Sharp ■ Informed ■ Challenging
21.6.21
Failure to act could leave shelves empty as logistics skills crisis deepens
Hauliers plead for help with driver shortage ŎÌĞľŘéÐŎŘ̅ ĀĀĞťĀZpj
NEWS INSIDE Warehouse wars
Stobart snaps up new space p3
Branching out
Owens buys Celtic Couriers p4
Under pressure
More rates rises looming?
p6
OPERATORS INSIDE Celtic Couriers .............................................. p4 Courier Connections ...................................... p8 Dawsongroup ...............................................p18 DHL .............................................................p34 DPD .............................................................. p4 Eddie Stobart ................................................ p3 EFS Global..................................................... p8 Emms & Son.................................................. p8 Foulger Transport .......................................... p8 Fraikin .........................................................p18 JBT Distribution ............................................ p3 John Lewis Partnership ................................p36 Menzies Distribution...................................... p3 Owens Group................................................. p4 Pall-Ex.......................................................... p3
Hauliers have repeated their plea to government to relax the testing process for HGV drivers and return them to the list of skills that can be imported, as the nationwide driver shortage hits crisis levels. “We’re close to the brink and so is everyone else,” said Turners (Soham) MD Paul Day. “Are we delivering everything with a perfect service? No. Is everyone else? I don’t think they are. It’s getting worse. In another month it’s going to be really tight.” The UK now has an estimated shortfall of 65,000 HGV drivers, exacerbated by Brexit and IR35 tax changes driving up driver costs. And Day said an EU ruling forcing applicants to complete a C licence, course and test before C+E equivalents had worsened the problem. “We’ve suggested doing just one test so you’re not doing your HGV test and artic test separately,” he said. “But the most important thing is to get the LGV drivers back on the skilled workers list. It means eastern Europeans can come in and become drivers.” In a recent email to customers Day warned: “Should we see pallets or loads rejected for being
Photo: Shutterstock
By Tim Wallace and Carol Millett
late, we will have to review whether we can continue to service those delivery points as this issue is out of our control. The rejection will be a further waste of resource, which we cannot absorb.” Paul Emms, MD of Emms & Sons in Doncaster, agreed. “The chronic driver issue is caused by one thing only and that’s the double-testing farce imposed upon us by the EU,” he said (see letters, page 8). “They’ve really screwed it up with miles of red tape.” UK distributors are now calling for the army to be mobilised to prevent the imminent breakdown of the country’s food supply chain. The Federation of Wholesale
Distributors warned that its members were struggling to get food deliveries out, leading to empty shelves and the dumping of fruit and vegetables. FWD chief executive James Bielby said: “This is a massive problem and we are calling for army drivers to be put on standby to protect vulnerable communities where food deliveries are at risk.” The RHA has now published a 12-point plan to tackle the situation, warning that freight rates are rising to an unsustainable level with costs being passed on to consumers. In a meeting with government last Wednesday (16 June) that also included supply chain companies, RHA chief executive Richard Burnett told roads minister Baroness Vere there was an urgent need for action. Issues raised included driver training and apprenticeships, Driver CPC, short-term access to non-UK labour, parking and facilities for drivers, and the need to treat drivers and the sector with the respect they deserve. The government gave a commitment to continue to look at actions that can be taken to address these issues.
TRUCKING ON GAS: Romac Logistics has added 10 new 4x2 Iveco S-WAY CNG tractors to its 220-strong fleet, with plans to add a further 10 of them later this year. The trucks are expected to cover around 160,000km per year and will each deliver a CO2 emissions reduction of around 125 tonnes per year. The 10 trucks, supplied by South West Truck & Van in Avonmouth on a five-year Iveco Capital Operating Lease, are the latest in Iveco’s line-up of natural gas-powered heavy trucks. The vehicles come with a 12.9-litre Natural Power Cursor 13 engine at 460hp, and 2,000Nm of torque between 1,100rpm and 1,600rpm. One of the vehicles is running store replenishment for a national supermarket chain, with another on trunking routes between major regional delivery centres for a global e-commerce business. Five are based at Romac’s Middleton headquarters near Manchester, with the others at the firm’s Wednesbury depot in the West Midlands.
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Menzies signals intent with purchase of JBT Distribution Menzies Distribution has announced the acquisition of Scotland-based logistics specialist JBT Distribution. The transaction extends Menzies’ network coverage with the addition of 200 vehicles and six operating sites. JBT boasts annual sales of over £23m and sits alongside Menzies in Motor Transport’s Top 100 logistics companies by size. Headquartered in Bathgate, West Lothian, with further depots in Aberdeen, Inverness, East Kilbride, Lerwick (Shetland) and Kirkwall (Orkney), the acquisition adds to Menzies’ geographical reach across Scotland and its growing blue-chip customer base. It also provides further capability to Menzies’ growing range of B2B retail logistics services. JBT has an “outstanding record of reliability
in providing solutions across a number of complementary sectors”, Menzies said. These include retail, healthcare – with a specialism in temperature controlled logistics – packaging and parcel home-delivery. Commenting on the acquisition, Menzies
chief executive Greg Michael (pictured) said: “We are gaining momentum at pace as we execute our ambitious strategy for growth and are delighted to acquire JBT. “We believe that through combining the complementary business with Menzies, there are significant opportunities to grow both businesses through unlocking further geographical capability and expanding services to both sets of customers in Scotland and throughout the UK and Ireland. “For both our businesses’ customers, it will be very much business as usual.” JBT director Robert Gordon added: “Menzies is aligned with the future strategic and growth plan in the sectors in which we operate and will enhance the service offering of the business both locally and nationally.”
Haulier secures significant space in Derbyshire to service customer
Stobart warehousing deal a sign of times... Eddie Stobart has taken on a significant amount of warehousing space on the Merlin Business Park in Derbyshire to help service a customer, amid a “highly active” industrial rental market. The 134,651 sq ft warehouse space comprises five storage units with up to 8.5m eaves height and loading doors. Mark Richardson, director at commercial property agent Rushton Hickman, said: “The development was previously occupied for a number of years by a haulier and completely lends itself to Eddie Stobart’s use as a ware-
house and distribution site. “We are seeing increasing demand in the area for large distribution bases, driven by our central geographic location and great road links, in this case with the site being easily accessible from the main A50 trunk road.
Fellow Rushton Hickman director Graham Bancroft said demand for warehousing space was currently outstripping supply: “The market for both the industrial and warehouse sectors remains highly active, with rental levels and investment returns remaining strong,” he said. “The distribution and industrial sectors remain the strongest drivers in the regional commercial market.” An Eddie Stobart spokeswoman said: “We have acquired the site for expansion and contractual growth we have with a major customer.”
... as report shows Brexit and pandemic hitting transport Covid-19 and Brexit cut a swathe through the transportation and warehousing sector, with just 75% of companies back up and running compared with June last year and 9.6% permanently closed. The latest Business Insights Report from the Office for National Statistics (ONS) looks at the impact of the pandemic and Brexit on UK businesses and is based on responses every fortnight on financial performance, workforce, prices, trade and business resilience. In its latest report, it found that the proportion of firms experiencing problems importing and exporting had soared by over 50% between December 2020 and January 2021. Firms cited the biggest challenge to be the additional paperwork Brexit had generated for exporters, while transportation costs were singled out as the greatest 21.6.21
challenge when importing. The report also revealed that during the period 3-16 May, 38.2% of exporters reported increased challenges around additional paperwork; 26.8% reported challenges with new customs duties; 15.2% indicated reduced demand for products; and 8.6% complained of disruption at UK borders. David Jinks, ParcelHero’s head of consumer research, said: “The report is obviously grim news for transport and storage companies. “The root of the problem is that freight transport companies are particularly exposed to the impact of Brexit. This is on top of issues caused by the pandemic. “It’s extremely concerning that customs problems have not got any better since Brexit regulations first hit in January – that is a damning indictment of current government policy.”
Pall-Ex expands team to smooth new-look model Pall-Ex Group has doubled its network team to 12 following its acquisition of Fortec and the introduction of a shareholder model. The group said its newly bolstered team would ensure that shareholders meet quality and customer service standards, support individual business growth plans and aid member recruitment. Laura Brown, Nick Antill-Holmes, Alice Holdsworth and Kieran Lloyd Jones have been appointed network compliance managers, while Rebecca Wayte has joined as head of network – north and Craig Chapman as head of network – south east. Emma Beales has been recruited as head of network – midlands, and Ashely Diamond is head of network – south west. Member development director Mark Barlow has been appointed to increase shareholder membership, focusing on key regions for the Fortec Distribution Network, including Scotland.
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Llanelli-based group buys Celtic Couriers to complement existing services in its home nation
Owens strengthens Welsh base Llanelli-based Owens Group has acquired Celtic Couriers Holdings Limited (CC) for an undisclosed sum. The Palletforce member, which provides transport, warehousing and distribution services and runs a fleet of over 1,000 vehicles, said the purchase is driven by a plan to further expand its services in South Wales and to meet “significant” growth. It added that the deal will complement its express delivery and pallet network services. CC, which is also based in Llanelli, is a member of the APC parcel network and Fortec and was acquired in 2015 by Gareth and
Cindy Jenkins. CC will continue to be operated on a standalone basis within the Owens Group. This is the second acquisition Owens Group, which is a member of Palletforce, has made in four years. In 2018 it bought Manchester-based BTS Haulage. Huw Owen, group MD of Owens, said: “I have always been impressed with the reputation that Celtic Couriers has in the market for customer service and I believe that Gareth and Cindy have grown the business based on the same ‘family business’ values and principles as we have always had within Owens, focusing on excellent customer service.”
