “It’s an example of working with another supplier to create an integrated solution for our customers, which is a growing trend.” 6.6.22



Microlise Transport Conference

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Tesco transport boss says hydrogen seems better than electrification

‘Hydrogen best’ for heavy trucks By Tim Wallace

Hydrogen technology is currently the best way to decarbonise heavy trucks, according to Tesco transport director Matt Rhind (pictured). Speaking in a conference panel debate, he said: “I talk to a lot of manufacturers and hydrogen is a thing. At the moment it’s feeling like a more viable option than electrification but let’s see where we are in 10 years’ time. “We’ve got to gestate what it would mean to the infrastructure to produce green hydrogen because that’s one of the key points here – how is the hydrogen produced? And if it’s not green then we aren’t there environmentally.” Rhind told delegates that he welcomed new government emissions legislation but that it

came with “complications”. “Sometimes the legislation outstrips the readiness of the infrastructure,” he said. “It’s going to be a collaborative thing. In a

competitive landscape that’s really important.” Fellow panellist Graham Lackey, chief executive of Brit European Group, said hydrogen could be a “stepping stone” in the shift to zeroemission HGVs. However, he admitted the route to net zero for operators remained unclear: “With vans the floodgates are just opening. The vehicle technology is there but is the infrastructure going to cope? “With the heavier trucks, you might squeeze 12 tonnes on electric, but much more than that and you’re really pushing it for the foreseeable future. "I don’t think there’s a clear path. You can choose your horse but at the moment I don’t know which one will win.”

DVSA CEO hits back over tests backlog Loveday Ryder (pictured), chief executive of the DVSA, has rejected claims the agency needs to take urgent action to address a shortfall in HGV driving tests, which is said to be blocking industry efforts to address the driver shortage. In April, the Logistics Skills Network (LSN) put together a plan to address a lack of DVSA examiners and asked the DfT to change its policy and allow training providers as well as transport operators to carry out driver testing. However, in her Microlise Transport Conference address,

Ryder argued that the DVSA was “training more examiners than ever before” to take on vocational driving tests. “The DVSA is supporting the industry with testing and increasing its capacity to provide more driving tests all around the country,” she said. “We have a batch going through training and by the end of May we’ll have provided more test examiners in the first five months of this year than we would in a whole normal year. So we’re acceleraring that to meet the increasing demand where it comes.”

Ryder added that another key proritiy this year would be technology as the agency debates ways to test autonomous vehicles. It will also enhance its digital services and launch new audit standards.

Operators warned over growing issue of trailer defects Senior traffic commissioner Richard Turfitt has reminded hauliers of their obligations regarding trailers amid a spate of public inquiries. Referring to a “concerning pattern” of cases involving the maintenance of third-party trailers, he said: “There have been considerable efforts by the DVSA to make test reports available to all, but operators seem oblivious to maintaining trailers. 8 MotorTransport

“I don’t say this to scare but to forewarn. A growing number of operators have unfortunately found themselves at a public inquiry. Many simply overlook the obligations on their operator’s licence, which extend to the trailer.” New data suggests around 50% of operators own the trailers they use, 22% hire them in and 28% offer traction only, collecting and delivering from another party.

“It is always the case that the user of the vehicle and trailer bears legal responsibility for its roadworthiness,” Turfitt stressed. “The user is generally defined as the driver or the operator who employs the driver, including agency drivers. Any defects found on the vehicle or trailer will be registered against your operator’s licence, regardless of who owns the equipment or instructs you to use it.”

‘Offer flexible shifts’, Vere tells hauliers Transport minister Baroness Vere (pictured) has urged fleet operators to review their shift patterns to encourage and retain a more diverse workforce. In a virtual presentation, she reminded delegates that only 22% of industry roles were currently held by women and that they made up just 2% of the overall driver pool. “People under 44-yearsold are under-represented," she added. "We need to make sure the industry is more attractive to them. Many households rely on two incomes so flexible working would open the industry to a younger and more diverse workforce." Vere pointed to recent research showing the average journey an articulated HGV makes for a job is 84 miles: “So even on the busiest roads that would not require nine hours of driving on a 13-hour shift,” she said. “There are examples of your colleague companies flexing shifts to try to retain drivers as their circumstances change. This good practice needs to be shared in the industry to ensure it becomes an increasingly attractive place to work and good drivers are retained." Responding to claims the government was not doing enough to ease the sector’s challenges, she said it had now put 33 measures in place to alleviate the driver shortage, including the recent £34m investment in HGV driver bootcamps, and a total investment in driver facilities of £52.5m since the beginning of last year. She also pointed to the work the government is doing with Job Centre Plus to deliver HGV driver training schemes and efforts by the DVSA to maximise testing capacity and streamline the testing process. 6.6.22



