Motor Transport by Motor Transport

Sharp ■ Informed ■ Challenging

NEWS INSIDE Business as usual

FTA urges DfT to make longer semis permanent p3

Sunny side

DHL to install solar matting on HGV roofs

1.10.18

PREMIUM REDEFINED Consumer products manufacturer expands offering and parts ways with Canute

Spin off

Scania, MAN and VW CVs to be sold via IPO p8

OPERATORS IN THIS ISSUE Amazon ��p10 Argos ��p15 Bedworth Haulage ��p10 Boots ��p15 DHL Supply Chain ��p6 DPD ��p20 Deutsche Post DHL Group ��p6 Eddie Stobart Logistics �� p14, 22 H&M Distribution ��p22 Hermes ��p22 Monarch Transport ��p3 Nisa ��p16 Royal Mail ��p18 Simon Gibson Transport ��p6

Yusen wins Smeg deal By Chris Druce

Yusen Logistics has been awarded a nationwide retail and trade distribution contract by Smeg UK. The high-end consumer products manufacturer has partnered with Yusen Logistics, replacing Canute Group, to enhance its supply chain offering. Under the deal the operator will handle the entire Smeg range, from small and major domestic appliances to commercial and medical units, at its dedicated appliance cross-docking facility in Marston Gate, Bedfordshire. Here, collections from Smeg’s warehouse are consolidated for onwards delivery to trade customers across the UK and Ireland. Smeg UK MD Mike Giddings said: “This is an important step for us as we look to enhance and expand our service offering. “Yusen Logistics has a proven record for delivering

WARMING UP: Smeg UK MD Mike Giddings (left) and Yusen Logistics director Nick Rees shake hands on the nationwide contract

premium brands at premium service levels in the appliance industry, and we have already seen improvement in the operation that we look forward to continuing.” Nick Rees, commercial director for Yusen Logistics UK, said: “Smeg UK is known for its iconic style and premium brands, and it’s great to be able to support it to

ensure the delivery of its products reflects this.” Canute Group, which went through a pre-pack administration earlier this year, supplied 30,000ft2 of warehousing space and provided a 24-hour logistics operation with a mixed fleet under the terms of the previous deal. David Emslie, Canute Group sales director, told MT:

“We lost the contract through a competitive tender that was running through the summer months. Smeg’s business model had changed in the last year with stock management responsibilities being controlled from Italy. Therefore, it no longer required a Midlands warehouse as it had reduced stock levels and decided to consolidate all activity at it existing Portsmouth warehouse. “We had a very successful relationship with Smeg in the Midlands for four years, but the change in business practice and the highly competitive nature of some of the tender responses for the Portsmouth operation prevented Canute from continuing as Smeg’s chosen supplier.” In a second win, Yusen has recently announced a deal to provide Spirit AeroSystems (Europe) with warehousing, inbound freight and onward distribution to Airbus, one of Spirit’s largest customers.

Abbey eyes £100m turnover with animal feeds sector Abbey Logistics MD Steve Granite said the business’s new animal feeds division will fuel his ambitions to create a £100m group within the next three to four years. The operator unveiled the division, which will provide bulk transport and logistics for animal feed nationwide, last week (26 September). Granite told MT that the decision to provide a distinct

focus within the animal feeds market grew out of the acquisition of liquid food operator Armet in January 2017. “We acquired Armet in January 2017 and a large share of the liquid food market. So when we looked at our plans to expand into a business with a £100m turnover by 2021, we looked at the market places we operated in and asked ‘is there opportunity for growth,

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to fulfil that ambition?’” However, the liquid food market did not offer the headroom for growth, said Granite, while the feed sector, which it operated in but only on a small scale, did. To that end, he expects it to provide approximately 10%, or £10m, of the group’s annual turnover once the £100m mark is achieved. T he company’s next published accounts are Pallet

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expected to show annual turnover of £70m, up from £55m in the year to 30 June 2017. “We can offer something different, in terms of a national solution where there’s more flexibility than a smaller haulier could offer and to pull on the resources of Abbey – the tank cleaning station, the depots that we have, the tractor units, the drivers – who can operate liquid or feed,” he said. MT

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27/09/2018 15:56:52

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27/09/2018 08:27:17

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FTA urges the DfT to conclude its trial and make longer semi-trailers a permanent option for operators

Longer semi trial should end By Hayley Pink

The Df T is being urged to make longer semi-trailers a ‘business as usual’ option for fleets, following the government’s latest trial update. The national trial now sees approximately 2,000 longer semi-trailers in operation on UK roads, which have so far saved up to 32.9 million vehicle km and the equivalent of 28,000 tonnes of CO2 compared with standard trailers. Initially launched for a 10-year period in 2012 with an allocation of 1,800 trailers, it was extended last year until 2027, with a further 1,000 longer semi-trailer licences added to the mix. The FTA, while welcoming another set of positive data, is now pushing the DfT to

PROGRESS REPORT

Allocations available 2,800 Allocations granted 2,600 Longer semi-trailers on the road submitting data 1,939 Km travelled to date 443 million (85% trunk, 13% principal, 2% minor roads) CO2e saved to date 28,000 tonnes CO2e saved by 2027 67,000 tonnes

conclude the scheme early and make the longer semi-trailers a permanent option for operators. This, it said, will give them confidence to invest in a second generation of vehicles. FTA head of UK policy Christopher Snelling said:

“The industry deserves to have certainty that we have permanent access to these vehicles and we will be urging the government to move up the approval process for them. “Trading conditions are tough for the logistics industry

Driver CPC training is behind schedule as deadline looms The industry is in a worst position in the run-up to the Driver CPC deadline than it was five years ago, when 60% of the required training was done during the final 12 months. The RHA said that even offsetting for an increase in new drivers who will have passed the initial Driver CPC as part of their licence acquisition, DVSA statistics reveal that drivers still need to complete three-quarters of the training.

at the moment – the introduction of longer semi-trailers would provide tangible benefits for both operators and other road users.” The sentiment was echoed by Liverpool-based operator Bibby Distribution, which now

runs 43 of the longest 15.65m versions. “It’s continued to be a very positive trial for us as a business in the past 12 months,” said head of fleet and procurement Adam Purshall. “However, the frustration a little bit for me is that there is no indication that this is going to move to ‘business as usual’ in the short term.” He believes the trial is nearing a tricky point with some of the earlier trailers reaching the end of their lifecycles in the next two to three years and not enough time left on the scheme to warrant replacements. “At what point do you commit to another capital expenditure for a product that potentially could have a limited lifecycle?” asked Purshall.