Will you be king of the swingers?
DPD doubles EV fleet with Maxus DPD has agreed a deal with vehicle manufacturer Maxus for 750 of its e Deliver electric vans, which will double its total UK EV fleet. The deal, which includes 500 long-wheelbase 3.5t electric vans and 250 of the smaller e Deliver 3, means that DPD’s total EV UK fleet will be almost 1,500, with plans to extend that to over 1,700 EVs on the road by the end of the year.
The parcel giant has purchased both the 72kw and longer-range 88kw versions of the e Deliver 9, giving the vans a far greater range than anything previously available in the UK. The 88kw version can cover over 200 miles on a single charge. The e Deliver 9 will also star in DPD’s first ever UK TV advert to help communicate the firm’s clean, green parcel deliveries.
Time is running out to join us at the Commercial Motor Golf Day, which takes place on 22 July at Lambourne Golf Club, Burnham. The competition is made up of 25 teams of four, and it is almost full to capacity. The format will be a four-ball, full-handicap Stableford competition, and the best three individual scores per hole per team will count. A cost of £700 (plus VAT) per team includes green fees,
a golf-related gift, lunch and dinner with inclusive drinks and prizes. “Our golf day is a fantastic opportunity to meet up with current and potential clients, while also giving you the chance to take home the Claret Jug of the haulage world!” said Road Transport Media’s divisional director Vic Bunby. To book your place, or find out about hole sponsorship, email: vic.bunby@roadtransport.com
X2 slips in to nab ADM oil distribution contract X2 (UK) has won a £4.5m contract for the distribution of packaged oils across the UK and Ireland for manufacturer ADM in Purfleet. The 4PL said the three-year contract would simplify ADM’s current multi-haulier solution by providing a single management function, with X2 overseeing the planning, optimisation, customer booking in, delivery, systems administration, warehouse coordination and supplier payments. The agreement covers chilled and ambient distribution.
The RHA has accused Kent County Council (KCC) of “an abuse of process” following its attempt to permanently ban HGVs from stopping on roads in the county. A temporary ban introduced in January in seven Kent boroughs was widely criticised, with Logistics UK complaining that both the DfT and the council had failed to consider the welfare of lorry drivers. The move was seen as necessary to avoid lengthy post-Brexit queues when the UK exited the European 4 MotorTransport
Union. Truck drivers pulling up to take any break other than a 45-minute rest face a £150 fine. But KCC has now launched a consultation to make the draconian order permanent and prohibit vehicles over 5 tonnes from waiting on any road in the boroughs of Ashford, Maidstone, Swale and the districts of Canterbury, Dover, Thanet and Folkestone & Hythe. In its response, the RHA said the council’s strategy was “total hypocrisy” and encouraged hauliers to respond to the consultation, which ends on 3 July.
Photo: Shutterstock
RHA prepares for battle in Kent’s Brexit war on HGV drivers
21.6.21
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VOX POP Have market conditions forced you to increase rates? Bob Terris, chairman, Meachers We are quoting higher prices for new business as we anticipate that costs are rising and that these will rise further in the coming months. Our annual pay review was on 1 June and this has been implemented at a considerably higher amount than prior years. We have regular reviews on rates with all existing customers with annual increases at various dates through the year. Moreton Cullimore, MD, Cullimore Group Haulage rates now have no option but to increase, which will inevitably have an effect on inflation, but the transport industry cannot be squeezed any further while both its suppliers and end customers all enjoy thicker margins. This is emphasised even further with the significant HGV driver shortage and climbing fuel prices. Those in the central, southern and south eastern region are struggling with the
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volumes and just don’t have enough drivers. I’m hearing about companies that only put prices up once a year distributing a second increase for July when they’ve already increased in April. Jayne Masters, sales director, Miniclipper We have heard of hauliers putting up to a 4% surcharge on their tariffs to accommodate increased costs. We had not planned to do this unless the situation becomes untenable. We raise our prices only once a year by RPI. Stuart Charter, MD, Aztec Logistics We have made some short-term adjustments to reflect increased costs such as our wage bills. However, mid to long term, we are working with the wider industry to find solutions to the perfect storm of crises that the sector now finds itself in. This is an industry-wide issue and bodies such as Logistics UK, the RHA and the APN are actively lobbying the government. They
put the brakes on bringing in European drivers and explicitly require us to source from within the UK at exactly the same time that there is a chronic shortage of HGV testing capability. The rise in wages, fuel costs and driver shortages will inevitably result in rate increases that will have to be passed on to consumers, who ultimately vote with their feet when it comes to election time. Clive Brooks, MD, ABE Ledbury Whilst we can see extra costs heading our way we have, thus far, not been greatly affected and increases have been in line with normal annual reviews. The cost of fuel is still a lot less than it was two years ago, although it is getting closer to past levels. Excessive wage inflation is a concern as the industry fights over too few drivers. We are certainly seeing above-inflation increases quoted on new equipment and it will be interesting to see whether that will normalise when, or if, the impact of Brexit and Covid-19 has settled down.
21.6.21
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Expanding logistics group snaps up Scottish firm Courier Connections
EFS Global heads north for growth North West logistics firm EFS Global shows no signs of leaving the acquisition trail after announcing its latest purchase – Scottishbased Courier Connections. The deal marks the latest in a growing line of businesses EFS has bought and will also act as a springboard for future growth north of the border. It means the haulage and freight forwarding group now has 17 depots and offices across the country, operating its own UK and European fleet. Sonio Singh of David Blank Furniss, which acted for EFS, said: “Once again we were pleased to advise the EFS Global team on securing a major strategic acquisition as it continues to bolster its reach.” The acquisition, for an undisclosed figure, follows the Burnley company’s purchase of Austin
Foulger delivers Babymoov deal Kinaxia subsidiary Foulger Transport has sealed a deal to provide customs clearance, warehousing and distribution services across the UK to French baby product retailer Babymoov. The deal follows a restructuring of its distribution strategy, following Brexit, which sees the French retailer no longer storing all of its goods for the UK in France. Instead, it is now using Foulger Transport’s 68,000sq ft warehouse at the haulier’s headquarters in Snetterton, Norfolk.
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Wilkinson and AFI (UK) in April, as well as Red Scar Tyres, CS Brunt, Horizon Distribution, pallet distribution firms Euro Tran Despatch and Euro SDB, JRS Traction, Caistor Distribution and FWD Freight Services over the last few years. Murray Jack, corporate partner at Addleshaw Goddard, which
LETTERS
advised Courier Connections’ shareholders on the disposal, said the deal revealed deeper changes taking place in the industry: “We expect the transport and logistics sector to continue to be an active source of M&A seals with activity in the sector driven, in part, by changes in consumer behaviour following the pandemic,” he said.