Commercial Vehicle Show

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Electric avenues The 2022 Commercial Vehicle Show at the NEC may have been a shadow of its former self, having lost the support of the mainstream truck manufacturers, but it remained a useful showcase for vans and pickups, workshop equipment and support services. This year, a clear theme emerged, as it was impossible to stand in one spot without seeing products and services, new and old, designed or adapted to meet the needs of the burgeoning electric vehicle market. Words and pictures by Colin Barnett and George Barrow

BPW takes power-generating trailer axles to the next level

OUT OF HIDING: One of National Highways’ trio of Operation Tramline DAF tractor units, normally seen – or not – in unmarked covert form, made a rare appearance in full police uniform for the duration of the show.

BPW’s new ePower unit, developed in co-operation with ThermoKing, moves the concept of electricity-generating trailer axles to a new level of sophistication. Its smart technology allows it to only engage in regenerative charging when needed, with features such as inclinometers to detect when it’s going uphill and switch off to save fuel. The ePower, only available with disc brakes, incorporates a pair of 9kW motors. BPW, which now has a manufacturing facility at its UK base in Leicester, is currently conducting trials of the system in advance of commencing deliveries in the final quarter of this year.

Volta Trucks plays it cool with Carrier Gray & Adams shows off a chilling solution One of the highlights of the Gray & Adams stand at this year’s show was this distinctive trailer, one of three destined for DawsonGroup. Its Carrier Vector eCool refrigeration has its batteries topped up by an 11kW Valx second axle. 10 MotorTransport

Volta Trucks displayed a nearproduction-ready prototype of its Zero 18-tonne battery electric vehicle to highlight its partnerships with third-party contributors to the programme. It had announced before the show that Carrier would be its preferred supplier of refrigeration equipment, as shown on the display vehicle, then at the beginning of the show it confirmed that Paneltex would be the provider of choice for ambient box bodies. 6.6.22



Commercial Vehicle Show

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Totalkare unveils all-in-one inspection pit Totalkare has launched a new all-in-one inspection pit with brake tester and wheel play detector. The TK-BM65 is a plug-andplay galvanised steel inspection pit that comes pre-assembled with its own lighting, hydraulic inspection floor, integrated sump tank, side entrance stairs, safety rails, and optional heating and

hydraulic aluminium cover. Made in Denmark by BM Autoteknik, the TK-BM65 measures just 4,270mm by 2,180mm, with a depth of 1,808mm, and can be installed directly on a sand base without the need for concreting, lowering installation costs and making it possible to remove the pit for reinstallation at another site.

Having a Whale of a time at the NEC Having made the short journey from its Solihull base, Whale Tankers had the largest concentration of trucks at the show. As well as an Australianspec eight-wheeler, it showed this eWhale, a 4x2 jetting machine based on a Scania P-Series BEV. The Scania’s specification includes a 60kW power supply to power two electrical PTOs. The stand truck is a demonstrator, while the first customer

Kuda Automotive proposes a new theory of Evolution vehicle is in build for Coventry City Council.

Kuda Automotive has secured a new Renault T Evolution to act as mobile showroom for its latest products. These include an expanded range of Mirror Shields, now available for the conventional mirrors on the new DAF XG

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range as well as for the mirror cameras on DAF and MercedesBenz models. Other items visible on the Renault include catwalks and side skirts, while the interior features new LED lighting for the storage lockers.

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Focus: legal

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Van operators working internationally must get an appropriate O-licence from now on

Lightweights get heavy By Charlotte Hunt

New rules that came into force on 21 May mean international van operators will need a standard international goods vehicle O-licence to transport goods for hire or reward in the EU, Iceland, Liechtenstein, Norway and Switzerland, unless their vehicle is exempt. So who do the changes apply to? In short, they will apply to those who: ■ operate vans with a maximum authorised mass over 2.5 tonnes and up to and including 3.5 tonnes; ■ operate vans towing a trailer with a gross train weight over 2.5 tonnes and up to and including 3.5 tonnes; ■ operate cars towing a trailer with a gross train weight over 2.5 tonnes and up to and including 3.5 tonnes. Operators will not be caught by the changes if they only use their vehicles in the UK or are not transporting goods for ‘hire and reward’. This generally means goods are being carried for or on behalf of someone else, with payment exchanged. So what do the changes mean for existing and new operators? ■ New operators will need to make an application for a standard 14 MotorTransport

international operating licence; ■ existing international operators will need to add the vehicles now brought into scope to their licence; ■ standard national operators will need to submit a variation to become standard international operators; ■ restricted operators will need to submit a major variation to become standard international operators.

