Motor Transport 12 July 2021

Sharp ■ Informed ■ Challenging

12.7.21

Debt for equity swap slashed GreenWhiteStar’s borrowings by £65m

Stobart owner cut debt ahead of sale to Culina

By Carol Millett

JOIN THE WA I T I N G L I S T

NEWS INSIDE DVS dispute

Trade bodies in the spotlight p3

Riding a wave

Profit up by a third at Gregory p4

Learning the lessons

What Covid-19 has taught us p6

OPERATORS INSIDE Adrian Poole & Sons ...................................... p3 Aztek Logistics.............................................. p6 Carlton Forest ..............................................p32 DPD .............................................................p12 Europa Wordwide .......................................... p6 Gregory Distribution ...................................... p4 Hermes......................................................... p6 Hovis ...........................................................p11 Meachers...................................................... p6 Normal Global Logistics................................p25 Rendrive Haulage .........................................p25 Willmotts Transport .....................................p25 XPO .............................................................. p6

Eddie Stobart’s holding company GreenWhiteStar Acquisitions (GWSA), which was sold to Culina Group earlier this month, made a £15m loss last year and had net debts of £144.5m.

For the year to 30 November 2020, the company revealed that it had gone some way to cutting both its losses and its debt burden, aided by a £65.3m debt for equity swap.

Pre-tax loss dropped to £15m from £224.2m in the previous year, with turnover rising to £874m (2019: £857.5m).

GWSA also said it had reduced net debt by £77.2m to £144.5m, down from £221.7m the prior year.

The lion’s share of the debt reduction was in the form of a £65m debt for equity swap involving Alpha Cassiopeiai, a finance house based in the Isle of Man, which shares the same London office address as GWSA’s then majority shareholder, DBAY. GWSA said the repayment of debt was underpinned by a successful strategy of refocusing on core competencies.

Despite the financial challenges, directors’ remuneration rose to £4.6m in 2020, up from £1.6m in 2019, with the highest paid director receiving £1m, up from £586,000 in 2019. In the same

THE NEW TEAM: Culina Group’s senior management team headed by Thomas van Mourik (front)

period the company received £5.8m in furlough payments from the government.

Culina’s acquisition of GWSA, which owns Eddie Stobart, Eddie Stobart Europe, iForce, The Pallet Network and The Logistics People, comes less than two years after equity house DBAY acquired a 51% stake in GWSA in a £75m bailout that saved it from administration.

One logistics director who declined to be named said: “This sale was inevitable. In this low margin industry to be loaded with that amount of debt and paying over 10% on your borrowings is a hiding to nothing.”

He added that he was surprised at the level of fees that had been taken out of the business while receiving almost £6m in furlough payments.

Also reporting results to

30 November 2020, Eddie Stobart Limited (ESL) slashed its losses by 77% after exiting a number of “unprofitable” contracts, implementing cost-cutting measures and adopting a new accounting standard. However, its decision to turn its back on “uneconomic” industrial, retail and bulk contracts also saw turnover fall by 7% to £559m (2019: £604m). Pre-tax losses fell from £33.4m in 2019 to just £7.7m in 2020.

Losses reduced partly thanks to the implementation of accounting standard IRFS 16, which boosted operating profit by an additional £19.7m to £51m, up from a loss of £17.3m in 2019.

■ Puro Ventures, which trades as Speedy Freight, has undergone a management buyout that sees its founders leave the business and GWSA sell its remaining 20% shareholding in the company.

WEIGHTY ISSUE: The Pallet Network (TPN) is to charge for tail-lift deliveries in response to recently published safety guidance on pallet weights. The surcharge will be applied on all tail-lift deliveries from 1 August, which TPN said was aimed at protecting driver safety, service levels and profitability. The Sutton Coldfieldbased network is the first to add a tail-lift surcharge, which recognises the extra costs these deliveries incur and the levels of investment required under the new HSE-backed ‘RHA tail-lift and pallet truck guidance document’ published last month. Drivers must now carry out a dynamic risk assessment for residential tail-lift deliveries at each point of delivery. The news comes as TPN reported “unprecedented volumes” last year as it rebounded from the effects of Covid-19.

Turnover for the year ending 28 November 2020 was up 6.2% to £137.3m. Pre-tax profit fell by a quarter to £5.1m.

RTX p8 HVO p10 Going green p12 Business barometer p14 Viewpoint p16 ITT Hub p18 DVS p24 Embedded carbon p28 Carlton Forest p32

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Records show associations failed to force public inquiry that could have led to DVS being ditched

2019 record that the Freight Transport Association (now Logistics UK), the RHA and two transport operators made ‘statutory objections’, stating: “Those respondents have been contacted …and they have clarified in writing that their representations are not objections or in one case, withdrawn their objection.”

RHA director of policy Duncan Buchanan said he had no record of such a communication. “We’ve always opposed the Direct Vision Standard… We’re aware of this development and we’re looking into it.”

Logistics UK will not share its communication with TfL, nor clarify whether it dismissed the need for a PI. It said: “We confirmed to TfL at the time that our objection was with the scheme in principle, not to the wording of the TRO.”

EXCLUSIVE

By Louise Cole

An MT investigation has revealed that a public inquiry (PI) which could have rejected the Direct Vision Standard (DVS) was not held because Logistics UK and the RHA withdrew their formal objections, according to TfL. Both trade associations refute the notion that they ever withdrew their objections to the scheme.

A Traffic Regulation Order (TRO) is necessary to implement schemes such as the DVS. By law a PI must be held if the Amendment Order prohibits the loading or unloading of vehicles of any class at all times and receives statutory (ie non-frivolous) objections.

The minutes of a London Councils Transport and Environment meeting on 13 June

Photo: Shutterstock

Trade bodies waived right to DVS inquiry, says TfL

MT has submitted a freedom of information request for these communications.

However TfL said: “We took a wide view of what was an objection

to our Direct Vision Scheme including any objection to the scheme itself or to the concept and principle of the TRO, including its wording. We prepared for a public inquiry to be held if objections were made and not withdrawn. We communicated with … [objectors] to ask if they would like them to be considered by a public inquiry and they all confirmed that they didn’t.”

At a PI an independent inspector representing the Secretary of State would have tested the purpose, evidence base and objections to the DVS scheme and made recommendations as to its implementation or rejection.

If TfL’s claims that the objections were waived prove mistaken, then there may be grounds for a judicial review into DVS. ■ See feature on p24-25

Covid blamed for collapse of Welsh haulier Manchester hauliers get £12,000 for CAZ

12.7.21

Funding to help local hauliers upgrade their fleets to meet Greater Manchester’s Clean Air Zone (CAZ) requirements has been almost tripled to £12,000.

Local operators will be able to apply for the support, up from just over £4,000 originally, to purchase Euro-6 trucks that meet the

Photo: Shutterstock

requirements of the scheme.

They will also be given more time to upgrade their fleets, according to the city’s Clean Air Plan.

The money is part of an £87.9m fund for vans, HGVs, coaches and minibuses. Applications for funding support will open from November this year.

Unite demands pay rise for HGV drivers a result of Covid-19 and so it agreed to grant a three-month payment break.

However, the director had also failed to provide recent financial information and a cashflow forecast and so a “notice of breach” was issued on 31 March 2021, with one month to rectify it.

The report said: “If the company fails to rectify the breach the arrangement will be terminated and a winding up petition issued against the company.”

Granting European truck drivers temporary visas to help plug the HGV driver shortage would be no more than a “sticking plaster,” Unite has warned. The union has called instead for the industry to boost driver pay rates to solve the crisis.

Unite was responding to reports the government may be considering changing immigration rules to make it easier for UK companies to recruit drivers from overseas.

The union said the solution lay in the hands of the logistics industry, and called on operators to eliminate low pay rates and tackle poor working conditions and inferior welfare facilities.

If the government does decide to issue temporary visas to European drivers as a short-term fix, Unite wants safeguards to be put in place preventing workers from being exploited, with workers directly employed by hauliers rather than via agencies.

Photo: Shutterstock

Welsh haulier Adrian Poole & Sons International has entered administration with all 15 staff made redundant.

The business operates out of two depots in Whitland and Llanfyrnach.

A Mazars spokesman said the firm had experienced “increased competition and margin pressure” and entered into a CVA around 18 months ago that sought to address a build-up of creditors’ arrears, particularly with HMRC. “It was unable to address these ongoing losses as well as repay the historic debts due under the CVA. As a result, the directors took the difficult decision to cease trading during June of this year.”

The CVA, which came into effect in February 2020, saw the company making weekly contributions to creditors of £1,800.

The operator was struggling to maintain the contributions as

MotorTransport 3

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Family-owned firm trims costs and sees profits leap by a third to £11m

Gregory Distribution rides pandemic wave Despite being “significantly impacted” by the Covid-19 pandemic, Gregory Distribution Holdings has rallied with profit up by a third, according to its latest annual results.

Reporting its figures for the year ending 3 October 2020, the Exeterbased haulier revealed that pre-tax profit had jumped to £11m (2019: £8m) while turnover had dipped slightly to £238.3m (2019: £238.9m).

As a result of the pandemic, the company was forced to make a number of redundancies, cut directors’ pay, review wages and delay capital investment.

However, the firm added that the diversity of its customer base, its service range and the strength of its balance sheet had helped it through what it described as a “turbulent” time to deliver increased profit.

It said that by taking swift action it had “recovered more quickly than anticipated, enabling us to exceed expectations for the year, albeit with a different mix of work and phasing as a result”.

The family-owned firm operates a fleet of over 1,000 vehicles and around 1,900 trailers, and employs over 2,700 staff across 35 locations including depots in Exeter, Plymouth, Shepton Mallet,

The Algorithm People, developer of pay-as-you-go route optimisation platform My Transport Planner, has secured $2.2m (£1.6m) of funding from a consortium of tech investors led by former Sage chief executive Stephen Kelly.

It said the cash will allow it to accelerate plans for UK and international growth and focus on the opportunity created by the world’s race to Net Zero. The Algorithm People specialises in fleet management solutions and helps operators transition to electric and other low emission vehicles.

