Motor Transport 12 June 2023

OPERATORS INSIDE

NEW INVESTMENT: Preston-based logistics specialist FDC Holdings has acquired its headquarters from Harworth Group for £12.3m and boosted its fleet with the addition of two new Scania tractor units and 10 new trailers. The company is also planning to invest a further £2m on capital equipment and a range of building improvements at the site, which forms the northern hub for The Pallet Network. This latest acquisition increases FDC’s total space to nearly 1 million sq ft across three sites in Preston and Blackpool. The £600,000 vehicle investment brings the fleet to 70 trucks and 100 trailers, all emblazoned with the firm’s 25th anniversary logo. A further four tractor units are on order and five new roles have been created across transport planning, customer services and driving. Pictured are FDC chairman Peter Allen (top) and MD Ian Maudsley.

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Zero emission HGV fleets are unaffordable, say operators

By Tim Wallace

Leading operators have told MT that switching their HGV fleets to zero emission fuels is unaffordable in the current climate and have demanded more help from the government and their own customers.

“We’ve been quoted a figure on an electric truck that was close to £300,000 and I don’t know an operator that could afford to spend that,” admitted Owens Group MD Ian Owen. “So it’s getting the customer to be prepared to pay for it.”

The Llanelli-based firm has seen a 20% downturn in volumes from the end of last year and talks with key partners to switch the fleet to HVO have stalled. “Our trucks are ready but who’s paying for it?” Owen said. “The government is talking it up but not backing it up.”

Parcel firm Evri has been building a biomethane HGV fleet for

five years, but head of fleet David Landy said operators planning to switch to electric faced “a massive financial and technical challenge”.

“The government wants operators to put a charging infrastructure into their own networks,” he said. “But we’ve got 200-plus tractor units running up to a quarter of a million kilometres a year. The charging, and the size of the cable, would be huge. We need help.

“There’s a massive cliff face coming to operators,” Landy

warned. “Given the capital prices of the truck and the infrastructure, early adoption isn’t affordable. But the government would rather bat the cost back to us. The danger is people will hang on to older technology for longer.”

Mike Parr, MD of chilled goods haulier PML, agreed: “Who out there can give me an electric truck that can do four or five hundred miles? Nobody. And we recently asked a German manufacturer about the range of their refrigerated vans and they said, ‘don’t bother’.

“We’re looking at putting solar panels on the top of trailers,” Parr added, “but unfortunately they’re twice the price. We’re also looking at hydrogen but where can you refill? And who’s going to pay the additional cost? Some of the government grants could be used better.”

Alan Maher, MD of Manchesterbased Archbold Logistics, said

truck manufacturers “don’t have a lot to tell us” and that battery technology is changing so fast that operators are delaying decisions. “Everyone has got some form of electric solution but on a very limited scale,” he said.

help from government needed as cost of trucks and infrastructure present huge challenge

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Turners (Soham) and The Haulage Group fined £2.2m after fatal accident

Two haulage firms have been fined a combined total of £2.2m after a depot manager was struck by a reversing HGV and killed.

Neil Roberts, 60, was working for Turners (Soham) when he was hit by the truck on 30 August 2019.

The incident occurred at the premises of The Haulage Group, previously known as Howell Group, in Birmingham when the

vehicle reversed out of a parking space in the transport yard.

A subsequent investigation by the HSE found that both companies failed to manage the risks associated with workplace transport.

Turners (Soham) pleaded guilty to breaching the Health and Safety at Work Act. It was fined £1.9m and ordered to pay costs of £7,300.

Manufacturer denies any production hold-ups amid viablility concerns

Tevva insists trucks won’t be delayed

By Carol Millett

Tevva’s struggle to secure additional funding and its decision to cut jobs at the firm will not delay production of its all-electric 7.5-tonne truck, the company told MT this week.

The vehicle is currently in production at the company’s Tilbury plant. Customers include Royal Mail and Travis Perkins. Kinaxia is also set to trial the vehicle.

Concerns about the company’s viability were raised after a winding up petition was issued last month by Ipswich aluminium foundry Hadleigh Castings, for a debt of £84,011.76 for five unpaid invoices. The debt has now been paid and the winding up order withdrawn.

Tevva is also overdue in reporting its financial results and is currently making an unspecified number of redundancies.

Last year the company won a £4.2m grant from the UK’s Advanced Propulsion Centre (APC) and is currently trying to raise further funding.

A spokesman said: “The external environment remains challenging for our industry, and the company is taking decisive actions to achieve operational efficiencies to safeguard longterm success.

“We are close to securing additional funding and expect to make an announcement in the next few weeks.”

He added that Tevva is producing “several hundred trucks this year, all of them with customers already or waiting”.

Last week the company revealed it had been contacted by US officials. Subsidies are currently available to clean tech firms prepared to move their production to the US, under President Biden’s Inflation Reduction Act.

NETWORKING OPPORTUNITY: Road Transport Expo (RTX) is a lively, engaging event for visitors and exhibitors alike. With more than 200 exhibitors, a full conference programme and an ‘all about the truck’ focus, it’s an unmissable event for anyone who works in road transport. It’s also a great networking platform to meet up with colleagues and customers and make those all-important new business connections. There are plenty of food outlets and areas to sit and relax at the venue, plus many exhibitors will be welcoming visitors with top-notch hospitality on their individual stands. RTX takes place from 28-30 June at NAEC Stoneleigh and is free to attend for visitors. Find out more and book your place at roadtransportexpo.co.uk

The Haulage Group also pleaded guilty to breaching the same Act and was fined £300,000 and ordered to pay costs of £7,300.

 Hertfordshire-based Eco Waste and Recycling has been fined £30,000 after an employee was run over by a telehandler and had their leg amputated. The company was also ordered to pay £3,102.50 in costs.

Wincanton reports record full-year profit

Wincanton has reported a year of ‘profitable growth and strategic progress’ against what it called a ‘challenging external environment’.

The logistics giant also announced a reorganisation of its transport operations to focus on dedicated open book networks and 4PL activities. The move is aimed at creating ‘a more efficient, profitable, digitally enabled service offering’, despite restructuring and associated impairment charges of £19.5m.

Results for the financial full-year ended 31 March 2023 showed revenue increased by 2.9% to £1,462m and underlying profit before tax increased 6.9% to £62.1m, a record result. The total dividend for the year was raised 10% to 13.2p.

Major new business wins were secured across all four of the group’s sectors, with significant contract renewals also agreed with longstanding customers including Sainsbury’s, Waitrose & Partners, Wickes and Halfords.

A trading update said that while challenging economic conditions are expected to continue in the new financial year, Wincanton forecasts results for FY24 in line with market expectations.

Photo: VanderWolf Images / Shutterstock

Trial success delivers Amazon Prime carrier status for Evri

Amazon has named Evri an accredited Seller Fulfilled Prime carrier to deliver parcels on behalf of all merchants on the e-commerce giant’s website.

Evri said the move would help it grow its business by several million parcels a year.

The accreditation was gained following a rigorous six-week trial. A key requirement was that Evri could collect the parcels after 4.30pm from Monday to Friday and after 12.30pm on Saturday from merchants within the UK to

B&Q and GXO open distribution centre in Blyth

B&Q has officially opened its latest distribution centre in Blyth, Nottinghamshire, which is being operated by GXO.

The 430,000sq ft facility employs more than 100 people and is part of a wider strategy by the retailer to improve operational performance and customer experience.

B&Q said the new DC will make it easier for its customers to get thousands of gardening and outdoor leisure products, either delivered into stores, for click and collect or direct to customers’ homes.

The facility forms an integral part of the home improvement retailer’s network, which is managed by its partners GXO and Wincanton.

Blyth DC is the first B&Q facility to serve both stores and home delivery.

n GXO has also extended and broadened its pan-European logistics and warehousing partnership with cereal manufacturer Kellogg’s. The agreement sees GXO pledge to deliver continuous improvement initiatives at operations that span five countries and eight sites.

then deliver to recipients the next day, anywhere in the country.