Risk of offence

Operating without the correct licence may mean you commit an offence, and existing operators risk receiving a call to public inquiry before the traffic commissioner (TC). There is also a risk of being prosecuted in other countries. Existing restricted licence-holders who are applying to vary their licence will need to make sure they have a transport manager in place. This could be an existing employee who has completed or will complete their transport manager certificate of professional competence (CPC), or they could hire an external transport manager. Existing employees can apply to be temporarily recognised as a transport manager. However, they must have at least 10 years’

experience in managing fleets before 20 August 2020 and must pass their CPC qualification before 21 May 2025 to be able to continue acting in that role. New and existing operators should be aware of the financial standing changes. These require £8,000 to be available for the first vehicle in the fleet, and for new vehicles in scope (ie vans and cars with trailers), and an additional £800 for each extra vehicle. Operators must demonstrate this is available throughout the life of the licence and in accordance with the Senior Traff ic Commissioner Statutory Document No2.

Further requirements

Operators working outside the country should ensure that their vehicles and drivers have the necessary documents. Drivers should carry a certified copy of the ‘UK licence for the Community’ – new international operators will need to apply to the DVSA for this. Depending on the country, drivers may also need to have documents detailing vehicle registrations, specialist approval certificates, permits/licences, insurance documents, a UK

sticker, a driving licence, Driver CPC, passport, any international driver permits and health care documents. The government has published the requirements for international road haulage and it is important operators ensure they are compliant.

Active management

But, most importantly, operators should understand that having an operator licence is more than a piece of paper or a form-filling exercise. It must be actively managed throughout its life to minimise the risk of regulatory action at public inquiry. If a business depends on running a fleet of vehicles its operator licence is arguably one of its most valuable assets. An operator’s undertakings – which they promise to observe when being entrusted with the licence – are fundamentally in place to ensure road safety. Bringing these lighter vehicles into scope internationally will no doubt contribute to making the roads safer, building on the stricter regime already in place for larger vehicles. ■ Charlotte Hunt is a solicitor at national law firm Weightmans 6.6.22



Viewpoint

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Fuel prices are going one way T he current UK rate of price inflation as measured by the CPI is 9%, the highest for 40 years, and could hit 10% soon. A lot of this increase is down to rises in fuel prices that not only affect motorists when they fill up their cars but Steve Hobson also push up prices of just about everything Editor in the shops as hauliers pass on their Motor higher fuel bills. Transport While fuel is still the highest operating cost for hauliers, vehicle costs make up another substantial chunk of the 155p cost per mile of running an 18-tonne rigid over 80,000 miles a year, as calculated in Motor Transport’s benchmark cost tables in 2021. That figure is based on a capital cost of £78,000 with a residual value of £12,000 after five years and 230 working days a year, which equates to 350 miles a day.

The cost per mile goes up to 251p based on 40,000 miles or 174 miles a day. MT hasn’t done the figures yet on what the cost per mile would be for an electric 18-tonner and it is anyone’s guess what the residual value will be on a five-year-old electric vehicle, but the purchase cost will be more like £200,000 and the miles run per day will be a lot lower than the diesel equivalent. Even assuming an electric truck could be double-shifted, with a realistic range of 100 miles on a single charge, an operator would be lucky to get 174 miles a day, every day. This is not to say electric vehicles can’t do the job, but rates are going to have increase substantially to cover the lower productivity of a much more expensive truck and that will only add to UK inflation.