The software uses algorithms to calculate the most efficient routes and schedules for vehicles engaged in deliveries, collections and site visits.

The platform is proven to reduce total fleet mileage and costs by up to 30%.

Industry beats Kent clamp laws

Zemo Partnership ready to take on net zero challenge The 2021 Zemo Partnership Annual Conference – its first since the transition from LowCVP – will be held online on Tuesday 20 July.

The event is held in association with Net Zero Week, taking place between 17 and 23 July.

Following the government's petrol/diesel phase-out announcement and the strengthening of 2035 greenhouse gas emissions-

Cullompton, Bristol, Birmingham, Aberdeen, Stockton-on-Tees, Great Yarmouth and Cumbernauld.

The company is part of a group that includes Hayton Coulthard Transport and ARR Craib Transport, and is a member of both Palletline and Palletways. It specialises in ambient and temperature-controlled palletised services, as well as ambient and chilled warehousing.

My Transport Planner developer seals $2.2m investment

reduction targets, the conference will examine whether the UK government can deliver on its promise and what the transition will mean for road users and other stakeholders. n Zemo Partnership and the DfT have also relaunched an updated Freight Portal, which aims to provide better support to operators looking to decarbonise their fleets.

Ministers have bowed to pressure and removed controversial powers from Kent County Council (KCC) to clamp HGVs parked in lay-bys.

The widely criticised initiative enables the council to ban trucks over 5 tonnes from stopping in the county and has been in place since January. Logistics UK wrote to transport minister Rachel Maclean in May objecting to KCC’s attempts to make the temporary measure permanent, pointing out that there was already an existing shortage of parking places in the county.

The RHA called the plans “an abuse of process” and said the strategy was “an attack on the dignity of drivers”.

Heidi Skinner, Logistics UK policy manager, said: “While the announcement is welcome, it is now vitally important that the DfT works closely with KCC to create sufficient safe parking spaces.”

KCC said it was “short-sighted” not to continue to allow it to clamp lorries, but that it would continue to protect communities from illegal HGV parking.

In-demand Kettering site up for grabs A “fantastic commercial opportunity” near Kettering comprising 6,685 sq ft of buildings and a four-acre surfaced storage yard for HGV parking has gone on the market.

The Staveley Yard site in Cranford, close to junction 11 of the A14, can be rented as a whole or in lots, according to land agent King West.

It said access is via secure electric gates and it also has CCTV, secure perimeter fencing and lighting.

4 MotorTransport

Up to 55 HGVs can be parked on site. There is also a WC and bathroom facilities, which are due to be upgraded by the landlord.

Ben Ainscough, King West director, said: “There is currently a significant gap between the supply and demand for warehouse space and HGV storage in the Midlands. Staveley Yard, near Kettering, is a fantastic prospect for the logistics sector and we expect to receive considerable interest in the site.”

12.7.21

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VOX POP What’s the biggest lesson for you from the pandemic? make important decisions, we were able to ensure we could be scalable, flexible, agile and most of all safe. We fast-tracked our five-year growth plan in just five months.

Bob Terris, chairman, Meachers We’re in a high fixed cost industry and we have always retained as much flexibility as possible in our cost base which proved to be prudent given the speed of change during the pandemic. The help from the government regarding furlough was invaluable. It gave us space to evaluate the situation with help on direct costs.

The disappointing aspect was that some customers did not honour their contractual commitments and this is a lesson for the future when the supply of transport services is scarce. Some customers have also used the pandemic as an excuse not to meet our payment terms.

The upside has been that we have enjoyed tremendous support from our employees.

Our first objective as things improve is to reward that loyalty.

Stuart Charter, MD, Aztek Logistics

Dan Myers, MD UK & Ireland, XPO Covid demonstrates how important the UK logistics industry is, which had perhaps been diluted over time, and the vital role we play in the economy – it was a first to be considered key workers. The selfless nature of so many individuals was inspiring and I still reflect upon it today.

Dionne Redpath, sales director, Europa Worldwide Group We learned that we’re able to trust our team to work remotely and deliver. They are flexible, helpful and amenable and delivered a smooth Brexit transition.

Decisive and affirmative action has been vital, anticipating what might happen next and taking necessary early steps to pre-empt changes. Clear, concise communication is also so important – ensuring everyone in the team knows what’s

Carl Lyon, COO, Hermes UK The incredible resilience and determination of our teams to keep the business up and running was an important lesson for me. By empowering the team to

LETTERS

happening, why and what part they play.

Having a strong team culture has helped us enormously.

Most post-pandemic recovery lessons are based upon a series of truisms – that the industry stepped up during our darkest hour and that our staff were integral to our survival.

However, other less triumphalist lessons were also learnt: that the supply chain is only as strong as its weakest links and that the driver shortage has not been helped by the equally painful Brexit transition where we can no longer attract European drivers and ‘growing our own’ is hampered by cancelled and delayed driver training programmes.

The necessary agility of the supply chain is interdependent on some level of foreign driver support, but under the Brexit criteria HGV driving is not deemed skilled enough to qualify for special dispensation. Meanwhile, some food retailers are still reporting supply shortages and many haulage businesses are unable to sweat the assets of their expensive fleets because they have no one to put behind the wheel – all painful lessons.

Send your letters to the editor at steve.hobson@roadtransport .com

I have just read your front cover article [MT 21 June] on the driver shortage.

I have never known the situation be as bad as it is currently, and I don’t see it improving anytime soon.

I operate 40 trucks on all sorts of general haulage all over the UK. I’m also a very active member of Pallet Track and input and receive 600 pallets a day.

One area that has been a big thing for me over the years is the waste of resource we all face when our trucks are sat at delivery

Photo: Shutterstock

Penalise the retail giants for their own inefficiencies points, loading points and RDCs for hours and hours. Every day we deliver to the large retailers of this country and we are given strict booking times etc. But it makes zero difference – our trucks and drivers are held up every day for hours and hours.

I think these big companies should have a taste of their own medicine. Let’s penalise them for their own inefficiencies. This will surely focus them to improve.

John Sheard, MD, JMS of Doncaster

Rates of pay for drivers are nothing short of abysmal I read with interest your article on the driver shortage. I’m a former depot and transport manager and now a delivery driver. On a daily basis I get updates on driver vacancies on Indeed.com where the rates for both Class 2 and Class 1 are nothing short of abysmal.

My question is this – if an agency is paying £10.50 to the driver, what are they charging the client? Take off holiday pay and you can rest assured it works out at about £8.70 per hour – hardly a living wage.

We the general public and the multinationals have created this monster 6 MotorTransport

through 24-hour shopping for both food and consumer goods. I’m not sure how we get out of this vicious circle.

The rates should be set by the transport companies and not by what the customer is willing to pay. In reality we need to cut off the serpent’s head and get back to realistic pricing. Only yesterday I was talking to a guy who gave up driving a 7.5-tonne truck to drive a van for a facilities management company.

He’s on the same money just going round the site in Cheltenham emptying bins.

Tim Shenton 12.7.21

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10/06/2021 12:32

Road Transport Expo 2022

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New ‘one-stop’ event to bring the best of the transport sector together

The beating heart of road transport

By Hayley Pink

A brand-new industry event is bursting onto the scene next summer – the Road Transport Expo 2022, taking place at Stoneleigh Park from 30 June to 2 July.

Created by Motor Transport publisher Road Transport Media, RTX has a simple and powerful core theme: “It’s all about the truck!”

HGVs will be at the heart of everything the show offers visitors, from the latest models on display and available to ‘ride and drive’ through to conference talks, technology demonstrations and a live on-site used truck auction.

To make this the ‘one-stop event’ the industry has told us it needed, we’ve brought together a number of leading trade shows into a single offering. This includes Harrogate’s historic Tip-Ex and Tank-Ex, and the highly topical Freight in the City Expo.

We’re also pulling out all the stops when it comes to delivering a high-class visitor experience for everyone who joins us there.

A dedicated team of showmakers will be on hand from the moment you arrive to make sure you get the most from attending, and we’ve made sure catering, networking and meeting facilities are all top-notch. Say goodbye to tasteless, expensive corporate venue food and hello to the delicious farm shop delights and relaxed dining areas dotted around Stoneleigh Park’s extensive grounds.

Parking is also free of charge and there are more than 500 hotel 8 MotorTransport

rooms in close proximity, should you wish to stay over.

“We are incredibly excited to be creating this brand-new show for industry and will be making sure it delivers the ‘wow’ factor for visitors,” said Vic Bunby, divisional director at Road Transport Media.

“It will provide the perfect hub for anyone working in the road transport industry to meet, from leading vehicle OEMs and start-up technology firms through to fleet operators and drivers. Road Transport Expo really will have something for everybody and we can’t wait to meet you all there!”

So what’s on offer at RTX? The show will use a hub-andspoke model, the centre of which is the Road Transport Hub. Here you’ll find everything you need for your business and fleet, from HGVs, trailers and tyres through to compliance software, training companies and workshop equipment.

We’ll also be running several specialist zones to help you shape your visit for those operations relevant to your company.

These include: ■ Tipper Zone: This vast inside and outside area will be brought to you using our existing Tip-Ex expertise. You’ll be able to browse an extensive range of the latest tipper models and tipping gear for the bulk haulage sector. You’ll also be able to see product demonstrations and hear topical seminar presentations relevant to this important sector.

■ Tanker Zone: If you’re in the market for a new tanker, then you certainly won’t be disappointed by

the huge, dedicated outside area brought to you under our popular Tank-Ex brand. It will feature topname manufacturers and an impressive line-up of tanker models on the market today.

■ Urban Zone: Under the umbrella of our successful Freight in the City Expo brand, this zone will feature everything you need to keep your fleet safe and sustainable when working in busy towns and cities. It will also expand the vehicle focus to include not just trucks but also smaller, city-centric vans and micro vehicles – essential for urban last-mile deliveries.

■ Waste and Recycling Zone: We’ll bring you the very best in RCV technology and waste/recycling handling kit in this exciting show feature.