Evri already delivers to individual consumers

on Amazon and this new Prime collaboration will allow about 85,000 UK SMEs on the Amazon store to select Evri as their delivery provider across Prime and non-Prime orders.

Evri said the accreditation reflects its commitment to investing in technology, fulfilment and customer service, as well as reinforcing its high service performance and network scale domestically and abroad, given that it delivers more than 700 million parcels each year.

Purchase of Featherstone depot proves catalyst for host of contract wins

Suttons Tankers grows bulk powders offering

By Carol Millett

Suttons Tankers has reported “significant” growth in the industrial powders sector over the past year.

The logistics provider has won and retained a combined total of over £10m-worth of bulk powders business over the last 12 months.

New deals include a contract with Alpek Polyester, which sees Suttons operating out of its Stockton depot, loading PET from Wilton and delivering product across the UK. The product is widely used in the FMCG industry for beverage bottles and food containers.

Italian HGV driver charged after immigrant bust

A 54-year-old man has been remanded in custody after being charged with arranging or facilitating the illegal entry into the UK of 13 people who were discovered in the back of a lorry at Ransomes Industrial Estate in Ipswich.

The Italian HGV driver, Enrico Ferraris, was arrested on Thursday 25 May after police were called to the estate at around 10.40am.

Officers found 13 people in the back of a lorry. Nine people were subsequently arrested on suspi-

Suttons Tankers has also renewed its Ineos PVC contract for a further three years and won a new contract with Ineos Olefins and Polymers, strengthening its long-standing partnership with the Ineos brand. The Sabic contract was also renewed for a further two years.

Suttons is attributing its success in part to the procurement of a new site in Featherstone, which has enabled it to offer a trunking operation.

The company said the Featherstone depot is part of wider plans to expand its footprint in the UK and allow further growth.

Suttons’ run of contract wins is also attributed in part to its recent £4m fleet investment, which has seen 13 new tractors and 27 new tanks added to the fleet.

HW Coates sees turnover up 38%

cion of entering the UK illegally, while four believed to be under the age of 18 were taken into police protective custody.

The HGV driver was taken to Martlesham Police Investigation Centre for questioning.

He was subsequently charged with arranging or facilitating illegal entry into the UK and has since appeared before Ipswich Magistrates’ Court.

He will next appear at Ipswich Crown Court on 26 June.

Distribution and warehousing group HW Coates increased turnover by 38% in 2022 as it continued with its long-term focus on the storage and transport of packaged chemicals.

For the year ended 31 December 2022, it reported revenues of £67.4m compared with £48.8m the year before. Pre-tax profit also increased, by 4.6% to £25.8m (£24.7m).

In its business review, HW Coates said: “The macroeconomic background in which we operate was neutral in 2022, with a continued rebound in GDP balanced by increased cost pressures.”

Photo: Shutterstock

Government review suggests merging tribunal operations into one body

All change for TC regime, says DfT

By Chris Tindall

A review into the function of the traffic commissioners (TCs) has recommended they are replaced with one independent tribunal body headed up by a statutory president role.

The DfT’s report into the work of the TCs also proposed overhauling the current fee structure in order that the operating deficit is removed and enabling it to be fully funded through the fees it charges.

Additionally, it recommended addressing the traffic commissioner title and whether it should be changed to better reflect the role.

The 12 recommendations followed a public consultation into

the health and effectiveness of their function.

It suggested that the DfT proceeded with a change to allow the TCs to make tribunal rules, including cost orders: “With increased powers, the TCs would be better able to manage their hear-

ings, which should make them both more effective and more efficient in the longer term,” the report said.

“Further, these powers would also demonstrate the independence of the function and bring it more in line with other tribunal jurisdictions.”

The report said consolidating the eight TCs into one body would make managing the organisation less complex, while replacing the senior TC with a president would improve governance arrangements and clarify lines of accountability.

A recommendation was also made to employ a chief operating officer to manage the OTC staff and engage across a wide range of stakeholders.

Pallet sector rides wave of B2C growth

The pallet network sector saw a 6.3% volume growth in the first quarter of 2023, compared with the same period in 2019, with 7 million pallets delivered and B2C demand up by 32%.

Paul Sanders, chairman of the Association of Pallet Networks, said Q1 data indicated a “strong and encouraging” start to the year.

He added that the sector is also witnessing “significant and lasting” shifts in customer preference since 2019, pointing to a growth in home deliveries of 32% since Q1 2019. This, in turn, has driven an increase in the use of quarter pallets, which is up 11%.

However, inflationary factors, including higher energy and finance costs, are also visible, Sanders noted, with the use of economy services growing by 21%.

LST guidance puts emphasis on training and compliance

Full details of the regularised use of longer semi-trailers (LSTs), which came into effect at the end of May, have now been confirmed by the DfT.

The trailer must still comply with the current 2.4m swing radius ahead of the kingpin, and the overall combination length of 18.55m cannot be exceeded.

Maximum GCW remains at 44 tonnes on 6 axles, with one of the trailer axles needing to be steered. If the GCW exceeds 38 tonnes, an on-board weighing system must be fitted.

Operationally, any route intended to be used must have a prior route plan and risk assess-

ment given to drivers. The secretary of state must be notified of the prospective use of LSTs via the O-licensing system

Other guidance includes enhanced driver training and scheduling and specific LST training for any other staff involved in their operation, including loading.

Any operators participating in the LST trial can continue under those permits before joining the new regime after a transitional period until 30 November 2023, after which time existing permits will be revoked.

Photo: Shutterstock

Campeys of Selby signs logistics deal with BEWI

Campeys of Selby has won its biggest contract to date after signing a three-year deal with construction products manufacturer BEWI to become its exclusive logistics provider.

The haulier has been working with the business for the last two years and it has a significant 3PL on-site presence, with 20 trucks, 40 trailers and a planning team.

Campeys said its focus on providing

sustainable transport solutions and a commitment to be net zero by 2030 helped seal the deal. Currently, over 10% of its fleet is powered by non-fossil fuels.

Pictured are, from left, Mark Poulton, BEWI operations director; John Cooper, BEWI UK MD; Paul Campey, Campeys MD; and Harry Campey, Campeys commercial & operations director.

Logistics giant bullish about future following substantial investment

Expect profit declines despite revenue jump

By Carol Millett

Expect Distribution delivered another year of revenue growth in 2022, boosted by increased activity in its contract logistics and warehousing divisions.

However “significant” financing costs saw a fall in pre-tax profit, according to the company’s latest annual results.

In its financial results for the year to 30 November 2022, the Palletline member revealed a 13.3% revenue rise to £46m (2021: £40.6m) while pre-tax profit declined to £3.8m (2021: £7m).

A report on the results hailed “another progressive year of growth arising primarily from long-term, contracted business

within the contract logistics and warehousing divisions”.

It said: “Headline revenue growth for the year was £5.39m (13.3%), when compared to 2021”, adding that while pre-tax profit fell by £3.2m in the year “due to a significant increase in financing costs”, EBITDA grew by £942,000 (22.1%).

The report also said that industry pressures and high levels of inflation had resulted in “significant” cost increases across the business in 2022.

During the year the company invested substantially in its leasehold warehousing at its Thornton Road site in Bradford, to create additional capacity to meet growth

New Trustd app to tackle cargo theft

An app that promises to transform compliance in transport and logistics and help prevent fraud and cargo theft has been launched by freight tech pioneer and Transport Exchange Group chief executive Lyall Cresswell.

Trustd is a business ID and credentials app that allows every organisation in the supply chain to manage risk and achieve 100% security on every transaction by functioning as the sole source for verification and risk management.

The technology enables 3PLs, carriers and drivers to minimise risk and maximise compliance, from onboarding right through the lifetime of the relationship, as well as at the individual transaction level, where required.