Skills are key to driving sector forward R Alistair Lindsay COO Zeus Labs

enewed efforts seen by the government to address the worsening HGV driver shortage are commendable. The road haulage sector, already plagued by issues before the pandemic, now has to contend with a fuel crisis that has no end in sight plus a growing ‘silver exodus’ of retirees. According to Statista, this exodus is set to accelerate, with 45% of the UK’s HGV drivers expected to reach retirement age in the next five to 10 years. These figures are reflected in a recent survey by Zeus Labs involving 40 UK haulage firms, which revealed that 56.6% saw finding drivers as a core reason for delaying growth. Interestingly, 76.6% of them also selected finding new work as the main challenge. There is no denying that urgent action is needed in attracting and retaining the next generation of HGV drivers, and the new Transport Bill is a welcome first step. But any proposal to veer away from EU licence regulations and open the industry to newly qualified drivers needs to be carefully considered. Perhaps most importantly, any efforts to entice new recruits should focus on fixing the skills gap. Would-be drivers need improved access to training programmes to obtain critical sector-specific skills safely and in good time. We also believe it is up to the government to encourage movement by

16 MotorTransport

incentivising small and medium-sized firms to take on newly qualified drivers and improving the process for obtaining a licence. Unless we take action to solve this problem, we stand to lose more than 380,000 drivers over the next five years. Furthermore, supporting smaller owner-operator fleets, which make up 70% of the registered HGV firms in Britain, directly ensures a more resilient and stable nationwide logistics network. This is pivotal if we are to see economic growth. Zeus Labs is a good example of how to support small to mid-sized haulage firms with its next-generation digital platform. The platform charges no fees to hauliers, finds new work for them and pays them within three days, instead of 60 to 90 days. This directly benefits the smaller hauliers, who can manage fuel costs better and take more time to invest in training new drivers and growing their fleets. However, when it comes to incentivising, educating, funding and helping ensure fast training of new drivers, we cannot help directly. With the road haulage industry at such an important crossroads, we hope any new legislation takes heed of the bigger picture and has the industry’s long-term interests at heart.

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Head of content Tim Wallace2158 Events and projects editor Hayley Pink 2165 Group production manager Isabel Burton Layout & copy editor Nick Shepherd Senior display sales executive Barnaby Goodman-Smith 2128 Event sales Tim George 0755 7677758 Classified and recruitment advertising rtmclassified@roadtransport.com Sales director Emma Rowland 07780 604075 Divisional director Vic Bunby 2121 MT Awards Katy Matthews 2152 Managing director Andy Salter 2171 Editorial office Road Transport Media, First Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Email:customercare@dvvsubs.com Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £146/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 ©2022 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 6.6.22





Finance

motortransport.co.uk

Buying electric vehicles such as Freightliner’s eCascadia tractor unit will not be cheap, but fortunately, commercial vehicle finance organisations are planning some handy ways around this, writes Steve Banner

Purchasing power

F

unding the acquisition of electric trucks by operators looks set to be a challenge, but it is one the finance arms of manufacturers and independent leasing and contract hire companies are going to have to get to grips with – and sooner rather than later. The key difficulty they all face is that calculating the monthly rate a business that signs up to an operating lease will have to pay means knowing what the residual value of the vehicle will be in, say, six or seven years’ time. With an electric truck that remains largely unknown, because it depends on how long its battery will last and how much a replacement will cost. Dawsongroup MD John Fletcher says: “It’s a bit of a chicken-and-egg situation, and you don’t really know where you’re going to get to until you start the journey. If the battery doesn’t last the course then the truck is going to end up being unfit for purpose. “Will the battery last for seven years? Will it last for 10 years? We don’t know – but what we do know is that a diesel truck can keep working for 20 years or more.” And while some of the major urban centres may penalise any diesel truck that does not meet Euro-6, there are large areas of the country where such penalties do not apply.

Twin option

One option could be to offer two leases, Fletcher suggests – one for the battery and one for the rest of the vehicle. It is an arrangement not dissimilar to the approach taken by the aviation industry, he points out, which treats airliners’ engines differently to the rest of the aircraft. It is also an approach pursued by some manufacturers 20 MotorTransport

when electric vans were first introduced. Unfortunately it fell down because residual value specialists were not prepared to predict the secondhand value of a light commercial vehicle without a battery in it. Asset Alliance Group director of asset management

