Motor Transport 22 May 2023

Roads to perdition

HGVs operating without MOTs p3

Long way ahead

Government approves LSTs p4

Package deal

Wincanton takes on IKEA hub p6

28-30 June 2023 • NAEC Stoneleigh

SURPRISE EXIT: DAF Trucks UK has appointed a new MD after Laurence Drake announced he was departing the manufacturer. David Kiss (pictured), currently sales director for PACCAR Parts Europe, will step into the role following Drake’s unexpected decision to pursue a career away from the company. In his new position, Kiss will report to Richard Zink, director of marketing and sales, at DAF Trucks headquarters in Eindhoven. He has spent more than 16 years with DAF parent PACCAR. In a statement, DAF Trucks said it wanted to place “on record its gratitude to Laurence Drake for his many years in helping DAF Trucks grow in the UK, while offering David its very best wishes in his new role”. The news comes as DAF reached the milestone of selling 50,000 of its New Generation trucks.

Administrator warns sector to be wary after failure to save Coolfruit and Phoenix Worldwide

Squeeze killing hauliers

By Chris Tindall

Reports from the administrators of two recently collapsed hauliers have revealed the huge impact that reduced consumer spending and soaring costs are having on the transport and logistics sector.

In the first, the administrator of Kent-based Coolfruit said it had been unable to save the fresh fruit haulage business and was now attempting to sell off its assets instead.

The Ashford company, which traded out of two operating centres and held a standard international licence authorising 25 HGVs and 25 trailers, appointed administrators from SFP Restructuring on 28 April.

The haulage firm was formed in 2000 and SFP said it had successfully traded for many years before encountering numerous difficulties over recent times.

In a statement, the administrator said: “These challenges included rising overheads and operational difficulties, including the suspension of the firm’s operator licence.”

Documents published by the office of the traffic commissioner showed that Coolfruit had its licence revoked without a public inquiry at the beginning of 2023.

The statement added: “Professional guidance was sought in April 2023 and SFP conducted a review of the circumstances.

“The strategy included marketing the opportunity to try and salvage the business. Once it became clear, however, that saving the business was not viable, SFP commenced an orderly winding down of the company’s affairs and is now in the process of selling the company’s assets on a piecemeal basis.”

Administrator David Kemp said:

“With more and more companies being confronted with financial difficulties in the current economic climate, we urge directors to make themselves aware of the options available to them.”

Meanwhile SFP said a 33-yearold Warwickshire haulier had failed due to the cost of living crisis, which had squeezed consumer spending.

Phoenix Worldwide Logistics provided logistics and warehousing services to customers worldwide and traded out of depots in Dunchurch, Rugby and Coventry. It held a standard international licence authorising 29 HGVs and 29 trailers and it operated warehousing with 11,000sq ft of storage space.

But SFP added: “The company’s fortunes turned in 2022 when its turnover significantly reduced, mainly due to the cost-of-living crisis which put a squeeze on consumer spending.

“The company continued to trade by entering into a Time to Pay arrangement with HMRC and payment plans with large creditors.

“In March 2023, however, the directors took the decision to cease trading, no longer able to meet the business’ debt commitments.” n Alliance Transport Technologies, which specialises in the remanufacture of electronic components used to decarbonise fleets, has also fallen into administration after facing delays to the launch of a major new energy storage system (ESS).

Photo: Shutterstock

DVSA estimates one in 20 trucks could be operating without valid MoT

Illegal HGVs are filling roads, admits minister

By Chris Tindall

More than 20,000 HGVs in the UK are currently operating illegally without a valid MoT, according to the DVSA.

In response to a parliamentary question about vehicle testing this week, transport minister Baroness Vere said: “The DVSA estimates that at any time there could be around one in 20 of British HGVs operating on Great Britain’s roads without a valid MoT.

“The DVSA takes this matter very seriously and targets its on-road enforcement towards such vehicles. Any vehicle found not to have a valid MoT is referred to the traffic commissioners, who have the powers to take action against the licence of the vehicle operator.”

The most recent figures from the department for transport show

that in 2021 there were 406,000 GB-registered HGVs, meaning that if the DVSA’s estimate is accurate then 20,300 lorries do not have an MoT.

Baroness Vere also said that following a review of HGV testing in 2021, there were no plans to

change the current system: “The review, which was published the same year, concluded HGV testing should continue to be delivered as is, which provides independent assurance to ensure vehicles are maintained correctly, and safety is not compromised,” she added.

ELB begins 2023 HGV driver search

ELB Partners in Croydon is searching for its next HGV recruits after launching its 2023 driver training scheme.

It is currently accepting applications for its HGV course, which will see the successful candidates train to become fully qualified professional drivers over the course of the year, starting with van driving and working their way up to their Class 1 licence.

The haulier said it is committed to training and fully funding the next generation of lorry

drivers to overcome local driver shortages, and has teamed up with EP Training Services to achieve this. It has already trained up three new drivers in the last 12 months.

Peter Eason, MD at ELB Partners, said: “Over the years, we’ve met a lot of would-be HGV drivers with huge potential, but they have been unable to invest in training due to having no guaranteed job. Many firms also require qualified HGV drivers to have at least two years’ experience on the road,

Princes confirms double signing

International food and drink group Princes has established new partnerships with XPO Logistics and Knowles Transport for stock handling and shunting.

Knowles Transport will provide stock management solutions at the group’s warehouses in Wisbech, Cambridgeshire, while XPO Logistics has been awarded the contract for Princes’ Bradford warehouse.

Princes’ two warehouses in Cambridgeshire hold stock produced at the group’s Long Sutton and Wisbech sites, and all imported goods. Brands include Branston Baked Beans and Crosse & Blackwell soups.

All three warehouses are under long-term leases and facilitate 90% of Princes Group’s UK stockholding –representing around 180,000 pallets at any given time.

which is a significant barrier for young people who are just starting out in their careers.”

Haulier fined after fatal accident

Heavy haulage contractor GCS Johnson has been fined £140,000 after one of its employees was killed while unloading a trailer.

The Richmond, North Yorkshire-based firm appeared at Leeds Magistrates’ Court on 3 May, where it pleaded guilty to breaching the Health and Safety at Work Act following the death of Anthony Clark in 2018.

The father of two was helping move a large piece of machinery from one trailer to another at the company’s depot at Barton Quarry industrial estate.

As a team of workers began

moving the piece of machinery, it fell from the bed of the vehicle trailer and hit Clark, killing him instantly.

An investigation by the Health and Safety Executive (HSE) found that when the workers were transferring the load for shipment, the machinery was in two parts and the smaller section fell free during the lifting operation.

After the hearing, HSE inspector Julian Franklin said: “The lifting method used was not suitable for a load of that size and shape, and a lifting plan should have been prepared.”

IN THE KNOW: If you are visiting this year’s Road Transport Expo (RTX), then make some time to drop into the insightful conference sessions taking place every day. From fleet compliance and safety regulations through to net-zero technology and new industry research, the RTX Knowledge Zone has it covered. RTX is a bumper three-day tradeshow with an ‘all about the truck’ mantra, featuring more than 200 exhibitors. It takes place from 28-30 June at NAEC Stoneleigh and is free to attend for visitors. Book your place today at roadtransportexpo.co.uk

Operators benefit as falling diesel costs feed into equation

Haulage and courier prices increased by 3.6% in April despite falling diesel costs, according to data in the Transport Exchange Group (TEG) road transport price index.

Year-on-year haulage prices were down 2%, but with courier prices 3.6% higher, the overall index is up on April 2022’s figures.

TEG said that although diesel costs have

reduced, inflation, driver shortages and supply chain troubles all conspired to keep prices up.

Lyall Cresswell, chief executive of TEG data firm Integra, said: “Falling diesel prices is very welcome news. It reduces a day-to-day expense for everyone, making every mile cheaper.

“But it’s clear that there are more permanent problems affecting hauliers’ and couriers’ prices.

One of those is the driver shortage, so it’s encouraging to see the government once again taking action to get new drivers on the road.