HAPPY BIRTHDAY: Nicholls Transport celebrated founder Ernie Nicholls’ 80th birthday last week (27 September), a year on from the company’s jubilee year. Nicholls Transport is a wholly owned family group of businesses operating a haulage firm and a property development company. Based at its purpose-built logistics park headquarters in Sittingbourne, Kent, the company operates more than 100 vehicles in its Iveco-only fleet. It operates both domestically and on the continent serving a number of blue-chip, FMCG, paper industry and plasterboard clients. MD Paul Nicholls congratulated his father (pictured) for the many years of hard work and foresight, and for grabbing opportunities during the 1970s and 1980s, which, he said, were instrumental in bringing the company to its current status. EH Nicholls jnr (Nicholls Transport) was established in 1957 and incorporated in 1967. It was originally based in Rainham, Kent.

RHA head of learning development Mark Taylor said: “DVSA statistics suggest that the current situation regarding drivers facing the September 2019 deadline to have acquired 35 hours of periodic Driver CPC training is worse than at the same point in 2013. “There is still 75% of the required training to complete. This represents a huge amount of training that has to be delivered between now and September 2019.”

Monarch Transport under new management following a buyout Glasgow-based Monarch Transport is under new ownership after the completion of a management buyout at the firm. John Weir and Derek Anderson acquired the business last month, having begun the process with an initial payment last December. The deal, supported by an independent bank, sees 1.10.18 MTR_011018_003.indd 3

founder David McFarlane, a Palletforce founder member, exit, although he will continue as a consultant. Monarch Transport, based at Moorpark, was set up in 1989, and employs 13 people. It also has a depot in Hucknall, Nottinghamshire. The majority of its work is palletised freight, with a

number of clients in the event and construction/scaffolding sector. Anderson joined Monarch Transport four years ago as a traffic accounts manager and has worked for the likes of TDG. Weir is an ex-driver who made the move into an office role at packaging firm SCA

working on its transport requirements. He ended up in a similar role at Norbert Dentressangle, before joining the business he now co-owns close to seven years ago on the traffic desk. Anderson told MT the deal stemmed from an “off the cuff” remark from McFarlane about winding down. “We thought

we could do this,” he said. The new owners plan to diversify their customer base and increase the firm’s headcount as part of ‘phase two’. “The previous owner built this from scratch, but he was only one man. We’re looking to push the business forward and are excited and positive about its future,” Weir told MT. MotorTransport 3 27/09/2018 17:12:16

performance redefined AD_011018__P4.indd 4

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“WE’RE CURRENTLY SAVING 6% ON FUEL.” “Our average comparison figures are 11.26 mpg compared to the previous 10.6 mpg, which is a massive saving on our fuel spend. Our drivers love the new NTG R 450s and get quite possessive about them, so we’re looking at getting a further ten next year.” David Ward, Head of Operations Troy Foods Ltd.

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27/09/2018 08:32:08

News

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Flexible solar roof matting panels set to be used on Supply Chain’s global fleet

DHL sunny side up with solar rollout By Chris Tindall

Solar panels that cut fuel consumption by 5% could become a regular feature on UK trucks after Deutsche Post DHL Group started rolling out the technology. Following a trial of the TRAILAR flexible solar matting on the roofs of DHL Supply Chain’s UK fleet, the operator said a global roll-out in the group was under way. The technology, showcased at this year’s Microlise Transport Conference, will also be sold to third parties. The energy harnessed by the panels can help power almost anything that relies on electricity within the vehicle, including air conditioning, windows, radio, tail-lifts and one of the biggest draws on power: turning over the engine. Aaron Thomas, DHL TRAILAR co-founder (pictured

left with fellow founder Denny Hulme), said it was now developing a reefer prototype to see how long solar energy can power a trailer’s refrigeration unit. “The charge controller is the nucleus of the system,” said Thomas. “You have the solar

mats on the vehicle and the charge controller regulates the solar energy going into the system.” The tests showed vehicles could make fuel savings of 5.2%, saving 4 tonnes of CO2 a year on each vehicle.

“As a business we have committed to zero emissions by 2050,” said Thomas. “This will help us get there.” Jessie Lund, study leader at the North American Council for Freight Efficiency, said solar panels help extend battery life and minimise the need for emergency roadside calls that are due to flat batteries. The downsides of solar panels are minimal, she said but added: “Due to the way in which they’re affixed to the truck, it is not easy to port the solar panels themselves from a current vehicle to a new vehicle – although many of the other components can be transferred fairly easily. “Similarly, the use of solar panels on trucks is too new and too low in penetration to determine the residual value at this time.”

HGV park fears allayed as site fails to sell Fears that a Kent village could become the country’s first postBrexit lorry park when a 4-acre site in Romney Marsh was put up for auction have been allayed after it failed to reach the asking price. The former industrial estate in the middle of Newchurch, which is 9 miles south of the M20, was marketed as a “potential Brexit lorry park/ storage” on estate gency website Rightmove before the auction, which was held on 15 September. “This strategic location, which also lies to the east of the A2070, is ideally positioned to use the international networks available within the locality, together with the Port of Dover lying slightly further to the north-east,” said the marketing. The RHA had raised concerns that the proposed park was not in the right place and could not house enough HGVs. In the event, the last bid of £1.62m failed to reach the guide price of £1.75m and the site remained unsold.