■ Materials Handling and Crane Zone: On the hunt for a new truckmounted forklift or crane? Then head to this dedicated outside area for all your business needs.

■ Knowledge Zone: Throughout the three days, you’ll be able to head in and out of a series of highly

topical seminars, based around each of our key zones. You might want to get some top tips about boosting your company’s social media presence, for example, or find out about the latest city regulations coming into force near you. We aim to have talks on offer for everyone, whether you’re an owner-driver or the head of a national 3PL. ■ Auction time: Taking place on Saturday 2 July, an exciting used truck auction will be held live at RTX. This part of the event will be run by commercialmotor.com and our auction partner ProTruck, so come along and make sure you grab yourself a bargain!

■ Ride and Drive: Fancy taking the latest HGV models for a test run? Well RTX will let you do just that! Leading truck manufacturers will be on hand throughout the event to let you book a drive in your models of choice.

■ More zones! We are working hard behind the scenes to bring you even more specialist areas at RTX, so watch this space.

12.7.21

ALL goods vehicles over 12 tonnes require a permit to enter London.

Direct Vision Standard Are you ready?

0 How Brigade can help Brigade Electronics can advise transport operators on the requirements of the Direct Vision Standard and how to achieve a permit to enter London if your vehicle falls short of the minimum star rating. If you are unsure what your vehicle’s DVS star rating is, we offer a free service to obtain that information for you.

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News extra Hydro-treated vegetable oil offers instant green benefits for diesel vehicles, hears FITC webinar

A quick win on emissions

By Hayley Pink

The use of renewable ‘drop-in’ fuels such as HVO (hydro-treated vegetable oil) to reduce the carbon impact of HGV fleets was the focus of the latest Freight in the City webinar. In partnership with DAF Trucks, the webinar looked at the government’s ambition to move towards net zero carbon by 2050 and the role sustainable fuels would play to achieve this.

DAF marketing manager Phil Moon acknowledged the task ahead of operators and manufacturers in reducing CO2 emissions.

The short-term target for truck makers is a 15% carbon saving by 2025 against 2019/20. DAF is well on the way to achieving this with its recently announced Next Generation trucks taking advantage of new weights and dimensions regulations to improve aerodynamics.

“But we have even more challenging targets ahead. We’ve got

10 MotorTransport

to double that saving to 30% overall by 2030 and go fossil-free by 2040. Then we’re looking at a net zero ambition from 2050,” he said.

“These targets are all well and good. But in terms of climate change, doing this quickly is really important. To reduce the impacts of global warming, we need to take as many steps as we can as early as possible,” he added. “And that’s why we believe that HVO as a renewable diesel alternative is

something we should be embracing today, while we look towards new technologies in the future.”

For example, while electric vehicles will help decarbonise urban, short-distance and lightweight transport, the well-to-wheel carbon reduction will only be seen when the majority of the UK’s electricity comes from renewable sources.

The same goes for hydrogen, which can provide a viable green

alternative when produced sustainably through electrolysis using renewable electricity. But today it is predominantly generated through a process that relies on fossil fuels.

“With these challenges still to face, what we really need to do is look at relatively easy-to-deploy technologies that can decarbonise transport today,” said Moon. “And one of the ways we feel we should be doing more is through the use

12.7.21

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of paraffinic fuels, drop-in alternatives to diesel – in particular HVO because it does not rely on fossil fuels; it’s actually manufactured from waste oils and fats.

“Its real benefits are that it’s completely interchangeable with conventional diesel without any modifications required for the engine,” he continued. “The fuel is biodegradable, and alongside carbon saving it also results in cleaner burning and lower levels of NOx and particulate emissions.”

Moon said the fuel was also easy to distribute via existing infrastructure and was very stable, particularly in cold weather. It can also be mixed at any percentage with conventional diesel, eliminating any range anxiety.

Green D+ HVO

Fuel technology firm Green Biofuels produces its own Green D+ HVO, which is already used by a number of large fleets including CEVA Logistics, Hackney Borough Council and Hovis.

Magnus Hammick, chief operating officer at Green Biofuels, pointed out that the fuel is made from renewable, waste-derived feedstocks; is clear and odourless; is biodegradable; can reduce

engine noise; and does not go off in the tank.

On a well-to-wheel basis compared with traditional diesel, it can reduce particulates by up to 85% and NOx emissions by up to 30%, with greenhouse gas reductions of up to 90%.

Green D+ HVO is certified under global sustainability scheme ISCC, as well as the UK’s recently launched Renewable Fuels Assurance Scheme, run by the Zemo Partnership (see box).

HVO is only part of the road transport sector’s overall journey to net zero carbon, Hammick said, but can play a significant role today, with customers in the past six months saving around 35,000 tonnes of CO2 by making the switch.

One of these customers, Hovis, also took part in the webinar to bring the operator experience of using HVO to life. The bakery now uses Green D+ across its entire fleet of around 400 trucks and 250 trailers, which includes trucks from DAF, Iveco, MAN and Mercedes-Benz on a range of journey types including urban and long-distance. To date, it has used more than 9 million litres of HVO to cover 30 million miles.

Confidence in alternative fuels Zemo Partnership has reported that the use of high blend renewable fuels (HBRF) like HVO, biomethane and biodiesel could slash 46 million tonnes of greenhouse gas emissions by 2030 and speed up decarbonisation of road transport.

It has launched a Renewable Fuels Assurance Scheme that approves companies supplying HBRF on the basis of three

Tony Stuart, head of logistics operations support at the baker, told delegates the switch from diesel to HVO had seen no penalties in terms of fleet performance, mpg or refuelling infrastructure, making it an easy transition.

Drivers are positive about the new fuel, he added, as it doesn’t smell or leave any residues in the way that diesel would, and the fuel has been readily available nationally.

If the need ever did arise to use

performance criteria: life-cycle GHG emissions; feedstock sustainability; and supply chain traceability.

A unique feature of the scheme is a Renewable Fuel Declaration that operators receive with batches of the renewable fuel purchase. This includes a colour-coded GHG emission savings banding system similar to energy efficiency labels encouraging operators to strive to achieve higher GHG emissions savings.

Visit zemo.org.uk for details.

traditional diesel, he added, the switch back would be instant because the same infrastructure can be used.

In terms of cost, Stuart said HVO had been by far the most economical way to reduce CO2 emissions significantly from the fleet. By the end of 2022, Hovis expects to have saved around 40,311 tonnes of CO2 from the switch.

■ Watch the full webinar free of charge at freightinthecity.com

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MotorTransport 11

Decarbonisation webinar Freight in the City, in partnership with Volvo Trucks, recently hosted the Fleet Decarbonisation Online Roadshow: Birmingham webinar on the UK’s Clean Air Day, bringing together a panel of industry experts to help operators achieve a zero-carbon fleet.

Councillor Waseem Zaffar, Birmingham City Council cabinet member for transport and environment, spoke about the city’s plans to become net zero carbon by 2030.

Key strategies include the city’s Clean Air Zone; the roll-out of around 400 residential and commercial electric vehicle (EV) rapid charge points by September 2022; a trial of 20 hydrogen-fuelled buses; and plans for regional lowand zero-emission refuelling hubs.

Next up was Gloria Esposito, sustainability head at Zemo Partnership, who said road transport posed a particular challenge with 98% of the UK’s commercial vehicle fleet still powered by diesel.

“That needs to change significantly if we are to meet net zero targets,” she said, pointing to government plans this year to consult on a date for phasing out the sale of new diesel HGVs. She called for greater support for fleet operators. “The total cost of ownership is also going to be critically important as some of these technologies are quite expensive. Therefore, policy interventions are required to make those more affordable.”

Infrastructure

Photo: Shutterstock

Tyseley Energy Park (TEP) in Birmingham is the UK’s first multi-fuel, open access, low and zero carbon refuelling station, director David Horsfall told delegates. Launched last year, it offers a 24/7 hydrogen, CNG, biodiesel and diesel refuelling service to commercial fleets, public transport fleets and private vehicles, as well as EV charging options “We now need to start developing strong baseload demand and long-term contracts. We’re probably around 30% capacity; we want to get to 100% utilisation, at which point we’ll have confidence to build more of these stations,”

12 MotorTransport

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Horsfall explained. “Now more than ever, we need to keep building relationships with fleet operators, industry, SMEs and OEMs. We’ve got to break this vicious cycle around lack of refuelling infrastructure resulting in limited vehicle take-up.”

John Comer, Volvo Trucks UK head of product management, said OEMs faced tough EU targets requiring a 30% cut in emissions by 2030. However Volvo is going further, setting itself the goal of a 50% cut in its trucks’ CO2 emissions by 2030.

While Volvo has already cut CO2 emissions on its baseline diesel trucks by 18.9%, its focus is on delivering a range of alternatively fuelled vehicles, including the 26-tonne FE City Truck for urban deliveries, which Comer said can replace 11 vans on the road.

Other alternatives include HVO and LNG-powered trucks for longhaul routes and the recently launched Volvo FM, FH and FMX electric vehicles.

Energy Saving Trust programme manager Colin Smith introduced the revamped Freight Portal, an online information hub to help vehicle operators cut fuel use.

Due to relaunch on 30 June, it offers information on how to reduce emissions, case studies, and links to fleet support schemes.

It also offers a Fuel Cost Cutter service that lets operators estimate savings per vehicle per year through measures like addressing driver behaviour, tyre and route optimisation and aerodynamics.

Catherine Bowen, BVLRA senior policy advisor, raised concerns about the lack of co-ordination between Clean Air Zone (CAZ) schemes, pointing to the different charges, lack of uniform payment mechanism, and failure of local schemes to recognise that fleets operate nationally.

She called for CAZ schemes to be integrated into the wider decarbonisation agenda rather than existing in isolation and said measures should be taken to

promote rental and leasing as one way to help businesses transition to compliant vehicles.

Leading the charge

As part of its aim to be the UK’s leader in sustainable delivery, DPD now has over 850 electric vehicles on the road, said Olly Craughan, CSR head at DPD UK. This is set to rise to over 1,700 EVs by 2022, raising the number of DPD’s EV-delivered parcels from 6.5 million to over 20 million by the end of this year.

