Sharp ■ Informed ■ Challenging
Powering down p3
DX revives depots Former Tuffnells sites reopen p6
Driver feedback wanted DVLA tests new service
p8
OPERATORS INSIDE BJS Haulage.................................................p14 Circle Express ..............................................p10 Construct IT .................................................p14 DHL Supply Chain .......................................... p3 DPD Group..................................................... p8 DX Group ....................................................... p6 Expect Distribution .......................................p10 John Raymond Transport ............................... p6 Mark Stewart ................................................ p4 Menzies Distribution.....................................p10 R Swain & Son ............................................... p3 Wincanton .................................................... p3
Bullet Express has been acquired in a management buyout led by its MD John McKail, just days after announcing it had launched a new air cargo transport service. The company said the multimillion pound deal was backed by Panoramic Growth Equity and Maven Capital Partners. Its founders, cousins David McCutcheon and Gary Smith, will step down from the board and assume advisory roles to support the transition. Bullet Express said both will retain shares in the business. John McKail becomes group chief executive and shareholder, supported by the existing directors Bridget Mackay, William Herron and Martin Craghill. McKail said: “This is a significant milestone for our business. Bullet has achieved so much and our founders can be extremely
Photo: Jamie Simpson
Bullet Express in management buyout
NEWS INSIDE Volta files for bankruptcy
23.10.23
NEXT PHASE: Bullet Express founders Gary Smith (left) and David McCutcheon with John McKail (centre)
proud of the fantastic organisation they have built, employing many of the best people in our sector. “With the support of my full team, I am excited to lead the next phase of our journey as we embark on a ‘build and grow’ strategy with
our investment partners.” Bullet has recently launched Air Cargo Transport out of its Westway Park facility at Glasgow Airport, as well as a new beer, wine and spirits storage and transport division.
Four projects will trial battery electric and hydrogen powered trucks along with refuelling solutions
Government launches £200m trial of zero emission trucks A £200m programme to roll out 370 zero emission trucks and 57 refuelling and electric charging sites across the country has been launched by the government. The demonstrator programme will involve a number of major fleet operators, including Menzies Distribution, Eddie Stobart and Royal Mail, with manufacturers DAF, Volvo, Renault Trucks, and Scania providing the battery electric and hydrogen fuel cell-powered demonstrator trucks. Innovate UK will lead the programme, which consists of four projects. These include Project Electric Freightway, led by Gridserve, which will demonstrate up to 140 battery electric trucks, along with up to 220 chargers, 70%
Photo: Shutterstock
By Carol Millett
of which will be open-access. Project Zero Emission North (ZEN) Freight will demonstrate up to 70 battery electric and 30 hydrogen fuel HGVs, while Voltempo’s eFREIGHT 2030 project will involve up to 100 battery electric HGVs. The fourth project, Hydrogen Aggregated Logistics (HyHAUL),
is being led by Protium. It will deploy around 30 hydrogen fuel cell HGVs onto the M4. Through DfT funding, the HGV fleet will be serviced by one fixed hydrogen refuelling station (HRS) and mobile refuelling in two other locations. This project has longer-term ambitions to implement two additional permanent hydrogen refuelling stations in Magor and Bridgend, alongside hydrogen conversion projects along the M4. The announcement comes during Freight Week, a government-led initiative which has seen ministers visiting a number of freight stakeholders to understand how the sector can transition to net zero, drive innovation, and create new jobs.
Roads minister Richard Holden visited Voltempo in Birmingham, whose eFREIGHT 2030 project aims to create up to 200 new jobs by 2030. Michael Boxwell, eFREIGHT 2030 project director, said: “By early 2026, we will have eleven fleets deploying electric HGVs, and a nationwide HGV charging network using British-built chargers. “T his demonstration programme combined with worldclass infrastructure will give fleet operators confidence they can deploy electric HGVs at scale.” Richard Smith, RHA MD, welcomed the initative: “The £200m commitment ministers are putting into this demonstrator significantly helps to de-risk the transition to net zero,” he said.