Hot topics for R&M success Effective repair and maintenance regimes have been a critical part of the transport industry’s ability to keep the country moving and put food on people’s tables during the Covid-19 crisis. And just how operators have been approaching the issue is highlighted in the latest research report from Motor Transport and Commercial Motor. The ‘Hot Topics: Repair, Maintenance & Tyre Management Report 2021’ found that 89% of fleet operators believe R&M is the most important area of operational investment. This research explores how operators keep their fleets in top shape, the workshop equipment and parts they deem essential, and how they make key decisions around maintenance strategy. Key insights include outsourcing versus in-house R&M regimes and the reasons why fleets choose particular options. It also examines preferences in terms of the type of outsourcing contract and how tyre choices can have a big impact on operational costs. Find your copy in this edition or download at Commercialmotor. com/cmspecials
Send your letters to the editor at steve.hobson@roadtransport .com
EU exit offers a chance for homegrown talent I am MD and owner of a family-run road transport company with an operator licence for 65 trucks. We also have our own in-house HGV training school. The chronic driver shortage is caused by one thing only and that’s the double-testing farce imposed upon us by the EU in 1997. Prior to this ridiculous situation, an applicant could apply for a provisional licence, train in an articulated vehicle with an instructor, book a test, pass in two or three weeks and be able to commence on-the-job training in a full-time position shortly after. If they failed they could usually book a retest on the day – usually for a few days later. The process was quick, simple and affordable. It was safe because examiners passed or failed candidates on criteria set out by the DfT. So no problems and no driver shortage. Our school was busy and were able to supply many local businesses with quality HGV Class 1 drivers. But now they’ve really screwed it up with miles of red tape driven by the EU and implemented by our own government. After 1997, an applicant was forced to start with a C licence, a C course and a C test, then
start all over again with a C+E licence, a C+E course and a C+E test. The process now takes many months, the cost has increased four-fold and delivered zero privately funded applicants. Government officials don’t have a clue and say the applicant has to get some experience driving a C before embarking on C+E. But the few applicants we process go straight from C to C+E with no break because they’ve been taught good test technique and have more chance of passing if they then do the same test with the same examiner on the same route. If the candidate waits it costs much more. They have to relearn test technique and unlearn their bad habits. The entire mess requires root and branch reform now we are out of the EU. This would open the floodgates to new, indigenous blood – people who may have lost their last job due to Covid-19. Add to this the fact we cannot obtain test dates, and that the candidate usually needs four test dates if they fail each test first time, and one can see how it can easily take half a year to produce one solitary Class 1 driver. The system is crazy and it has to change. Paul Emms, MD, Emms & Son 21.6.21
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Think-tank says stopping drivers from leaving the industry is vital to addressing driver shortage
Retention the key challenge An industry think-tank put together by HGV driver recruitment firm Driver Require has suggested that the key to solving the long-term shortage of drivers is to stop existing drivers leaving the industry, as well as recruiting and training new ones. The first report from the thinktank, led by Driver Require CEO Kieran Smith (pictured) and including leading hauliers, training providers and industry bodies, estimated that since the start of the pandemic the HGV driver pool had contracted by 22,000; and that, as lockdown restrictions had eased, this had translated into a shortage of 22,000 HGV drivers, which could rise to 50,000 if demand grows beyond its pre-pandemic level of 300,000. “In the first quarter of 2020, prior to the pandemic, the shortage was not really evident, largely due to European drivers stepping in and British drivers being more flexible;
we even had spare drivers,” said Smith. “But we alienated them with Brexit and put laws in place saying they can’t come back and work legally.” Driver Require’s second report, ‘The answer to the UK’s HGV driver shortage’, has suggested actions industry and government need to take to halt the “squandering” of qualified drivers and restart
the pipeline of new drivers. “In the short term, the solution has to be around government funding to get people who have a licence but aren’t driving to come back in,” said Smith. “The market will push pay rates up and that is already happening. Agency rates are up 15% to 20% since April. It is not unusual to have annualised salaries of £40,000 to £45,000 for a Class 1 supermarket driver – and it might go higher.” Actions recommended by the report include: ■ Bring the RHA, Logistics UK and haulage operators together in an initiative to identify, publicise and deploy best-practice examples of HGV driver engagement and retention initiatives; ■ Negotiate with insurers to reduce limits on the age of drivers; ■ Get a better understanding from HGV licence-holders who did not take up or gave up driving for a living as to why they did so;
■ Offer PSV drivers the ability to cheaply and quickly convert their Category D licence into a Category C licence to provide a quick supply of HGV drivers from the pool of under-employed bus and coach drivers. “The size of our HGV driver pool didn’t change significantly in the eight years prior to the pandemic,” said Smith. “Every year we put 20,000 new passes aged under 45 into the sector. But the age group between 20 and 45 has not increased because every year for the past 10 years 20,000 of them leave the industry. New HGV passes come in, take one look around, and say ‘that’s not for me’. “We need to see improvements in HGV working conditions to the point where a career as an HGV driver is attractive to people from all backgrounds. “We have to fix the HGV working environment to keep more people in the industry.”
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Replacement flagship model has all-new cabs, efficiency refinements and digital mirror system
DAF reveals its new XF By Colin Barnett
It’s been a long time coming, but the replacement for the DAF XF, first seen as the 95 in 1987, has finally been revealed. This time, there can be no accusations that it’s yet another revamp of the old design, as DAF opened the launch process by showing the clean sheet of paper used to work on – not that the triedand-tested old model scared off many buyers, as the flagship of the range that has dominated the UK market for 26 years and sold 650,000 units worldwide. The new XF’s most obvious features surround the all-new cab, the first from any manufacturer to be designed to meet the latest European Commission regulations on truck weights and measures, relaxed in the interests of aerodynamics, emissions, safety and driver accommodation. At first glance, drivelines remain fundamentally the same, but engines and gearboxes have significant detail changes to improve efficiency, DAF claiming an overall 10% improvement. Part of this also comes from lighter weight, thanks to features such as thinner but higher-strength steel for the cab structure, and a complete redesign of the front end of the chassis to match the cab. In terms of the brand-new cab, DAF considered some radically bullet-shaped frontal designs, but settled on an extension of just 160mm as being the optimum. This allows the design to share a 12 MotorTransport
clear family identity with the current model, while still looking fresh and different. As well as the chunky grille area, one key visual identifier is the windscreen, which now features much greater curvature at its ends, but loses the signature triple windscreen wiper arrangement. Less obvious is the tapering of the cab from front to rear. Other external cab features are a properly designed-in passenger door window, and large side locker lids, which open to reveal equally large apertures, unlike the previous letterboxes.
Cab variants
There are actually three cab variants. Even the basic XF, which has a 75mm lower cab datum than the current models, is a match for the existing Super Space Cab, with standing headroom ranging from 1,900mm to 2,075mm. The larger versions get new names. The XG gets an extra 330mm of length behind the B-pillars, while the XG+ gets another 200mm of roof height as well. The new XF is available with the PACCAR MX11 engine at 370hp, 410hp and 450hp ratings, and the MX-13 at 430hp, 480hp and 530hp, while the XGs do without the two smaller MX-11s. Torque is increased by 50-100Nm according to version, with maximum now at just 900rpm. The highest-rated MX-13 530 provides a maximum of 2,700Nm in top gear, and 2,550Nm in all other gears.
The XF’s safety features have been enhanced to bring them close to – and in some cases ahead of – the competition. Most obvious is the arrival of a camera mirror system, the DAF Digital Vision System, which replaces the main and wide-angle mirrors, and incorporates retractable cameras. The A-pillar monitor screens are mounted further back than we are used to on the Mercedes-Benz Actros, which would seem to reduce the amount of blind-spot created. An industry first is DAF Corner View, which is a digital replacement for the front- and kerb-view mirror, with its monitor mounted on the passenger side A-pillar above the rear-view monitor. Other safety aids include a higher level of braking assistance, including City Turn Assist to detect vulnerable road users, and functions to improve safety during trailer coupling and uncoupling.
Although not present on the online launch vehicles, an electric parking brake will be an option on customer vehicles.
Interior changes
The interior of the new XF hasn’t been neglected. Starting in the driving position, there’s a greater range of adjustment for the steering column and seat, with both seats able to be swivelled for relaxation as an option, with a liftup cushion standard on the passenger side, allowing a clear view through the vision window. In the bunk area, even the basic XF has a mattress 2,220mm long, while in the XGs it has a minimum width of 800mm. The new range is now on sale, with production of the first customer vehicles, including righthand-drive 6x2 tractors, due to begin in October, including at Leyland and a brand-new cab factory in Belgium.
21.6.21
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Developers aim to create net zero carbon warehouses ‘Nothing much left’ over 100,000sq ft after strong take-up, warns CBRE
Yorkshire faces a squeeze on space By Simon Jack
Yorkshire was once prized for its plentiful supply of warehousing compared with the rest of the UK, but now strong demand and limited development are making it difficult for occupiers to find space. Mike Baugh, senior director at CBRE, said that 2.5 million sq ft of large warehousing had been taken since the start of the year, leaving very little choice. “There is nothing much available above 100,000sq ft. This is due to activity by online retailers and by 3PLs, some of whom are down to their last few pallet spaces,” he said. “Companies are having to go down the build-to-suit route or look in a different location.” Avison Young senior director Rob Oliver agreed that demand was increasing. “If companies are footloose in Yorkshire they can usually find sites, but if they are moving from an existing warehouse and want
to stay within a few miles to retain their staff, their options are very thin,” he said. One of the most significant deals in the region was AEW’s recent letting of a 512,000sq ft building in Wakefield to a “major online retailer”, widely rumoured to be Amazon. Meanwhile, at iPort in Doncaster, logistics operator Woodland Group took a speculatively-built 195,000sq ft warehouse and luxury bedding firm Dusk took 120,000sq ft. GLP, too, has had letting success and has leased a 278,000sq ft speculatively-built unit in Doncaster to a healthcare diagnostics company. A number of developers are currently planning speculative developments. PLP, for example, is to construct 605,000sq ft in four units ranging from 83,000sq ft to 292,000sq ft at its Bessemer Park development in Sheffield (pictured).
But even if there was a sharp increase in speculative development, there would be a wait before much of it became available. “There will be spec buildings which will soak up some of the demand, but in many cases it won’t become available for 12 to 18 months,” CBRE’s Mike Baugh said. Some occupiers are looking at build-to-suit development. In Barnsley, Newlands Developments is developing a 340,000sq ft hub for Hermes, while fitted household furniture supplier The Symphony Group has appointed GMI Construction to build a 332,000sq ft production and warehousing facility. The current market dynamics are leading to rental increases, according to Avison Young’s Rob Oliver. “For new-build larger warehouses you are probably looking at £6 to £6.25 per sq ft compared with £5.25 to £5.50 a year ago,” he commented.