DPD’s Vision 25 programme is also aiming to make all final-mile parcel deliveries by EV in 25 UK cities by 2025. “We will deliver 25% of our volume in 2025 by EV in those cities. That’s over 100 million parcels,” Craughan said.

However the lack of a charging infrastructure for commercial EVs presents a “huge challenge”, he warned. DPD has installed home chargers for 41% of EV drivers at a cost of over £140,000 but Craughan said that with only 16,000 publicly accessible EV chargers across the country, this could hamper progress to net zero.

“Perhaps we need charging hubs for fleets, because it’s not just DPD – our competitors and numerous other businesses are also making this transition. They need to be supported to make that transition,” he said.

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Some of the economic data look good and manufacturing confidence abounds, but risks remain

Still optimistic but fragile

Oil and fuel

June was when many operators would have seen their monthly average bulk diesel price break through the 100ppl mark – or get perilously close to it – for the first time since Covid’s economic downturn sent the fuel price tumbling early last year.

Although sterling’s monthly average value against the dollar in June was a healthy $1.40, this could not overcome the inexorable rise in the price of Brent crude oil, driven by booming demand for energy as the pandemic loosens its grip on the global economy.

Brent’s June average of $72.9/barrel is its highest monthly figure since October 2018, reminding us what happens when the volatile oil market experiences strong demand pressure.

Global oil demand will continue to rise in the coming months but the world’s oil producers have been hiking output too. They are likely to continue to boost production as 14 MotorTransport

Manufacturing confidence

UK manufacturers’ optimism about business growth is sky-high, according to the latest Purchasing Managers’ Index (PMI) published

by IHS Markit/Chartered Institute of Procurement & Supply.

This well-regarded monthly survey evaluates manufacturers’ sentiment about key issues like orders, output and employment.

The responses are combined into a single PMI figure between 1 and 100. Scores below 50 indicate that business levels are lower than in the previous month; a PMI score above 50 signifies expansion.

June’s score, published on 1 July, was 63.9, just below May’s 65.6, the highest since the survey started almost 30 years ago.

But the report authors rightly point out that this optimism is accompanied by copious realism too – chiefly related to pressure on supply chains, material shortages, rapid price inflation and delivery delays.

Most of these downsides are the consequence of rapid acceleration of business activity as Covid restrictions unwind, overlaid in some instances by additional pressures of Brexit-related logistical and administrative burdens.

Interest rates

Consumer Price Index (CPI) inflation has surged from 0.4% in February to 2.1% in May, so the Bank of England’s Monetary Policy

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they seek to cash-in on the strong price, but will strive to avoid a glut that will soften the price too much.

Analysts expect to see a better balance between supply and demand in the second half of the year. The US government’s Energy Information Administration has upped its forecast of where that price balance point will be, suggesting in June that Brent will average $68/barrel in the third quarter.

The EIA reckons that supply will outstrip demand next year, and so believes that Brent will fall back to average $60.5 in 2022. But most of the UK forecasters quoted in the above-mentioned Treasury report for June anticipate a rather higher average of between $67 and $71 next year, which is likely to keep bulk diesel close to 100ppl.

8 5 8 0

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The pound is doing rather well, outperforming most forecasts. The Effective Exchange Rate Index (EERI) provides a rounded assessment of sterling’s value.

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

The median value of independent forecasts made late last year indicated that the EERI would most likely average 78.9 during 2021, about 1.2% above 2020’s figure. In fact, its average in the first half of 2021 is 4.0% up, at 81.1. June’s average of 82.1 was sterling’s highest monthly value since June 2016, when the EERI plummeted following that month’s Brexit referendum result.

Financial analysts now believe sterling will continue to appreciate.

The median value of latest independent EERI forecasts for 2021 as a whole now stands at 83.1, rising to 84.6 next year (HM Treasury: Forecasts for the UK economy: a comparison of independent forecasts, May and June 2021).

60 50 40

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Jun

MANUFACTURING CONFIDENCE 70

Purchasing Managers' Index

Sterling

60 50 40 ´

30 20 10 0

Jan

Feb

Mar

Committee (MPC) was bound to consider raising the bank rate at its meeting late last month.

Economic theory says raising the bank rate encourages saving rather than borrowing and spending, thus easing price inflation fed by strong demand.

But the MPC saw no need to tinker with the bank rate, even

Apr

May

Jun

though CPI inflation is expected to top 3% – some say nearer 4% – by the end of the year.

The inflationary surge is reckoned to be transitory, so on the basis that the UK’s “inflation expectations remain wellanchored,” the MPC kept the bank rate at just 0.1% where it has been since March 2020. ■ 12.7.21

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Viewpoint

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Trade bodies too meek on DVS T he revelation that both the RHA and Logistics UK let an opportunity slip to have a public inquiry into the effectiveness of TfL’s Direct Vision Standard is quite shocking but in no way surprising (see feature p24).

Steve Hobson The transport industry’s representative Editor bodies are terrified of doing or saying Motor anything that might be portrayed as Transport anti-cyclist and seem ready to go along with any measures that TfL comes up with, from the London Control Scheme to ULEZ to DVS, no matter how sketchy the costbenefit analysis.

Of course no one is going to argue against improving safety for vulnerable road users, but would the RHA and Logistics UK meekly go along with a plan to restrict HGVs to 4mph and have a man walk ahead of them with a red flag? Or ban HGVs from London in peak periods altogether? Or insist every delivery in London was on a zero emissions vehicle?

One of these may be exaggerating to make a point but the other two could actually come to pass.

It has got to a point now when only the most well-resourced operators can actually afford to run trucks in London and truck makers are scratching their heads trying work out what a three-star DVS-rated truck that can get onto a building site without ripping off its bumpers looks like.

The UK has a tried and tested set of national construction and use regulations that say exactly what is a safe truck and while London may have some special issues with congested streets they are not that different from Birmingham or Manchester – or for that matter Paris or Rome. At a time when operators are struggling with a real driver shortage and an urgent need to cut carbon emissions, it is essential unnecessary measures that add disproportionate costs should not be accepted without question.

Together we can drive up standards T Sharon Graham Executive officer, Unite

he UK is facing an acute driver shortage. The RHA says we need between 65,000 and 100,000 HGV drivers to make up for the current shortfall.

And it is set to get worse as more drivers transition to retirement – 47% of drivers are aged over 50, and only 1% are under 25. So, how does the industry attract new workers?

Simple – by providing well paid, secure jobs with reasonable hours and decent conditions. If employers treat professional drivers with respect and negotiate good collective agreements, younger people will want to work for them and vacancies will be filled.

But that is not how things look. Too many drivers are experiencing long hours, low pay, overbearing surveillance and the continued threat of insecure employment.

The lack of proper rest and facility provisions further underlines the lack of respect from employers and government. It also helps to explain why there are so few women in the profession.

Thankfully, Unite has some fantastic activists in this industry with the will and the drive to change this. I am privileged to have strong support from them in my campaign to be the next general secretary of Unite. I want to help drivers to take on the unscrupulous employers that adopt anti-union positions and spread bad terms and conditions across the industry.

16 MotorTransport

It also means being on top of the technology that is changing the world of work. At the moment the key issue in this area that drivers are dealing with is excessive and misused surveillance technology. Down the road we know that automation is coming. Workers need to have a say and I want ‘new technology agreements’ across the industry to protect them from negative consequences.

We must also take on government and I will always support holding those in power to account. When changing the law is a priority for members, the union must back them with real actions, not just press releases and letters to ministers that achieve nothing. Whether this is about getting new laws to prevent “fire and re-hire” or pushing for more sector specific changes to driving regulations, politicians who do not step up and who refuse to support necessary change will be held accountable, no matter what party they belong to. By giving drivers the professional high-level support they need to analyse, organise and campaign we can win in road haulage too – taking on the ‘under-cutters’ and fighting for better pay and conditions.

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 Wallace 2158 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 07900 691137 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. Europe £176/year.

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If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 12.7.21

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ITT Hub

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Showing real metal I

Vehicle makers were out in force at ITT Hub, showing off their wares at the first live industry event for over a year, writes Steve Hobson

LIGHT BULB MOMENTS: Renault and MercedesBenz were among those pushing the case for electric vehicles with the D Wide ZE and eSprinter respectively

18 MotorTransport

TT Hub took place at Farnborough International on 30 June and 1 July, marking the restart of major live events for the transport industry for over a year.

DAF Trucks used ITT Hub to showcase its full line-up of electric vehicles including the LF Electric 4x2 rigid, and CF Electric 6x2 rigid and 4x2 tractor unit.

Also on show for the first time in the UK was the New Generation DAF XG+ top-of-the-range Super Space replacement cab over a 13-litre 530hp engine. Following the launch in June, production of right-hand-drive New Gen trucks will start in October at the Leyland factory in Lancashire and orders are now being taken.

The New Gen DAF XF and XG are completely new models that replace the existing XF range, which has been central to DAF Trucks’ market-leading position in the UK for the past 26 years.

Both the LF Electric rigid and CF Electric 4x2 tractor are also now available in the UK along with PACCAR’s turnkey charging systems for electric vehicles, and the stand included a 40kW mobile PACCAR battery charging station.

Centrepiece of the Renault Trucks stand at ITT Hub was a new 26-tonne 6x2 tag axle low entry, high direct vision chassis cab for urban applications such as refuse collection, where it is aimed squarely at existing players including Mercedes-Benz and Dennis.

The D Wide ZE Low Entry Cab can be configured with different battery capacities up to 265kWh to enable it to complete the vast majority of domestic refuse collection rounds on a single charge. Renault estimates the UK market for domestic refuse collection vehicles is around 2,000 vehicles a year and there has already been strong interest from several councils.

As well as zero tailpipe emissions, the fully airsuspended cab should have a three-star rating for TfL’s Direct Vision Standard, future-proofing it for any requirements to enter London for several years to come.