TRL symposium will cover Simon Gibson profit down for third year challenges facing freight The TRL Freight Symposium will be held at the Cavendish Conference Centre, London on 28 November at 1pm. As the UK’s road transport industry faces increasing difficulties trying to balance unsustainable consumer trends against requirements to reduce congestion and emissions, there is an opportunity to use technological, operational and environmental innovations to address the challenges. The symposium will debate the issues and explore how future concepts can become a reality. Speakers include: ■ Matthew Edwards, DfT, who will give an overview of the government’s freight strategy and research programmes; ■ professor Samir Dani, Huddersfield Business School, 6 MotorTransport MTR_011018_006.indd 6

who will present a summary of research around supply chain concepts and the likely impact on the future of freight; ■ professor Tom Cherret, University of Southampton, who will explore future freight concepts including freight traffic control, new supply chain ideas and innovative forms of freight transportation; ■ Gavin Bailey, TRL, who will present an overview of real on-road trials including AV freight, platooning, urban delivery, hyperloop for freight and aerial drones; ■ Nick Gazzard, representing CILT, with an overview of the freight industry, based on the ‘UK Freight Planning to 2035’ report. ■ For more details, go to eventbrite.co.uk and search TRL.

Despite turnover rising by almost half in 2017, profit at Simon Gibson Transport fell for the third consecutive year as the firm continued to invest heavily in its fleet. Reporting for the year to 31 December 2017, the East Yorkshire-based bulk powder transport company revealed a £7.1m investment in its fleet. It said the investment was “imperative” to maintain customer service levels. The company, based in Goole, has O-licences for 252 trucks and 333 trailers. The performance marks the first full financial year since European logistics provider Groupe Charles Andre acquired 75% of the company in March 2016. Founder Simon Gibson retained a 25% stake. While turnover rose nearly 50% in the year to £19.3m (2016: £12.9m), pre-tax profit

fell more than 50% to £307,402 (2016: £770,030). Cost of sales during the period rose to £16.8m (2016: £10.6m). The directors’ report said the company had seen significant growth in line with their expansion plans, with the acquisition having further

facilitated growth seen in 2017. Despite the increasing demands of the logistics sector, the company is confident its strategy will deliver “constant growth and profit” in the coming years. The company declined to comment as MT went to press. 1.10.18 27/09/2018 14:50:01

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27/09/2018 08:33:36

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Parent company plans IPO for Scania, MAN, and Volkswagen Commercial Vehicles

Volkswagen to float CV arm By Christopher Walton

Volkswagen is preparing to spin off its commercial vehicle division – comprising Scania, MAN and Volkswagen Commercial Vehicles – by the end of the year. Although the sale is dependent on market conditions, Volkswagen is targeting an IPO of the CV business as TRATON Group. Ahead of the IAA show in

Hannover last month, Volkswagen said it was the right time to set the course for the future of TRATON. T R ATO N, formerly Volkswagen Truck & Bus, has become a Societas Europaea, a public company registered in accordance with EU corporate law. Andreas Renschler, chief executive of TRATON and a member of the management

Birmingham consults on CAZ

Birmingham City Council is consulting on proposals for a clean air zone that will charge a daily fee for older vehicles planning to travel within the A4540 Middleway ring road. Commercial vehicle operators’ fleets will have to meet Euro-6 standard for diesel and Euro-4 for petrol to avoid paying a charge. A half-day, free-to-attend roadshow offers an opportunity for operators and associated businesses to engage with the council about its air quality

board of Volkswagen, responsible for CVs, said: “We expect to achieve capital market readiness by the end of 2018. TRATON will now take the next steps at full speed. “Employee representatives of Volkswagen, MAN and Scania have supported the path to capital market capability and the change into a Societas Europaea in a constructive way.

“For the employees of all brands working together under the umbrella of TRATON, this strengthens the sustainable safeguarding of employment.” In 2017 TRATON Group brands sold approximately 205,000 light commercials, HGVs and buses internationally. The group employs 81,000 people and produces vehicles at 31 sites in 17 countries.

plans. It will feature a series of workshops to help operators future-proof their fleets. It will also feature an outside display of the latest clean vehicle technology, from Euro-6 models to alternatives including electric, hydrogen and gas. There will also be an opportunity for operators to speak with manufacturers and suppliers. n For more details and to register, go to motortransport. co.uk/clean-air-birmingham.

Wielton Group buys 75% stake in Lawrence David UK trailer manufacturer Lawrence David has become part of the Wielton Group. Wielton is the third largest trailer manufacturer in Europe with a primary listing on the Polish stock exchange. It has taken a 75% stake in Lawrence David after a deal was signed on 17 September. The group has a network of trailer businesses including Fruehauf in France and Langendorf in Germany, alongside its core Polish manufacturing business. Lawrence Marshall snr is 8 MotorTransport MTR_011018_008.indd 8

retiring as chairman of Lawrence David after 45 years. Laurence Marshall jnr remains as CEO and has retained 25% of the business. Marshall jnr said: “This

agreement aligns our interests with a strong and stable partner for chassis supply, while allowing Lawrence David to continue business with its current supply group.

“We are particularly excited about the opportunities that will result from working with a dynamic team with worldclass research and development facilities.” Lawrence David has traditionally worked closely with SDC, which has supplied it with trailer chassis, and a spokesman for the former said the change in ownership would not affect this in the short-term. The trailer manufacturers exhibited on a joint stand at last month’s IAA show.

FORS updates 2019 standards FORS has revealed plans to mandate stronger environmental requirements as part of its two-yearly refresh, which comes into force on 14 January 2019. Speaking at the LoCITY annual conference held in Middlesex last month, Glen Davies, transport consultant and ex-freight and fleet programme manager at TfL, explained the rationale behind FORS’ regular updates. “Industry is a movable feast; therefore standards have to move as well,” he said. Full details of the scheme’s standard 5.0 will be announced later this year, but Davies highlighted some of the key requirements. For bronze, operators must show evidence of monitoring fuel consumption and environmental impact, outline commitment to environmental performance and name a fuel and emissions champion. For silver, operators must record total distances travelled by VRM (vehicle registration mark), as well as total fuel used by fuel type and VRM. This data will be used to callculate and report CO2, NOx and PM emissions. Additionally, they must showcase procedures that commit to reducing fuel consumption and minimising environmental impact. This will be achieved by indicating proof of the fuel and emissions champion’s competence, details of fleet performance management and fuel efficiency and emission-reduction initiatives that are in place or planned. To hit the gold standard, the operator should have data covering the previous 24-month period to provide a year-on-year comparison, indicating total distances travelled by VRM and total fuel used by fuel type and VRM. Year-onyear operational improvements must be shown. Furthermore, operators will need to undertake a review of the fleet operation to further improve environment performance, road safety and efficiency. This review should include exploring ultra-low and zero-emission vehicles, as well safer vehicles that are best in class for direct vision. 1.10.18 27/09/2018 13:55:27