HOT STUFF: Bridgestone said its retread tyres would become some of the most advanced in the UK following a multimillion pound investment to upgrade its range. Its new ‘Bandag Hotread’ brand will cover the HGV and bus markets and the company said there would be a greater shift in emphasis from cold to hot-cure products, in response to demand from commercial customers. The investment included new machinery being installed at Bridgestone’s Bulldog factory in Bourne, Lincolnshire to transform its retread offering.

within the division.

The report added: “The investment unlocked opportunity for new customer relationships and a significant number of newly created job roles.”

Each party can identify who is carrying their freight, visiting their site, or driving their vehicle at each step, and provides electronic ID verification for every organisation involved.

Archbold adds S-WAYs by the dozen

A total of 12 new Iveco S-WAY 490s have joined Archbold Logistics’ fleet of 150 trucks and vans.

The new arrivals follow on from the delivery of two Iveco S-WAY 460 models a few years ago, which impressed due to their performance and the service received from Northern Commercials Brighthouse in West Yorkshire.

The purchase supports Archbold Logistics’ growing contract logistics arm, which sees customers benefiting from a fleet operation without having to bear the full cost of a dedicated fleet themselves. The 12 trucks are expected to cover 140,000kms each year and will be covered by a fiveyear Iveco Elements repair and maintenance package.

Archbold Logistics MD, Alan

Maher, said: “We trialled the vehicle last year and it performed excellently. The drivers have been really positive about these Ivecos and have reported good fuel economy. We have been particularly impressed with Iveco’s dealer support, which provides the excellent back-up service that we require.”

Interest high, confidence low

Sterling

The pound has been quietly gaining value over the past four months. The accompanying chart depicts sterling’s value on the Bank of England’s Effective Exchange Rate Index (EERI). This evaluates the pound against a basket of currencies, weighted to reflect the volume of UK trade with other countries.

The index was based at 100 in January 2005. Its recent low came last September during the Truss premiership, when the monthly average EERI fell to just 76.3. But it has climbed steadily over the past four months, averaging 80.1 in May. That is marginally better than last year’s annual average of 79.7 and so far is confounding most economists’ forecasts of an average of around 78 for 2023.

The four largest currencies in the EERI basket are the euro, the dollar, the Chinese yuan and the Japanese yen. Sterling has made gains against all four since January, albeit minor against the euro (1.1%) and the dollar (2.0%), but significant against the yuan (4.7%) and the yen (7.5%).

Last month’s hike in the interest rate from 4.25% to 4.5% helped to keep the pound relatively attractive to currency traders. That appeal may well grow because the rate is widely expected to exceed 5.0% before the end of the year, as the Bank of England strives to counter unexpectedly stubborn inflation. The next rate announcement is expected on 22 June.

Meanwhile, the Federal Reserve interest rate in the US is already a little over 5.0%. That rate is thought unlikely to go any higher: the strength of the pound against the dollar could improve further if the UK rate surpasses it.

Manufacturing confidence

Confidence among UK manufacturers remains weak. The latest S&P Global/CIPS UK manufacturing purchasing managers’ index (PMI) dropped from 47.8 in April to 47.1 last month. This widely regarded survey tracks monthly changes in the confidence of around 650 manufacturers about their business.

It uses a weighted index that evaluates key factors such as new orders, output, employment and suppliers’ delivery times. PMI scores above 50 denote an

improvement on the previous month, while scores below 50 indicate deterioration. May’s score of 47.1 was the tenth successive month below the neutral 50 level.

“The manufacturing downturn deepened in May as the rates of contraction in output, new orders and employment all accelerated,” reports the survey.

The drop in new export business for UK manufacturers makes particularly grim reading. “Another fall in export orders for the sixteenth month demonstrated that customers from overseas became tired of additional Brexit checks,” said John Glen, chief economist at the Chartered Institute of Procurement and Supply (CIPS), adding, “the fall in overseas interest is the fastest since January”.

But the survey did unearth some positive news. After over three years of monthly rises, a “mild fall” in manufacturers’ average input costs was noted. And supply chain pressures have eased too, with reports of better material availability and fewer logistical issues.

Haulage rates

Haulage rates have slipped back in the last two quarters since they peaked at an all-time high in Q3 last year. The latest data from the Services Producer Price Index (SPPI) published by the Office for National Statistics show rates in the first quarter of this year typically were 1.0% lower than the last quarter of 2022. Rates had already edged down by Q4 and the latest data indicate Q1’s rates were 1.7% below Q3’s peak.

This is almost certainly the effect of fuel surcharges being dialled back as the cost of diesel softened in the first quarter of this year. Further declines in the bulk diesel price during April and May suggest another small reduction in haulage rates may be detected in the SPPI’s Q2 data.

Fuel and oil

The monthly average price of Brent crude oil dropped from $85/ barrel in April to $75 last month, the lowest for 17 months. Many operators would have seen bulk diesel prices in the region of 105ppl to 110ppl in May, their best since autumn 2021. Although global oil production is still being kept in

VALUE OF STERLING

HAULAGE RATES

BRENT CRUDE OIL PRICE

check, demand is also subdued because so many economies remain nervous about persistent inflation.

With balanced supply and demand, most analysts expect the oil price to remain relatively stable for the remainder of 2023. The

majority of recent forecasts suggest Brent will average between $78 and $82/barrel during the next six months. That points towards bulk diesel prices in the region of 110ppl to 122ppl, all other things being equal –which they rarely are. n

The pound is picking up and oil prices have dropped, but news from manufacturers remains bleak

Daily grind is the big issue

As I’m sure you have read in various places – including here –decarbonising road transport is the biggest challenge facing the industry in a generation.

truck-driving colleagues voted with their feet rather than strike and only got back behind the wheel when wages went up to more acceptable levels simply due to supply and demand.

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But for the vast majority of people involved in running a fleet today there are many far more immediate day-to-day challenges that still have to be overcome to keep Britain moving.

Our regular Business Barometer on page 10 reports that UK haulage rates, after some growth in 2022, fell back in the last two quarters, largely as a result of falling fuel prices.

While fuel represents about a third of a truck’s running costs, driver wages aren’t far behind and they have risen substantially in the last year.

It is ironic that the highly unionised rail drivers are striking after rejecting a 5% pay deal while their far more fragmented

Our panel of operators assembled to pick the Fleet Truck of the Year for the MT Awards discussed some of the real issues facing them at the moment, with the cost of new trucks continuing to rocket and massive shortages of spare parts and truck technicians keeping many vehicles off the road.

Long lead times on new vehicles means they are having to run trucks for longer, which is, in turn, making problems with R&M even worse as mileages climb.

So fleet operators may be forgiven for not sharing the media obsession with electric and hydrogen trucks. They have more pressing concerns to keep them occupied right now.

How much further can electric take us?

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Denise Beedell Senior policy manager Logistics UK

Nationwide, the logistics industry is working tirelessly to achieve net zero emissions and work together with government to ensure our sector can meet the 2050 deadline. Logistics UK recognises that members and industry are concerned about how depot charging is enabled and funded, how the public electric vehicle (EV) chargepoint network can used by large vans and trucks, and what fiscal support can be provided to support decarbonisation. Logistics UK’s 2023 ‘EV report’ sets out operators’ experiences so far and looks to address the remaining challenges.

Vehicle operators are responding to the challenge of decarbonising their fleets and, although questions remain regarding the most appropriate methods for decarbonising larger vehicles, battery electric is proving a viable solution for vans and lighter commercial vehicles.

Research shows that at the end of 2022 there were over 42,000 plug-in vans on UK roads. Given that there are 4.63m vans registered and only a 0.6% increase in usage since 2019, the industry still has a long way to go.