Renault is now taking orders for the chassis cab and deliveries will begin later this year. Renault is guaranteeing the batteries for up to 10 years to give buyers peace of mind and already 13 of its dealer sites have technicians trained to maintain electric vehicles with more coming.

Renault Trucks is working closely with customers to spec the vehicle and recharging system correctly to minimise the need to upgrade electrical supplies, and it is expected that the majority of D Wide ZEs will charge their 600V batteries overnight on a single phase AC supply.

By 2025 Renault is aiming to see electric vehicles

account for at least 10% of sales across Europe to ensure it meets the EU target of reducing CO2 emissions by 15%, based on 2019/20 levels.

Accommodating the driver and up to three operatives, the two-step cab gives easier and safer access and is 200mm lower than a standard D cab. A ‘kneel’ function can drop the front of the vehicle a further 70mm.

As well as refuse collection, Renault Trucks expects strong interest from urban distribution, light construction and building supplies operators.

Mercedes-Benz Trucks used the stand of its southern dealer Marshall Truck & Van at ITT Hub to showcase the new eActros rigid battery electric truck, which has a range up to 400km from its 420kWh battery packs.

Designed for heavy-duty regional distribution, series production of the eActros in Wörth will begin this autumn.

This will be followed by the low-floor Mercedes-Benz eEconic truck in 2022, while the battery electric eActros LongHaul is expected to be launched in 2024. A ‘GenH2’ truck with a hydrogen fuel cell will come in the second half of this decade.

The eActros powertrain is unusual, using a rigid electric axle with two integrated liquid-cooled electric motors and a two-speed transmission. With a maximum output of 400kW (536bhp) performance is brisk.

The eActros can be charged at up to 160kW and when connected to a 400A DC charging station the battery packs can be charged from 20% to 80% in one hour.

Also at IIT Hub was the long-awaited battery electric eSprinter which provides a 731kg payload and a range of up to 355km. The batteries can also be rapid-charged to 80% of capacity in 30 to 120 minutes.

The battery comes with an eight-year or 160,000km guarantee while range anxiety is eased with free roadside assistance including out of charge cover.

As the market leader in gas trucks, Iveco’s stand at ITT Hub unsurprisingly featured an example of the recently launched S-WAY Natural Power in the form of a 4x2 LNG AS440, as well as the New Daily van.

Iveco believes natural gas is currently the only viable transport decarbonisation solution, offering a 95% reduction in CO2 emissions when running on biomethane.

Aerodynamic drag has been reduced by 12% in the S-WAY, helping it achieve up to a 4% improvement in fuel economy on previous Iveco models.

The New Daily is available in GVWs from 3.3 tonnes to 7.2 tonnes with diesel, gas or battery electric propulsion and features Driver Pal connectivity and adaptive Air-Pro suspension. ■ 12.7.21

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ITT Hub

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Electric roads await

Electric roads are the most realistic option for long-distance truck travel, delegates at the ITT Hub conference heard recently.

Tim Wallace reports

A

n electric road system (ERS) is the only viable future for long-haul HGVs, with hydrogen far too expensive, the director of the Centre for Sustainable Road Freight told delegates at new transport and logistics event ITT Hub. Speaking during a panel discussion at Farnborough International Exhibition and Conference Centre, David Cebon (pictured, on screen) said: “Electric roads are the lowest cost system, the lowest carbon system and the highest readiness solution. Green hydrogen uses 3.5 times more energy, 3.5 times more carbon and is at least 3.5 times more expensive for operators to run – and it can’t be rolled out by 2050 because of the massive demand for green electricity. Have a careful look at electric road systems; they’re more ready to go than you think.”

ERS technology eliminates the need for a battery, Cebon explained. Instead, electricity is sent from an

overhead pantograph directly into the truck’s motor.

“That gives you the most efficient vehicle you can run,” he said. “It gives you about 77kw hours at the wheel. And when you want to travel off the motorway you drop the pantograph and drive on the battery.”

Cebon’s comments come amid growing frustration over long delays to the government’s Transport Decarbonisation Plan (TDP). Now expected later this month, operators hope it will guide them on how best to reduce carbon emissions in their fleets.

However, National Grid fleet manager Lorna McAtear said fleet upgrades should start now: “Don’t panic,” she advised. “Go and ask someone who’s already done it. If you can’t quite get that vehicle today, is there a stepping stone towards it?

“Infrastructure is coming out. So as long as you have a plan and know that in 2025 you can actually take that vehicle then you don’t need to worry about it today.”

McAtear also called for fully joined-up thinking from the Transport Decarbonisation Plan: “One of the things that’s been very difficult for fleets to manage, especially national fleets, is consistency of approach,” she said.

“We’re facing clean air zones, congestion zones and different technologies. We need consistency that allows us to do the future-proofing and that gives us the confidence to make these expensive changes. The last thing you want is a stranded asset.”

Zemo Partnership MD Andy Eastlake agreed that the key to the current situation was moving elements of any fleet forward. He also advised HGV operators to consult Zemo’s newly updated online Freight Portal which provides further advice.

“See if you can challenge the decision you made on fuel a year ago and see if it’s lower cost and lower energy,” he said. “That’s the key thing, not mass replacement. Energy is the fundamental currency here, it’s not carbon.” ■

JUST ‘CRYING WOLF’ OVER THE DRIVER SHORTAGE? Steve Gooding, president of the Chartered Institute of Logistics and Transport (CILT), used ITT Hub to urge the industry to nail down immediate solutions to the driver shortage or risk accusations of crying wolf.

The UK is suffering from a shortfall of up to 65,000 HGV drivers, exacerbated by Brexit which prompted thousands of EU drivers to leave the UK, the introduction of IR35 tax changes, and the lack of driver training during the pandemic.

But speaking in a panel debate on retaining talent in the sector, Gooding said: “If something needs doing in the next 12 months then reluctantly I think we need to ask if we can bring some qualified people back into the sector. Can we do something to speed up the testing process? Can the DVSA help there?

“And are we going to be forced to think near term about changing the way we run our distribution activities? Maybe in the near term, we’ll have to do it with smaller vehicles and drivers who have less advanced qualifications?

“I’d like to see the bright ideas on a whiteboard and someone needs to sift through those and say ‘what is the action this day?’ What can the DfT do, and how quickly is it going to filter through to us?”

There is now “a material risk of the sector crying wolf if everything is turning up and the supermarket shelves aren’t empty,” 20 MotorTransport

added Gooding, who is also a director of the RAC Foundation.

“I haven’t personally found it difficult to source toilet rolls since about the fourth week of the first lockdown,” he commented.

Nicola Shaw, president of UK networks with National Grid, agreed that current efforts to ease the crisis seemed vague.

“I’ve never heard anyone say, ‘we’ve talked about this problem, this is what we’ve done, and this what we’ve fixed’,” she said.

“Is there really a pay problem? There are some jobs in the sector where £60,000 for a driver is absolutely a standard wage. That is a really good wage! So maybe there are some bits of the sector where pay and conditions are wrong and some where it’s right. Getting underneath is where the problem is. You’ve been talking about it a long time. You should have sorted it out by now.”

12.7.21

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Direct Vision Standard

Now you see it...

TfL claims the DVS is already saving lives – but the claim and the scheme itself lack evidence. So is the DVS just a political illusion?

Louise Cole reports

STILL A DANGER: Despite excellent direct vision, buses still accounted for significant percentages of pedestrian and cyclist fatalities in London between 2018 and 2020

24 MotorTransport

T

fL’s Direct Vision Standard (DVS) came into force on 1 March 2021. Zero-rated vehicles must have a safe system fitted comprising extra mirrors, cameras, under-run bars and sensors with vulnerable road user (VRU) alerts. Although the modelling behind the star rating was originally done by Loughborough University, the evidence for the use of the safety equipment involved was an Apollo Vehicle Systems literature review (FOI request to TfL 2019).

The report’s conclusion is that: “In terms of the casualty reduction effectiveness of the systems, none could be supported by the highest standard of evidence.”

In theory – and in this context that essentially means ‘common sense suggests’ – blind-spot minimisation systems, driver and VRU warning systems should all make people safer. However, in practice, the quality and implementation of these systems, where monitors were placed, the number of false positives and timing of alarms, and many other factors can change the result from significantly positive to utterly ineffective.

One four-month trial had drivers run without camera driver aids for one month and with them for three months – and the researchers saw no difference in the number of safety-critical incidents.

Additionally the earliest impact assessment in 2017, which considered five potential options including the HGV Safe System, found that the major benefit was in VRUs’ perception of safety.

It concluded: “None of the options meets/surpasses the standard benchmark of 1.5:1 (benefits are 1.5 times larger than the costs) and even at a level of 1:1 (whereby the benefits and costs break even), none of the options assessed are considered economically viable.”

The elephant in the room is that none of these systems affect the most crucial contributory factor to collisions – human behaviour. Apollo’s surveys of operators bore

motortransport.co.uk

this out: even those operators most committed to and experienced with safety systems commented that such kit could not prevent reckless VRU behaviour or inattentive driving.

Penny Brooks, MD of SmartDrive Systems, which offers camera capture and analysis of driver behaviour, says: “We shouldn’t lose sight of the fact that out of 874 fatal collisions listed in the government’s 2019 statistics as being due to driver or rider errors, 359 are attributable to a failure to look properly. This is not the same as ‘in a blind spot’ or ‘couldn’t see’. In other words, making all hazards visible to drivers is very valuable, but unless we proactively coach all drivers to look, process and proceed with due caution, fatal collisions will continue.

“SmartDrive has analysed and risk-assessed more than 330 million pieces of triggered event footage from fleets, and we know that driver behaviour determines collision risk.”

FORS also seems to have switched tack somewhat on its approach to vehicle safety kit. FORS director John Hix says that FORS Silver and Gold members accounted for almost 36,000 vehicles and reported 336 injury-causing collisions between January 2019 and December 2020, including one fatality. He attributes this low rate to a focus on driver behaviour: “The fact is that FORS Professional training delivers positive results.”