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27/09/2018 08:36:10

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Consolidation offering to be made available across network after partnership’s success

Palletline to sell Amazon model to other retailers By Carol Millett

expanding our consolidation model that we offer Amazon to other retailers. We are the only pallet network that is on Amazon’s preferred carrier programme, which means we are an approved consolidator into its fulfilment centres and we are looking to extend that model to other retailers.” Leitch said there is an appetite in the retail market for a national consolidation service, adding that Palletline was “already in discussions with a number of household names”. Palletline is in a prime position to offer the service to other retailers “because we already have a central booking team that can offer a national consolidation service”, he added. The network launched the service to Amazon when it

became a preferred carrier to the online retailer in 2013. Palletline’s partnership with Amazon has helped to drive record growth in freight volumes at the network. Leitch said freight volumes rose 10% in the year to June 2018, and attributed 2% of that growth to a sharp increase in Amazon volume. The Amazon partnership is also driving growth elsewhere, said Leitch. “Our members also pick up customers that supply to Amazon – the manufacturers or importers of products that go to Amazon also have other distribution streams and other customers and we are finding that is another stream of growth for us on the back of the Amazon offer.”

Cartwright buys Lincs brick works Cartwright Group has purchased a 26-acre site in Belton, north Lincolnshire to create a new flagship base for Cartwright Conversions. Led by MD Mark Cartwright, Cartwright Group builds trailers and CV bodies at its 38-acre site in Altrincham, with Cartwright Conversions operating from Doncaster. The conversions business was launched in 2016 and is led by commercial and operations director Steve Shaw. It produces a range of specialised vehicles including ambulances, mobility, welfare, and police and security vehicles. Cartwright Conversions will, subject to planning permission, move to the former Belton Brickworks site by spring 2019. Job numbers are expected to increase from 72 to 250.

Palletline plans to replicate its national consolidation model with other retailers after seeing its Amazon freight volumes continue to build. The network is in talks with a number of major retailers in a move that would see Palletline extend the model, which offers a central booking service and consolidated deliveries of freight to regional DCs. The service, which operates from the network’s main Birmingham hub, will be expanded as retail partners are signed up. In May, the pallet network officially opened a Coventry hub, which houses network member Reason Transport and also acts as a consolidation point for Amazon freight, as

well as providing additional capacity for the network. Speaking to MT, Palletline MD Graham Leitch (above) said: “We are looking at

Scania driver skills competition opens

Bedworth sale includes payback clause

Scania GB is inviting truck drivers of all ages to show their skills against a field of competitors from across Europe in the Scania Driver Competition 2018-19. The competition will pit drivers from 30 countries in a battle for the grand prize – €100,000 (£90,500) towards a new Scania truck of the winner’s choice. Theory tests started earlier this month, with the UK national round, and practical tests will take place on 31 March 2019. Participants will also be required to demonstrate their skills in a variety of challenges and exercises. This year, the previous age limit, which permitted drivers up to 35 years old, has been removed, and Scania welcomes all drivers, regardless of age or vehicle they drive. The European final will be held in Södertälje on 25 May 2019. n To register and for more details, go to scania.co.uk/ driver-competition.

The pre-pack administration and sale of Bedworth Haulage (MT 5 March) included an “anti-embarrassment clause”, according to a report by its administrator Quantuma. The clause stipulates that the purchaser, C4-Safety, cannot sell within 12 months without paying 25% of the sale price back to Quantuma, which will be used to settle debts of the collapsed business. The report also explained that Bedworth originally encountered financial problems in 2016, “arising from high costs of managing the fleet and unprofitable work leading to a reduction in margins”. It entered into a company voluntary arrangement (CVA) in early 2017 but administrators at Quantuma said it failed to keep up with payments and the company built up additional post-CVA liabilities. The Warwickshire temperature-controlled haulier eventually failed in January this year.

10 MotorTransport MTR_011018_010.indd 10

Rescue options were discussed but due to “increasing creditor and supervisor pressure and outstanding wages, it was considered that a pre-pack administration was appropriate”. The business and assets were sold to C4-Safety – Robert Thacker is connected with both Bedworth Haulage and C4-Safety – for £16,794. The report added that the

secured creditor, Bibby Financial Services, was paid in full and that there were no preferential creditors as the employees transferred under TUPE regulations to the purchaser. It added: “Unsecured claims were estimated at £3,715,129 and, to date, eight claims have been received from unsecured creditors totalling £1,342,012. It is not anticipated that a divi-

dend will be paid to unsecured creditors.” Bedworth Haulage was founded in 1970 and provided haulage services to the temperature controlled, pharmaceutical and safety and security sectors. Its latest accounts show an annual turnover of approximately £5m. In 2017, it was given a two-week suspension for drivers’ hours shortcomings. 1.10.18 27/09/2018 10:25:22

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New border checks likely in the event of a no-deal Brexit with logistics users urged to have contingency plans

Ditch the trucks in no-deal Brexit

Shutterstock

By Christopher Walton

The government has advised logistics businesses and users of logistics to consider alternative modes of transport to road haulage in the event of a nodeal Brexit. In guidance published by the Df T, the government admitted there are likely to be new requirements at borders with the EU if the UK leaves without a deal. The Df T also advised that it would be possible that EU-required checks at EU ports could create delays and affect routes. It did not say if these arrangements would be reciprocated for inbound traffic from the EU to the UK. What the DfT described as “agrifood goods” may not be able to enter the EU except via a port with a Border Inspection Post, it warned. Hauliers and businesses should consider what contingency plans they need to have