Government ignoring need for development The need for more industrial and logistics development to support the wider economy is currently being largely ignored by local and national government, according to planning consultancy Turley. In its report ‘Playing to Our Industrial Strengths’, it said that despite radical reforms being promised in last year’s Planning White Paper, scant regard was actually being paid to the role of the sector, despite it contributing £5.33bn to the UK economy in 2020. 14 MotorTransport
The current National Planning Policy Framework (NPPF) – used to guide planning policy – hardly mentions logistics, it added. Turley’s report pointed out: “There is a single sentence in the NPPF requiring local plans to recognise the specific locational requirements for storage and distribution operations.” Instead of prioritising housing at all costs, there should be a recognition that warehousing is needed to support any growth in residential development. The
report estimated that 73sq ft of warehousing was needed per new home – the equivalent of 22 million sq ft a year. The need for better planning comes at a time when structural changes to the logistics market, particularly the growth in e-commerce, have created record levels of warehousing demand. “We are at a tipping point with the very real prospect of no readily available land for large-scale users by as soon as 2022 in some areas,” the report warned.
As greener buildings become more highly valued by occupiers and investors, a number of developers are aiming to produce net zero carbon warehouses. Tritax Symmetry, for example, has completed construction of a 60,000sq ft net zero parcels hub for DPD at Symmetry Park in Bicester. Tritax has also produced a joint report with developer Prologis called ‘Net Zero Building in Action’. This outlines how ‘embodied carbon’ in the construction process, and ‘operational carbon’ once the building is up and running, can be reduced and then mitigated through carbon-offset schemes. Segro is taking a similar approach at its East Midlands Gateway scheme, near East Midlands Airport, where Winvic Construction has been appointed to build a 200,000sq ft net zero speculative unit (pictured). Sustainable features include roof-mounted PV panels, LED lighting and cladding that improves air-tightness if the warehouse is used for temperaturecontrolled distribution. Any embodied carbon in the construction process will be offset in line with the United Nations scheme Sustainable Development Goals. Such developments follow GLP’s completion of a 313,000sq ft building at Magna Park Milton Keynes last August, built in line with a net zero carbon definition from the UK Green Building Council charity. The approach requires material manufacturers and component suppliers to provide a detailed carbon assessment of their products.
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Show drivers the money N Steve Hobson Editor Motor Transport
ew research by a credible group of hauliers and industry bodies assembled by Driver Require has estimated the current driver shortage at around 22,000 (see page 10). This could rise to 50,000 as the economy recovers, but it is lower than some other figures of 60,000 or even 70,000 out of a driver population of 280,000, which if accurate would, MT has long argued, be causing far more severe problems than the industry has seen. But no one could now dispute that the shortage is having a real and serious effect on the transport industry’s capacity to meet demand. Customers are having to be reminded that drivers are a finite resource that cannot be kept hanging around waiting to load or unload and some with poor records of delays are being warned they may be dropped. The actual gap between demand for
driver shifts and supply varies of course by the time of year and even day-by-day, and it is most severe in the Q4 peak. This fluctuation in demand has traditionally been handled with occasional drivers such as firemen, the semi-retired and migrant agency staff. There are plenty of people in the UK with LGV licences – possibly 600,000 – so the problem is not a lack of drivers, but persuading them to get behind the wheel. Money talks, as they say, and there is strong evidence that pay is on the increase. But driver wages are limited by the economics of how much a vehicle can earn, and no matter how efficient an operator gets, the simple truth is that we have all got used to paying too little for the transport on which we rely. That has to change if drivers are to be attracted back to driving.
Get ready for the implications of IR35 A Lindsey Thompson Associate director Search Consultancy
s the IR35 deadline fades into the past, the reforms set to stop ‘disguised employees’ are now in place. From 9 April, employers became responsible for defining whether their drivers fell inside or outside the legislation. Those now within are liable to pay tax and national insurance (NI) deductions resulting in less take-home pay. For hauliers, it seems the government has already formed an opinion on how IR35 will affect contractors within the industry: “In road haulage, it is rare for someone to be genuinely self-employed unless they are an owner-driver.” Today, the responsibility of declaration lies with the employer. HMRC can investigate the tax compliance of any organisation, including the status of drivers who aren’t on the payroll. Should they fall under the classification of ‘disguised employee’ then the business will be liable to repay PAYE tax, NI, and any interest or late payment fines. Those working as a haulier through a limited company will be placed inside or outside IR35 through a set of factors: ■ Substitution: can someone else be sent to do the work in their place? ■ Control: does the employer control the workload and how it is carried out? ■ Risk: can the contractor make a profit or loss? ■ Mutuality of obligation: is the contractor
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obliged to accept work? The implication for hauliers is that many will be inside of IR35 and subject to increased tax and NI contributions. There is still time for drivers to ensure they remain compliant. The first option is to become employed temporarily. This will place drivers outside of IR35 and provide benefits like holiday pay, employer pension contributions, and statutory sick pay. However, this route will still subject hauliers to normal taxes and NI. Alternatively, it may be possible for hauliers to join an accredited umbrella company. While this could include a monthly or annual fee, it would help avoid falling inside IR35. While both approaches could work, drivers working through a limited company need to start planning now. The IR35 deadline has already passed and companies will have begun assessing their off-payroll employees. Anyone who hasn’t already made themselves aware of the IR35 changes needs to fully equip themselves and understand their position before they’re hit with a large tax bill.
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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. RoW £176/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 © 2021 DVV Media International Ltd ISSN 0027-206 X
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Marketplace news
Fraikin re-opens Bristol depot to take back control Fraikin has re-opened its Bristol depot in order to rely less on third-party contractors. It is hoped the dedicated workshop will significantly increase the percentage of maintenance performed in-house and help manage vehicle operating costs for customers. Keeping a closer connection with customers will also be a benefit of the re-opened site, which should also speed up repairs and reduce downtime. Darren Hall, Fraikin MD, said: “Though the standard of maintenance remained high after we closed the Bristol workshop in 2018, operating costs were consistently increasing. Re-opening the Bristol site is a great way of taking back control, allowing us to cost-effectively provide the level of service our customers expect moving forward.” Hall added: “It’s all about relationships, and when we have a vehicle coming into our own site every six weeks, we can build a better understanding of the customer’s business and prioritise work accordingly. With access to our national parts supply chain, customers also benefit from faster repairs and reduced VOR times.” In addition to the existing four members of staff at the Bristol rental facility – which remained open after the workshop closed – the new maintenance depot has initially created roles for four new technicians, as well as a collection and delivery driver.
Sales director is set to retire at the end of the summer after 33 years
Cussans to leave MAN Truck & Bus David Cussans, UK truck sales director at MAN Truck & Bus UK, is to retire at the end of the summer after 33 years with the company. Cussans (pictured) joined MAN in 1988 as a national fleet sales manager, but between 2010 and 2017 worked for sister brand Scania as regional executive director before returning to MAN as UK truck sales director in 2017. Thomas Hemmerich, MAN Truck & Bus UK MD, said: “David has had a long and extremely successful career in our industry,
business and product range and I am proud to have played a part in the development of the UK company. “Thanks to the focus, commitment and engagement of the whole team and the entire dealer network, we have made huge progress in all areas of our business, and I am sure that the solid foundations will continue to be built upon and lead to further success.” MAN has yet to name a successor to Cussans, but said an announcement would be made shortly.
Dawsongroup continues to invest in its fleet Dawsongroup truck and trailer says it is continuing to invest in new stock throughout 2021, with 700 trucks on order for delivery later this year. As well as the new vehicles, 600 trailers are also on order, amounting to £50m in new assets. Despite disruption caused by Brexit and Covid-19, Dawsongroup truck and trailer says it invested £75m in new stock during 2020, having added more than 850 new trucks and nearly 1,000 trailers to
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and his input to the success of this company has been invaluable. However, after decades of working in the business, David has now decided to take a well-earned break and we all wish him all the very best and thank him for his remarkable contribution.” Commenting on his departure, Cussans said: “I have been incredibly fortunate to have worked in such a dynamic and colourful industry, and to have met and worked with so many great people. “I have always loved the MAN
its fleet, while remarketing 2,000 older vehicles through its used sales business, Dawsondirect. John Fletcher, Dawsongroup truck and trailer MD, explained: “We actually rationalised and reduced the size of our transient fleet, but it continues to be in very good shape, in terms of both numbers and quality – and ready for the recovery. “As a result of our continued investments, the new stock added to our fleet will improve vehicle
reliability, bring new models, designs, technologies and safety features to our customers, while also reducing downtime and the average age of both trucks and trailers,” Fletcher added. “Our business remains strong and, as the sector returns to some sort of normality, we’ll continue with our strategy of investing for the long term and helping customers bounce back from what have been exceptionally difficult times.” 21.6.21
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Acquisition extends DAF dealership’s coverage across the south-west
Adams Morey buys Kingdon Wessex The Adams Morey network of DAF dealerships has increased its coverage with the acquisition of Kingdon Wessex DAF. The expansion has added main service centres at Heathfield, near Newton Abbot, Saltash and Taunton, together with a TRP allmakes service centre at Camborne. This provides Adams Morey with an area of operation across the whole south-west of England from Cornwall to Basingstoke and its headquarters at Southampton. Adams Morey is itself part of the Shropshire-based Greenhous Group, and the latest acquisition makes it one of the largest DAF dealer groups in Europe. At the same time, Adams Morey has appointed a new dealer principal, James Harding, who joins the group after senior roles within the Iveco network. Adams Morey MD Kevin Swinnerton said: “Kingdon Wessex has spent considerable time building trusted relationships and holds similar core values to Adams Morey, including providing quality care for customers and staff. Nick Kingdon has developed a
wonderful independent business, which has rightly earned a great deal of respect from its customers for the level of customer service it has delivered. “I am excited to welcome the Wessex staff into the Adams Morey family and look forward to further prosperity in the south-west.” Nick Kingdon added: “It was not an easy decision to sell the business after so many years, but
we do so with complete confidence in Adams Morey to maintain the spirit of service that we have fostered with our customers and staff. “Our business continues to evolve and, in these days of larger organisations, we are sure Adams Morey will look to enhance that spirit to the benefit of customers and staff alike. We wish them all well.”