“Another issue altogether is supply chain costs. Streamlining operations through digital solutions can help greatly here, so I’d encourage any road freight transport company to build digital tools into everyday processes.”

After 11-year trial, DfT says new rules will give economy a £1.4bn boost

Longer semi-trailers finally get green light

By Carol Millett

Longer semi-trailers of up to 18.55m – more than 2m above the standard size – will be allowed on Britain’s roads from 31 May, the UK government has announced.

The long-awaited move follows an 11-year road trial involving almost 3,000 longer semi-trailers (LSTs) and over 300 operators including major brands such as Greggs, Morrisons, Stobart, Royal Mail and Argos.

The DfT said giving the green light to the use of LSTs will deliver a £1.4bn boost for the UK’s economy, strengthen the supply chain, improve productivity and save 70,000 tonnes of carbon dioxide over 11 years.

The trial has shown that the use of LSTs will see the same volume

DP World readies Coventry upgrade

DP World Logistics is to occupy an almost 600,000sq ft building on an industrial estate in Coventry after warehouse developer SEGRO completes complex remediation work at the site.

In line with SEGRO’s commitment to be net-zero carbon by 2030, the unit at SEGRO Park Coventry will be developed to high sustainability standards, targeting a ‘BREEAM Excellent’ rating.

The building will include PV panels, an office heated by air source heat pumps, and 20% of car parking spaces are to be fitted with electric vehicle charging facilities.

of goods moved using 8% fewer journeys than current trailers and take one standard-size trailer off the road for every 12 trips.

Under the new legislation, operators will no longer need to apply for a special licence to run a longer semi-trailer, as was the case during the trial period.

Vehicles which use LSTs will be subject to the same 44-tonne weight limit as those using standard trailers.

Operators will be legally required to ensure appropriate route plans and risk assessments are made to take their unique specifications into account.

Aztek Logistics has praised its staff and the loyalty of its customers as it celebrates its 20th anniversary.

Founded in 2003 by white goods and TV installer Stuart Charter in Letchworth Garden City, the haulier has grown over the years into a £12m turnover business with six warehouses and 40 HGVs.

Its first success came from the support of the Prince’s Trust, which helped Charter get his first 7.5-tonne lorry on the road.

He said: “I started as one man with van and a dream. That one van became two vans and after my first year, I submitted my first accounts of £287,000, which I still have. I learnt a lot from the Prince’s Trust, not least around entrepreneurial pitfalls and dealing with cashflow and finance through factoring.”

XS shows some love to ‘firey’ pal Kerry Anne

Grangemouth’s XS Transport has named one of its new generation DAF XG 530 tractor units after Asset Alliance Group’s Kerry Anne Grogan (pictured) to reward her customer service.

It is one of five new DAFs the Stirlingshire haulier has taken delivery of as part of a fleet renewal programme and it will also be adding a DAF CF 340 FAR 26-tonne curtainsider tail-lift to the fleet later this month. XS boss Alan Taylor said: “Our truck called Kerry Anne was the first one of the five DAFs on the road.

“It looks superb with the black and pink ‘fire’ livery and suits her personality down to a tee.

“The other trucks are named after some of our other drivers’ family members.”

Aztek celebrates princely success

Ketra serves up branded trailer for food wholesaler Wanis

Palletways member Ketra Logistics has invested in a new liveried trailer for world food wholesaler Wanis International Foods.

The trailer has begun operating out of Wanis’ new 100,000sq ft distribution centre in Rainham, travelling daily to Palletways’ main hub in Lichfield for onward deliveries across the UK.

Ketra was appointed by Wanis in 2019 for pallet collection and delivery, and has supported the wholesaler through Covid and now during its expansion. Ketra makes a total of around 20,000 deliveries and collections each year.

Iveco and Nikola reshape alliance

Iveco says its partnership with battery electric vehicle manufacturer Nikola has entered a new phase.

The Italian OEM and Nikola formed a joint venture in 2019.

However, Iveco Group said it would be concentrating on Europe for further development and commercialisation of its own battery electric and fuel cell electric vehicles (FCEVs) and Nikola would focus on North America.

The deal will cost Iveco $35m and buys out Nikola from European markets.

In a statement, Iveco said: “Despite the negative cash impact generated, Iveco Group forecasts to absorb it with cash flow generation and therefore this does not change its cash flow target for 2023; it will also retain a meaningful amount of Nikola shares.”

Ketra director Vanessa Young, (pictured far right, with Ketra and Wanis team members) said: “We work very closely with Wanis; it’s a true partnership in every sense of the word. The trailer shows our commitment in a visual way and promotes the business as we support it across the UK.”

Khalil Butt, Wanis’ transport manager (pictured second from left), added: “The introduction of Palletways ID, which is the first technology of its kind in the transport sector, has been a huge benefit to us too.”

Dartford base focused on sustainable deliveries will create over 300 jobs

Wincanton to operate IKEA’s new Kent DC

By Carol Millett

Wincanton will operate IKEA’s new 452,000sq ft distribution centre in Dartford, Kent, providing faster, more sustainable home deliveries across London and the South East.

Located at the former Littlebrook Power Station site near the Dartford Crossing and M25, the new hub will deliver almost 1 million orders annually – with many orders reaching customers within 24 hours of being placed.

It has a storage capacity of 35,000cu m and is capable of hous-

Surrey haulier lays out ambitions with 10-vehicle expansion plan

Family haulage firm BR Saunders has used a seven-figure funding package from HSBC UK to purchase 10 new vehicles to add to its fleet of self-loading and unloading vehicles.

The company, which is based in Walton-on-Thames, has used the funding to acquire 10 32-tonne rigids with lorry loaders, capable of lifting up to 10 tonnes, and six acres of land to house its extended fleet. The company’s fleet ranges from 1-tonne to 95-tonne loaders.

It is also planning to boost its driver and office staff numbers, as part of wider ambitions to increase its market share in the South East. The company estimates that the additional funding will help increase its turnover by 20%.

ing up to 9,000 different products. The facility is also expected to create over 300 jobs.

IKEA will install 28 rapid HGV chargers at the distribution centre, to power up HGVs in under an hour while loading and unloading

IKEA goods. Sixty overnight chargers are also set to be installed.

Wincanton has also appointed construction company Glencar to fit out a 280,000sq ft IKEA warehouse at Greenogue Logistics Park in Rathcoole in south-west Dublin.

The works commenced in April with practical completion set for the end of September 2023. n Wincanton has signed a 10-year contract with Tata Chemicals Europe (TCE), which includes managing a new 185,000sq ft warehouse at British Salt’s site in Middlewich.

FILLING UP: Gas supplier Air Products has signed an agreement to develop a multi-fuel hydrogen refuelling station for HGVs in the port of Zebrugge. The new station will be the first commercial-scale hydrogen refuelling station in Europe with liquid hydrogen storage. It will be built and operated by Air Products

in addition to other liquid hydrogen refuelling stations the company is developing throughout Europe. The project itself is part of a wider strategy to support Belgium and Europe’s sustainable development and ambition towards CO2-free heavy-duty road transport. Air Products has signed the agreement with Aers Energy Belgie, the concession holder of the new lorry park where the refuelling station will be located.

Pictured are BR Saunders directors Duncan Saunders (left) and Paul Saunders.

UK’s largest-ever service and management contract covers fleet of 37,000 commercial vehicles

BT Group makes call to Holman

By Tim Wallace Holman has

taken over the contract for BT Group’s 37,000 commercial vehicles.

The deal includes all of BT’s light commercials, large commercials and specialist vehicles, HGVs, plant and ancillary equipment.

The majority of the fleet resides in the Openreach unit, delivering full-fibre broadband across the UK.

The initial seven-year contract includes service, repair and maintenance, portfolio management,

glass replacement, and pool vehicle/rental management.

Holman confirmed that it will be managing BT Group vehicles of all sizes and specialities in the same way it does for a number of large mixed fleets in other sectors.

These will be looked after through Holman’s own network of garages using existing relationships with main dealers where relevant.