FORS was established in 2008 and CLOCS in 2013, the latter with the express intention of reducing construction logistics fatalities. The argument was that if all clients specified FORS or CLOCS, unsafe operators would be driven out of London and, possibly, business.

However, it could be argued that if this strategy had succeeded, DVS would never have come into being.

Allen Rees, MD of FORS Silver-accredited Eezehaul Logistics, confirms that the company did not have to go beyond its FORS compliance for its vehicles to meet the DVS standard.

The evidence base for DVS would have been considered far more thoroughly had the scheme gone through a public inquiry (PI) to test its regulatory necessity. This is an independent examination of the justification and evidence base for regulation weighed against the objections. It must be held if the traffic regulation order (TRO) “prohibit(s) the loading or unloading of vehicles or vehicles of any class in a road on any day of the week at all times” and receives statutory, or “non-frivolous” objections.

PI workaround

TfL used the London Lorry Control Scheme as a handy regulatory template for DVS as the regulation already met most of the criteria. As such, it needed the blessing of the Transport and Environment Committee of the London Councils. The minutes from one meeting on 13 June 2019 explain why a PI was never held: “Four representations which could potentially amount to statutory objections to the Scheme and/or Amendment Order under regulation 9(3) were identified. These are from the RHA, the FTA [now Logistics UK] and two transport operators as set out above and in full at Appendix G. Those respondents have been contacted to seek clarity as to the nature of the representations and they have clarified in writing that their representations are not objections or in one case, withdrawn their objection.”

The objections referred to must be to the TRO itself, although this can be because the representor objects to the scheme the TRO embodies. As a result of these objections being reclassified, no PI was held and the statutory period in which the new regulation could have been challenged passed without a murmur.

Logistics UK says it made clear to TfL that its objection was to the scheme and not “the wording of the TRO”.

The RHA’s director of policy Duncan Buchanan says the association has been able to find no record of any correspondence with TfL which removed or mitigated its objection to the scheme or the TRO. 12.7.21

Direct Vision Standard

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If the responses to TfL do not in fact remove the statutory objections, then there may be grounds for a judicial review of DVS.

The benefits

One immediate benefit of DVS is to London authority funds, which received a conservative £1.9m in penalty fines between 1 March and 30 May 2021. Around 7,000 PCNs were issued at £550 each, but the amount is halved for prompt payment.

TfL’s latest release on DVS claims repeatedly that the scheme is already preventing injury and saving lives. It states once again that: “HGVs accounted for just 3% of the overall miles driven in London 2018 to 2020, yet were involved in nearly half (41%) of fatal collisions involving people cycling and 19% involving people walking.”

Why is this not reliable? There are several reasons: ■ Buses, which have exemplary direct vision, did half the mileage of HGVs in London in the specified period (1.5%) yet had 19 fatal collisions with VRUs, accounting for 10% of pedestrian deaths and 9% of cycling fatalities.

In other words, despite direct vision, buses kill more pedestrians per mile, and a little under half the cyclists.

This is also despite having dedicated lanes. There were 70 pedestrian and 23 cyclist deaths in the period altogether.

■ Other initiatives should have lowered collision rates, such as TfL’s extra 100km of cycle lanes plus widescale road repurposing.

■ 2019 had unusually high numbers of pedestrian deaths (20% up) and 58% fewer cycling deaths than 2018, which skews any comparison with 2020.

■ Thanks to lockdown, 2020’s traffic levels swooped and rose like a flock of starlings. Cycling doubled, but also shifted out of rush hour and onto weekends.

■ Only 49,000 HGVs were registered for DVS in January 2021, and of those probably 28,000 were FORS Gold and Silver registered and so were unchanged by DVS. ■ Finally, TfL further states: “Provisional data from 2020 shows that 13 people walking and cycling died in collisions with HGVs and four people walking and cycling in London were sadly killed by HGVs in the first three months of 2021.” This makes the Q1 2021 death rate higher than the 2020 average.

TfL argues that the 2020 collisions show a lower attribution to ‘Vision Affected – Vehicle Blind Spot’ but admits it needs far more investigation to evidence this.

Usually 13 incidents would be considered too small a sample to be statistically significant.

Unintended consequences

The application of London surcharges is becoming more common throughout the industry. Feltham-based Norman Global Logistics notes that many European hauliers have decided to no longer operate in the city, and warns customers of price increases caused by DVS. “We have already been advised by one line of a £50 surcharge for export collections in Greater London from 1 April 2020 and all import deliveries from the 15 April 2021,” it says.

Willmotts Transport in Somerset also applies a surcharge to cover the cost of London’s clean air initiatives and DVS. According to logistics manager Davron Lee, about 4% of its loads travel into London, and it has accordingly updated 40 of its 100 artics to meet the standard.

“It costs us about £1,500 to £2,000 extra per truck,” he says. “We have variable surcharges depending on the product carried and the number of drops.”

Dan Gray, commercial director of Willmotts, adds: “Only a few of our drivers are happy to go into London.

It was always a nightmare for logistics and, frankly, the introduction of DVS makes us shy away from working there. DVS offers no opportunity and only further hampers what we do.”

He says it makes transport planning unnecessarily 12.7.21

SHIFTING THE GOALPOSTS: 0DVS requirements will be changing in three years’ time

complicated as DVS coverage doesn’t align with any easily defined geographical area.

Rendrive Haulage has also seen rates climb significantly. On top of steep rises from European transport firms who are effectively charging an “empty leg penalty” because they don’t want return loads to the continent, and 36% wage increases to drivers, Rendrive MD Tony O’Malley says DVS costs are significant – and well beyond the £2,500 cap-ex per vehicle.

An early advocate of CLOCS and a FORS Gold member, Rendrive also joined the early DVS committee. However, O’Malley says it has since become mired in politics and its final implementation is a far cry from its origin.

O’Malley answered TfL’s early calls for consolidation centres within the M25 to reduce freight trips, and specifically foreign HGVs, in London. He says the dozen or so centres hauliers set up at great expense, including Rendrive’s, are now within the DVS zone.

“Almost all our freight comes from the continent, but now DVS has extended to the M25, the European firms won’t deliver to our consolidation centre,” he says.

O’Malley has struck deals with some Lithuanian and Latvian partners who have made a small number of their trucks DVS-compliant, but says most refuse.

“We are having to go and collect freight from ports, or by motorways,” he says. “It adds significant mileage, cost and CO2.” Given the distinct lack of cyclists on the M25, he is unsure how this benefits anyone.

Some European hauliers have gone through lengthy procedures to ensure compliance, according to European Road Haulers Association (UETR) secretary general Marco Digioia. However, he says that while the Safe System may be useful for drivers sitting on the right, “for drivers sitting on the left side of their vehicle, including almost all drivers with vehicles registered in the other EU member states, this [blind spot] problem is virtually non-existent because they have a direct view of the left side of their vehicle from their seating position”. In other words, European hauliers are being asked to undertake lengthy and expensive retrofits for no real purpose.

The future

VISION IMPAIRMENT: Willmotts says the DVS is making it shy away from working in London

On top of all this, hauliers who invest for DVS today may find themselves having to retrofit vehicles in just three years’ time when the regulation will demand three-star compliance or the implementation of a “progressive safe system”. It’s unknown what technology this may include.

Natalie Chapman, head of policy – south, at Logistics UK, says: “We are in talks with TfL about the future of the scheme. We will be engaging with TfL over the course of this year to ensure that any new requirements are workable for industry and that businesses have as much notice as possible to prepare.” ■

MotorTransport 25

Legal

A

Keep your TC happy Operators must keep their local traffic commissioner (TC) properly informed of any relevant changes that take place in their business, as transport consultant and former senior TC Beverley Bell (pictured) explains 26 MotorTransport

question I am often asked as a consultant is when to notify changes to the traffic commissioners (TCs).

Operators and transport managers often don’t want to contact the Office of the Traffic Commissioner (OTC) for fear of putting their heads above the parapet. In fact, it is much better to tell the OTC early about a change, as the staff will generally be willing to help and explain what is needed.

It also gives you time to address any resulting issues if necessary. And most importantly, being proactive in approaching the OTC regarding changes shows you are a responsible operator.

That said, it should be remembered that OTC staff are not there to provide free legal advice. Staff are busy and under-resourced and, while they will do their best to help, they will not (and nor should they) ask searching questions about the changes.

Current Upper Tribunal case law makes it very clear that operators and transport managers are expected to know and understand the Statutory Guidance Documents issued by the senior TC. Some light bedtime reading, anyone?

The general rule is that changes must be notified to the OTC within 28 days – or as soon as they happen. I always advise my clients to notify the OTC well ahead of the 28-day limit. If possible, you should notify before the event so that you have time, in the event that a new application is needed, to do this.

The TCs require operators to notify what they call a ‘material change’. So what is ‘material’ and when does it have to be notified? Statutory Document Number 1, Good Repute and Fitness, clearly sets out which changes must be notified and when. There are three main groups: changes that might need an application; administrative changes; and changes that will affect the licence.

Changes that might need an application include: ■ A change in the name or legal form of the operator – for example, changing from a sole trader or partnership to a limited company. This will require a new licence, so take early legal advice if that happens. Accountants rarely have an intimate knowledge of the finer points of operator licensing.

■ A change in your postal address or operating centre – the latter will require an application for a new operating centre.

■ A change of transport manager (TM) – if you are suddenly left without a TM, for example because they have run off to Acapulco at a moment’s notice, you will need to apply for a period of grace PDQ (pretty damn quick).

12.7.21

Legal

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Photo: Shutterstock

■ The death of the operator or a partner – this must be notified as soon as possible. The OTC staff will be sympathetic and do all they can to help. A surviving relative or partner can often apply to continue the business until it is sold or wound up.

■ If you want to change the type of licence you hold – this will necessitate a new application for the new type of licence. This also applies to a downgrade of an existing licence.

Administrative changes

In terms of administrative changes, operators often fall into the trap of thinking that as many are administrative only, they don’t need to be notified to the OTC. This is not always the case, however. Keep in mind that there really is no excuse for not making simple administrative changes when you have the VOLs system at your disposal.