Truck registrations rise 9% in first quarter Truck registrations increased by 9.5% in the first quarter of 2021, according to figures released today by the Society of Motor Manufacturers and Traders (SMMT). The first three months of the year saw 10,064 units registered, with the increase attributable to a weak first quarter in 2020 due to lockdown measures introduced partway through March. Changes in fleet renewal cycles as a result of the pandemic also lowered demand, resulting in Q1 2021 figures being 15.1% down on Q1 2019. Tractor units were the biggest winners with registrations up 25.3% to 4,528 vehicles, while rigids saw a decline of 0.8% to 5,536 registrations. 21.6.21
Tractor units were the biggest segment overall, with a 44.3% share of the market. Tipper registrations also increased, up 10.8%.
SMMT chief executive Mike Hawes (pictured) said: “The rise in truck registrations is welcome news but it does not yet signify full recovery, especially as it’s in comparison with a quarter when the first lockdown was introduced. “Likewise, the nature of the fleet buying cycle for the HGV market can mean that a large fleet order can have a significant impact on any quarterly figures. “However, fleet renewal remains the quickest way to get more of the newest, cleanest vehicles on UK roads, particularly as we strive to meet our collective environmental goals. “A plan for a charging and refuelling network suitable for HGVs is pivotal for the transition to these new technologies.”
Mertrux puts £2m into new workshop Mertrux Truck & Van, which this year celebrates its 50th anniversary, has invested £2m in a new truck-dedicated workshop at its Derby headquarters. The building, located at the rear of the site, incorporates seven full-length truck bays, two of which have pits. Equipment includes new column lifts and brake roller testers. In addition to improving capacity and efficiency, truck parking has also been increased. Dealer principal Andrew Kerrane said: “Once again, we have underlined our commitment and determination to provide customers with the industryleading aftersales support they’re entitled to expect. “The overall increase in the number of available bays is assisting with throughput and means we can get both trucks and vans back on the road more quickly than ever.” Mercedes-Benz Trucks MD Wolfgang Theissen added: “Mertrux has been a fantastic ambassador for the brand over the last five decades, during which our longestserving dealer partner has never wavered in its commitment to outstanding customer service. “By investing in this impressive, truck-dedicated workshop, Mertrux has demonstrated once again that it can be relied upon by operators to do whatever it takes to restrict downtime and keep their Mercedes-Benz and FUSO vehicles out on the road and earning.” Like the long-established maintenance facility on the same site, which will now be used solely for lighter vehicles, the new workshop is currently open until midnight on weekdays, and on Saturday mornings. A return to 24-hour operation is expected as Covid restrictions are lifted. MotorTransport 19
Photo: Shutterstock
Tachograph analysis
Counting the hours Road Tech has been celebrating 15 years of its marketleading Tachomaster tachograph analyis system. Alistair Vallance documents its story
B
ack in the early, formative days of the analogue tachograph entering truck cabs, the needle-inscribed circular cards spawned the concept of the ‘twilight shift’ as larger hauliers and trade associations formed teams of card analysers to ensure adherence to the compliance rules of the day. Arguably the man who, in time, would turn this labour-intensive ‘Heath Robinson’ duty into the world of hi-tech analysis was the late Derek Beevor, who co-founded Road Tech Computer Systems in 1984 and went on to become the sole proprietor and chairman of the company that has now grown to 85 employees.
20 MotorTransport
Initially he invented Roadrunner – a transport management solution to ease the mountains of weekend admin work generated by Tudor Transport, his 15-truck operation based at Watford. This computerised system rapidly changed the way transport companies ran their operating schedules, but it wasn’t until 2006 that the tachograph moved into the 21st century. As digital tachographs replaced the analogue versions in trucks, Road Tech launched Tachomaster, which had the advantage of being able to read the old analogue tachograph discs as well as digital driver cards. Not only that, but the novel Tachomaster program could merge both inputs and send it to Road Tech’s burgeoning computer server system for instant, real-time analysis. Digital tachographs rapidly became the standard fitment in all trucks and Tachomaster grew exponentially. “From a standing start when we literally didn’t have one customer, Tachomaster revolutionised the way that the industry dealt with tachograph analysis and compliance, and all at only £1 per driver per week. We became the undisputed market leader and we have now added the DOT remote download system option for an additional £14.95 per vehicle per month, with the option to add Falcon Vehicle Tracking,” enthuses Road Tech sales manager Maureen Ballance. To date, Tachomaster has analysed over 184 million card, chart and vehicle downloads, but as Road Tech’s customer services director Adrian Barrett reveals, this is down to the continual evolvement of the product itself. “Derek Beevor and I linked with Cardiff University’s School of Business Management and we were able to create mutually beneficial ideas going forward,” he says. “We could see where Tachomaster could be developed from simply a tacho analysis service to encompass a host of additional platforms that would be embraced by hauliers of all sizes. We put all these new ‘eggs’ in the 21.6.21
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one basket and our own team of 20 programmers are continually developing Tachomaster, now providing remote download links to these novel platforms that ensure a bright future for us all at Road Tech – which is now an Employee Owned Trust Company similar in concept to John Lewis. Our loyal staff, a vast number of whom have been with us at Shenley Hall in Hertfordshire for over 20 years, are constantly evolving our offerings to transport operators. “With Road Tech, there is no joining fee and no longterm contract to sign. In many respects we are customerled. For instance, we were asked by a number of hauliers if Tachomaster could become “our driver portal, including risk profiling”. We were happy to create the program and Driver Master was born. “Roadrunner is still there in its latest iteration from its beginnings 37 years ago and we like to think it is the ultimate transport management and job booking system for road haulage operators,” he continues. “‘Predrive’ pretty well speaks for itself, but if you thought having a walk round and a kick at the tyres before driving off fitted the bill, just check out the list of ‘have to’s’ featured on our website. “Without doubt our greatest evolution took place in 2019 with the creation of DOT; our device which remotely downloads tachograph data daily. Not only can it monitor drivers’ work, drive and rest periods live, it can massively reduce driver infringements. This can be combined with Vehicle Tracking, our optional system that, with unrivalled accuracy, can actually show which side of the road a truck is on.”