ASSOCIATION SPEAK Richard Burnett, chief executive at the RHA, said that it was too-little, too-late, and was astounded by the suggestion that hauliers should consider alternative modes of transport to move goods between the UK and the EU in the event of a no-deal. He was also concerned there was no mention of plans for freight movements between the UK and Ireland.

in place for the movement of goods if there are delays at ports, the Df T advised. This may include consideration of: n alternative routes to move goods by ro-ro haulage; n alternative modes of transport, such as containerisation or unaccompanied trailers; n appropriate arrangements to allow for disruption to supply chains. Hauliers should also consider whether they need

permits to haul goods internationally, the DfT warned. Up to 984 annual Euro-6 ECMT permits, 2,592 monthly Euro-6 permits and 240 monthly Euro-5 permits are available. The Df T expects the DVSA to be receiving applications for these permits from November and demand will significantly exceed supply. Permits will not be allocated on a first-come, first-served basis, but under the Haulage

Pauline Bastidon, head of European policy at the FTA, said that the no-deal notice regarding road haulage was overdue. “These notices… demonstrate that contingency agreements are needed to at least protect basic transport connectivity between the UK and the EU.”

Pe r m i t s a n d Tr a i l e r Registration Act 2018, which takes into account: intensity of use; the industrial sector in which the haulier operates; vehicle emissions and existing international business. Registration for trailers will be required only for trailers travelling to, or through, a

foreign country that has ratif ied the 1968 Vienna Convention, the DfT said. Furthermore, in a no-deal scenario, possession of a UK-issued Driver CPC would, in practice the DfT countered, continue to allow a UK driver to drive a UK truck in the EU when using an ECMT permit.

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MotorTransport 11 27/09/2018 08:33:52

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ULEZ: what does it mean for logistics?

F Patrick Gallagher CEO City Sprint Group

rom April 2019 the world’s first Ultra Low Emission Zone (ULEZ) will come into effect in central London, with an extended north-south ULEZ announced for 2021. At CitySprint, we believe the introduction of government initiatives such as the T-charge and the ULEZ are necessary steps in combating urban pollution – and we anticipate that other cities will follow suit. The logistics industry has long understood its effect on the environment; it can no longer afford not to take practical steps to mitigate this. It’s essential that logistics companies start evaluating the structure of their supply chain and take a serious look at the types of vehicles that they use. Fleet managers need to invest in smart technology that improves efficiency, reduces wasted journeys, and allocates the right vehicles in low-emission zones. Electric vehicles are becoming increasingly

viable for deliveries in cities. And the introduction of hydrogen vans, which can travel up to 200 miles, is a potential game-changer for long-haul deliveries. But it is just one alternative and still limitations, so cannot be seen as the perfect solution. While courier and logistics companies like us are already thinking about ways to adapt fleets to meet ULEZ standards, more needs to be done by the government and TfL to support businesses facing these challenges. One of the biggest barriers preventing the adoption of hydrogen and electric vehicles has been the lack of infrastructure to support them. Charging and fuelling stations are few and far between on the high street, with just five stations for refuelling hydrogen vans. Even with the best intentions, deploying zero-emissions vehicles at scale will be an operational challenge unless we see further investment in the infrastructure needed to make low-emission zones a reality.

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B-Day: it’s fear of the unknown we don’t like W Steve Hobson Editor Motor Transport

ith fewer than six months to go to B-Day on 29 March 2019, the UK transport industry is no clearer on what sort of Brexit we are heading for. While still insisting a deal will be done with a smooth transition period to implement it, the government is warning the country to prepare for the worst case of a no-deal exit. Some sort of deal will have to be done of course as the UK, Ireland and the EU remain adamant there can be no hard border on the island of Ireland, although this still seems completely at odds with the UK leaving the Single Market and Customs Union. Whatever the outcome of the Brexit negotiations, the uncertainty surrounding its impact on the economy is already having an effect. Investment decisions are being postponed until the picture becomes clearer and there is an increasing risk that this will lead to recession. Although the current forecast for the UK

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economy is that it will keep growing next year, the Q1 forecast of just 0.1% growth is perilously close to zero and could easily tip into the negative if fear of uncertainty translates into a halt in consumer spending. These fears are already having an effect on road transport, where demand is closely linked to economic activity. Registrations of new HGVs were 13% down year-on-year in Q2 2018 and the numbers are likely to look a lot worse in Q3. This fear of the unknown is only made worse by lack of clarity on how future-proof diesel vehicles will be as London talks about ultra-low emissions and the government maps out its ‘Road to zero’ strategy. Whatever Brexit looks like, UK road transport will cope – it always does. But time is running out.

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Editor-in-chief Christopher Walton 2163 Group news editor Chris Druce 2158 Reporter Kylie Noble2167 Group technical editor Colin Barnett 2141 Senior compliance editor Roger Brown 2168 Urban editor Hayley Pink 2165 Group production editor Clare Goldie 2174 Deputy production editor Jo Saunders 2173 Key account manager Andrew Smith 07771 885874 Display telesales Barnaby Goodman-Smith 2128 Event sales Richard Bennett 07889 823060 Tim George 0755 7677758 Classified and recruitment advertising Head of sales operations Julie McInally 2122 rtmclassified@roadtransport.com Sales director Vic Bunby 2121 Head of marketing Jane Casling 2133 Head of events/MT Awards Stephen Pobjoy 2135 Managing director Andy Salter 2171 Editorial office Road Transport Media, Sixth 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 Tel 0330 333 9544 Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £135/year. Europe £163/ year. RoW £163/year. Cheques made payable to Motor Transport. Apply online at mtssubs.com Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2018 DVV Media International Ltd ISSN 0027-206 X