Such changes include: ■ Any change in your maintenance contractor/ arrangements, including adding new providers under a new R&M contract.

■ Removal of a vehicle or trailer, within 21 days.

■ The addition of a vehicle or trailer, within 1 month if you have a margin (and if not then you must apply for a licence increase before you can use more of them).

■ Any change of director or partner, which must be notified as soon as possible. While the Statutory Document does not expressly state it, I always advise my clients to notify any material change in shareholdings of a limited company – where the Person with Significant Control changes, you should tell the OTC. In terms of changes that will affect the licence, meanwhile, this is where operators can be the most reticent, fearing that if they do tell the TC, they will be called to a public inquiry. In fact, the opposite may be true, and it is always better to report these matters early on so you can tell the TC what went wrong and, more importantly, what you have done to put it right.

Some of the occurrences which should be notified are: ■ A conviction of the operator or their employee – writing to the OTC to tell them ensures you get your mitigation and explanation in quickly and it is much better for the TC to hear it from you than from someone else.

■ The bankruptcy of an operator, partner, or director – there are ways in which the business may be able to continue but early action is needed, so take advice as soon as you can. Don’t do an ostrich impression!

12.7.21

TIME TO TALK: Bridge strikes and serious run-ins with the enforcement agencies are among the things you should inform your local TC about

■ Before any orders for liquidation, administration, receivership or company voluntary arrangements (CVA) are made – take early, specialist advice, as the TC might be able to allow the business to trade for a limited period of time.

Non-statutory notifications

It is also important to consider changes that are not set out in the Statutory Document but which the TC will expect you to declare. I always advise my clients that it is far better to over-notify than under-notify. You will never be criticised for over-notifying, but you could face a public inquiry for not notifying a material change.

Examples include: ■ Bridge strikes.

■ RIDDOR incidents.

■ If you are being investigated by the DVSA for matters such as drivers’ hours and tachograph breaches. The chances are the OTC might know anyway, and if you can show you are doing all you can to put things right, it will stand you in good stead down the line when the matter is formally referred to the OTC. ■ Overloading fines, fixed penalty notices and driver offences.

■ An ‘S’ marked prohibition or receipt of an MSI (most serious infringement), otherwise known as one of the ‘seven deadly sins’. Make sure you explain why you got one and what you’ve done about it – the DVSA might be putting your number on speed-dial as the ink dries on the PG9.

In summary, notify these changes and you can sleep more easily. If you choose not to notify, however, the prospect of the nightmare scenario can loom large: a ‘call up’ letter to a public inquiry and all that this entails; the adverse publicity and those difficult questions from your valued customers; and, of course, the experience of meeting your local TC ‘without coffee’, answering their searching questions and worrying whether you will still have a business at the end of the hearing.

Finally, if you have just realised from reading this that you have not reported something but should have done, remember that it is better to report late than not at all.

So put that virtual pen to paper and tell the TC what they need to know, and explain that you are doing so after reading a trade press article. It will show the TC that you are trying to do things properly and you will feel better for it.

If you’re still not sure, use that lifeline and ‘phone a friend’ – or, better still, a reputable transport consultant or solicitor. ■ MotorTransport 27

Vehicle emissions

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Carbon copied

Great strides are being made to remove CO2 from truck tailpipes, but what about all the ‘embedded carbon’ from vehicle manufacture? Chris Tindall reports

I

f 2020 taught us anything, then it was that necessity is the mother of invention. Covid-19 vaccines are a modern miracle, produced with an ingenuity and at a pace previously thought to be beyond our capability.

But there is a much greater threat to our survival that calls for many more breakthroughs and changes in behaviour: climate change.

According to the EU, trucks, buses and coaches are responsible for about a quarter of CO2 emissions from road transport in the EU and for some 6% of total EU emissions. In response to the growing pressure to cut carbon, EU rules mean that from 2025, newly registered HGVs must produce 15% less CO2 emissions than in 2020, rising to 30% in 2030.

And, at the end of last year, Europe’s biggest truck makers stepped up, pledging to stop producing diesel vehicles entirely by 2040.

These targets mark a profound change in the way HGVs are fuelled and – for the 2030 and 2040 deadlines – require technologies not yet commercially available.

But although aiming for zero tailpipe emissions is ambitious and laudable, it doesn’t resolve the conundrum of the carbon embedded in vehicles during production.

ALL CHANGE: Manufacturers such as Mercedes-Benz and Mitsubishi are rapidly developing electric versions of their products to meet carbon-reduction targets, and fleet operators are beginning to switch to the new, greener technology

“Our research and academic communities will need to focus increasing efforts on this stage of the process.

“Even when we get close to zero GHG energy, we mustn’t forget the principle of efficiency and use as little energy as possible at every stage of the lifecycle.”

Zemo says the proportion of GHG emissions currently associated with battery electric truck production is around 30% to 40% of its life, with the in-use phase again dominated by emissions, based on current carbon intensity of the UK grid.

“As the electricity used to charge electric trucks decarbonises over coming decades, a higher proportion of lifecycle emissions will be associated with the vehicles’ production,” the Zemo spokesperson says. “Battery manufacture makes up over 50% of the embedded carbon emissions in EV production, and although efficiency improvements are anticipated, battery production will become an increasingly important area of attention in terms of the product lifecycle.”

Volvo Trucks says around 90% of an HGV is steel and other metals and so there is a high carbon content and energy demand in the base vehicle.

But it also says it has made significant steps to drive down the amount of embedded carbon: “Volvo Trucks has for many years worked with suppliers to look at the materials within the supply change to reduce any health or environmental impact and this is a continuous process,” says a spokesperson.

“The biggest impact internally has been on surface treatments in the cab factories with water-based paints.

“Similarly we have been looking at the energy demands of the foundries and using a high percentage of recycled metals, reducing the energy impact.”

The OEM says the materials and the factories used to assemble trucks can be made carbon-free and it is something it’s been working on for years. “Volvo Trucks opened its first carbon-neutral assembly plant in Ghent in 2007 – the whole process looked at maximising the amount of natural light, insulating the building, generating electricity on-site with windmills and solar panels, supplemented by a heating system that uses renewable wood pellets,” says the spokesperson. “In 2007 it was the world’s first carbon neutral vehicle facility.”

But the company also acknowledges that there remain challenges in ensuring the batteries being produced for electric vehicles are truly green: “We are aware and address this by looking at new materials, re-use of batteries, recycling of batteries, as well as focusing on improv- ➜ 30

Built-in problem

Zemo – formerly the Low Carbon Vehicle Partnership – says the complete lifecycle impact of a typical HGV is dominated by the ‘in-use’ element of the vehicle for obvious reasons: high mileage equals high fuel consumption.

But this will change.

A Zemo spokesperson says: “It’s clear that the primary focus for internal combustion engine HGVs needs to be on decarbonising the in-use greenhouse gas [GHG] emissions of vehicles through improving efficiency and fuel consumption. However, as we move to zero carbon energy and zero emission trucks, then the productionrelated GHG impacts will become dominant.

28 MotorTransport

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Vehicle emissions

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ing energy efficiency in production of battery cells and increased usage of electricity from renewable sources.”

Daimler Trucks says its strategy includes CO2-neutral production at its plants, “as well as promoting and advancing sustainability in our supply chain”, says its spokesperson. “We are currently working on various concepts for the re-use of batteries,” he adds. “The concepts that are in focus include recycling, remanufacturing of batteries and usage as stationary energy storage.”

In charge

The issue of batteries is important, particularly because their use will naturally grow as the market matures. But question of their green credentials is complex.

A report published last year by Ricardo says the impact from energy consumption from battery manufacturing is a “significant component”.

However, Alan McKinnon, professor of logistics at Kuehne Logistics University, says the study also shows that emissions of the diesel and low-carbon powertrains are quite different. “Clearly the latter vehicles will have very low emissions during their working life and so the manufacturing emissions will be a much higher percentage of the total,” he explains. “The lifecycle comparison is also complicated by differences in the likely amount of recycling of diesel, electric and fuel cell vehicles.”

Transport technology expert Nikolas Hill agrees that there are a number of factors at play that will affect the overall result: “Most batteries are sourced from Asia, mainly China, for the European market, where natural

SWITCHED ON: While electric powertrains are becoming more popular, there is some concern about how long it will take for these vehicles to make it on to the used market, especially for export to poorer nations

gas is mostly used to provide the energy for the dry room and drying processes that are the particularly energyintensive stages of Li-ion battery manufacturing,” Hill says. “However, electricity can also be used to provide this heat, and where this is provided from renewables, it very significantly reduces this impact.”

The EU is aiming to be self-sufficient for automotive battery manufacturing by 2025 according to recent reports and the UK will need to also manufacture batteries locally to avoid big tariffs exporting UK-produced EVs to Europe in a similar timeframe.

Hill adds: “It is my understanding that newly developed European battery manufacturing will aim to use renewable electricity entirely.”

He says improvements in battery manufacturing means that the subsequent manufacturing energy consumption is reducing and they are also being better designed for longer life, recycling and recovery. “Changes such as these mean that despite assuming an increase in electric range and consequently kWh capacity, the impacts from battery manufacturing are projected to be significantly lower for future vehicles,” he says.

The Ricardo report says rare metals such as lithium, cobalt and nickel used in vehicle batteries influence their overall environmental impact very little due to their low percentage of the battery’s mass. However, Hill says the way they are extracted does pose humanitarian concerns, although the industry is already developing cobalt-free and non-lithium alternatives.

“So the question is really whether the solutions being developed will be ready in time to prevent or reduce the impacts resulting from a surge in uptake of EVs.” Geography plays a role too. Zemo says the location of lithium mining has a limited overall impact on embedded carbon emissions in batteries compared with the location of cell manufacturing: “How that country produces electricity, and heat, will dictate the GHG impacts of manufacture,” says the Zemo spokesperson. “Obviously, cell and battery manufacture in regions using coal-fired power stations will be associated with higher GHG emissions than those using a greater proportion of renewable energy.