Covid compliance
Like every other business, issues arose when Covid-19 kicked in and a regime of ‘no touching’ was integrated into all aspects of the Tachomaster programme. For example, if a problem emerges through the Driver Compliance Reporting System (DCRS) a letter can now
21.6.21
be sent to the driver remotely, made possible via a Compliance Dashboard, and thousands per week are being sent out through Tachomaster’s Paperless Driver Connecting programme, which is totally GDPR secure. Going forward, Road Tech has now devised ‘Training Plus’, whereby a haulage company can manage its driver training dates and subjects. “This is going like wildfire,” says Barrett. “And the efficiency of the system is so good mainly due to us having all the fundamental information downloaded into our system from the drivers’ cards. “We can also offer the haulier a working programme linked to the DVSA’s Earned Recognition Scheme which, it could be argued, was a lost opportunity because DVSA could have gone for more key performance indicators. However, we saw the need for a risk score calculator, so we have also launched ‘Driver Master’ – a system that monitors driver behaviour with the aim of increasing driver safety. This downloaded data provides the operator with a score for each driver to enable analysis of not only the person behind the wheel, but who manages them too. “With all the development in new programs we rely on our ever-growing server systems with high availability backup, all provided on our very own cloud. We have of course been security-conscious from day one and this still is our primary concern as we embark on an enlarged cross-platform offering to hauliers where we acknowledge that their own staff may have problems keeping up to speed with our software developments. However we offer, as well as ‘Getting Started’ guides, a free, online, unlimited training programme including the regular Tachomaster training days on the first Wednesday of every month. We also hope to return to face-to-face training at Shenley when it is safe to do so.” With its current birthday celebrations over, the Road Tech think-tank is already speculating on new compliance demands likely to emerge in the next 15 years. ■
MotorTransport 21
Marketplace: Walker Movements
Global trader
Used-truck specialist Nick Walker started out as a one-man operator; today his firm sells to more than 65 countries, with a special focus on Africa – where they like a fair truck for a fair price. George Barrow reports
W THE MAIN MAN: Nick Walker, owner at Walker Movements
MEET THE TEAM: Walker says staff loyalty is hugely beneficial to efficient customer service
22 MotorTransport
e want to achieve greater things, but not just by multiplying what we have done in the last 30 years,” explains Walker Movements owner Nick Walker. The Nottinghamshire-based usedtruck dealer, located right next to the M1, is celebrating its 30th anniversary this year with a revamped image that includes a new logo, new website and some big plans for the 21-acre site. “We are investing in the premises,” says Walker, to create, along with other things, a new office building to help improve the environment for staff and customers. Further changes include the appointment of a new head of sales and marketing. While the redevelopment of the physical site is still a little way off, a new website will be launched soon, complete with a more modern logo – a backlit version of which can now be seen prominently by the passing traffic on the M1. Walker Movements also says the new website will be something “different from the rest of the industry”, having been rebuilt for the customer, and will be especially mobile friendly. “We would like to give the customer more information and to educate the customer to make an informed decision, even if they are not going to be buying with us. We don’t really have sales staff here, because the majority of our people our customers deal with are ex-mechanics,” Walker says. “Walker Movements is a large-choice seller with a constantly moving stock – and it is fast moving because we are competitive on price. Google, social media and review sites hold us more to account than ever before, which is why we want customers to be informed and happy about who they are dealing with and what they are buying. That’s why we give our customers the support we do, because a small problem here [the UK] can be a huge problem there [an export market],” he says. Selling to customers from abroad is now the majority
of Walker Movement’s business, but that wasn’t the intention when Walker sold his first truck – while still at college. Having bought a truck (one of a batch of four similar trucks available in the sale) from Blackbushe auctions, Walker spotted the other three units for sale in Commercial Motor the following week at a healthy mark-up. After inspecting and prepping his truck, he decided to advertise it the following week, selling it almost immediately for just £100 less than the asking price and at a healthy profit. He returned to Blackbushe and bought another truck – and the rest, as they say, is history. Walker abandoned any ambitions of following his father into running trucks and instead decided to sell them from the yard, becoming something of a specialist in ERFs and Fodens. “It was a bit of a niche market at the time and we specialised in those trucks for the first four or five years before we starting stocking all marques. But because of the experience in buying and selling [ERF and Foden trucks] and having a good supply of them, we found that we were then getting a lot of interest from African markets.” Having outgrown the haulage yard, in 2001 the business was moved into a purpose-built site capable of housing a lot more stock. Now the home of sister company FleetEx, it wasn’t long before that too began filling up. “I’d say that within two or three years we probably had 200 trucks in there,” remembers Walker. “It gets easier when you have a site, and it gives people more confidence.” By 2007 it became apparent that not only was there a difference in the vehicles being bought and sold, there was also a lack of space on just the one site. FleetEx was created for the UK premium stock – it has since evolved to become the home for Euro-6 trucks – while Walker Movements deals with earlier economy and export trucks. 21.6.21
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The result is that the two differing sets of customers aren’t wading through vehicles that are irrelevant to their needs – “We don’t want to dilute their attention or make it harder to find what they need,” Walker explains. Looking back at how the business was built and the differentiation that has led Walker Movements to become one of the largest used truck stockists in Europe, it is apparent that the success arose from Walker’s willingness to do things slightly differently. Detailed spec sheets are still a mainstay of the Walker Movements fleet, and while the newly-renovated photography shed plays its own role in ensuring optimum photography all-year-round for the website, the ethos is no different from the early days when Walker would use a 35mm roll of film and the post office to get the message out about his trucks. “I’d get a truck in and would probably take six [of the same] pictures, then another six of something else, until I had gone around the unit. Someone would call up, asking about it and if they weren’t sure I’d offer to send them some pictures in the post with a spec sheet. Sometimes you’d get them down to have a look, and sometimes you’d sell just from the photos, but that’s how I tried to get an advantage back then. We developed a reputation for being really straight with people, and we could maybe charge a little bit more because of reputation. It’s a lot harder now to get an incremental advantage, and a premium for reputation. Margins are tougher too, but we still try to make it as easy as possible for our suppliers and customers.” Walker Movements now sells to more than 65 countries worldwide, and is particularly successful in Zimbabwe, Zambia and Kenya, all of which link back to the company’s early dealings in ERF and Foden, as the two British brands were seen as tough, durable trucks with 21.6.21
fibre-glass cabs and reliable Cummins engines. “We have had markets open up to us and close down again, but because we have such a large customer base we are quite resilient. We work with great people, have really loyal staff, and sell to countries and customers that are really interesting to deal with. We have invested in the people and now, this year and next, we will invest in the business. The trucks we sell speak for themselves, everything we buy is for our stock, and we would prefer to buy from leasing companies, main dealers, manufacturers and hauliers that we know – because at the end of the day we’ve got to be responsible for what we sell.” The formula at Walker Movements doesn’t need fixing or even tweaking, but after 30 years there’s still a desire to continue to push to improve. “We have great people working with us and we want to continue to invest in them,” Walker says. “The key ingredient all along has been that we sell reasonable trucks for reasonable prices and our long list of customers appreciate it. I also have to say thank you to our suppliers and customers over the last 30 years.” ■
HI TECH: Walker Movements uses the latest technology in its day-to-day business
MotorTransport 23
Electric vehicles
Batteries included?
Electric trucks are clearly going to be the way ahead, but exactly how the power will be generated, stored and delivered remains a moot point, as John Kendall reports
F BATTERIES IN FAVOUR: Scania has launched its first series production range of EVs and says it expects battery electric power to dominate, based on well-to-wheel energy requirements
32 MotorTransport
or the best part of a century, the last thing that any truck fleet manager has needed to think about is how the next batch of new vehicles is going to be powered. But the commitment to end all new trucks powered by fossil fuels by 2050 changes all that. If we are to eliminate the use of fossil fuels and achieve carbon neutrality, electric power in one form or another is the only viable option, given current technology. At the moment, battery electric power is the choice for most car manufacturers, although a handful have opted for hydrogen fuel cell. For light CV and truck manufacturers, the choice is wider and the principal difference is going to be in how the electricity is stored on the vehicle. Looking ahead, there is reasonable hope that battery charge density – the amount of charge that can be stored in a battery – will increase and charge times will be
reduced. This could mean batteries becoming smaller, and range being increased. It’s not yet clear when any of these advances would be commercially viable. Then there is the issue of weight. The amount of battery storage needed for long-distance trucks tips the balance in favour of the hydrogen fuel cell as a means of storing electrical energy, because it would weigh far less than the batteries required for long-distance haulage. Even so, long-distance battery trucks are also under development. Although the UK is doing well compared with other countries in providing vehicle charging infrastructure, it’s still not enough. Trucks would need greater investment in charging facilities, especially at depot level. For hydrogen, there are similar issues, but the scale is greater. There are currently 12 hydrogen refuelling stations in the UK for vehicles, mostly focused on cars and buses. ‘Blue’ hydrogen is produced from fossil fuel products, mostly natural gas, while ‘green’ hydrogen is produced from a range of renewable sources, from biomethane to electricity from wind and solar power.
Generating the power
Eaton’s reputation in the commercial vehicle sector used to be based on the transmission systems it produced for trucks. Now the company is turning its attention to electricity transmission and how that might turn company property portfolios into places where electricity could be generated as well as consumed. A warehouse roof could be an excellent site for photovoltaic cells to help generate the electricity needed to power a fleet of electric trucks. Truck batteries could also be used for energy storage when connected for charging. “EVs have much more flexibility in how they distribute energy and soon they will collectively store enough power to fulfil the rest of a country’s power needs for hours or days, and we can tap into this to manage the natural peaks and troughs of supply and demand,” Marc Gaunt, segment lead, commercial buildings at Eaton tells MT. “Due to the physical footprint of distribution centres, they offer excellent potential for the installation of renewable energy sources on-site. For these reasons ➜ 34
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Electric vehicles
INVESTING IN ELECTRIC: Parcels firm DHL has recently put a Volvo FL Electric into operation in urban areas
FOR THE LONG HAUL: Mercedes-Benz’s battery-electric eActros LongHaul has a range of approximately 500km and should be in series production in 2024
34 MotorTransport
we see distribution centres being a key building which could operate as a grid where there are significantly greater demands on energy and the need for capacity to fulfil this.” It would not just be a case of installing power generation equipment on-site. Gaunt says there are a number of factors that would need to be considered such as forecast electrical demand into the future and electrical capacity within the existing infrastructure, as well as current electrical power supply and demand patterns. With this information, it would be possible to assess what changes would be needed and how investment could provide the necessary technologies. Gaunt thinks the key benefits to a business could include a significant reduction in carbon footprint and fossil fuel consumption. Others include a more positive perception of a business, reduced consumption of energy from the grid through technologies such as energy storage and renewable energy generated on-site, and mitigation of peak energy demands and associated costs. It is where buildings could be used as platforms for renewable energy generation that there could be opportunities for Eaton’s ‘buildings as grid’ approach.