One of the main challenges for logistics businesses looking to electrify their fleets is the uncertainty surrounding power supply infrastructure and how it will be implemented, as well as both the availability and accessibility of public chargepoints. While recent changes to the way local grid network reinforcements are paid for are encouraging, the reality for operators is that electrification is still going to result in substantial costs. Operators are

already reporting costs between £100,000 and over £1m to transition their fleets and increase the power supply.

Forging closer relationships between commercial vehicle operators and energy suppliers will be vital for the successful electrification of fleets, as distribution network operators (DNOs) need to have a much greater understanding of where electric vehicle charging will be required and when. We are also urging government to provide transparency on available grid capacity and a common service agreement amongst DNOs for connections.

Logistics UK’s report shows that those who have operated EVs for some time have recognised that like-for-like replacement of existing diesels is not always possible and have adapted their operations to work within the capability of EVs. Logistics is an industry that thrives on its ability to adapt, with 59% of respondents that have already transitioned reporting a good response from their drivers to operating EVs. This is encouraging feedback, and with 58% of the respondents who have introduced EVs into their fleets having done so in the last two years, shows that there is an acceleration towards electric vehicles.

With sufficient support from government, and closer collaboration between government and industry, we could see an even larger uptake rate in the coming years.

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RTX 2023 A to Z

Here’s a roundup of everything you need to know about what’s on offer at Road Transport Expo to make your visit as straightforward and productive as possible

There are only two weeks to go until the bumper tradeshow Road Transport Expo 2023 (RTX) opens its doors.

With more than 200 exhibitors and a threeday drop-in conference programme, there should be plenty to keep you busy during your visit.

The event is completely free to attend including ample free parking, so book your place today and we look forward to seeing you there.

RTX takes place from 28 to 30 June at NAEC Stoneleigh, Warwickshire. Register now at roadtransportexpo.co.uk

A ALL ABOUT THE TRUCK

The show’s launch motto remains at the heart of this year’s RTX. We are delighted to be the only UK tradeshow to feature all the major truck OEMs, including DAF, Iveco, Isuzu Trucks, MAN, Mercedes-Benz, Renault Trucks, Scania and Volvo.

B BODYBUILDER BONANZA

A fantastic line-up of leading body manufacturers will be joining the exhibitor line-up, including specialist skip-loaders, tippers, hot boxes and utility bodies.

C CRANES & MATERIALS HANDLING

Lifting equipment will be well represented at the show if you are on the hunt for a little pick-me-up. You can check out the latest tail-lifts, hook-loaders, access platforms, truck-mounted forklifts and more.

D DIESEL DELIVERS

With the government’s focus firmly set on the move away from fossil fuels, it must not be forgotten that modern diesel engines are the cleanest and most efficient they have ever been. Why not drop in on Commercial Motor editor Will Shiers’ ‘Life left in diesel’ live podcast recording on Friday 30 June, or visit the fantastic range of Euro-6 models being showcased at the event?

E EASY TO NAVIGATE

To help visitors make their way around the huge showground, there will be an abundance of clear, simple-to-use signage. We’ll be introducing an app this year to help you plan your day and see what’s going on where. You can also take advantage of our fun visitor buggies – courtesy of Bradshaw Electric Vehicles – to help you get from one zone to another.

F FREE TO ATTEND

RTX is completely free of charge for all visitors, so register today for your ticket to this summer’s tradeshow at roadtransportexpo.co.uk

G GETTING THERE

NAEC Stoneleigh is served by both the M6 and M40 motorways. It is also only five miles from Warwick Parkway and Coventry railway stations and just over one hour by train from London Euston, or 30 minutes’ drive from Birmingham International Airport.

H HIRED

Contract hire, lease and rental firms will be heading to RTX to share their expertise on helping future-proof your fleets as the industry looks to transition towards a netzero future.

I INNOVATION

From exciting product debuts to stand demonstrations, you will be bowled over by the wide variety of intelligent, advanced technology on display across the showground.

J JOURNALISTS

Editorial teams from your favourite industry magazines – Motor Transport, Commercial Motor, Truck & Driver and Transport News – will be in attendance at RTX, along with those from other independent trade publications, including members of the esteemed International Truck of the Year jury. If you have a story to share at the event, then the RTX pressroom is the place to head, or email hayley. tayler@roadtransport.com

K KNOWLEDGE ZONE

Drop-in conference sessions will be taking place in Hall 2a across all three days of the show. Key industry topics will be discussed, ranging from truck ➜ 16

safety and compliance through to fleet decarbonisation and alternative fuels. Check out the programme at roadtransportexpo.co.uk

L LIST OF EXHIBITORS

We now have more than 200 exhibitors confirmed to join us at NAEC Stoneleigh, from the smallest component firms to the largest trailer makers. Check online to help plan your day.

M MAKE SOME NOISE

We’d love to see your discoveries while visiting RTX, so make sure you snap some pictures and share them on our social media channels using the hashtag #RTX2023

N NETWORKING

We have been sure to include plenty of seating and space around the show for you to relax in with colleagues, have those all-important business meetings, or make new industry connections over a beer or coffee.

R RIDE & DRIVE

Take your pick from the manufacturers’ latest truck ranges, including electric models and those fuelled by biogas and HVO (hydrotreated vegetable oil). If you have a valid HGV licence, you can drive them on our bespoke route around local roads, or around the on-site course. Passenger rides are also available.

S SAFETY FIRST

From cameras, sensors and videos through to tyrepressure monitors, driver training and vehicle lighting, fleet safety is a huge focus for exhibitors at RTX.

T TRAILERS, TANKERS & TYRES

You’ll be spoilt for choice by the wide range of cuttingedge technology on display from the well-known names you’d expect to see. From chemical and liquid tankers to specialist urban trailers, rugged off-road tyres, and everything in between.

O OPENING TIMES

This year’s event will be open from 9am to 5pm on Wednesday 28 and Thursday 29 June, and from 9am to 3pm on Friday 30 June.

P PARKING

Parking is completely free at NAEC Stoneleigh, and with more than 10,000 spaces, you won’t have a problem finding a spot.

Q QUALITY CATERING

Eat, drink and be merry with the delectable selection of catering outlets and bars located around the venue – from Austrian beer and BBQs through to Guinness and frites – as well as the usual top-notch hospitality you can expect to find on exhibitor stands.

U URBAN

Vehicles and products and training services aimed squarely at those operating in built-up towns and cities will be showcased in abundance at the show, including: electric vehicles; Direct Vision Standard safety and compliance aids; latest-generation telematics and routeing; and urban-specific driver training courses.

V VIP VISITORS

We have pulled out all the stops to make sure visitors have the best experience during RTX. A dedicated team of show-makers will be on hand to answer your questions and guide you around the venue.

W WORKSHOP WOW-FACTOR

If you are looking out for new kit for your in-house workshop, or want to explore the latest fleet management software or mobile repair and maintenance options, then you will certainly be in good hands with RTX’s expert exhibitors.

X

eXciting, eXplore, eXhibitors

Who thought we would struggle with ‘X’ then?

Y YOUR SHOW

We have listened carefully to all your feedback from the inaugural event in 2022 to help shape this year’s RTX into an even bigger, better show.

Z ZERO EMISSION

From electric HGVs, vans and utility vehicles through to insightful conference sessions, you can be sure that the industry’s transition towards a net-zero future will be firmly in the spotlight.

RTX takes place from 28 to 30 June at NAEC Stoneleigh, Warwickshire. Book your free place today at roadtransportexpo.co.uk

Racing for the prize

free driving system of its kind to receive approval for use in a European country is a significant step forward for our industry,” he says.

Successful application of the technology to freight transport is expected to be a game changer. Aurora, one of the technology leaders, calculates that the US autonomous trucking market is worth some $700bn. And the global market could be worth $4tn. And that does not include the local goods delivery market, which Aurora says is worth another $100bn in the US while the global market is worth some $400bn.

It is hardly surprising, then, that all the major commercial vehicle manufacturers are positioning themselves to offer autonomous vehicles while newcomers are jostling to grab a share of the market.