TEVVA GOES DOWN LEASING ROUTE Tevva is working with Novuna (formerly Hitachi) to offer its electric vehicles on leases rather than asking operators to buy them outright. The lower running costs should provide an immediate saving. “You might pay a premium of say £500 on the lease cost, but you might save £525,” says sales and marketing director David Thackray. “Therefore it can become cash-positive from day one. It all depends on the mileage. If you only do 20 miles a day, you’re going to struggle. You’re not going to save any money and you’re not going to make a big dent in the climate position. If you do 80 or 90 miles a day, that’s when you get into the sweet spot.” Leasing also removes any residual value uncertainty from the operator because Tevva and the leasing company have worked together to quantify and define these. On a 7.5-tonne truck, 2,000 cycles should equate to about 200,000 miles – roughly what a truck would do in eight years at 100 miles per day. “As yet, there are no commercial vehicle batteries that are eight years old with a price,” says Thackray. “Everybody is making their assumptions and judgments. A battery that has done 2,000 cycles may have 80% of its new capacity so while it’s not an 80kWh battery, it’s still 64kWh. “That’s still a big and very useful battery and probably has a value. The rate of depletion continues at a constant level by all the projections. Its second life might be in static storage for uninterruptible power supplies or for buffering vehicle charging. “My personal view is that if you want a second-hand battery electric vehicle in five years’ time, supply and demand will say they will be expensive because they’ll be as scarce as hen’s teeth.” 6.6.22


motortransport.co.uk

BATTERY LIFE While there is as yet no certainty about how long batteries will last in electric trucks or what they will cost to replace, greater clarity is gradually emerging. US manufacturer Proterra states that the batteries it is supplying to Volta for use in its Zero rigid are designed to deliver over 4,000 recharge cycles over 10 years without significant degradation. Scania suggests that manufacturers and their dealers may start to replace individual battery modules over the next few years if they have suffered faults or become degraded, obviating the need to swap the entire battery pack prematurely. Nor would it be surprising if a market in reconditioned exchange battery packs begins to emerge, working along the same lines as the existing market for exchange engines and gearboxes. Questions over the durability of electric models have been addressed by Daimler Trucks in the US. It reports that its new 320hp to 470hp Freightliner eCascadia tractor unit has successfully completed over a million miles of testing in daily operations with customers. Now in series production, the newcomer offers a typical range of up to 230 miles between recharges says Daimler. On this side of the Atlantic, Mercedes-Benz Trucks is willing to offer a six-year contract hire with maintenance deal on its electric trucks, according to eConsultancy manager James Venables (pictured below). “We can give customers a residual value,” he says. It can do so with confidence, he adds, because of the amount of experience it has had with battery-electric models; Fuso’s eCanter went into operation in the UK with Wincanton, DPD and Hovis more than four years ago. “We warrant the batteries for six years, and we can certainly see the possibility of giving our electric vehicles a second life after six years,” he says, adding that funding agreements that extend beyond six years are a possibility too.

CHICKEN AND EGG: battery life is key, says John Fletcher

possible. Bear in mind that there are large infrastructure costs accompanying the switch to electric that they will also have to fund. “I don’t think that we can talk about a typical lease duration though until we have more data on how well the technology copes with the demands of the many different sectors of the transport industry.” While leasing rates may be potentially higher than those charged for the use of a diesel truck, at least fleets will pay less for the power their electric trucks consume. Furthermore, the maintenance element of a contract hire with maintenance deal should cost less too. Or should it? Don’t bank on it, says Mellon: “We’re in the early days of heavy truck electric technology, so there’s a lot of work to be done to understand the operating costs of components to see how viable long-term maintenance deals are.” That includes seeing how well electric motors stand up to high mileages, he adds. “There are fewer moving parts in an electric motor compared with a combustion engine, but the replacement costs are far higher,” he observes. “Battery life is also going to play a major part in any maintenance discussion, and we’re still unsure how reliable batteries are going to be.”

Technology advance Marc Mellon suggests that truck makers will have to be prepared to shoulder much of the risk themselves. “Without any credible historic information to work with at present, they will need to play a big part in discussions about electric vehicle residuals until confidence grows in the used market,” he observes. He doubts, however, that the answer will be to write electric trucks down to zero: “I don’t see this happening as they will always be worth something to somebody.” Even if a battery is no longer suitable for propelling a vehicle, it can still be used for static energy storage.

Higher payments

CHARGING AHEAD: Northgate is acquiring 350 Mercedes-Benz eVito vans this year 6.6.22

Electric models still command a higher front-end price than their diesel counterparts, which in the absence of firm residuals is likely to result in higher monthly payments. Observes Mellon: “I therefore foresee operators asking for lease terms to be extended to keep monthly costs down as much as

A further concern is the speed at which truck technology is advancing, says Fletcher. An electric truck that is cutting-edge today may look like a museum piece in a few short years – and what will that do to its second-hand value? Mellon suggests that hire purchase will undoubtedly be a less attractive bet for operators planning to acquire electric trucks than some form of lease, at least until some of these uncertainties are clarified. If they opt for HP then they will end up owning the asset once all the payments are made; but what will the asset be worth? They may be understandably wary of taking the risk, and will prefer leasing companies to shoulder it instead. Fleets may be happier about acquiring electric vehicles without the cushion of a manufacturer buy-back if they are big enough to withstand any losses that may be made, and ➜ 22 MotorTransport 21


Finance

motortransport.co.uk

ON THE BUSES

RESIDUALS RISK: Marc Mellon says leases will be popular

have an established mechanism they already use for disposing of diesel models.

