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HGVs ignored in new electrification report A Rapid Charging Fund was announced in the March 2020 Budget as part of a £500m commitment for EV charging infrastructure “ahead of need”. However, despite the government’s plans to ban the sale of new diesel lorries by 2040 at the latest, it has yet to confirm its plans to ensure a satisfactory charging network for them. Andy Eastlake, chief executive of low-carbon specialist the Zemo
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New research into the electrification of road transport has sidestepped heavy haulage despite fears that time is running out to provide a suitable charging infrastructure for trucks. The report comes from the Electric Vehicle Energy Taskforce – a collaboration of consumer groups, energy, infrastructure, transport and mobility sectors, working alongside the government and Ofgem.
Partnership, told MT he hoped the DfT would confirm its HGV strategy following a zero-emission road freight trial programme. “We hope that’s coming out very soon,” he said. “With ‘Project Rapid’ we’re talking with National Grid about putting in a big enough grid connection into the motorway service areas, even without necessarily knowing what we’re going to bolt on to the end of it to power trucks. “The decision on trucks is whether it’s going to be a hydrogen production facility, energy we store and then dump into batteries, or a catenary – an overhead wire. “We don’t know. But we know we’re going to need the electrons and lots of them at some point and we can start to make a pretty fair stab of the size of the wire that’s got to go into the ground. Let’s do it once if we can. That’s the cheapest way, even if we don’t use all of it to start with. “We’re saying to the community and the government, let’s plan slightly longer term and maybe with a bit of risk involved. It’s probably a no-regrets decision.”
SADDLE UP: International transport charity Transaid is calling for cyclists to sign up for a 157-mile fundraising ride across northern England in the autumn. The 40 riders will depart Whitehaven on 16 September and pedal to South Shields over two full days of cycling on Hadrian’s Cycleway. The money raised will be used to support Transaid’s life-saving work in sub-Saharan Africa, where it is focused on improving road safety and increasing access to healthcare for rural communities. To sign up, contact Florence Bearman on 07875 284 211 or email florence@transaid.org
VOX POP Is the industry ripe for increased consolidation? Bob Terris, chairman, Meachers Almost every day I receive information on companies for sale. So many people are looking to get out, either because they have no succession or they can see the future level of investment that will be required to meet the environment standards. There will be further consolidation and the days of small independent operators are numbered. Many of the larger operators depend on smaller operators for subcontracting and if this disappears they will need to operate more vehicles themselves which will add costs. This will result in higher distribution costs overall which will be inflationary. Add to this the loss of short-term hire from the hire companies which will reduce flexibility and this is not a good long-term scenario. Not a very optimistic view, but I believe it is realistic. Matthew Deer, MD, Swain Group The industry appears ripe for further consolidation. However, many companies still have too much debt from the pandemic. We see independent and family companies 6 MotorTransport
wanting to release the property when preparing the business for sale. This is years of hard work for many companies and is seen as part of a retirement income stream. As we start to see rising interest rates, leasing costs and increased costs of vehicles and trailers, compounded further by the cost-of-living impact on operating costs, I think you’ll see another round of consolidation in the next six months. Caroline Green, chief executive, Pallet-Track This may not be a surprise. Without knowing the circumstances of the latest acquisitions [see page 1], they could be potentially weaker firms, operating off the back of hideous fuel prices and wage inflation who may need bailing out. Kevin Buchanan, CEO, Pall-Ex We are living in very ‘special times’. I think the last two years have tested many companies and if you had half a mind to retire and get out anyway, then recent events will have certainly focused the mind. We have also seen some companies like
us do well in the last two years and see the current situation as an opportunity to ‘prey on’ weaker or less progressive businesses and pick up a deal. The likes of EV Cargo who have plenty of cash will be trying to react to gaps in the market and weaknesses in their own strategy. I spoke with Stephen Dunn, the MD at North West Logistics, and they have identified [in Proserve] a company which was stronger in warehousing than them but weaker on transport, so the two companies complemented each other. One thing is for sure, more consolidation is inevitable as change always creates both risk and opportunity. Clive Brooks, MD, ABE Ledbury Acquisitions, of course, are nothing new and the potential benefits for the purchasers are clear (although they are not always achieved). There’s a certain inevitability to it as families seek to find an exit, in the absence of suitable or willing succession from within. Is there less determination, now, to keep these companies within the family, over the generations, with all the challenges that are faced? High investment, high compliance, low margin... 11.4.22