The past year has seen more and more real-life trials as products get closer to market readiness. Development of systems for use on public roads is most advanced in North America, where autonomous vehicles are already legal in many states.

Davies reports

Truck manufacturers are working hard on developing autonomous vehicles to win a share of an estimated $4tn (£3.2tn) global market. Malory

The use of autonomous vehicles on UK roads came a big step closer in April when Ford revealed that it had received approval to go live with its BlueCruise system on some 2,300 miles of motorways.

BlueCruise is a Level 2 hands-free driver assistance system that is currently only available on one car, the Mustang Mach-E, for a monthly subscription of £17.99.

A modest step forward, nevertheless, says general manager Ford Model e Europe Martin Sander. “It’s not every day that you can say you’ve placed one foot in the future, but Ford BlueCruise becoming the first hands-

LEADING THE WAY: Ford’s BlueCruise system is the first of its type to be approved for use on European roads

WHAT LEVEL?

Partnerships in place

Volvo and Paccar have both been working with Aurora on hub-to-hub autonomous trucking systems, but Volvo is clear that this is only intended for the North American market – for the moment, at least. Iveco has partnered with Plus, while Mercedes-Benz and its US subsidiary Freightliner are working with Waymo and Torc Robotics.

In April of this year, Aurora released the first “feature complete” version of the Aurora Driver with Beta 6.0. According to Sterling Anderson, Aurora co-founder and chief product officer, the system now has “all of the technical capabilities it needs to power trucks built for it in commercial service on our Dallas to Houston launch lane”.

Ford’s BlueCruise system is the first use of a Level 2 system on the road in Europe. But there is still a long way to go before we reach fully autonomous operation.

 Level 2 is semi-automated driving where the system can drive the vehicle in the transverse and longitudinal direction. However, the driver must constantly monitor and take over instantly if necessary.

 Level 3 is conditionally automated driving where the driver no longer has to constantly monitor the system and can do other things. But the driver must take over control if requested by the system.

 Level 4 is highly automated driving over a defined route between two terminals. The vehicle can drive autonomously under limited conditions but can switch off when a driver takes over.

 Level 5 is fully automated driving under all conditions enabling the vehicle to navigate by itself to the destination.

STEPPING STONE: Scania says its Swedish pilot scheme, in partnership with HAVI Supply Chain, provides an opportunity to learn about autonomous operations

Aurora Horizon, which is due to launch next year, will start as a terminal-to-terminal service. Customers will drop trailers off at an Aurora terminal, from where they will be driven autonomously to another Aurora terminal and can then be picked up for onward delivery. The plan is to add customer end-point options, but only for customers with significant volumes.

Aurora is partnering with Continental to produce the first commercially scalable generation of the Aurora Driver. Continental will “industrialise” it and deliver the entire hardware set, as well as a new fall-back system.

KEEPING IT PRIVATE

TEAMING UP: Waymo is developing technology with Mercedes-Benz and its US subsidiary Freightliner

Production is expected to start in 2027, following the expected launch of Aurora Horizon in 2024.

Nikolai Setzer, CEO of Continental, says: “We are proud to demonstrate our leading technology expertise by being responsible for the development, manufacture and implementation of the autonomous driving system kits and the fall-back path for Aurora’s autonomy system.”

DROP OFF AND PICK UP: The Aurora Horizon terminal-to-terminal service is due to launch next year

It is much easier to introduce autonomous vehicles onto private sites, where the conditions of the operation can be controlled without coming into contact with the public.

Port of Felixstowe introduced its first two autonomous tractor units (ATs) for mixed traffic container terminal operations at the end of 2022. It is using Qomolo Q-Trucks from Chinese group Westwell, initially to transport containers between the port’s Trinity and North Rail terminals.

Karen Poulter, the port’s chief information officer, says: “The ATs use LiDAR – a light sensing technology that creates a 3D map of an AT’s surroundings using a laser and receiver – which, when combined with its on-board 360-degree cameras, provides real-time, all-round vision. This enables it to see everything instantaneously in its vicinity to allow safe and accurate navigation.

“With the support of the Extreme Precise Position system, it can achieve positioning accuracy of 2cm and a steering angle accuracy of 0.5 degrees.”

MAN has also been developing autonomous technology as part of project ANITA, which focuses on the transfer of containers from road to rail. Trials started last year at a container depot at Ulm Dornstadt. MAN aims to sharpen the electronic senses of the autonomous truck in the real operating environment over the course of the trial, so that it can perceive the surroundings, react and plan like a human driver. A safety driver is always on board to intervene if necessary.

Meanwhile, Volvo has been developing systems for mining operations, as well as for ports and logistics centres.

It already has fully autonomous transport operations running in Brönnöy, Norway, where seven autonomous Volvo FHs are transporting limestone on a 5km stretch between the mine and the crusher. Since 2021, it has also been working with Holcim Switzerland to test and further develop the use of autonomous electric vehicles at Holcim’s limestone quarry in Siggenthal. The solution being deployed in this project is the Tara transport system and it includes the TA15—a fully automated electric dumper.

Scania last year launched a trial of 40-tonne autonomous mining trucks in partnership with Rio Tinto at the Channar mine in the Pilbara region of Western Australia. The aim is to develop more agile autonomous haul trucks that offer both environmental and productivity benefits.

Rio Tinto group technical MD Santi Pal says: “Our climate action plan includes phasing out the purchase of new diesel haul trucks by 2030 and partnering with industry leaders, such as Scania, across a range of fields is an important step towards achieving that. As well as the potential decarbonisation benefits, this partnership provides a path to potential productivity improvements.”

In Europe, Scania has been working on a pilot in partnership with HAVI Supply Chain to use a fully autonomous vehicle to transport goods in regular traffic conditions between logistics hubs.

The pilot will see the autonomous truck drive between Södertälje and Jönköping, a three-hour journey

BEHIND CLOSED DOORS: The Port of Felixstowe (top), MAN (centre) and Scania (bottom) are all developing autonomous tech for use on private sites

of around 300km. The route forms part of a longer logistics flow for HAVI, with the first and last mile being handled by manually driven vehicles. Project manager for Scania Robert Melin Mori says: “We need to learn about autonomous operations now so that we are ready as soon as the technology is ready. We believe this pilot will be a hugely important stepping stone.”

In February, Iveco set out plans for testing S-WAY trucks using PlusDrive Level 2++ autonomous systems in Germany. It intends to expand the trials into Austria, Italy and Switzerland over the coming months. “This is an important phase in our plans to bring highly automated trucks to market,” says Marco Liccardo, Iveco’s chief technology and digital officer.

Plus COO Shawn Kerrigan adds: “Given that Germany alone faces a shortage of 60,000 truck drivers, our highly automated driving solution, PlusDrive, will help improve road safety, sustainability and driver recruitment and retention issues confronting fleets in the region.”

Startup shake up

The established giants of the commercial vehicle industry are also facing challenges from startups such as Einride, which was founded in Sweden in 2016. Einride’s concept is an end-to-end operation using electric trucks on a grid of roads, with the operation controlled by its Saga software platform. It has been running trials of autonomous vehicles in Sweden and last year completed a public road pilot in the US, which involved moving finished goods between a GE Appliances factory and a warehouse in Tennessee.

GOVERNMENT FORECASTS DRAMATIC GROWTH

The UK government reckons that by 2035 some 40% of new cars could have self-driving capabilities, and at the same time grocery delivery and passenger services “look likely to be operating in self-driving vehicles”.

It set out its position last year in a report ‘Connected and Automated Mobility 2025: Realising the benefits of self-driving vehicles in the UK’, which emphasised the potential safety benefits. The report quotes the Institute for Engineering and Technology, which has claimed that for every 10,000 errors made by drivers, a self-driving vehicle will commit just one. “This is supported by evidence showing that in 2020, 88% of all recorded collisions on roads in Great Britain involved human error as a contributory factor,” the report says.