Big spenders

With a 50,000-strong fleet, light commercial rental giant Northgate is certainly big enough. It is acquiring 350 Mercedes-Benz eVito vans this year, and will ultimately dispose of them through its Van Monster retail chain. Fitted with a 66kWh battery pack, the version of eVito Northgate has chosen should be good for up to 162 miles between recharges, according to Mercedes. Says Northgate sales and marketing director Neil McCrossan: “An analysis of mileage data from our customers’ fleets shows that this is more than practical for their daily usage.” Despite Fletcher’s reservations, Dawsongroup is quoting leasing rates for electric trucks now, he says. Their greater front-end cost and all the other variables mean the rates are higher than for diesels. “We know we’ve got to get involved, and that there are likely to be failures as well as successes,” he observes. “We have to recognise that we may not get it right first time around. “We have to stand the risk though. After all, that is why leasing companies exist.” ■

22 MotorTransport

One approach hauliers going electric may wish to consider is opting for a TaaS (Truck as a Service) package. It is a route already being advocated by industry newcomer Volta. It involves rolling the entire cost of acquiring a battery vehicle – the truck, its maintenance including replacement batteries and the installation and management of the charging infrastructure – into a single monthly payment. The customer gets the use of any assets involved, but not their ownership, thereby reducing capital expenditure at a time when revenue may be under pressure. It is an option already being embraced by bus fleets. With the help of hefty subsidies they now have considerably more experience of operating electric vehicles – including models powered by hydrogen fuel cells – than hauliers. National Express will be putting over 130 electric BYD ADL Enviro400EV double-deckers into service in Coventry from early next year onwards. It will be doing so in partnership with Zenobe, which is already providing the charging infrastructure and batteries for 29 Enviro400EVs first deployed by National Express in Coventry and Birmingham in 2020. The latest deal involves Zenobe providing ETaaS (Electric Transportation as a Service) to National Express. It is financing and managing a full turnkey solution that includes the new vehicles, replacement batteries, charging facilities and the supporting grid infrastructure, and software to manage the charging. The agreement also give batteries a second life at the bus garage when they are eventually removed from the vehicles. As part of the package, ADL will supply Zenobe and National Express with all the spares required for planned preventive maintenance for the first 16 years. Zenobe co-founder and director Steven Meersman says: “By retaining ownership of the vehicles and taking on the risk of switching to zero-emission, we’re giving National Express the use of an electric fleet without the hassle of owning one.” Some of the cost of the project is being offset with money from the DfT. Asset Alliance’s Mellon sounds a note of caution about applying such a model to the haulage industry, however. “TaaS is definitely a viable option, but the huge set-up costs involved would massively increase the credit risk to lenders,” he observes. They might be wary of taking that risk given a recent report from accountants Price Bailey, which states that nearly a third of Britain’s hauliers are at imminent risk of financial collapse. “There’s been a big impact on credit scores in recent times and we don’t know how quickly this will improve or what is going to happen in the future,” he says. Adds Dawsongroup’s Fletcher: “TaaS is a nice label to put on it, but a lot of what it describes is what we’ve been doing for years, and I wouldn’t rule out getting involved in the provision of infrastructure. It’s not our core business, but we may have to look at it as an enabler for certain customers.”