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Profile: Transdek

Make mine a double

Transdek’s innovative Wedge trailer has earned it the Queen’s Award for Enterprise. CEO and founder Mark Adams tells Steve Hobson why the design really matters for the industry

ased at its 35,000sq ft factory in Doncaster, Transdek is best known for its innovative Wedge fixed double-deck trailers and rapid install, modular double-deck lifts. Founder and CEO Mark Adams is on a mission to highlight the inefficiencies of many of the current crop of moving-deck stepframe double-deckers, which he says are typically only able to carry up to 18 tonnes of payload and leave the tractor unit drive-axle unstable. For the past 26 years his career has focused on developing and promoting maximum volume and payload in HGVs. Transdek was founded in 1997, following the invention of a lift within the trailer to increase capacity. This was patented and licensed to Cartwright, which built the trailers; Transdek fitted the internal lift into it. In 2004 the patent was sold to Cartwright and Transdek started making external lifts tailored to loading double-deck trailers as it saw the need for creating an instant lift.

days. It took about four years to develop. “Tesco has probably got about 200 of our lifts, Boots has about 85 and Home Bargains around 25, as well as many other big retailers.” The modular loadhouses, which use a robust and reliable cable and pulley system powered by a single hydraulic ram to move the lift, picked up the Motor Transport Best Use of Technology Award in 2009. More recently, Transdek has developed a remote monitoring system that can tell a transport manager at the despatching DC if the lift is fully operational before a fixeddeck trailer is sent hundreds of miles to unload. “About 10 years ago we saw that in a perfect world everybody would be converting to fixed deckers, in which case they needed an interface,”

says Adams. “At the time, we weren’t making trailers, we were just making the lifts. To us, this model makes the most sense. The trailer can be made as lightweight as possible, so you can optimise payload fill.” Despite the advantages of using fixed double-deckers with a reliable external lift, the concept has been more often overlooked in favour of moving-deck trailers.

Fleet expansion

These external lifts were designed to move roll cages and pallets from the upper deck of a fixed-deck double-decker to a standard loading dock, or load and unload trailers from ground level without the need for a tail-lift. “We were doing some work with Tesco, which was in the process of expanding its fleet of double-decks and converting from moving to fixed deckers. They were excavating (at significant cost and delays) to put in massive scissor lifts next to the loading docks to service the two vehicle decks,” says Adams. “It was taking three months to complete this installation. We created the ability to make a pre-built, modular doubledeck loadhouse that could be installed in two 14 MotorTransport MTR_011018_014-015.indd 14

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motortransport.co.uk

A WINNER’S WISH Transdek is building approximately five Wedge trailers a week on to various chassis, a number Adams hopes will be given a boost by recently being given the Queen’s Award for Enterprise 2018 in recognition of its innovative design. When the Lord-Lieutenants of Nottinghamshire and South Yorkshire went to Transdek to present the Queen’s Award, they asked Adams what he would wish for. “Our wish would be for a law that makes it illegal to have lorries underloaded on their drive-axles,” Adams says. “It would reduce accidents, make it more comfortable for drivers and reduce CO2 emissions and congestion at a stroke.” For lightweight applications like parcels and mail, the stepframe works well but for distribution operations needing to use the full height and weight capacity of the trailer the Wedge is a clear winner. It can have a dramatic impact on the delivered cost of goods to stores, potentially cutting transport costs by an additional 30% compared with powered deckers. Another issue that needs urgent attention with double-deckers is the difficulty in finding suitable backloads. “If you talk to any of the retailers, almost without exception, they do not backload their double-deckers. Hardly any power deckers get backloaded,” says Adams. “It seems criminal that they’re going out two-thirds full and then coming back empty. In many cases, it would be more efficient to just run single decks. “With our Wedge, you can still backhaul say 26 pallets of drinks in the bottom deck, from a standard loading dock, as if it was a single decker.”

“Our biggest challenge over the past 10 years has been the growth of moving-deck trailers,” Adams says. “On the face of it, a trailer with its own internal lift that can be loaded from a fairly standard dock makes the most sense. Fixeddeck trailers, on the other hand, either need a specialist lift at the loading bay or a tail-lift to be able to access the second deck. “Moving-deck trailers offer at least 3 tonnes less payload, offset against the onboard hydraulics, and have higher capital and maintenance costs and more reliability issues.”

Shifting sands

While the early moving decks suffered significant reliability problems, manufacturers have since ironed these out to an extent, but Adams points out that movement in the load during transit can still cause the second deck’s lifting mechanisms to lock. “Yes, they are more reliable now, but when the trailer corners and the load moves, there are still times when you can’t get the top deck down at the delivery point. The theory is good, but the reality often is that it doesn't work so well,” he explains. Despite these issues, powered deckers have become the dominant model in the industry. But Transdek believes that, over and above the issues of fixed versus powered decks, the whole focus on stepframe double-deck trailers is fundamentally flawed in many cases. 1.10.18 MTR_011018_014-015.indd 15

“The inability to fully load the front of the trailer because of its reduced roof height causes a relative shift of payload on to the rear axles, which means that with anything other than lightweight products, the bogie overloads before the maximum combined vehicle weight is reached,” Adams argues. “A conventional, fixed-deck stepframe doubledecker carries roughly 20 tonnes. That’s its capacity because of the overloading on the rear bogie and the underloading over the fifth wheel. A moving-deck trailer carries more like about 17.5 tonnes, because of the added weight of the lift inside. Added to this is the fact that the relatively lighter load on the kingpin makes the whole artic unit less stable on the road. “Eight or 10 years ago, double-deck drivers were saying, ‘we can't get traction’. So one solution was to put 2 tonnes of concrete in the front, to try and put some more weight on the fifth wheel,” he goes on. “It just seemed wrong to put 2 tonnes in there, which still wasn’t enough to give it traction. It’s just as dangerous to be underloaded as overloaded. It’s dramatic – it’s not like it’s just half a tonne or so. “The drive axle is underloaded by 5 tonnes on a stepframe, whereas with a straightframe or Wedge double-decker you’re getting perfect load all the way through and you can run at 44 tonnes.” With the support of leading operators such

as Boots, Eddie Stobart, Nisa and Argos, Transdek developed the Wedge fixed doubledecker with a patented ‘kink’ that allows 96 full-height 1,860mm roll cages to be loaded along the full length of both decks, exploiting the trailer’s full capacity and avoiding the problems with underloading the drive axle of the tractor unit on stepframe trailers that cannot carry full-height pallets or cages at the front. Eddie Stobart has long been a supporter of the Transdek Wedge concept, which increases capacity from 72 to 96 lightweight roll cages with a 13.6m length. “A supermarket running fixeddeck stepframe trailers is loading 67 roll cages, which gives them 20 tonnes,” says Adams. “With the Wedge, we load 82 cages which gives 25 tonnes. It carries 15 roll cages and 5 tonnes more. On their moving-deck trailers, the same retailer is loading fewer than 60 cages.”