The UK’s initiative on platooning, HelmUK, reported last summer after five years of trials. The results in terms of fuel savings were less than spectacular, showing a real-world saving of only 0.5% compared to automated cruise control.

It found that under perfect platooning conditions, fuel savings of up to 5% could be expected. The problem was that the trucks had to drop out of the platoon for nine out of 10 of the junctions on the route. As a result, the vehicles could spend only 53.5% of their driving time in a platoon.

The report concluded that the 0.5% fuel saving meant that the business case for platooning was currently weak: “HelmUK’s stakeholder engagement found that a minimum fuel saving of 2% would be required for operators with large fleets to invest in platooning technology.”

However, the trial did demonstrate the safety of the system. The report said that the DAF platooning system was fail-safe in the road trials and overall the vehicles were safer in platooning mode. Platooning is not expected to introduce new collision types and is predicted to have a small beneficial effect on common HGV collision types.

The importance of demonstrating the safety of autonomous systems is critical. A spokesman for Volvo Autonomous Solutions says: “We believe delivering a truly safe solution is key to public acceptance. We ensure the safety of our technology through strategies and processes that are fully integrated to the development flow.

“We take a holistic approach and implement risk mitigation principles that look at safety requirements that go beyond the vehicle to cover all aspects of autonomous operations.

“We have also developed our own safety level strategy where we categorise the complexity of the operation from low complexity (only automated vehicles in the autonomous operating zone) to highest complexity (on public roads). By that we can define the safety target per application.”

Einride signed its first UK deal with PepsiCo earlier this year to operate electric vehicles between Walkers sites in Leicester and Coventry.

FRESH COMPETITION: Startups such as Sweden’s Einride are challenging established OEMs in the autonomous market

The aim is to establish a network of partners connecting additional shippers and operators, which will enable cost-efficient scaling of the grid together with increased emission savings. Once a critical mass of transport volumes is established it plans to expand the grid by algorithmic optimisation, and by introducing human-led autonomous technologies such as Einride’s cabless trucks, which are monitored by a remote operator. 

TECH ON TEST: Iveco plans to trial S-WAY trucks equipped with PlusDrive Level 2++ autonomous systems in several European countries

Back in the saddle

Peter Backhouse returned to Fraikin last year after a seven-year absence. He talks to Steve Hobson about his plans for getting the business to reach its full potential

UNFINISHED BUSINESS:

Returning to Fraikin gives Backhouse the opportunity to finish the job he set out to do

Peter Backhouse was UK CEO of Fraikin from 2010 to 2015, when he stood down to spend more time with his chronically ill wife.

“I left Fraikin in 2015 for some very personal reasons,” says Backhouse. “During that time, I kept contact with the industry; it’s one of those industries that you never get away from. It’s always there and in your blood.”

After his wife passed away it wasn’t a hard decision for Backhouse to return.

“I’d been doing some consultancy work with Fraikin for about six months before,” he says. “I’d been helping with some financial structuring for the UK business.

“Darren Hall, who was then managing director, rang me and said ‘Look, I’ve had another opportunity, to go to South Africa, and it’s one of those lifetime opportunities I can’t say no to. Have a serious think about whether you might want to come back to Fraikin because I know that at group level they’d really love to have you back’.

As well as continuity the UK business was also in need of some drastic action, as it had plunged to a £6.4m pretax loss on turnover of £67.2m in the year to 31 December 2022.

“Since I left, Fraikin has had quite a torrid time, not just in the UK but at group level as well,” says Backhouse. “The business has suffered a lot from lack of continuity. We’ve had chief executive churn, group and UK CFO churn and a lot of staff churn, and all of that means that the consistency of strategy just hasn’t been there.

CLEAR VISION: Backhouse believes a lack of clarity wthin the business is partly to blame for Fraikin’s recent financial straits

“When I left Fraikin, I had to leave because of circumstances beyond my control and I never felt that I finished the job that I set out to do here. I had no plan to leave Fraikin and coming back allowed me to step back in and give some continuity.”

“One of the things that I’ve come back and seen is that lack of clarity. What are we doing? Where are we going? How are we doing it? What are the enablers for us to do it?

“The industry is also morphing into something very different. The competitive landscape has changed,

Interview: Peter Backhouse

the OEM strategies have changed and there has been consolidation of dealerships. The technology environment isn’t that different but the enablers and architectures are much stronger now. For me, what was necessary was to bring stability and bring sense to all this noise that I found when I came into the business.”

Fraikin also has a new group chief executive in Yves Petin and Backhouse says they have had “long conversations about what is Fraikin”.

“I’m not going to deny that the UK hasn’t quite been reaching its full potential for the last four or five years,” says Backhouse. “I’ve come back to this business and I’ve said ‘Why are we the way that we are? Because at its heart, this is a good business’. My conversations with the shareholders and the board have been around ‘We just need to bring back control, bring back discipline and bring back diligence to our processes and procedures’.”

Managing volatility

In these uncertain times when input prices – especially new vehicles – are seeing unprecedented volatility, that also means having the ability to vary the prices customers pay throughout the life of the contract.

“I can’t have a five, six or seven-year contract that’s fixed in an environment where price volatility means that that revenue suddenly becomes loss-making,” says Backhouse. “Over the last six months we have really had to change our mindset on the commercial terms that we are prepared to do business on.

“For us to be a long-term sustainable partner to our customers, we have to make money. That’s the reality. Even if large customers say ‘We’re not going to expect any increases in our supply chain costs’, what’s going to happen is people are going to stop supplying them.

“We can’t be a charity. I’ve got shareholders to satisfy, I’ve got staff that we have to pay the right salary or they’ll go somewhere else, and I’ve got suppliers charging me 15% or 20% more for parts and labour than they were 12 months ago.

“The main driver of volatility in our pricing is the cap-ex. It’s the price of the vehicle, and because we’re on 12- or 18-month or even two-year lead times, the price of the vehicle can change within that period of time.

“I can’t shoulder that without passing it through to my customers. The old adage of fixed pricing, I’m afraid, has got to go.”

REPOSITIONING THE BUSINESS FOR FUTURE MAINTENANCE FLEXIBILITY

The other big change in direction since Peter Backhouse returned to Fraikin is the end of in-house vehicle repair and maintenance.

“First, we can see that in the future the maintenance requirement is reducing dramatically,” he says, “particularly in the alternative fuel environment. I’m talking 50% less.

“Second, we looked at the efficiency of our workshops and at the volume of vehicles that were actually being maintained by them. We realised that over 80% of our fleet was already externally maintained.

“When I was first here we had 15 to 18 workshops around the UK. I came back in July and we’ve only got six. That tells you that, strategically or not, the company has walked down a pathway of saying ‘Is this a sustainable model?’

“What was very evident to us was that to have a significant level of maintenance in-house meant that we would have customers traveling 20, 25, 30 miles. You’ve got to think like a customer when you’re making these decisions. VOR is the most important thing to customers. Every time they lose that vehicle, whether it’s travel time or stem mileage to a workshop, plus the workshop activity, we have to provide a substitute vehicle.

“We’ve got an awful lot of cost involved in collecting the vehicle and bringing it back in. We had customers saying to us ‘Why am I driving past the dealership to get to your location?’ We already have an extensive network of third-party maintenance providers who work very loyally with us.”

Closing the workshops will save a lot of money and help Fraikin get back into the black. But moreover it will change the way the business thinks about providing maintenance, in a way that is more flexible, dynamic and efficient for its customers.

“When you’ve got a very inefficient workshop network, you’ve got a very high cost that is consuming cash,” says Backhouse. “The cost base is going up with utilities and labour rates all rising, you’ve got technician shortages and all of those other factors.

“When I looked at what we had versus outsourcing, it actually became a no-brainer, economically and operationally. It’s still a tough decision because for 45 years, internal workshops have been in the DNA of this business. In France, it still is. It was a hard decision and I’m very sorry that we had to make it, but nonetheless it was the right decision for the company.”