To support the contract, which begins on 30 September, Holman is expanding operations into

Birmingham with a new facility and new roles ranging from leadership through to trainee.

Nick Caller, Holman UK MD, said: “We are delighted to have been selected by BT to win what is arguably the largest fleet management contract ever awarded in the UK.

“Adding such a significant fleet to our portfolio allows us to accelerate products and services already in the pipeline. Additionally, our partnership with BT Group has identified areas

MBBA invests in 13 Krone trailers

MBBA Logistics in West Thurrock has invested in 13 new skeletal trailers from Krone, partly to replace older units but also to accommodate winning new and improved contracts.

The container logistics specialist shifts goods to and from ports and operates out of Tilbury, London Gateway, Purfleet and Felixstowe.

Some of the new trailers will go into its own fleet and others are destined for subcontractors. The new fleet includes goosenecks for additional stability for certain loads.

“We already owned a few Krone skeleton trailers and were really happy with them,” said Benjamin Abram, director at MBBA Logistics. “We needed to expand so it made sense to me to buy more Krone and keep the fleet all the same. We do a wide variety of work, so we needed to reflect that in our trailer fleet.”

where we wish to invest further to support all customers, partners and prospects alike.”

British Land secures planning for green Paddington logistics hub

British Land has gained planning permission for a 121,000sq ft logistics hub in Paddington, London, which the developer estimates will remove around 100 large vans from Westminster’s roads every day.

The facility, located at 5 Kingdom Street, Paddington, will provide inbound access to HGVs with outbound deliveries via smaller electric vehicles and electric cargo bikes.

The former Crossrail works site

will serve the whole of Westminster, with British Land estimating it will cut annual carbon emissions by up to 90%.

The hub is expected to save three times the carbon absorbed by all the trees in Hyde Park. British Land also estimates the site will create over 500 new jobs and training opportunities.

The announcement follows the recent publication of research by Centre for London and University College London, commissioned by British Land, in response to the demand for last-mile deliveries in city centre locations.

The research found that London was particularly challenging when it comes to urban logistics, with its centre some distance from out-of-town hubs and traffic congestion often leading to delays.

Photo: Shutterstock

Operators need discounts on new vehicles and better charging network to become carbon free

Help needed to hit zero

The government needs to give far more support to the logistics industry if it is to meet the 2050 deadline to achieve net-zero carbon emissions, according to the Electric Vehicle Report 2023, produced by Logistics UK.

Inadequate fiscal support to offset the higher purchase price of zero-carbon trucks and vans and a failure to provide a public charging network for commercial vehicles are just two of the factors having a significant impact on the confidence of operators to invest in electric vehicles (EVs).

In 2022, EVs represented just 0.9% of the UK’s 4.2m-strong van fleet, up from 0.3% in 2019. And while most of the 32 businesses surveyed for the report – 62% –plan to have decarbonised their van fleets by 2030, significant barriers remain that prevent the uptake needed to achieve the current deadlines.

In 2030, sales of non-zeroemission vans will end. In 2035, all new trucks under 26 tonnes GVW must be zero emission –and in 2040 that will extend to all new trucks. On top of these deadlines, the government is proposing a zero-emission vehicle mandate that will require vehicle makers to ensure at least 10% of new vans are zero emission in 2024, rising incrementally

each year to 70% in 2030 and 100% by 2035.

David Wells, chief executive of Logistics UK, said: “The logistics sector is fully aware of its responsibilities to decarbonise and is keen to do so. However, with respondents reporting wideranging costs to upgrade their energy supplies to depots –between £100,000 and more than £1m – a lack of meaningful scrappage schemes, acquisition costs on the rise and volatile energy prices, it is an uphill battle that cannot continue without increased support from government.

“Our industry operates on very narrow margins of about 1% and with significant inflationary pressures, increased wage bills and

LOGISTICS UK’S KEY DEMANDS

Power supply

A fair and equitable approach for funding

electricity connections, with an electricity generation roadmap to enable the expansion of depot charging for EVs, transparency on available grid capacity, sufficient supply margin and common service agreements among distribution network operators, plus regularly reviewed energy support to manage shocks and industry engagement to unlock energy generation investment.

EV public chargepoint network

An EV charging network that is fully accessible to large electric vans now and electric trucks in the future, supported by an EV charging infrastructure roadmap with clear milestones to drive an accelerated uplift in suitable public charging infrastructure with high reliability standards.

Fiscal support

Embed certainty for fiscal support aimed at encouraging logistics operators to decarbonise their operations, including grants, and amend the

the rise in total road vehicle operating costs, logistics businesses need supportive fiscal measures to be able to upgrade their fleets and energy supplies without having to pass on increased costs to customers.”

The cost and availability of new EVs is a major concern for the logistics sector, with the current maximum plug-in EV grant of £5,000 for vans and £25,000 for trucks covering only a fraction of the extra cost of these vehicles. The current grants end in March 2025.

Michelle Gardner, deputy director of policy at Logistics UK, said: “The total cost of ownership of these vehicles is increasing and we would like to see more support from government just to get things

qualifying criteria for the 100% annual investment allowance for vehicles acquired via leasing or hiring and clarify the usage of the allowance to include investments in increasing electricity supply to commercial vehicle premises.

Regulations

Fundamental reform of regulatory vehicle weight thresholds, driver training and vehicle inspection regimes to avoid regulatory conflict to include redefining the current derogation for category B drivers to tow a trailer on an alternatively fuelled vehicle, aligning it with the 2030/2035 phase-out dates while maintaining the existing definition of eligible low-carbon fuels.

Low carbon fuels (LCFs)

LCFs incentivised in the tax system to be cost-competitive with diesel and a clear, long-term plan for utilising LCFs across transport modes, based on industry evidence, backed by investment in infrastructure and R&D, and supported by a clear regulatory framework.

moving. The grant has been decreased in value and that is problematic for long-term business planning.

“There are also other things the government can do in terms of capital tax allowances for investment that could help businesses.”

Quite apart from a lack of public chargers for commercial vehicles, the report also found that fleet operators wanting to charge EVs at depots often faced uneconomic costs to reinforce electricity connections.

“There are challenges with vehicle supply but lack of charging infrastructure is still the major barrier to EV adoption,” Gardner said. “The cost and time involved to upgrade power supplies at depots came through really strongly from our members.

“Unless these blockages are cleared, fleets are not going to be able to transition to EVs as quickly as they need to.”

 Logistics UK’s Electric Vehicle Report 2023 is available at: www.logistics.org.uk/ research-hub/reports/ev-report

Photo: Simon Collins / Shutterstock

Road Transport Expo

Leading operators and manufacturers in attendance for what promises to be biggest-ever show

Gathering with the best

MT Top 100 operators are well represented in those already registered to attend the Road Transport Expo (RTX) next month.

Individuals from more than half of the UK’s largest 100 HGV operators by fleet size are down to attend this bumper summer tradeshow, with this figure growing daily.

And it’s easy to see why the event, with it’s dedicated ‘all about the truck’ focus, is attracting the attention of industry’s largest fleet operators.

More than 200 trade exhibitors will be bringing along their latest vehicle and product technology, including all the major HGV manufacturers: DAF, Isuzu Trucks, Iveco, MAN, MercedesBenz, Renault Trucks, Scania and Volvo.

There will also be a three-day conference programme featuring experts from across the logistics sector, including Logistics UK, RHA and Zemo Partnership, to name but a few.

“We have designed this show from scratch by listening to what operators want from a tradeshow,” said Vic Bunby, divisional director at show organiser and MT publisher Road Transport Media.

“We understand how busy fleet managers are and have made sure RTX provides everything they might need to support their business, all in one vast venue.

“The 2023 show is even bigger and better than last year’s debut event and we would encourage you to come and join your industry colleagues and explore this exciting new show concept.”