6.6.22



Photo: Shutterstock

Interview: Richard Smith

motortransport.co.uk

Across the divide

R

ichard Smith was interviewed by MT for the first time in his previous life as ops director of Samworth Bros after the firm won the 2017 Motor Transport Training Award for setting up its driver academy. He had been recruited into the business in 2013 after nearly 10 years with Wincanton by then MD Richard Burnett, who then became chief executive of the RHA in 2014. Smith worked with Burnett on five occasions over the past 30 years, joining him again as operations and commercial director of the RHA in 2017, taking the reins as MD in December 2021 when Burnett quit. Smith completed his MBA at Chester in 2014 and had 20 years’ experience in transport and logistics with firms including TDG and Italian manufacturer Tennax before joining the RHA. The reasons behind Burnett’s departure have never been spelled out, but it became clear that relations with transport secretary Grant Shapps had become fractious after squabbles over who was to blame for the HGV driver shortage. Eventually Burnett decided enough was enough and returned to the industry as MD of events haulier KB Event. Our interview with Smith takes place at the RHA’s Westminster offices in Greencoat Place, just a stone’s throw from Parliament and the DfT’s offices in Horseferry Road. “I’ve got a working relationship with DfT,” he says. “And I’m developing a working relationship with the secretary of state. That is progressing in my new position. When Richard went to live the dream at KB Event he left me a legacy of lots of good things.” Smith was appointed MD rather than chief executive because the RHA took the opportunity to restructure its management in line with a new five-year plan. That has seen the executive team slimmed down to Smith, director of policy and public affairs Rod McKenzie and HR director Laura Taylor. “We had evolved over the last five years to the point where it was decided to move from a forward-looking, visionary CEO to a membership-up strategy with board sign off led by an MD,” explains Smith. “The two require 24 MotorTransport

The RHA is focusing on its role as a trade association to further the interests of members... and that means being more conciliatory. New MD Richard Smith talked through the fresh approach with Steve Hobson very different people and where Richard was the face of the RHA, under my tenure the RHA will be represented by people like Moreton Cullimore [RHA chair], Rhys Williams [regional operations manager] and Rod McKenzie [a former editor at the BBC]. “We are starting to see in the last six months, certainly in our social media, that we are a membership-led organisation.” There is also a breath of fresh air on the board with more younger members joining. Moreton Cullimore is the youngest ever chair of the organisation and Emma Barber-Collins, of WH Barley Transport & Storage, the youngest vice chair. “The board’s job is to make sure the exec is challenged by the membership. It was actually the exec that put the proposal on the new structure to the board to make sure the membership is really feeding into the governance of this organisation. The chairman leads the board, the MD leads the exec and I report to the chairman.”

Changing tack

The new strategy also means a shift away from the RHA being seen as a very public critic of government to a more collaborative approach of working with policy makers. “I think we had become something of a one-trick pony,” says Smith. “We worked from the outside, and we will carry on doing that, but we need to become more public affairs focused. We have to consider the broader base of stakeholders not just keep banging on at Big Ben. We represent four nations – over 8,000 hauliers, 84 coach operators, van operators and 300 professional members.” Another key shift is to give as much attention to regional and local government as devolved administrations gain more power and budgetary responsibility. ➜ 26 6.6.22



Interview: Richard Smith

motortransport.co.uk

“It is important to engage with the regional metro mayors as well as Westminster,” he says. “A good example is that just before Christmas I met with Dr Nik Johnson, mayor of the Cambridgeshire and Peterborough combined authority, and on the back of that he is now funding 60 drivers to be trained through our newly established licence acquisition academy. They will be provided to local members in the Peterborough and Cambridge area who need drivers. “Is that not what a trade association should do?” Another reason to focus on regional rather than central government is the need to make sure freight is not forgotten when local clean air zones are developed.

A clean fight

Manchester’s CAZ has been postponed amid warnings it would severely damage the logistics sector and while the RHA’s third campaign strand is on the environment and helping operators move to cleaner vehicles it is staunchly opposed to the current scheme. Chris Ashley, RHA head of policy for environment and regulation, lobbied the Manchester mayor’s office hard to get the CAZ delayed. “We are confident that we will be able to influence what it looks like when it comes back,” says Smith. “It was delayed because they realised the catastrophic impact it was about to have. An operator going into Manchester three times a day would have been bankrupt by the end of the week.” At a meeting with Dan Norris, mayor of the West of England, the Bath low emission zone was high on the agenda. “From a haulier’s perspective that is a total shambles,” says Smith. “If you drive around the outskirts of Bath you will get charged – how is that fair? We are speaking to the right people at all levels and it will be on the list when I speak to Ben [Houchen, mayor of Tees Valley] and Steve [Rotheram, Liverpool City mayor] and all the other metro mayors.” The RHA wants Euro-5 trucks to be allowed free access to CAZs as many smaller operators are still struggling to upgrade to Euro-6 let alone the zero-emissions vehicles now required in Oxford and other cities in the future. “Our argument is that Euro-5 is good enough at this point,” says Smith. “Just going for Euro-6 is too restrictive