In recent years Fraikin has invested in its mobile technician capacity and this will continue.

“When I was last here we’d started the journey of mobile technicians, for light vehicles in particular,” says Backhouse. “Over the last six or seven years, our portfolio of light vehicles has grown with customers like AO and Sainsbury’s.

“We can maintain a 3.5-tonne or below vehicle on a customer’s premises, such as a store location. So we’re now investing in our mobile technician workforce, and they do general defect work and servicing for around 40% of our fleet. There is minimum disruption to the customer and it’s an area that I’m very keen to grow.

“I want to upskill the mobile technician capability, so that we’re not just doing servicing and minor defects, we’re also doing maintenance on tail-lifts and those kinds of things. I can see no reason why we can’t complete 90% of a customer’s vehicle maintenance requirements at their location, through a responsive and dynamic mobile technician capability.

“That means minimum downtime and no vehicle substitution. While the technicians are there, they can also repair other defects that haven’t been reported yet. They can look at the other vehicles and manage those defects and start to be a bit more pre-emptive.”

Fraikin currently employs around 30 mobile technicians and Backhouse wants to see that grow to more like 50, with some recruited from the company’s closing workshops. The mobile technician solution is a core part of Fraikin’s maintenance provision to its customers, and brings about a step change in how it thinks about and delivers highquality customer service.

INDUSTRY INFLUENCER:

Fraikin is keen to lead the way on alternative fuels but sees charging infrastructure as the main obstacle to electric vehicle take up

SHORT SUPPLY: The lack of new vehicles means Fraikin’s ageing fleet is reaching “crisis” proportions, according to Backhouse

Fraikin does have a competitive edge when it comes to asset financing, with access to syndicated securitised funding of around €1.5bn (£1.3bn) of capital at low interest rates compared to raising money from a bank or other asset financing business.

But shortages of new vehicles mean Fraikin cannot secure all the stock it needs for existing customers, let alone new ones, and Backhouse goes as far as to say the ageing fleet profile is reaching “crisis” proportions.

“We’ve got around £58m worth of vehicles on order that date back to 2021,” he says. “We need those vehicles in because I can’t keep running vehicles that are 10 years old, for the sake of reliability for my customers. I need those vehicles delivered in. At the moment, I’m looking at 2022 orders that are coming through towards the back end of 2023 and early 2024.”

Economic uncertainty is, however, starting to free up build slots at some of the truck manufacturers.

“What we find is that there’s been a lot of speculative orders placed with them that are now falling away,” says Backhouse. “Now those build slots are available and they’re calling us saying ‘We’ve just got another 60 builds that are freed up, do you want them?’

“Another change that we’ve had to adopt is that we would not normally order a vehicle unless it’s either for our rental fleet or we have a contract signed for it. We don’t speculatively go out and just order 200 vehicles but

now we’re having to. Now we’re saying ‘We’ll order those 60 that have become available and then we’ll find customers for them’.

“We know that we’ve got a replacement programme within our portfolio of 5,000 assets, if you exclude the fleet management business. We've got around 500 or 600 vehicles today that have reached the end of their contract term and we’ve extended them because the vehicles either can’t be ordered or they are on order but it’s going to be 12 months before they come.

“We’re educating the customer to understand those supply chain problems, because previously the easy option was always to extend and extend and extend. That causes us problems; no one wants to run an old vehicle for too long because the maintenance costs go up, the reliability drops down and drivers won’t drive them.”

Electric future

While Fraikin is keeping a watchful eye on electric trucks, it is no surprise that it is seeing the greatest take up of electric vehicles (EVs) on the light commercial side, especially supermarket home deliveries.

“We are seeing interest in electric vehicles grow,” says Backhouse. “Not just because there is a corporate desire to have electric vehicles but because there are logical operational benefits for some customers to make that transition now, especially with the rising cost of fuel.

“Generally, it’s small urban deliveries, not long distance. We’ve got around 35 electric vehicles on order, some for customers and some for our rentals. Predominantly they are in the 3.5-tonne to 7.5-tonne range.”

But the sticking point on rapid adoption of EVs of just about any size always comes back to the lack of recharging infrastructure.

“The vehicle works, no question,” argues Backhouse. “It’s just the charging and how does that interfere with the cycle of your operations?

“We’ve been putting in an awful lot of work over a number of years and in particular the last six months to really grasp and embrace the alternative fuel revolution. We want to get ahead of it, become the industry influencer.” 

Living the dream

Steve Hobson travels to South Yorkshire to meet a man who left school with a dream of running a fleet of trucks and with his business partner turned it into reality

Young McGinley knew from a very early age what he wanted to do and he has been lucky – and hard-working – enough to fulfil his dream.

“My dad was a body repairer for Gloystarne Transport, which was born out of British Tissues,” he says. “He was one of those people that you could give a piece of sheet metal to and he turned it into anything you wanted.

“From being six years old, I was really interested and always went to work with my dad on a Sunday to wash the trucks. My grandad asked me ‘What do you want to do when you grow up?’ Because they were all steelworkers, apart from my dad.

“I said ‘I don’t want to be a steelworker, grandad. I want some trucks. I’m going to have a fleet of trucks’. That was at six years old and it never left me.”

After 10 years learning to be a body repairer, McGinley took a completely different direction and went to become a salesman for the local MAN dealer.

He made his first move into transport management with TAL Eurospecial, a small haulier run by a friend that went bust in 2010.

“I’d got an international CPC – I continued doing qualifications outside school because I didn’t really come away from school with anything – so I did a couple of years working for my pal and that is where I met Chris,” he says. “Chris had a driver recruitment and agency business called Talstaff, which he started back in 2001.

“After finishing with the transport company, Chris said ‘look, we need somebody, come and work alongside me. You know everybody in this area who’s got trucks because you used to sell trucks. We can get to the right people because you’re used to getting people to sign off millions of pounds worth of trucks.’”

So in 2007 McGinley invested £6,000 in the business, which that year turned over £460,000. “Jump forward 15 years and it’s £27m turnover now,” he says. “It’s quite a journey.”

Growth through diversification

Motor Transport has been asked to interview many successful transport firms but when an invitation came to meet one of the founders of Stanton Logistics in Rotherham, South Yorkshire it was hard to turn down.

The message came from Chris McGinley, MD of Stanton Logistics, who set up the business with co-founder Chris Allender. “We are one of the best kept secrets in the industry and are multifaceted in our approach, with complementary other businesses as part of our group. It’s all owned and funded by just the two of us, having been started in 2007 by two Sheffield lads with very little business experience and only hard-working ethics to rely on,” it said. “We’ve suffered marriage breakdowns, mental breakdowns, heart attacks and life-threatening surgery throughout the journey, but we still keep growing and now employ around 500 people in a sustainable business with circa £25m turnover.”

As a hard-working Yorkshire lad from Huddersfield just a few miles up the M1 from Rotherham how could I refuse? We met in March at the firm’s 3-acre site in Thurnscoe on the A635 to the north of Rotherham.

McGinley is from Penistone, not far from Huddersfield and immortalised by Jeremy Clarkson’s rather unflattering mispronunciation in a long-ago Top Gear episode.

He says of his partner: “We’re two very different characters. He’s a bit younger than me, in his mid-40s while I’m 50 this year.

“He’s not very well. We have been through it a bit – he’s had stomach trouble and I had a heart attack when I was 42. I had a virus in my heart – or was it stress? You don’t know.

“Full throttle. That’s how we live.”

That isn’t just Talstaff – since 2007 the company has grown into a group of five businesses, one of which is Stanton Logistics. The holding company 2AM owns the Thurnscoe site as well as a property company, the driver agency, a motor racing team and a house lettings business.

“We paid cash for this site, all funded through the businesses,” says McGinley. “The motor racing team is called McAllen Racing and I’ve got two BMWs that I race in the Compact Cup and a race car transporter.