RTX takes place from 28-30 June at NAEC Stoneleigh, Warwickshire, which is easily accessed from major transport links: it’s served by both the M6 and M40 motorways, is five miles from Warwick

BUCKLE UP FOR RIDE & DRIVE

Parkway and Coventry railway stations and just over one hour’s journey from London Euston. There are also more than 10,000 free onsite parking spaces located adjacent to the halls. Registration to attend is completely free for visitors; simply head over to roadtransportexpo. co.uk to book your free place and join your industry colleagues for a busy few days of networking, conference talks and leading technology exhibitors. 

If you are thinking of adding new vehicles to your core fleet, you might be interested to take part in the RTX Ride & Drive experience, which proved a popular attraction in 2022 with around 150 test drives taken.

Back again this year, it features all of the leading truck manufacturers with a selection of their models, right up to 44-tonne artics, which will be available for suitably qualified HGV licence holders to sample on public roads. They will also be joined this year with the latest electric vans from Ford and Mercedes-Benz.

For those not wishing to drive on the highway, a new feature for 2023 is the on-site route. Here, guests can gain a quick taster of a variety of vehicles on a quiet area of the Stoneleigh site, which may be of particular interest for those wanting an introduction to the numerous electric vehicles expected to be present.

To find out more, simply tick the Ride & Drive option when registering at roadtransportexpo.co.uk and you’ll be sent full details ahead of the show on how to get involved.

Happy driving!

Institute’s new report fails to tackle overly bureaucratic processes and a funding imbalance

A missed opportunity

On 2 May 2023 the Institute for Apprenticeships and Technical Education published its report following its transport and logistics route review.

Unfortunately, what was a promising initiative from the institute does little to encourage the sector to increase the number of apprentices it engages.

It is claimed that it is the employers who are at the heart of the work that the institute does, but the outcomes and recommendations do not reflect the views I hear from the employers involved in the Trailblazer Group.

The review commenced in September 2022, with public consultation in the form of a 20-question online questionnaire, along with employer/stakeholder webinars for each mode of transport plus warehousing.

It was evident that the Department for Education had set an agenda with two principal themes – decarbonisation and new technology. While both are important challenges for the sector to resolve, there is limited attention given to the real issues apprentices are going to face in their new roles.

Principals/characteristics

A major outcome from the review is the establishment of nine route principals and characteristics:

 equity, diversity and inclusion;

 safety and regulation;

 customer experience;

 continuous improvement;

 decarbonisation and sustainability;

 business ethics;

 security;

 wellbeing and welfare;

 data skills.

While these are all worthy attributes to be incorporated within the apprentice’s learning – and it is reassuring to see the recognition of the importance of the customer – there is no mention of efficiency, productivity, cost control or profitability. From my first day in transport, and for the whole of the 50 years I spent in the industry, I was aware of the business culture and the bottom line. This is something the apprentice will soon recognise and it should therefore be part of the training plan.

One practical example the institute could review to improve ethnic diversity would be that of the

English qualification for apprentices. Within the sector we now have many warehouse operatives who do not have English as their first language, yet they train to become competent warehouse staff without an apprenticeship.

Recommendation

A welcome recommendation is a review of the names of some of the pathways to be more reflective of the roles and occupations in the sector. How many transport operations supervisors do you know? And how does that compare with the number of transport managers you have met?

Not surprisingly, the consultation showed an increase in demand for Level 2 and Level 3 apprenticeships, but the review focuses more on the potential for higher-level apprenticeships and technical qualifications. Again, while it is important to provide for higher technical education in the sector in the future, little consid-

eration was given to the skills shortages currently facing us.

Much of the dialogue regarding the review referred to the maritime and air sub-sectors of the logistics industry – but they represent less than 9% of all apprenticeship starts since the levy was introduced. The road freight transport and logistics sub-sectors originate more than 63% of all apprenticeship starts but had far less consideration in the review.

By the end of April 2023, the transport and logistics sector will have contributed £1bn in Apprenticeship Levy since its introduction in April 2017. The sector has recovered only about £290m of that fund from transport and logistics apprenticeships.

Conclusion

The route panel review provided the opportunity for the institute to invite more employers to use apprenticeships and attract more apprentices to the sector in order

to solve the long-term skills shortage we are undoubtedly going to face.

Unfortunately, it did not address the Education and Skills Funding Agency rules that prevent certain essential costs being recovered in the funding level of an apprenticeship. As a result, the depressed funding levels have discouraged both employers and training providers from offering some transport and logistics apprenticeships.

Nor did it look at the longwinded and bureaucratic processes that stifle the development of new apprenticeships or the review of existing ones.

As a sector, we need to raise the level of lobbying to the Department for Education in order to have the means to attract the workforce we need for the future – and recover the money we have overpaid in levy.

■ Jim French MBE, Co-chair Trailblazer Group, Transport and Logistics

LEARNING ZONE: The review could have done more to address the skills shortages affecting road transport

Photo: Shutterstock

Have you turned off the switch?

The recent collapse of two more haulage firms (see cover), highlights not only the cost pressures operators are facing, but also why switching their fleets to zero carbon probably isn’t a current priority. There’s been great momentum behind the net zero transition in the last couple of years, but it feels like it’s got to a certain point and stayed there. It needs another push – partly because the tough times have inevitably tempted transport firms to hang on to old technology for longer.

The fleet manager of one big parcel firm I spoke to recently admitted that, given the cost of investing in zero carbon trucks and related infrastructure, early adoption simply isn’t affordable. Firms face a cliff edge, wary of losing their competitive advantage so preferring to hang on and step off at the last point.

And it’s all very well for roads minister Richard Holden to suggest the DfT will partner with the commercial sector, including the truck makers, to help develop an HGV charging infrastructure. But this

would just mean operators investing in building it into their own networks, which, aside from the huge costs, is a massive technical challenge.

Holden also reassures us that the price of electric HGVs will shrink in the same way that they have in the wider automotive sector. But trucks are a very different proposition, and the amount of batteries needed for a decent range in a 4x2 tractor unit would take you up from 8 tonnes to 12. That’s a lot of batteries.

What the industry needs is more government help. But instead, manufacturers are being penalised for not having built the right balance of ICE and electric trucks. And the problem for operators is that when it comes to their next buying round they will soon be pretty much forced into an alternative. It may not be what they want, it may not be affordable, and it may not even be ready. With the technology changing at such a pace, the risk is buying something now when in two years’ time something comes out that’s better. Difficult decisions lie ahead.

LST opportunities bring admin burden

The recent Department for Transport (DfT) announcement on the end of its longer semi-trailer (LST) trial will be met with mixed feelings, depending on who you are.

Paul Allera Technical director, RHA

It appears that operators will now be able to use the trailers without applying for a permit. However, there will be caveats in place.

Those who have taken part in the trial over the past 11 years will have the data, experience and knowledge of the routes and journeys these vehicles have covered. Those operators who may now be looking to add these trailers into their fleets will need to get to grips with one of the disadvantages that became apparent from the start of the trial – increased admin responsibilities.

Operators need to have a route plan that specifies the roads the LST will be used on and a risk assessment of those established routes, made in writing and kept in the cab when in use (with copies held by the operator for at least two years after the end of a route).

They also need to notify the secretary of state by electronic communication of the intention to use an LST and provide operator licence and contact details. This applies only until 31 May 2028, when the secretary of state will review the legislation.

It’s not all doom and gloom, and there have been plenty of plus points since the introduction of LSTs. For those who

invested their cash at the start, it was a risk – they all understood the DfT could pull the plug on the trial at any time. So we don’t have 1,800 trailers parked up somewhere rotting away and there are no stranded assets in fleets.

After speaking with various operators during the trial, I would say the pros appeared to outweigh the cons – not for all, but for a majority. For those who carry light- to mid-weight loads, the option to add an extra two to four pallets was especially valuable. And as there was no height restriction, this resulted in up to eight extra pallets if you ran double-deckers.

This produced benefits in additional payload, reduced operational delivery cost, less fuel and AdBlue consumption, lower tyre wear and, better still, a smaller carbon footprint.