SUBTLE SHIFT: Smith is leading a change in the RHA’s campaigning approach. “We want to be more considered and come up with solutions to problems,” he says

and unfair. Look at the cost pressure everyone is under and now there is the risk of stranded assets with the impending arrival of electric vehicles. Who is going to buy a diesel coach now – and it will be exactly the same for the hauliers. “There is very little difference between Euro-5 and Euro-6 and our position is that they are both less harmful than the rest of the traffic in city centres. The cost of change will be the key point going forward to 2030. We need to know what the alternative fuel is going to be now so our members can start to invest for the next 10 years.” One problem with CAZs is that they are designed locally to address local problems with air quality, leading to a lack of consistency that causes huge headaches for national operators. “If I’m driving a truck from Manchester to Oxford what does that look like?” asks Smith. “Ultimately it will damage the economy because we are going to drive people away from this industry. We talk about attracting drivers but it is also about attracting hauliers.” The RHA, like the rest of the transport industry, was blindsided by the government announcement at COP26 in Glasgow in November last year that it was phasing out diesel 26-tonners by 2035 and all diesel trucks by 2040. And, like many others, the RHA says the timescale to achieve these deadlines looks unachievable. “We support the need to head towards net zero but we need to see the road map to get there,” says Smith. “What is the alternative fuel? Because we are such a broad church we have members of all sizes and everyone wants to know where to invest. “We suspect it might be hydrogen or a hybrid of fuels depending on the type and use of each vehicle. In cities it might be electric but that won’t work in every city so where is the roadmap for the next seven or eight years? “It is possible we will get some easement on the deadlines but we shouldn’t rely on that.” This is another area that Smith wants to see closer collaboration among trade associations representing the transport and logistics sector. “We need to talk with one voice and go to government to say ‘this is what we need’,” he says. “If we don’t collaborate we are letting this industry down.”n

STRATEGY FOR GROWTH TARGETS MEMBERSHIP OF 14,000 After almost 80 years, the original name – the Road Haulage Association – has been dropped and it is now just the RHA, allowing it to bring other vehicle operators such as coaches, vans and own account into the fold. Smith does not rule out a move away from the RHA moniker at some point, but not just yet. “It is about respecting tradition while moving into a changing world for the RHA,” he says. “We are not on an attack to grow membership because I don’t need to and it would be damaging to the industry. The quality of what we deliver and the support we give the industry will ultimately bring in members. We are not multimodal – we are very much Tarmac and wheels.” The RHA is on a firm financial footing and more than able to fund its extensive campaigning and lobbying efforts, with membership growing by 1,000 last year to 8,500 firms running 200,000 trucks. “We have £3m in the bank, three properties worth £2.1m and we made a £770,000 surplus on £13m turnover last year,” says Smith. “All that goes back in to the investments we are making.” 26 MotorTransport

However, the five-year plan does include an ambitious target to grow the membership to 14,000 by 2026 which – along with increasing income from training and other commercial activities – would see revenue grow to £17m and the surplus rise to £1m. With around 38,000 businesses holding a UK O-licence that would see the RHA representing over a third of the road transport industry. Arguably small own account operators need guidance and legal support more than hauliers as running trucks is not their primary business. With 35,500 of the 70,000 O-licences in use in 2020/21 being restricted, that is a big market to go after. “We recognise that in this area there are a lot of operators that need our support,” says Smith. “During Covid-19 we had to support members to maintain and develop their businesses so we have the Business Bureau, which includes legal advice for any of our members whether they run trucks, coaches or vans. Around 80% of the issues they face are common, which is where we derived the three campaigns on

skills, facilities and environment.” Just over 40% of RHA members currently pay the extra fee to access legal services and a third of members say the main reason they joined the association was to use the RHA conditions of carriage. “We get 1,400 calls a month to the helpdesk,” says Smith. “That’s important because we are here for the muck and bullets as well as the public affairs side.” When it comes to campaigning and lobbying the RHA will be a constructive partner to government when necessary but under Smith there will be a less confrontational approach. “We want to be more considered and come up with solutions to problems,” he says. “We are there to help and support as well influence on behalf of our members. “In the last year we have been in the headlines for all kinds of reasons but from a policy perspective we have achieved a huge amount, such as the skills bootcamps, apprenticeships and the night-out allowance. Our membership see that and we bring a real relevance to the day-to-day direction of the industry.” 6.6.22








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