“Our lettings company, CMA Lettings, owns domestic properties. We’ve even bought houses for our staff. A couple of members of staff wanted rehousing so we said, ‘Go pick a house. We’ll do the numbers and we’ll buy the house for you’.

“We have an ethos within this business of doing things right for people. The business is about people and it’s

RACING AHEAD: Stanton Logistics’ holding company, 2AM, also owns McAllen Racing

Photos: Tom Cunningham

really important that you respect your staff. They’re the ones doing the hard yards every day.

“It’s my job to make sure that they’re in a safe, comfortable working environment. We don’t always pay the best money, but I like to think we give a lot more than that. The whole business is like a family unit.”

Stanton’s HQ was originally built in 1998 for Gefco, an international 3PL that McGinley previously worked with at the first transport company he ran. Gefco was supplying all the Peugeot-Citroën parts overnight for the North of England from Thurnscoe, so it was a major problem when their haulage contractor went under.

“The guy who ran it rang me and said ‘we’ve got this problem. The haulier has gone bust’,” says McGinley. “He said ‘I need 21 drivers for the day and night shift and I need 11 trucks – and you’ve got 24 hours’.

“Well I just said ‘Of course we can’ and then shut the office door, this office that we’re sat in now, and went ‘Sh*t! OK, we’re going to do this’. Chris started recruiting all the drivers who had just lost their jobs and they all signed up with Talstaff. I got hold of the administrators and got all the trucks.”

Around this time long-established haulier Dodds Transport, which had depots in Sittingbourne and Sheffield, also went into administration soon after it had been sold by founder Jim Dodd.

“I knew Jim quite well and we took on some of his staff,” says McGinley. “One of them is still with us now.

“2010 is when we really started getting serious with our transport. We took on some of his drivers and some curtainsider work that he was doing. At the same time, we got involved with some of the discount supermarkets. They just rocketed in the recession and we jumped on that bandwagon with them. We worked day and night to support their needs in this area.

“We were very successful at it, so we took on Dodds’ site in Sheffield and it gave us a bit of a leg up.”

So where did the name Stanton Logistics come from?

“It’s actually Chris’s middle name,” says McGinley, who

doesn’t have one himself. “Originally, when we first started, we were called Truckstaff. We supplied trucks and staff and then we changed the name to Stanton Logistics. It was just a name that I picked.”

Agile operations

Stanton operates from three sites: the Rotherham HQ, which has 30,000sq ft of storage including a mix of yard space covered by a 12,000sq ft canopy and racked warehousing; a smaller site at Newton Aycliffe; and a depot on the iPort at Doncaster. It has recently signed an agreement to operate out of Lidl’s latest UK depot at Luton, which is due to open this month.

The haulier runs about 75 commercial vehicles, mostly Mercedes-Benz now after a spell running DAFs, and is taking delivery of a batch of gas-powered Iveco S-WAYs, mainly for the Lidl contract.

The fleet is predominantly temperature controlled with 38 tractors hauling fridges – mostly from Chereau and Gray & Adams – and 30 pulling curtainsiders, plus

TOP TEAM: Chris McGinley (left) and Chris Allender (right) set up Stanton Logistics in 2007

Stanton Logistics

16 rigid trucks that mainly serve the two pallet networks Stanton runs in, Fortec and UPN.

“The networks are just a small part of what we do,” says McGinley. “Our main core business really is temperature controlled but we also do the car parts and new motorbike deliveries. Around 10,000 motorbikes a year come through our warehouse in stillages that we deliver to dealers in the north of England.”

Having been through a recession as the business got going, McGinley knows the importance of being able to quickly shrink the fleet as well as grow it.

“Having agility gives you so much more room to expand and contract quickly,” he reflects. “If you don’t contract quickly, you’re dead in the water. These things are too expensive to sit around. You've got to shed your costs quickly.”

One way Stanton achieves that agility is to have a very good relationship with its finance house.

“We have what we call pay-as-you-go arrangements,” explains McGinley. “That is something we put in place where I’ve given them a guarantee on usage and they have a pay-as-you-go arrangement. We will only pay for it when we use it. On a Monday, if we don’t need that truck, we don’t pay for it.

“It sits in my yard with my colours on. I’ve guaranteed that I will use it over a period of time, and we will get a percentage of usage out of that truck, which they’re happy with. They tend to be older trucks – currently they’re 66 plates – ready for disposal.

“They’re quite happy to still get some revenue from them because trucks are difficult to come by.”

Switching to gas

The latest new venture is moving into compressed natural gas (CNG) trucks, and Stanton has 18 4x2s on order from Iveco. The first batch will be based at Lidl’s new Luton site.

“There’ll be eight going into Luton, which is going to be a full CNG site with no diesel at all,” says McGinley. “We’re buying the gas from CNG Fuels, which produces it from waste products. Some of that will be food waste from Lidl, so there’s a full cycle there.”

The rest of the CNG trucks will be split across Stanton’s Newton Aycliffe and Doncaster sites.

“What they have to do with the 6x2 is put a small pusher on it,” says McGinley. “The truck comes from the factory as a 4x2 and they have to take the gas tanks off and have carbon fibre gas tanks made for them.”

The cost?

“£180,000 I’ve been told for a 6x2 tractor, whereas the 4x2 is £100,000,” says McGinley. “It’s not worth doing for the amount of times you run at 44 tonnes.

“Supermarket work tends to be alright because you get that mix of products across the trailer. We don’t run

SUCCESSION PLANNING

Like many business owners of his age, McGinley is starting to think about the future of the company. “The business has some good people,” he reflects. “I’d like the business to continue with those good people. My retirement might mean me just stepping down and allowing someone to come through as managing director.

“Not necessarily walking away and I would be available when they need me. If you want me to buy your trucks, I’ll buy your trucks for you because nobody buys trucks like I do.”

It is too soon to know if there will be a second generation of McGinleys coming into the business.

“I’ve got three kids,” he says. “My oldest is 18, he’s just going to university. My middle one is a 12-year-old girl and I’ve got a nine-year-old boy. They’re all very different but none of them have really shown any interest in the business. My 18-year-old works here one day a week but all he does is a bit of social media and flyers for us. He’s going on to do some media stuff at university.

“I would never discount it if he wanted to come into the business, but he’s decided to cut his own path and I like that. Go and do your own thing and make your life what you want it to be. Give yourself options.”

Another option, of course, is to sell up to one of the many firms on the acquisition trail or even to the staff.

“Does someone else want to come in and buy us? Great, come and talk to me,” says McGinley. “Would I sell my staff down the river? No, never in a million years. I would turn a deal down that was wrong for my staff.

“Then there’s an option to do a management buyout. I’d help them raise the funds and take over the business. I’d love that.

“There’s also the employee trust option, where you sell the business to a trust and it’s owned essentially by the trust and pays dividends to all the employees. Nothing’s off the table.”

at 44 tonnes a lot if I’m honest, but we do have a requirement for some 44-tonners. You need a bit of flexibility in your fleet. We have got some jobs that are lightweight – car parts, things like that – so we’ll put gas trucks on that. That’s an option for us.”

After a period of such rapid growth it is not surprising that piling on more turnover is not McGinley’s top priority.

“We are selective about how we go after new business,” he says. “We tend to hunt with a rifle, not a shotgun. I have a commercial team that dovetails into planning and into accounts.

“We did £23m last year as a group. We’re looking at £27m this year. It’s not all about turnover – we’ll still make a 6% margin.

STORAGE SOLUTIONS:

Stanton’s

“We don’t chase turnover. What I do is have an infrastructure in place that is capable of taking on more at any one time. We’re never bursting at the seams and that means our overheads run high. But it means that people don’t have to work quite as hard and then when we get a pinch point where we need to increase in size, like we’re doing with Lidl, we’ll slot somebody in down at Luton.”

Rotherham HQ features a mix of yard space and racked warehousing