And finally

The final touch was the development of sliding rear doors that can be opened with the trailer on the loading dock, saving time and increasing safety for the driver by avoiding the need to stop and open conventional barn doors before backing in. Transdek is also working on a safer 1,500kg tail-lift that enables loading and unloading of the Wedge with no load dock or external lift. Transdek’s tail-lift features a full guard rail and interlocks to prevent the lift getting jammed at ground level. ■ MotorTransport 15 25/09/2018 15:11:30

Pallet networks

Evolution or revolution? Pallet networks have been around for more than 20 years, but will the sector continue to expand or is there a need for consolidation? Carol Millett investigates

he pallet network sector has had an eventful year so far, with newcomer Principle Pallets giving up its bid to become the ninth player (MT 17 September) and The Pallet Network (TPN) being acquired by Eddie Stobart Logistics (MT 9 July). In a market tipped for consolidation, what do these events tell us about the pallet network sector and its direction of travel? Principle Pallets’ failure to launch was not a surprise to many of the sector’s players, who believe its ultimately fruitless attempt underlines the difficulty of new entrants trying to break into a crowded market.

Mature sector

Pall-Ex group MD Kevin Buchanan says: “The days of setting up a new pallet network are long gone. It’s a mature sector – if anything we’ll probably see some consolidation over the next few years. It would take a very special effort with a lot of money behind it to set up a pallet network now.” In a sector that struggles to find quality members, Principle Pallets’ strategy to build its membership base through encouraging the members of rival pallet networks to dual network was never going to be easy, with some networks vociferously opposed to the move. Graham Leitch, Palletline MD, tells MT: “Trying to get a network off the ground through dual running is not a good move – we took the view is that it is not acceptable for our members to dual network with a new network.” Pall-Ex adopted a similar strategy. Buchanan says: “I wrote to our members making clear that we would not allow anyone to dual network with Principle Pallets as I believe the sector

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does not need any more pallet networks – on the contrary, it needs consolidation to drive up market price.” Being different is essential for a new entrant in a competitive market, says Mark Duggan, TPN MD. “Launching a new network was always going to be difficult for a number of obvious reasons. Unless a new unaddressed USP could be identified, what is the benefit to potential members?” he asks. “The majority of network members already have a critical mass of pallet volume, so introducing more of the same while increasing trunking costs and complications for operational staff and drivers wouldn’t have been good business.” Palletways UK MD Rob Gittins believes Principle Pallets was swimming against a tide that is taking the sector ever closer to consolidation. He explains: “The pallet network sector is a mature market that is extremely competitive. This makes it very difficult for new entrants. Smaller networks are looking more to consolidation to survive in the market.”

Consolidation

Like Gittins, Palletforce CEO Michael Conroy firmly believes consolidation is the only direction for the pallet network sector. He points to the recent acquisition of TPN as an example of market consolidation. “Stobart buying TPN is a form of market consolidation because it means that another independent network has disappeared from the marketplace into a larger logistics group. That is market consolidation,” he argues. Leitch disagrees, arguing that, if anything, the acquisition makes sector consolidation even more difficult. He counters: “It may be consolidation in the wider transport market, but it’s certainly not consolidation in the pallet network sector and for those networks looking to acquire another network, then that’s one network off the target list, making sector consolidation even more unlikely.” Pallet-Track founder and MD Nigel Parkes ventures a similar view. “I think Stobart will keep TPN separate because I can’t see the synergies in an integration. Stobart is not in the one- to two- to three-pallet market. It is not their sector, so in that sense it is an acquisition, not a consolidation.” Buchanan welcomes the deal, which he sees as allowing Stobart to offer a one-stop solution.

“Having a professional transport organisation buy a pallet network is good for the sector and we are happy to compete with that,” he adds. That major companies continue to invest in the sector is a sign of its strength, says Paul Sanders, chairman of the Association of Pallet Networks. “It is interesting to see the global logistics players investing in this market, which is still showing signs of growth while now being ‘mature’,” he observes.

Forward thinking

TPN is keen to refute any suggestion that its acquisition represents sector consolidation. Duggan describes the move as an evolution of the sector model. He adds: “We realised the future couldn’t simply be about doing what we’ve always done, and that we needed to evolve and develop both what we do and how we do it, to create a roadmap for the future generations in our members’ businesses.” He continues: “We see the acquisition as being very strategically beneficial to the whole network. TPN has been invested in by private equity since 2007, going forward we now benefit from being under the ownership of a longterm complementary trade investor. “It’s very much business as usual within the network. However, the synergy between Eddie Stobart and TPN and our members has created so much positive potential operationally, as

1.10.18 25/09/2018 13:59:56

Finance motortransport.co.uk

DUAL RUNNING ON THE UP AS HAULIERS CHASE EFFICIENCY

well as presenting opportunities to accelerate pre-existing plans.” Nonetheless, some question the effect of the deal on TPN’s members. Leitch says: “I can see the advantage of Stobart having access to 100 network members, but I cannot see the advantage to the 100 hauliers of having links to Stobart. The concern is that there could be a significant increase in the amount of freight from Stobart and also that the members won’t be competing with Stobart in the local marketplace any longer.” While the jury is out on what the deal means for TPN’s members, having a logistics giant like Stobart invest in the sector could signal similar deals in the future, says a Fortec spokesman. “It shows the potential for networks and their growth – it cements the importance of the networks in the industry and it wouldn’t surprise me if there are further acquisitions of that sort in the sector,” he predicts. If this does become the trend, does that mean that consolidation of the sector through merging networks looks less likely? Parkes believes consolidation will happen, but more likely at member level. He says: “Merging two networks can be fraught with difficulties, but what could be very workable is if, for example, the owner of one network buys another network and runs both independently, only consolidating at membership level through, say, dual running.” The very nature of the sector may be preventing consolidation happening in Gittins’ opinion. He says: “As we have seen many times in the past in the wider transport sector, integration of businesses with similar core structures 1.10.18 MTR_011018_016-017.indd 17

presents significant challenges to say the least. Perhaps it is that very risk that has prevented it in our specific sector to date.”