For those operators who carry the heavier loads, it would have been good to see the payload increased – but they saw no real benefit, because the increase in unladen weight resulted in reduced payload. Is it time to reconsider gross vehicle weights to increase utilisation of longer semi-trailers? I believe it is – after all, it is now 30 years since we introduced 44,000kg.

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A question of infrastructure

There are countless questions facing operators wanting to decarbonise, but one of the most pressing for anyone considering electrifying their fleet is the potential infrastructural cost.

Dr Nicholas Head, XPO’s head of sustainability, says: “Infrastructure is the major issue in transitioning to zero-emission vehicles for all logistics operators. There are a number of issues around ensuring you have sufficient power available.”

The cost of upgrading infrastructure to support an electric vehicle fleet is extremely high, involving groundworks and a network connection upgrade. Charging 100 electric vehicles essentially requires the power supply to a small village.

The rules on network connection costs have recently changed. From 1 April, customers making demand connection applications will pay for extension assets only. Reinforcement costs will be fully funded by the distribution network operator (DNO) running the local electricity network that connects the National Grid to users.

However, this means the ‘second comer’ rules, in which others who go on to use the reinforced network

For many operators current infrastructure provision means decarbonisation is a no-go. Louise Cole looks at the issues and potential solutions

POWER DRAIN:

Infrastructure upgrades are essential, as charging 100 electric vehicles requires a power supply similar to that of a small village

LOW-CARBON OPTIONS: Evri has a fleet of 160 Iveco Stralis and S-WAY compressed natural gas fuelled trucks

ENVIRONMENTAL IMPACT OF BATTERIES

A report by engineering consultancy Ricardo for the DfT suggested that –dependent upon energy feedstock – battery-electric artics could have a 73% lower lifecycle carbon footprint than a comparable ICE vehicle.

However, even if the UK creates a plentiful and secure supply of green energy, there is also another environmental impact – that of the raw materials. Nickel, cobalt and lithium mining has created environmental damage in South America, the Philippines and Africa.

Lithium uses 2 million tonnes of water for every tonne of product – currently running at 185,000 tonnes a year – depleting available water for entire regions. “In Chile’s Salar de Atacama, lithium and other mining activities consumed 65% of the region’s water. That is having a big impact on local farmers – who grow quinoa and herd llamas – in an area where some communities already have to get water driven in from elsewhere,” says a 2020 United Nations report, which also details substantial ecological degradation, forced migrations, soil and water pollution, child labour and human rights abuses associated with battery raw materials mines.

The requirement for these metals is also outstripping supply, so not only will the price of batteries be driven up, but at some point the materials may no longer be available – or will come at the price of immense environmental disruption.

Zemo’s Esposito says we need the same rigorous standards for the provenance and production of batteries and their constituent materials as we do for biofuels (through the Renewable Fuel Assurance Scheme). The UNECE, EU, US and Canada are looking at suitable standards but it is a global market.

There will also be a predicted 12 million tonnes of used vehicle batteries retired by 2030. While second-life uses are widely discussed, repurposed batteries are predicted to have an additional life of five to eight years depending upon their condition. So far, a handful of automotive OEMs have set up battery recycling schemes; however, only 5% of the world’s batteries are currently recycled because it is a time-consuming and difficult process.

There is research into replacing some of the more problematic elements in batteries – such as cobalt – with more accessible or plentiful materials such as silicon or iron, but so far with limited success.

supply would retrospectively share its implementation cost, will no longer be applicable.

An Energy Networks Association (ENA) spokesperson says: “The networks are focused on enabling decarbonisation in the quickest and most affordable way possible. There is a real focus on improving and accelerating the connections process, through ENA’s action plan and National Grid’s five-point plan in particular, and we are continuing to work with industry, government and the regulator to achieve this.”

Each DNO publishes a connection charging statement that details the unit costs for equipment and construction services. Quotes should therefore offer a breakdown of the connection charge, cross-referrable to the connection charging statement, including non-contestable and contestable costs – this helps operators to choose the most competitive accredited supplier.

As well as the regional DNOs, there are a handful of accredited independent connection suppliers.

Unfortunately the cost of any specific development is variable by location, depending upon the groundworks necessary, the current available supply, capacity and length of cabling and third-party costs such as local authority charges for road closures.

Head says: “One DNO can charge three or four times the price of another, which can sink a whole business case if your connection need is in a strategic location.”

This variability of costs from one site to another is another obstacle to operators establishing a pan-regional business case for decarbonised logistics.

Changing the game

UPS has recently bypassed the need for a network upgrade at its Kentish Town site by working with UK Power Services to create a ‘smart grid’, which it describes as a “game-changer” for logistics decarbonisation. This allowed UPS to increase its electric fleet from 65 to 170 vehicles without upgrading its network connection.

UK Power Network Services implemented “new smart electric vehicle charging systems to power UPS’s central

MIXED FLEET: Speedy Services runs electric vehicles from a variety of OEMs

London delivery fleet for what is believed to be the first of its kind in the world on this scale”.

The smart grid comprises an active network management system that monitors the maximum demand required by the site and controls the vehicle charging, scheduling the charge during the evening, ready for the following day’s delivery, supplemented by an energystorage system, capable of receiving or discharging energy depending on tariffs, demand and vehicle requirements. The project involved upgrading existing charging posts, and the smart grid application that connects all the vehicles and the energy storage system.

Kentish Town is a pilot project for UPS, which hopes to roll it out to other sites.

Artur Drenk, UPS director of sustainability for Europe, says: “These technological advancements should be adopted more widely to bring value to fleet operators of all sizes and consider broader customer and macroenvironmental demands.

“Savings can vary depending on the specific site and facility. It’s important to understand how the model supports fleet electrification rather than focusing on a specific percentage number. When transitioning to fleet electrification, it’s necessary to calculate the required amount of electrical energy needed to supply the fleet at each centre daily, considering factors such as electric fleet size, required distance per vehicle, and the energy intensity for each type of electric vehicle.

“The smart-charging infrastructure is designed to reduce resource consumption and operating costs, while providing potential gains through the use of vehicle-togrid [V2G] technology in the future. This partnership has led to a game-changing development in smart grid technology.”

SMART THINKING: UPS’ ‘smart grid’ has enabled it to increase its electric fleet without upgrading its network connection

No guarantees

Speedy Services runs Fuso eCanters, electric Econics, and 3.5-tonne Ford eTransits within its mixed fleet. It also has 50 eTransit panel vans and 100 eTransit chassis cabs on order.

“It’s very important to choose the right supplier when planning network upgrades,” says fleet director Aaron Powell. Currently, it gives drivers ‘juice booster’ cables, which facilitate an 11kW charge from a standard threephase connector.

Even for companies running eLCVs, the lack of consistent public charging availability is a problem. “Range anxiety is really charging anxiety. Knowing where and when you can charge your vehicle is very important. Even though there are apps that can highlight public van chargers, there’s no guarantee of availability or pricing,” says Powell.

Available power is far from the only barrier to fleet electrification. For firms like UPS or Speedy Services

ACTION NEEDED – LOW-CARBON FUELS

that can recharge vehicles during the night, long charge times are not necessarily a problem. However, for 3PLs like XPO it is. Head says: “Battery density of electric CVs is improving apace, but charging times are still not fast enough. A 50kWh rapid charger would require four hours to charge a 200kWh battery. As operators, we need that to reduce significantly, ideally in the region of 45 minutes to an hour. Rapid chargers for HGVs will also need to be in the 500kW to 1MW range, with the current standard being around 350kW; this is a further barrier to uptake and trialling within operations. Diesel vehicles are often double and triple shifted, so charging time is a key barrier to uptake currently.” 

A recent Zemo Partnership report on stakeholder responses into the Low Carbon Fuels Strategy highlighted that road transport needs these fuels, and innovation into their production, vehicle/fuel optimisation and use, if it is to achieve air quality improvements or reduce the sector’s carbon footprint.

Low-carbon fuels comprise: biofuels; renewable fuels of non-biological origin (RFNBOs), including hydrogen produced by renewable electricity through water or carbon dioxide; synthetic fuels; ammonia; and recycled carbon fuels. The strategy will run until 2050.