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“We expect to see power generation happening at many more, much smaller sites – and in London, for example, we should see the number of sources of generation grow from 300 to three million”, says Gaunt. While launching the Daimler Truck and Volvo Group cellcentric joint venture for the production of hydrogen fuel cells, Volvo Group president and CEO Martin Lundstedt laid out the advantages of hydrogen fuel cells for long-range trucks – fast refuelling and high payload. Work still needs to be done to foster the right environment for investment and innovation, according to a spokesperson for the UK Hydrogen Fuel Cell Association (UKHFCA). “Investment needs to be made in the workforce through a long-term plan for STEM skills and training, and direct R&D funding needs to be made available to encourage the development of the technology,” the spokesperson says. “Work also needs to take place to activate the market via consumer subsidies and company incentives – providing assurances for industry, moving consumers to fuel cell vehicles and enabling the market to grow. If these actions take place, achieving manufacturer ambitions will be possible.”
What the critics say
Hydrogen fuel cell critics point to the inefficiency of fuel cells compared with battery systems. The UKHFCA counters the criticism by pointing out that fuel cell vehicles are expected to be more affordable than their battery-powered counterparts over the next decade and that efficiencies are improving and part of a wider set of considerations. “The cost of manufacturing the vehicles will fall as economies of scale improve, and alongside investment in infrastructure, the market for fuel cell electric vehicles [FCEVs] will grow,” says the UKHFCA. “Unlike battery electric HGVs, in FCEV HGVs the payload can be maintained and refuelling times, range and driver experience are similar to those of fossil-fuelled vehicles. In addition, FCEVs place no direct pressure on electricity supplies, as would be the case with electric trucks, with scope to convert surplus energy from renewables into hydrogen for use as needed.” Iveco and its partner Nikola are working on both battery and hydrogen fuel cell vehicles, as are Daimler ➜ 36
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Electric vehicles
Truck, Volvo Group, Scania and most other truck manufacturers, with the exception of new entrant Volta Trucks. With its sights set on the light- to medium-truck sector, this new company is focused purely on battery-powered models. Daimler Truck’s position is summed up by Jamie Fretwell, spokesperson for Mercedes-Benz Trucks UK: “Last year, we presented the battery-electric eActros LongHaul with a range of approximately 500km. The eActros LongHaul is designed to cover regular journeys on plannable routes in an energy-efficient manner. Daimler Truck plans to have the eActros LongHaul ready for series production in 2024. “For even heavier loads and longer distances, Daimler Truck wants to supplement its portfolio by adding seriesproduced hydrogen-based fuel-cell vehicles with ranges of up to 1,000km and more on a single tank of hydrogen by 2027.” Phil Rootham, pre-sales technical manager at Scania
GREEN HYDROGEN
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POWER TO THE PEOPLE: Eaton (left) is exploring a ‘buildings as grid’ approach to power generation; while John Lewis Partnership (right) is phasing out the use of fossil fuels across its entire fleet
Photo courtesy of BOC
If fuel cells are to provide a viable zero emission alternative to diesel power, producing hydrogen from renewable energy sources will be critical. The UKHFCA outlines what needs to be done. “The Climate Change Committee (CCC), Department for Business, Energy and Industrial Strategy, International Energy Agency and World Energy Council agree that green hydrogen will be an essential part of the future energy mix,” it says. “In the UK, we are a global leader in the manufacture and design of hydrogen electrolysis systems and there are a number of firms based in the UK who are committed to the technology. “With the right support, the UK can deploy 10GW of green hydrogen by 2030, reaching up to 80GW by 2050. While this would be a challenge, we believe that this scale of production is achievable and crucial to the decarbonisation challenge. “A mixture of demand-side and supply-side measures will be needed over the short and medium term to achieve the levels of green hydrogen production in the UK necessary to meet the ambitions of the government, the CCC and industry. We want to see green hydrogen production developed through policy levers that will strengthen the business case and reduce investment risk. Other mechanisms include a 10-year moratorium on VAT for net zero hydrogen production, removal of grid fees and access to wholesale electricity prices.” Apart from truck OEM joint ventures to produce hydrogen fuel cells and develop fuelling infrastructure there are other initiatives. The MultHyFuel project, for example is a public-private partnership bringing together a range of companies to standardise the safe design of hydrogen refuelling pumps, facilitated by the EU. Partners include Air Liquide, ENGIE Lab CRIGEN, INERIS, Kiwa, Snam, Shell ZSW and, from the UK, ITM Power and the HSE. The partnership plans to produce a report in 2023.
36 MotorTransport
(Great Britain), is frank about the differences between FCEVs vehicles and battery electric models (BEVs). “We are actively working with hydrogen technology, but in terms of the driving emission benefits, the lifecycle analysis favours BEV. Hydrogen offers benefits in terms of range, but no long-term plans have been released at this point,” he says. “We expect BEVs to achieve a dominant position in the market based on reduced volume of energy required from a well-to-wheel perspective, assuming the infrastructure matures in a positive manner.” As you might expect, Volvo Truck, with an interest in producing hydrogen fuel cells, is more positive about their future, but mindful of the benefits BEVs offer for distribution. “Within the UK, a large portion of the vehicle parc is involved in last-mile deliveries, and it’s switching from diesel to electric in these applications which could deliver some of the biggest environmental gains – and quickly,” Christian Coolsaet, MD of Volvo Trucks UK & Ireland, tells MT. Volvo has supplied an FL Electric BEV to DHL Supply Chain for operation in urban areas. “Hydrogen is simply going to expand these benefits to a wider portion of the market, with a solution which is ideally suited to long-distance transport,” concludes Coolsaet. Andrew Scott, head of electric mobility at Renault Trucks UK and Ireland, believes the next battery advances are coming. “Battery technology is advancing constantly,” he says. “Renault Trucks is an early leader in the sector, having been able to adapt proven battery and driveline technology from Volvo Bus for truck applications. The launch offer of 49kWh batteries has already been updated to higher output 66kWh battery packs. The next significant iteration is planned for 2023 when new configurations are introduced which will extend the scope of batteries to tractor units as well as rigid models.”
John Lewis strategy
The John Lewis Partnership (JLP) operates both light CVs and heavy trucks within its distribution operation. “Last year the John Lewis Partnership brought forward our net zero carbon target across our operations by 15 years to 2035,” explains Justin Laney, partner and general manager of central transport at JLP. “We also have an ambition to stop using fossil fuels across our entire transport fleet by 2030. In some ways that is more challenging, but I am also confident we can achieve that.” Currently, JLP is using 228 heavy trucks running on biomethane and expects to add 100 more this year. “It’s early days for electric vehicles with just a couple of vans, though we are expecting more to be on the road this year,” says Laney. ■ 21.6.21
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Interview: Zemo Partnership
Fast lane to nothing In light of the government’s goal of net zero carbon emissions by 2050, LowCVP has rebranded itself to reflect the new targets. What adjustments will the road transport sector be facing? Steve Hobson reports
A
fter 18 years, the Low Carbon Vehicle Partnership changed its name to Zemo Partnership in February this year to reflect its “strengthened commitment to make change happen faster and accelerate transport to zero emissions”. This was partly driven by the UK government’s commitment to achieve net zero carbon emissions by 2050 and the consequent push to decarbonise road transport. But what does ‘zero emissions’ transport really mean and how will it be measured? MT spoke to Zemo MD Andy Eastlake about his vision for a carbon-free future. “The reason for us rebranding was partly that the Climate Change Act was revised in 2019 and we now have a net zero target in 2050, rather than an 80% reduction,” he says. “For the first 20 years of our life we had a picture of trying to get down to low carbon and that will do the job. But the problem was everyone thought they were in the 20% that didn’t have to worry about it! “That game has changed and we have to go to net zero 40 MotorTransport
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carbon emissions in the operation of our transport and society. So first we have to minimise the amount we are putting out and ask what can we do to remove or offset what remains.” But the operation of vehicles is only one aspect of carbon emissions. For example, a battery electric vehicle may emit very little if anything from its ‘tailpipe’, but if the electricity used to charge the batteries is not yet 100% renewable – or if carbon is emitted in the vehicle and batteries’ manufacture, transport and recycling – then it cannot be considered zero emissions across its lifecycle. Even the wind turbines used to generate all the renewable electricity we need currently emit some carbon in their construction and installation – and no one has yet tried to dismantle and recycle them, so the implications of that are still unknown.
Carbon reductions
The UK has made big reductions in its domestic carbon emissions in the past 30 years – but this has to some extent been achieved by ‘exporting’ emissions embedded in the manufactured products we import from countries with often far higher carbon footprints. This issue will be a key topic at the forthcoming United Nations COP26 climate conference to be held in Glasgow in November. “If you made your vehicles and batteries in the UK, that would all be within the UK’s net zero target,” says Eastlake. “If you are importing batteries from Europe or China, they are all outside that target. Our ‘consumption’ emissions embedded in the stuff we import at the moment are not yet included in the accounting for net zero. “So the UK’s net zero is not the end of the story. We need to get to a global net zero, where every country’s imports and exports are all zero emissions.” Things have come a long way since the LowCVP was set up in 2003. While electric vehicles are nothing new – some of us are old enough to remember electric milk floats – the idea of a van or truck powered by batteries or hydrogen fuel cells was inconceivable then. Natural gas and LPG had come and gone, and while biofuels were around they were not used in large quantities. Now every major truck and van builder has an electric offering, while new entrants such as Arrival, Volta and Nikola promise a new generation of purpose-built electric 21.6.21
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vehicles. While these vehicles will be close to zero emissions in their operation, how should we measure the carbon emitted during their construction and at the end of their life? “There is no such thing as a totally zero emissions vehicle yet,” says Eastlake. “They are zero tailpipe emissions, and you can have zero emissions well-to-wheel with renewable electricity, but there is still the embedded carbon within their lifecycle. In the long term, we have to minimise the energy and resources we are using to create the vehicles and batteries and work out how to assemble them with a zero carbon footprint. Net zero in 2050 isn’t the end game, but it’s a pretty good place to shoot at for at the moment.”