Lessons to learn

Leitch points to the merger of parcel networks CityLink and Target Express in 2006 as a cautionary tale for any pallet networks thinking of merging. He warns: “The challenge of integrating two networks makes this a very difficult thing to do and the merger between CityLink and Target was the end of both businesses. Certainly we would not seek to acquire any other network and try to consolidate it. The problem is having two companies covering the same patch – you’d have to reduce the territory of member companies and they’d be working alongside companies they’ve be competing against for years.” Conroy counters with the argument that other parcels companies have merged successfully. “It is about preparation. You have to have a clear plan and execute it well. There is no denying the appetite is out there. Sector issues such as the lack of available quality members, the lack of succession planning in family haulage businesses and the continued growth of volume in the sector make consolidation inevitable.” He makes no secret of Palletforce’s acquisition strategy, saying: “We are well funded and we have an appetite to buy and we’re speaking to networks. There is dialogue going on – it’s just a matter of time. We believe it is the right way forward for our members. It needs to happen for the benefit of the industry and the sooner the better.” ■

Most networks agree that dual running is on the rise as network volumes increase, with the practice particularly rife in peripheral areas such as the south-west and in dense areas such as the south-east. The falling numbers of independent hauliers entering the market is a major factor for this, in the opinion of PalletTrack MD Nigel Parkes. He says: “Applications for operator licences have fallen over the past decade, largely because the barriers to entry are now so significant. “At the same time we’ve seen a number of company acquisitions and mergers. So we have an industry that is still growing but with fewer competitors going for that work.” APN chairman Paul Sanders agrees that finding the right new entrant is a challenge. He adds: “They do still exist but it is rare. As volumes continue to rise, further consolidation of postcode areas will be a necessity, adding to the challenge of member recruitment.” Dual running is particularly prevalent among smaller networks that tend to have lower drop density, Palletways UK MD Rob Gittins argues. He predicts that “for the smaller networks it will stay until there is market consolidation and the drop density through each network consequently increases”. Dual running makes economic sense for Fortec’s members, says a spokesman, whether that be with members’ own clients or another network. “It is potentially on the rise. It is about vehicle utilisation and, from our members’ viewpoint, dual running offers better drop density out of their vehicles in smaller areas – they get more deliveries so it is a more cost-effective way of operating,” he maintains. “If it means fewer vehicles on the road, and providing it does not effect the quality of our service, I don’t have an real issue with it.” Not all networks take this viewpoint. TPN discourages the practice and has reduced levels in the network over the past four years, says MD Mark Duggan. He adds that dual running “often adds pressure to traffic teams and drivers as a downside consequence – not least because they have to manage two operating procedures and IT systems – which can then affect service delivery”. However, Palletforce CEO Michael Conroy would like to see more dual running on a network level. “Dual running is one stage removed from consolidation. If two or three networks could work together to provide final-mile deliveries and if that was done in a co-operative manner while remaining competitive elsewhere then that would be no bad thing,” he says. “So far networks are not co-operating in this way – maybe they need to learn from the members.” MotorTransport 17 25/09/2018 14:00:43

MT Awards 2018 winner profile Low Carbon Award

From red to green Royal Mail is facing an unprecedented rise in parcel business. But how does it go about cutting emissions while changing the shape of its vehicle fleet?

oyal Mail Fleet, as part of the Royal Mail group, is responsible for the purchasing, maintenance and disposal – not to mention the design – of one of the most distinctive and iconic commercial vehicle fleets in the UK. The bright red postie’s van is woven into the fabric of British society, and it’s not surprising, given that some 49,000 vehicles are deployed to meet the company’s ‘universal service’ obligation of getting post and parcels to 30 million UK addresses six days a week. However, that fleet is responsible for 66% of Royal Mail’s total carbon footprint, so minimising the impact its vehicles have on the environment is a priority. It has already had considerable success. Royal Mail set itself a goal of a 20% reduction in carbon emissions by 2021 (compared to 2004 figures). Being a Motor Transport Award winner, it achieved this in 2016/17, some four years ahead of schedule. This didn’t happen by accident. When assessing the emissions challenge it is worth considering the pressures that Royal Mail faces. It runs 39,000 vehicles to deliver over the last mile, and that is in a market that is changing rapidly. The expectations for home delivery, especially of parcels, are sky high, and online shoppers are only demanding improvements. Paul Gatti, director at Royal Mail Fleet, said: “We used to deliver CDs and DVDs. Now it is more footwear, sportwear and bulkier items. Shoppers order five or six items and send four back, so the returns market is huge. We have

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to make sure we are as efficient as possible.” The change in the shape, size and volume of parcels, alongside the continued falling volumes of post, are changing what the delivery vehicle of the future will look like, and what the network of the future will be. “We do deliver a universal service and that means we need to have the right infrastructure that supports that,” said Gatti. “We have 1,400 delivery units that need to be knitted together. Moving forward, our customers want later acceptance times. They want to order their product online at midnight and get it delivered the next day. That is the standard people want.”

Action plan

Meeting these customer expectations, on both sides of the supply chain, means that Royal Mail has a four-point strategy in place to reduce carbon emissions across the fleet. Firstly, Royal Mail is looking at how legislation and policy is driving environment change, and how this may affect the fleet. Secondly, it is examining the vehicles and trailers available in the market and if it can buy, deploy and run them in significant enough volumes to make a carbon saving across the fleet. Thirdly, it has to look at its own infrastructure. Can Royal Mail, for instance, deploy electric vehicles across its fleet in significant enough numbers to make a meaningful carbon reduction if it does not have the infrastructure in place to support it? Finally, Gatti is assessing Royal Mail’s operation model. Currently Royal Mail deploys what is referred to as ‘park and 1.10.18 27/09/2018 15:09:25