Gloria Esposito, head of sustainability at Zemo Partnership, says: “The quicker we have carbon reduction, the better. We need expansion of refueling infrastructure, affordable solutions and a clear sense of policy direction.”

Although fleets will ultimately stop buying internal combustion engined (ICE) vehicles, low-carbon fuels are still their most immediate and cheapest way of making a profound difference to their carbon footprint now, and will be essential for decarbonising legacy ICE fleets.

“Operators should be looking for incremental gains and easy wins. Get to Euro-6 first. A 20% to 30% blend of a low-carbon liquid fuel in the HGV fleet overall would make a huge difference to the carbon footprint of the country,” she says. “The use of biomethane in gas trucks is also important for artic fleets, as we are now seeing biomethane truck fleets report carbon-negative GHG emissions.”

Every other solution involves substantial expense and is fraught with uncertainty, says Esposito. Even fact-finding missions like the Zero Emission Road Freight Trials (Zerft) will take four years to generate real-world data. Low-carbon fuels are the way for operators to start decarbonising now, with minimal risk or outlay.

XPO, which has an ambitious target to reduce emissions by 30% by 2030, currently runs 10% of the fleet on HVO. “This will be 15% by the end of the year,” says head of sustainability Dr Nicholas Head.

“However, you can’t afford to invest too extensively in a low-carbon fuel path if it has no long-term future.

“Given that there is currently no public charging infrastructure for electric HGVs and very little for hydrogen refuelling, it will be difficult for the logistics industry to meet the 2035/2040 deadlines with sufficient scale. The government should consider extending the use of low-carbon fuels as a bridging solution and look at incentivisation as a means of transitioning from low-carbon fuels to zero-emission vehicles.”

He says the fluctuation in HVO pricing is problematic. Esposito hopes that, as demand and capacity for low-carbon fuels is growing, pricing will soon become more consistent.

The industry will still require fiscal support, however. The government is currently considering a Zemo proposal that would offer a fuel duty rebate proportional to the percentage blend of low-carbon fuel.

SUSTAINABLE FUELS: XPO runs a fleet of Volvo FM trucks on biofuels for its contract with British Gypsum

HIGH PERFORMANCE: Operators including Hovis and Travis Perkins use Green D+ HVO from Green Biofuels

Out of your comfort zone

Clean air zones are here to stay, at least for now, but more and more local authorities are also exploring the use of zero emission zones. Chris Tindall reports

It has been calculated that within two years there will be more than 500 low emission zones across Europe as city leaders recognise the urgent need to reduce air pollution.

But in this stampede to address public health concerns, are the needs and requirements of the haulage industry disappearing into the fog?

For the RHA, the answer is ‘yes’.

“No-one disputes the idea of cleaning up air,” says Chris Ashley, RHA policy lead for environment and vehicles. “The issue is about making sure the vehicle market can support clean air plans.”

The RHA estimates that 75% of the HGV park is now Euro-6, which means most operators are running fleets now that are compliant with a typical city’s clean air zone (CAZ) requirements.

However, some areas of the country are going further and exploring the idea of zero emission zones (ZEZs) and with the commercial electric vehicle market not yet mature enough to handle a scramble for compliant vehicles, the concern is that firms will be penalised.

“There’s a political decision to make: how much are smaller businesses supported by this?” continues

Photo: Bath & North East Somerset Council

Ashley. “Yes, we completely get the issue that clean air compliance has to be made as quickly as possible, but it must be balanced by the needs of supporting smaller businesses and in our view that’s always been out of kilter.”

Absolute zero

Oxford became the first city in the UK to pilot a ZEZ in February 2022 and a county council spokeswoman says it is proving to be a catalyst for accelerating a transition to zero emission vehicles.

Asked why Oxford chose to launch a ZEZ and not a CAZ, the spokeswoman says: “There is no ‘safe’ level of nitrogen dioxide: in the long term even low levels can be harmful.

“The predicted impact of climate change is well understood, with the UK government committing to zero carbon by 2050. Oxfordshire councils are supporting this by making their own commitments to zero carbon.

“The transport sector is by far the largest contributor to total emissions of nitrogen oxides in Oxford. Additionally, road transport is estimated to contribute around 33% to UK carbon emissions.

“The introduction of a zero emission zone is a targeted solution which we believe can deliver greater improvements to air quality than less stretching standards.”

Bath & North East Somerset Council put itself squarely in opposition with not only the RHA but also the county council after attempting to adjust its CAZ so that even Euro-6 lorries were charged for entering the zone.

It had already annoyed the RHA when it launched its CAZ in the middle of the pandemic, but when it emerged it wanted to start charging Euro-6 HGVs over 12 tonnes GVW £50 a day, Wiltshire county council publicly criticised the idea.

Richard Clewer, leader of the council, says: “These are the cleanest HGVs currently on the market, so this feels less of a clean air initiative and more of a quest to restrict all HGVs in the city.

“This proposal, along with the now extended temporary 18-tonne weight restriction on Cleveland Bridge, is pushing this traffic issue on to Wiltshire roads and through towns such as Bradford on Avon, Corsham and Westbury, and this is something that we are not prepared to accept.”

Ashley says the RHA also told Bath & North East Somerset Council “in no uncertain terms” the plan was not realistic.

Birmingham rolled out its CAZ a couple of years ago and it appears to be happy with the reductions in harmful emissions since its launch.

“In a relatively short period of time the percentage of the most polluting vehicles driving through the zone every single day has more than halved and levels of the air pollutant, nitrogen dioxide, have started to reduce,” says a council spokeswoman. “Clean air for everyone remains a key priority of the council and we want to thank every person and organisation who has changed how they travel through the city centre or upgraded to a less polluting vehicle. These individual changes all add up and help improve the lives of everyone who works and lives in the city centre.”

Greater Manchester’s plans for a CAZ were delayed after it became apparent businesses would struggle to upgrade their vehicles so soon after Covid-19 and in the face of rapidly rising new and second-hand vehicle prices due to supply chain delays.

Careful planning

A Greater Manchester clean air spokeswoman says: “Greater Manchester leaders are progressing with the government’s request for further evidence in relation to the case for a new clean air plan for the city region.

“Greater Manchester’s authorities remain committed to cleaning up the air our residents breathe and will continue to work with government and others to consider any opportunities to further improve air quality in the future.

“We continue to believe that an investment-led, non-charging clean air plan is the right way forward, as opposed to a charging zone.”

ENOUGH TO GO ROUND?

Lessons have to be learned. That’s the message from the RHA regarding the proliferation of clean air zones back when the Euro-6 era was dawning and now, as it eyes warily a growing appetite among local authorities for zero emission zones (ZEZ).

“Our first concern was that there were not enough Euro-6 vehicles in the market,” says Chris Ashley, the association’s policy lead on the environment and vehicles. “As time has gone on, the Euro-6 market has had time to establish itself.”

So, are lessons being learned and are the plans by at least a couple of councils to forge ahead with ZEZs revealing that more education is required?

“We just don’t have enough zero-emission vehicles,” Ashley responds. “There are a few outliers

LEARNING LESSONS: The RHA’s Chris Ashley is not shy about highlighting unrealistic council plans

I am aware of that have difficulty accepting the lessons that others learned: Oxford and Bath.”

He continues: “Bath consulted on amending their CAZ and the RHA weighed in and told them it was not realistic.

“By charging Euro-6 vehicles you incentivise a switch to zero emission vehicles and if they are not available then it’s absolutely pointless.

“The wider point is learning the lesson – allow the vehicle market to establish itself to cater for these new requirements or else you will squeeze smaller businesses.”

Logistics UK is in agreement: “Currently the market for zero tailpipe emission vans and trucks is in its infancy with challenges around increased costs and lack of infrastructure for operators, where vehicles are available to acquire,” says Logistics UK’s deputy director Michelle Gardner. “While we strongly support measures to improve air quality, ZEZs would penalise businesses and ultimately consumers.