“As the carbon intensity of electricity generation is reduced, especially in countries like the UK, the GHG emissions associated with electric truck operation will fall, making vehicle production emissions more relevant in terms of overall lifecycle GHG emissions.

“It’s therefore critical that both battery production and vehicle assembly take place in locations with a low-carbon energy mix, and that transportation of components to produce these vehicles is minimised.” n

SHOULD IT STAY OR SHOULD IT GO? There’s a healthy export trade in secondhand HGVs from the EU to less developed countries, but how might climate goals affect the movement of old trucks nearing the end of their lives?

Professor Alan McKinnon thinks it could increase, in the short term at least. “It might expand as Europe offloads its used diesel vehicles to switch to low-carbon powertrains,” he suggests.

“Battery and fuel cell vehicles are expected to have a longer life than diesel vehicles, so it will take longer for these low-carbon vehicles to enter the global used vehicle market.

“As some of the materials in batteries and fuel cells are likely to be in short supply, governments may ban their export, inhibiting the flow of low-carbon lorries into the developing world.”

30 MotorTransport

Recycling is an option. Volvo Trucks’ environmental calculator shows that the end-of-life recycling of its HGVs’ materials and parts result in a net reduction in emissions.

“I expect that the baseline is the emissions that would result from a new lorry being made entirely with new materials and parts,” explains McKinnon.

“Using recycled parts will reduced the embodied emissions in a new vehicle – hence the net reduction in emissions.”

Nikolas Hill says: “For EVs, there is a lot of value remaining in end-of-life batteries in particular, and of course some scarce materials, so there are will be a much greater incentive to keep those within Europe in the future – in line with the overall ‘circular economy’ policy objectives.

“This and possible new policy incentives will ensure more end-of-life treatment occurs locally in the future. “I’m not aware of any specific plans or policies to this effect.”

For Volvo, it’s not about ‘exporting’ carbon, because emissions are a global issue. “Today there are different demands in different countries and continents, based on economic and infrastructure challenges,” says a Volvo Trucks spokesperson. “The logistics sector as we have seen during the pandemic supports society by bringing in the goods and taking the waste away.

“Our products are designed to produce the least possible impact and drive change, yet still be aligned to the infrastructure that is present in the relevant country or continent.”

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Profile: Carlton Forest 3PL

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Step changes, quicker turns

dam Jones laughs as he tells MT how he doubled the size of Carlton Forest 3PL in the space of 10 weeks during March and April. “It’s bonkers really!”

Formerly with DHL Supply Chain, he only joined the East Midlands-based logistics firm in February, but has quickly taken warehouse space to over 1 million sq ft after acquiring three new sites at Bawtry Park near Doncaster. He’s also found time to sign several major new contracts and is aiming to boost turnover from £8m to £15m in the next 12 months.

“It’s been a great success story,” he says. “For someone at Carlton’s level, it’s a huge achievement. We’ve caught people off guard. We’re attracting bigger, more corporate

Since joining East Midlands-based Carlton Forest 3PL as MD back in February, Adam Jones has vastly expanded warehousing space and signed a string of lucrative contracts. Tim Wallace gets the full story on his ambitious growth strategy customers and people who want to work with us. It’s really exciting.

“As soon as news got out that I was coming in as MD the phone was ringing off the hook with people wanting to support me and say we could do some business. It’s ballooned, I couldn’t have asked for a better start.”

The new sites join an existing portfolio of South Yorkshire warehouses including 125,000sq ft at Hellaby and 170,000sq ft in Barnsley, plus 250,000sq ft at its base in Worksop, Nottinghamshire.

Such rapid expansion has also created new jobs and catapulted the company onto the industry radar. So who exactly are Carlton Forest 3PL, and how is all this investment being funded? And how far can such an ambitious growth strategy take it?

The story so far

SMART MOVE: The new Bawtry Park sites were being eyed by rivals

32 MotorTransport

A privately owned subsidiary of the Carlton Forest Group, the firm was launched in the 1970s by pig and cattle farmer John Pepper. His son Mark took over in the 1990s and turned it into a typical 3PL with services including warehousing, pick and pack, courier management and pallet networking.

Over the last 10 years, growth has accelerated to a point in 2015 where the company took the step-change of hiring a board of directors, quickly increasing turnover from £1m to £8m last year. But a different kind of skill set was needed to go further. And that’s where ➜ 34 12.7.21

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Profile: Carlton Forest 3PL Jones’s director-level experience at DHL, and before that Wincanton, made him ideal for the post.

He had also become frustrated by the corporate world, he says, and wanted a more flexible role in a family firm where he could really make his mark.

“I had a couple of years at Wincanton and a year-anda-half at DHL as business development director and they’re amazing companies and look after their people,” he says. “But Wincanton is driven by processes; it’s a big tanker to turn. I prefer working for smaller businesses that are a bit entrepreneurial and looking to grow. So it was great to have my first MD role 8 miles away from my house. It was a good opportunity at the right time.”

So how did DHL react when he left?

“It didn’t go down particularly well,” Jones admits. “I’d brought a different ethos to them and a bit of pace which they weren’t used to. I think they thought I was a DHL lifer. Without sounding too big headed, I could have quite easily stayed there for 20 years and not broken sweat, but that’s not me. They were shocked and didn’t want me to go. But I left on really good terms and we’re talking about working together moving forward.”

The new Bawtry sites were formerly owned by DHL, but that was purely a coincidence, Jones says. “It wasn’t me knowing about them and targeting them. We just did a local property search on how we could expand.

Bawtry is a good solid site. DHL and Clipper were both looking at it and we managed to slip in there and take the majority of the campus before they did. It’s dog eat dog at the moment unfortunately. But it’s always nice to take one off a bigger company.”

Service over price

The company’s focus on warehousing isn’t surprising in a market where offering the right storage space in the right location has become more important than rates. “Price is the second conversation for us,” Jones agrees. “It’s more about, can you do this? Have you got the site, and can you hit these service levels? At the moment, while space is scarce and supply chains are under pressure, it’s more about offering a stable service than knocking 10p off the price of a pallet.”

Although growth is coming mainly from warehousing, there are plans to expand the logistics side of the business. At the moment the firm runs 35 artics, but hopes to boost that to 50 by the end of the year.

“We’re doing some work for ASOS and TK Maxx which churns really quickly, so we’ve gone from a slow- to quick-moving business,” Jones continues. “The way you make money in logistics is to turn your warehouses rather than having them full but not moving. So that’s all we’ve done. We’ve changed the business model slightly and it’s had a massive impact.”

The company has flourished during the pandemic, he says, and isn’t involved in any sectors that have taken a hit. “Whether it’s because stores weren’t opening and product coming in from abroad needed to be stored somewhere, or the increase in e-commerce, we’ve grown off the back of the boom. We work closely with Wincanton

34 MotorTransport

ON A MISSION: New Carlton Forest MD Adam Jones says the company only has itself to blame if it doesn’t become a £50m business within five years

motortransport.co.uk

and a company called Sofa Club, a large e-com company.

And KP, the popcorn and nuts people.

“We’ve also just signed a deal with a global glass company and I’ve taken a contract off DHL. Three months ago we’d never have dreamed of going up against a global corporate.

People are starting to sit up and take notice of us.”

Jones has also recently strengthened his senior management team by poaching Lisa Tomlinson from Victoria Plum to be head of operations. “She was the first person I thought of,” he says. “She was head of home delivery for a really good, fast-moving e-commerce business.

We’ve also just hired Dave Burrows, who has experience with XPO, Clipper and DHL.” Another way the company is turning heads is through a new deal with a social media company. “LinkedIn is massive and we’ve had great publicity off there,” Jones explains. “When I joined we only had 150 followers, now we’ve got over 600.”

Current competitors are firms like local 3PL Kammac: “We’re trying to catch them up from a revenue and infrastructure point of view. Then you’ve got XPO Logistics, then Prolog in Nottingham.

“We say we’re competitors, but the way the industry is at the moment we’re helping each other out. You’ll be surprised how often we say, ‘I’ve got an opportunity I can’t fulfil, do you want to have a look at it?’

“I strive to be someone like a Clipper or a Wincanton, but we’re at the Kammac and Prolog stage at the moment.

I’d hope to bypass them in the next two to three years.”

What’s in store?

Jones also has an interesting take on the irreversible surge in online shopping during the pandemic. Many firms have inevitably jumped on the bandwagon, he says, but they’ve left plenty of other business behind.

“Everybody is sprinting toward the e-commerce space and away from bulk storage or pallet-in, pallet-out,” he says. “So we’ve picked up a lot of business. People tell us these companies don’t want to store pallets now, they want to store cases. So a big percentage of our business can still grow from what we do today. If I can turn a profit by doing something nobody else wants to do, that’s fine.

“We need to mature and put systems in place to go on that ride with e-commerce. But if we can do more of what we do today and make good margin at it, why would I move away from that? We won’t just turn off our core business, it will be a natural progression.”

Although the firm is playing catch-up, Jones’s point is that he can achieve his ambition to reach £50m turnover within five years just by picking up pallet and bulk storage contracts. “You don’t have to own a fully automated superhub and do a million picks a day,” he insists. “There’s a whole industry being left behind by people running towards e-commerce that Carlton is doing a really good job of picking up.”

The company has not been badly impacted by the fallout from Brexit either. Many of its customers are UK based and purchase here. Working for a small family business has also meant extra flexibility, Jones says. If anything, Brexit has made the company busier because it over-stocked to tackle some initial challenges.

So what’s next for this rapidly evolving business?

“A good thing is we’re not plateauing,” Jones concludes.

“We’re looking at two more sites which will add another 200,000sq ft, so we’ll be closer to 1.2 million sq ft by the end of the year. That makes us quite a large player now.

We won’t be up to the DHLs and Wincantons, but we’ll be in the realms of where people start taking us seriously.

“Then we’ll sit down and start working on our one-, three- and five-year strategies. But if this company hasn’t grown into a £50m company in the next five years, something has gone wrong. If you look at the state of the supply chain, where space is at an all-time premium, there’s nothing to stop us from getting to that target. The only thing stopping us will be ourselves.” n 12.7.21

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