Going neutral
Swedish electric car maker Polestar, created by Volvo Cars and Geely Holding of China in 2017, has pledged to go carbon neutral on the production of its vehicles by 2030. It says it “will aim to cut carbon emissions by changing the way that cars are made, rather than using traditional processes and then planting trees to offset CO2”. “Offsetting is a cop-out,” adds Thomas Ingenlath, Polestar CEO. “By pushing ourselves to create a completely climate-neutral car, we are forced to reach beyond what is possible today. We will have to question everything, innovate and look to exponential technologies as we design towards zero.” At present, battery electric vehicles are nowhere near zero carbon emissions on a ‘well to wheel’ basis, let alone on their total lifecycle. As of December 2020, renewables generated only 40% of total electricity used in the UK, with the rest coming from fossil fuels or nuclear power. So, for operators looking to take the first steps towards cutting emissions now, what is the best route? Zemo analyses the carbon emissions of different types of bus to certify them for the receipt of grant funding, so it has a good grasp on the relative carbon intensity of different powertrains. “A 100% biomethane bus has around an 86% greenhouse gas saving versus fossil diesel and a battery electric bus charged from UK grid electricity this year will give a 75% reduction,” says Eastlake. “So biomethane, well to wheel, is a bit better than using grid electricity. But electricity is getting much cleaner – its carbon impact is coming down 10% to 15% every year. “The reason we have gone soft on biomethane in buses specifically is that the transient bus operating cycle means a spark-ignited gas engine isn’t as efficient as a diesel. So if I’ve got a lot of biomethane, I’m displacing more fossil diesel by putting it into a long-haul truck than into a bus. “Buses can run on 100% renewable electricity, so we are pushing the zero-emissions agenda for buses; trucks are more of a challenge. Biomethane right now is probably one of the biggest games in town when it comes to decarbonising your trucks. And we should not ignore renewable biodiesel as there is some really good wastebased biodiesel out there – Argent Energy is a member of Zemo and they are doing some good stuff – and there is some good synthesised HVO diesel that is a drop-in fuel at any blend level.”
Evolving technology
Interview: Zemo Partnership That will of course require electric trucks – whether full battery or battery with hydrogen fuel cell range extenders – to be available for operators to buy. While electric vans are becoming more widespread, there are still very few (if any) electric trucks on the market other than from specialist converters. However, with the threat of ultralow or zero emissions zones that go beyond the Euro-6 requirements of most clean air zones, operators delivering large and bulky goods into urban areas must be wondering what their options are. “There is no battery electric long-haul truck that will do the job yet,” says Eastlake. “But we are starting to see some battery electric trucks and many of the major truck builders have reasonably sized product available now, though the range is still limited. If you are operating around Heathrow, say, you might be able to operate an electric truck with a short range. “If you are operating a Euro-3, then you will get 95% of the way [to reducing harmful emissions] by going Euro-6 and then the last 5% by going zero emissions. We need to get high-polluting vehicles out of the city centres and then off the road as quickly as possible, but where you can make the step to zero emissions it is worth doing, as that gives the security that you will be ready for the zero emissions zones which will start to come.” There are already some sectors where battery electric makes perfect sense. Renault has recently launched a 26-tonne battery electric truck aimed squarely at refuse collection; and Dennis Eagle, the specialist in this sector, also has an electric offering. “A Euro-6 refuse collection vehicle is struggling to perform on that low-speed cycle,” says Eastlake. “That is a low-range, low-speed application where electric can work really well. Where you can’t make electric work, Euro-6 is still clearly the thing to do because the air quality crisis is arguably nearer term than the climate change crisis.” So while Zemo’s mission is to see zero emissions, it is in favour of clean air zones that encourage take-up of Euro-6 clean diesels. “They help refresh the fleet, which is a good thing,” Eastlake says. “Euro-6 will be more fuel efficient than a Euro-3 that they might be replacing, so that is a step forward. It gets us to a position where we have clean air and then we can focus on the zero emissions sweet-spots, which are relatively small for electric commercial vehicles. But they are getting bigger and bigger as battery costs come down and the costs of using fossil fuels increase.” However, Eastlake would prefer a more centrally-led approach to clean air zones, rather than passing all responsibility down to individual cities. “It’s a devolved problem with a central framework,” he says. “I’m a great believer in that common framework and would much prefer everyone to be following the same vehicle standards, ➜ 42 ON A MISSION: Andy Eastlake, Zemo MD, says on emissions: “We have to minimise the amount we are putting out and ask what can we do to remove or offset what remains”
These biofuels for existing internal combustion engines should, however, be seen as nothing more than a stopgap while the technology evolves to move trucks to true zero tailpipe emissions – for air quality as much as greenhouse gas reasons. “All those resources we are currently using for biofuels in road transport, we will probably need all of those and more to go into aviation, because they are not going to electrify,” Eastlake argues. “We need to get as much biofuel as possible into trucks at the moment, but ultimately road needs to wean itself off it because it’s going to be needed elsewhere.” 21.6.21
MotorTransport 41
Interview: Zemo Partnership
ELECTRIC MAY BE GREENER THAN DIESEL – AT WHAT COST? True sustainability requires economic as well as environmental and social viability. Quite apart from the lack of vehicles and charging infrastructure, a major barrier to the adoption of electric vehicles will be their high purchase price. But with promised lower running and maintenance costs, the manufacturers argue that total cost of ownership will in fact be lower than diesel. “Very few people can make the numbers stack up for an electric truck at the moment,” says Eastlake. “There are quite a few applications now where you can make electric vans work and Centrica has just ordered 3,000 electric vans, for example. Some of those principles have been undermined by the continued freeze on fuel duty, which doesn’t send the right message about this very aggressive policy that the government is applying to move to zero emissions. “They are moving faster than I have ever seen them and they are pushing the boundaries on how we get to zero tailpipe emissions by 2050 for everything on the road. To do that we have to start moving now wherever we can.” A problem for freight operators wanting to go low or zero carbon is the low levels of financial support available, especially compared with bus operators. Full electric trucks and vans qualify for a plug-in vehicle grant of up to £16,000 (or £25,000 for those over 12 tonnes) and £6,000 respectively, and while there is a long list of eligible electric vans, only three ‘trucks’ (all under 16 tonnes) qualify at present: BD Auto eDucato, FUSO eCanter, and Paneltex Z75. The total plug-in vehicle grant allocation, including cars, is just £532m for 2022/23, compared with the £3bn the government has set aside to subsidise zero emissions buses. “Buses have had huge amounts of money thrown at them, with more coming, and that is where trucks have been the poor relation,” says Eastlake. “The truck market hasn’t seen that level of support. They revised the grants recently and vans lost out along with cars. You can get around £100,000 of grant support to buy an electric bus, but the maximum you can get for a truck is £25,000 and, unlike buses, you get nothing for your chargers yet. “We have to think about that more seriously. There is right now £20m going into four programmes that will start to look at potentially spending some serious further money on large-scale demonstrations next year to work out how we are going to do this.” 42 MotorTransport
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rather than Leeds wanting one thing and Birmingham another. But the people in Leeds are the only ones who really know where the problems are and how they might address them. So clean air zones segue into zero emissions zones.” Lifecycle analysis of the carbon emitted in the production and recycling (as well as operation) of electric vehicles and their batteries is now underway by Zemo. “We are doing a lot of work in this space,” says Eastlake. “One of our projects for next year is to bring lifecycle analysis into our approvals for buses. It is a nice contained market as UK manufacturers are at the forefront and it is electrifying more quickly, so we have more electric buses as a percentage of the fleet on the road than any other sector. Now 2% of buses are full electric, compared with 0.5% of cars. “It is true that there is a lot of embedded carbon in the batteries at the moment. There are several things we can do about that. If you make and assemble in a low-carbon country like the UK, that would be a lot better than having them made in China. Then you don’t need to transport them either, which is a bad thing to do with batteries. “There is also a lot of work going on to remove rare metal like cobalt from batteries. Cobalt has lots of ethical problems, such as how it is mined. Sustainability isn’t just about greenhouse gas, it is about all these other issues and we are trying to gradually take all those on board. Water use in manufacturing is also going to be a significant issue. “But right now the most important issue is greenhouse gas, and as it stands any electric vehicle operating in the UK, even with a big battery in it, is better than running a fossil-fuelled vehicle. The only way it’s worse is if you buy it but don’t drive it. Batteries are great when you sweat them because that is where they save greenhouse gas.” ■ 21.6.21
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