“Euro-6 has already delivered significant improvements in air quality, so these vehicles should not be charged when vehicles are providing an essential service and delivering goods.

“At the same time, policy interventions should be targeted at reducing single passenger car journeys, which will enable more efficient freight movements and bring wider social and economic benefits.”

A STEP TOO FAR: Michelle Gardner of Logistics UK believes ZEZs would penalise businesses

UK FIRST: Oxford was the first city in the UK to pilot a ZEZ

This is something the RHA agrees with.

“What we understand from Manchester is they have done some remodelling of their air quality profile and advances in bus technology mean they can now invest in zero emission buses and that can go a long way to reduce pollution as quickly as possible,” says Ashley.

Progress concerns

However, European movement group Clean Cities Campaign (CCC) is less happy with the delay. “We are particularly concerned about progress in Greater Manchester, given there is no such thing as a healthy level of exposure to air pollution and the city region has some of the most polluted air in the country,” explains Oliver Lord, CCC head of UK campaigns.

“We know that polluting vehicles are a huge part of the problem and evidence from other cities shows that clean air zones do work to reduce the harm people are exposed to.

“A smaller clean air zone in Manchester city centre would help to clean the air and make the city safer and healthier for everyone, especially children.”

This is not to say CCC does not understand the stress and pressure councils are under to address air pollution while also trying to support local fleet operators.

ELECTRIC AVENUES

DPD says it remains on track to deliver an allelectric, final mile delivery service to 30 towns and cities by the end of this year.

Its ‘Vision 30’ plan is a key milestone in the firm achieving its aim of becoming the UK’s most sustainable parcel courier and it says it chose the 30 locations based on population size and volume of home deliveries it has there.

These places include Hull, Brighton, Cambridge, Edinburgh and Liverpool.

“This was to ensure we could make the biggest impact as quickly as possible in those larger conurbations, helping reduce emissions but also improving air quality by switching to electric vehicle-only final mile deliveries,” says Tim Jones, DPD UK director of marketing and sustainability.

“We aren’t seeing any supply issues or delays with electric vehicle orders and as of today have around 3,000 in our fleet, which will grow to 4,000 by the end of 2023.”

Lord says delays in introducing CAZs are also “the result of national governments leaving it to local authorities to mop up the mess of diesel pollution and we believe these authorities should get more support in their implementation, as well as support packages for residents and businesses”.

He goes on: “It’s sad we’re even having this debate 10 years after the death of Ella Kissi-Debrah, because we should learn that delays have consequences – the coroner’s inquiry into Ella’s death referred to the delay to London’s low emission zone playing a contributing role.”

National commitment needed

Lord adds that it is not surprising that haulage operators have concerns about a patchwork of zones popping up all over the country, with different rules and charges. He says this “speaks to the vacuum left by the UK government, which has broadly shirked responsibility in the rollout of clean air zones and left it to local authorities to pick up the pieces”.

“We hope that all roads will be clean in the future and this requires action at all levels of government to improve air quality, including a national communications campaign on clean air zones, a national vehicle scrappage and retrofit scheme targeted at those who need the most support and a clear vision for how clean air zones will evolve in future to meet climate change goals,” he adds.

Lord also says it is inevitable ZEZs will replace CAZs across the country to clean up city air faster, “as well as reducing greenhouse gas emissions from road transport, which has broadly stagnated over the past few decades in the UK.

“The sooner city leaders start planning for zero emission zones and engaging with industry then the sooner we will avoid confusion, reduce costs and generate green jobs,” he argues.

■ For all the latest news and information dedicated to the decarbonisation of the commercial vehicle and road freight sector, check out our sister website FreightCarbonZero.com

FRUSTRATED AMBITION: A lack of both infrastructure and compliant vehicles make it challenging for logistics businesses to operate in ZEZ areas

Photo: Emily Pharez Photography

Turning problems into opportunities

Veolia’s Gary Clark talks to Steve Hobson about the transformation of the waste industry over the past few decades and what the future might bring

Veolia UK fleet director Gary Clark takes the expression “the biggest problem is the biggest opportunity” very seriously.

In the UK Veolia employs 13,000 people and is based in Kings Cross, London, with a regional office in Cannock, Staffordshire. It runs a whole host of environmental services including recycling and waste management contracts for over 30 local authorities. The business began in the UK in the 1990s with the start of compulsory competitive tendering of local authority services, and was originally called Onyx. It rebranded as Veolia Environmental Services in 2005 and is now part of Veolia Environnement, the global resource management business that is listed on the Paris stock exchange and turns over €42bn (£37bn) a year.

Clark has been with Veolia for 20 years and MT meets him at the company’s Wembley depot and workshop. The firm is due to take delivery of 40 Dennis Eagle eConnect battery electric refuse collection vehicles (RCVs) to replace diesel vehicles on its waste (or recycling, as it

FULLY COMMITTED: Gary Clark has been working for Veolia for 20 years, but his career in the environmental industry began in 1980

now prefers to call it) collection contract with Westminster City Council.

The size of the problem – and so the opportunity – is clear: studies have shown that an RCV on a stop-start urban collection round can be doing as little as 1.5mpg. That makes it an ideal application to switch to electric as it can use stored energy when needed to operate the compactor or drive the vehicle, rather than having an internal combustion engine running all the time.

Emission-free partnership

Veolia has held the domestic and commercial recycling collection contract with Westminster since first winning it in 1993, and it operates 250 vehicles on this 24/7 contract.

“This is a partnership and Westminster has invested through us to take steps towards emission-free transport,” says Clark. “This project started seven years ago and the collaboration never stops growing.”

Veolia was already buying diesel RCVs from Dennis but it runs a multi-brand fleet, which includes other leading chassis manufacturers.

“Veolia works closely with customers and suppliers to find the right solutions,” says Clark. “We are seeing a steady increase in requests to procure electric vehicles, especially from our municipal clients who have stringent sustainability goals. Over three-quarters of local authorities have declared climate emergencies and many are targeting net zero by 2030, so there is real impetus to transition to zero emission operations.”

By 2030, Veolia expects at least 10% of its fleet to be powered by electricity or alternative zero emission technologies. In 2030, it will stop buying fossil fuel powered RCVs and by 2040 its fleet will be fully decarbonised.

Veolia already has around 200 battery electric vehicles (BEVs) on the road on its recycling collections and street cleansing operations in partnership with UK local authorities. Where battery electric is not yet feasible, it is using transition fuels like hydrotreated vegetable oil (HVO) to reduce carbon emissions.

While Clark does see a potential role for hydrogen fuel cells for logistics operations applications, he says the biggest problem – apart from the even higher purchase price – will be refuelling infrastructure.

Clark started out as a 16-year-old truck maintenance apprentice in 1980, working for Ready Mixed Concrete (now RMC Group) and Hales Waste.

“I was really lucky to have lots of career support from Ready Mixed Concrete, but reached the end of that path when RMC decided to amalgamate all of the 64 group workshops nationally,” he says. “I was drawn away from my engineering area and was asked to review and consolidate the locations. I spent three years travelling the country, working with workshops and suppliers, speaking to people, and calculating how a workshop would look after all group activities.”

Then in 2003 RMC decided to sell Hales Waste and RMC Truck Care to Biffa.

“Biffa was going to be faced with exactly the same

situation, and they wanted me to go through the same process,” Clark says. “I said ‘I’ve done that for three years’ and I took redundancy and joined Onyx as transport manager.

“I took an opportunity as I had this desire to understand municipal, which is quite complex. Onyx gave me lots of opportunities and in 2016 I was promoted to fleet director.”

The changing role of waste

While Veolia operates the largest fleet in the UK’s waste sector, Clark says the business is “much more than that”.

“If you go back 20 or 30 years, it was all about transporting and disposing of waste,” he says. “It was just rubbish. But if you look at the transformation we’ve gone through, this rubbish is now a tremendously valuable resource.

“Valuable in a direct way, in that it is a commodity, and valuable in an ecological way, in that if we don’t do something with it, we’re going to stick it in the ground and then realise it’s doing something wrong to the planet.

“We have water treatment, waste treatment, energy from waste and we recycle plastic. We work with our customers to separate the streams of material, not waste, and reduce the amount of material that goes to landfill.”

Clark gained some experience with alternative fuels when he experimented with early gas trucks, which suffered from a combination of being conversions of diesel and petrol engines and high water content in the mains gas they were powered by. He also had bad experiences with dual fuel methane/diesel and diesel/electric hybrids, but when the second generation of compressed natural gas (CNG) trucks emerged, Veolia trialled a small fleet of 6.5 and 26 tonners.

“In a similar way, the manufacturer had taken a route to market for the vehicle, with bottom-end and top-end adjustments,” says Clark. “It wasn’t bespoke in design and as an engineer I was thinking ‘you’ve got to have bespoke design’.

LONG SERVICE: Veolia has been running recycling collection services for Westminster City Council since 1993, and currently operates 250 vehicles on this 24/7 contract

“Symbolically, a diesel vehicle is like a carthorse. It’s slow, but it is very resilient to heavy load. Then you’ve got a racehorse. It can run as fast as you like, but if you put weight on it, it’s going to break its legs.

“I used the analogy in communication with the business that CNG was the racehorse. You could generate the power and energy you needed, but we would need bespoke design and smart ancillary turbochargers or superchargers.”

Armed with this experience, in 2017 Clark trialled 16 CNG 26-tonners inside the M25 for one of Veolia’s public sector clients.

“I said ‘right, this is what we’re going to do. We’re going to prove it scientifically’,” he says. “We said ‘we’re going

THE EFFECT OF CHARGING CYCLES ON BATTERY LIFE

As experience with battery electric commercial vehicles is still limited, one of the big unknowns when calculating their total cost of ownership is the working life of the batteries. This is important as the battery packs probably represent 75% of the cost of a BEV and they will require replacing at least once in the life of the vehicle.

“We don’t have the correct analytics around the battery and the effects of the frequency of charging,” says Clark. “It’s not just plugging in and forget about it – you have to manage the situation because the concern we have is will there be significant battery degradation to the extent we can’t use them and we’ve got to buy new batteries?

“That’s why we’re putting a piece of work into place to understand that you’ve got these high-value assets and are there other options for us not to buy the battery but to have a contract on it? Can we take that as an operating cost rather than a capital expenditure and put that risk onto the battery manufacturer? Maybe we could pay on a monthly basis and we won’t end up with this huge cost.

“We’re trying to mitigate this area, because everyone’s talking about renting batteries but nobody’s doing it. I want to encourage the market – we don’t expect to get it for free, we know it’s going to come at a premium, but that has to clearly offset the ridiculous situation of having a useful asset you can’t use because you’re paying tens of thousands of pounds for batteries.”

to data log these vehicles, replicate the duty cycle, get the averages and flatten them out’. We proved without question that when you look at a Euro-6 CNG refuse compaction vehicle at 26 tonnes working in an urban environment, the emissions performance was worse than a Euro-6 diesel.

“That was our springboard to focus on battery electric vehicles.”

Net-zero targets

While Euro-6 diesel or gas engines are generally considered clean when it comes to local emissions performance, the focus has now shifted to climate change and the need to cut carbon emissions too. In common with many local authorities, Westminster City Council has set itself a ‘Fairer Environment’ target of becoming a net zero council by 2030 and a net zero city by 2040.

“All organisations have got to have a net-zero plan,” says Clark. “Euro standards are about carbon oxide, nitrogen oxide (NOx), hydrocarbons and particulate matter (PM). There has been no reference to CO2 at all through the Euro standards.

“If you look at the manufacturers they are all spending lots of money on R&D for BEVs and arguably hydrogen fuel and now Euro-7,” says Clark. “From a manufacturer’s perspective, I would be thinking ‘we’ve got to have a plan in terms of our investment and our return’.

LOW OR HIGH MAINTENANCE?

Like many in the logistics sector, Clark is passionate about the career opportunities the sector can offer young people.

“I’ve only ever worked in the environmental sector,” he says. “It’s all I’ve ever known, but what I love is that every single day we’re generating some really special opportunities for people to join us.

“We need to really focus on bringing people through the ranks. We have some tremendous candidates that have come through and they’re now moving forwards into more academic training and soft skilling as well.

“But we are struggling to find the people to join as technicians. This is not uncommon and all the manufacturers, operators and fleet workshops have the same problem.

“Many operators and dealerships would tend to take somebody with commercial vehicle technical qualifications and we’re not dissimilar. We have generated an upskilling programme and have six people on it and another six in the pipeline. We are working with S&B Academy in Bristol to upskill them and pay them accordingly, so that if they do this extra vocational training and demonstrate the benefit to us we put them on more money.”

“I feel quite confident within the next couple of years, some manufacturers are going to be coming to me and saying ‘come 2027, if you want to buy a 7.5 to 18 tonner, you can only buy a BEV’.”

The truck OEMs have a number of deadlines to meet – by 2025 average carbon emissions across their range must be 15% lower than in 2020 and by 2030, 30% lower. By 2035 the UK will ban the sale of new internal combustion engine (ICE) trucks under 26 tonnes and by 2040 sales of new ICE trucks above that weight will be banned. The arrival of Euro-7 in 2027 will just complicate the issue, but what is certain is that the manufacturers will soon start having to push zero-emission vehicles into the market.

Cost concerns

“We and other businesses are in exactly the same position – there’s lots of nervousness around committing to what somebody tells us,” says Clark. “That BEV downstairs is £500,000, while a diesel version is about £190,000.”

While R&M and fuel costs are potentially lower for BEVs than for diesel trucks, there are still plenty of uncertainties around the life and replacement cost of batteries, how they will be charged and the productivity of a BEV.

“People are making very serious commercial decisions on that sales pitch with little guarantee,” says Clark. “We are in a position that we are operating an increased number of these vehicles and we need to draw the right people together: finance people, battery experts, energy experts, fleet people. We are going to produce our own mechanism to measure not just the vehicle cost but also the indirect cost in terms of availability and infrastructure in comparison with an ICE vehicle.”

The first generation of BEVs simply replaced the ICE with an electric motor, retaining a gearbox, prop shaft and mechanical axles, but the Mercedes-Benz second generation BEV uses a Daimler electric axle.

“All the mechanical parts from the front of the vehicle to the axle are gone,” says Clark. “That vehicle is on trial with Veolia in the UK. It should be 15% to 20% more efficient due to reduced friction in the drive line.

“Mercedes very much sees us as a partner, especially in this sector. I’m sure there’s going to be a secondgeneration plus one when the battery technology changes from wet lithium ion to solid composite. The next technological change in the development of BEV vehicles is going to be the batteries. We are going to have more energy density, less weight and greater resistance to battery degradation when charging.”

As Veolia does most of its vehicle maintenance in-house, this upskilling is now starting to involve R&M on BEVs, an area where there currently are few standards – so the firm is writing its own in the form of a Veolia Minimum Requirement (VMR) that sets out basic safety procedures to minimise risk with these high voltage electrical systems.

“We have apprentices that have BEV training as part of their apprenticeship,” says Clark. “We’ve got all these ICE techs and while we have increasing numbers of BEVs it is still at the very beginning. Of 8,500 vehicles, just 200 are BEVs but we need to have a strategy to move ICE technicians to BEV technicians.

“This has been done with one of the BEV manufacturers, but we’ve also appointed Autotech in Milton Keynes to train our techs to the IMI diploma in battery electric vehicle engineering, so that we finish up with an amalgamation of product knowledge and fully accredited training.

“By the middle of this year we will have a reasonable number of our technicians through that training, and then we will start to bring the BEV maintenance in-house. The business is in a process of perpetual evolution and the technology is moving so fast that you cannot stand still. This is truly an exciting place to be!”

ELECTRIC FUTURE: Veolia is due to take delivery of 40 Dennis Eagle eConnect battery electric RCVs to replace diesel vehicles on its contract with Westminster City Council