Focus: zero emissions p16 Viewpoint: truck rentals p18 Crane-equipped vehicles p20 Culina Group p26 Electra p32 MT Awards p36
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Hundreds of UK jobs under threat following battery supplier collapse
Volta Trucks files for bankruptcy By Carol Millett
Electric truck manufacturer Volta Trucks has filed for bankruptcy in Sweden and is set to file for administration in England, after its production targets were hit by the demise of its battery supplier Proterra, which hampered its ability to raise funds. The move sees 850 jobs under threat, of which 600 are in the UK, where the group recently opened a service hub in North London. Volta has appointed insolvency practitioners from Alvarez & Marsal to deal with the administration of its UK business. Volta Trucks said: “The recent news that our battery supplier [Proterra] has filed for Chapter 11 Bankruptcy has had a significant impact on our manufacturing plans, reducing the volume of vehicles that we had forecast to produce. “The uncertainty with our battery supplier also negatively affected our ability to raise sufficient capital in an already chal-
lenging capital-raising environment for electric vehicle players.” The company added: “With deep and sincere regret, the Board has therefore taken the difficult decision to take steps to file for bankruptcy proceedings in Sweden. “Other group entities will also shortly file for insolvency proceedings in the relevant jurisdictions.” The electric truck manufacturer burst onto the truck manufacturing scene in 2019 and by January
this year was boasting its first 300 customer orders, worth an estimated £75m, for the production and 2023 delivery of its 16-tonne all-electric Volta Truck. It had also convinced major logistics firms to trial its trucks, including DPD and DSV, while vehicle hire giant Petit Forestier recently signed a rental and leasing deal for refrigerated versions of the 16- and 18-tonne Volta Zero in the UK and Europe.
Haulier launches ULEZ challenge The boss of a scaffolding firm that won a legal case after refusing to pay LEZ fines is now crowdfunding to assemble a legal team and prove that the ULEZ is unlawful. Noel Willcox, MD at Elevation Access, took Transport for London (TfL) to an appeal tribunal, which found that the LEZ signs provided no information about the charging regime and ruled in his favour. His truck had racked up thousands of pounds in penalties after driving into the LEZ. Now he wants to continue his fight with a legal challenge against the ULEZ: “I am convinced that the LEZ and ULEZ signs are wrong, and I’m also convinced that motorists are being charged unlawfully,” Willcox said. Howard Cox, FairFuelUK founder and Reform UK’s London mayoral candidate, said the TfL schemes were breaking the law and claimed London mayor Sadiq Khan was acting “irresponsibly”. A spokeswoman for TfL said the ruling went against TfL because it had not submitted evidence in time.
Jobs at risk as Wincanton loses Suntory distribution contract to DHL
UPWARD TRAJECTORY: R Swain & Son saw £15m added to its revenues last year and turned in a robust performance. Results for the year ending 31 December 2022 showed that the Rochester, Kent business increased turnover by 25% to £72.1m. Pre-tax profit increased by just over a fifth to £874,000. Group MD Matthew Deer told MT its acquisitions of Proctors Transport (Langar) and WC Coy & Son contributed towards revenue growth and also provided it with a new depot in Nottingham. 23.10.23
Wincanton has lost a long-standing distribution contract with Lucozade and Ribena maker Suntory, prompting concern among hundreds of staff uncertain about their future. The logistics giant has operated a transport and warehousing service for Suntory since the 1990s and currently runs out of the drinks maker’s factory in Coleford in the Forest of Dean, as well as Wincanton’s depot in Brockworth on the Gloucester business park. The contract will end on 31 December and around 280 staff are expected to be transferred to new supplier DHL Supply Chain. A Wincanton spokesperson said: “A Transfer of Undertakings (Protection of Employment) Regulations (Tupe) process will be commencing with the new
service provider and we will work to support all affected colleagues.” Usdaw, the union of shop, distributive and allied workers, said its members were shocked by the decision and the timing could not be worse. “We will now enter into a consultation process with the company, where we will look at the case for the closure and seek the best possible outcome for our members,” said Usdaw area organiser Steve Newman. ■ Wincanton is trading in line with market expectations, according to an update for the first half of its financial year to 30 September 2023. It is predicting pre-tax profits of around £50.3m for the 12 months to 31 March 2024, but revenues may be lower than the previous year as a major restructuring continues to take its toll. MotorTransport 3
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Mark Stewart appoints Bibby Financial Services
ElectraMeccanica pulls Haulier calls in plug on Tevva merger deal
administrators
Humber-based haulier Mark Stewart has posted a notice to appoint administrators, it has confirmed. The family firm, which is based in North Killingholme, said the applicant behind the move is Bibby Financial Services, which holds a charge over the company. Meetings were ongoing as MT went to press, with the company due to provide more information on the appointment in due course. Mark Stewart, which trades as Mark Stewart International Transport, was founded in 2009 and employs around 25 staff. It has operating licences for 53 trucks and 23 trailers. The company specialises in handling trailer and container movements to and from the Humber ports of Killingholme and Immingham and offers transportation and haulage services
A deal to merge British electric lorry maker Tevva with ElectraMeccanica in the US has fallen through after the vehicle designer alleged “multiple incurable breaches”. The merger, announced in August, would have enabled Tevva to scale its production to serve the UK, European and US markets and seen the Brit firm’s HQ transferred to Arizona. But ElectraMeccanica said the deal was off after it alleged Tevva had failed to disclose “material information”. In a statement, the US company said: “The decision to terminate the agreement was made by a unanimous decision of ElectraMeccanica’s board of directors based on additional information that came to light following execution of the arrangement agreement.” It added that it was exploring legal avenues in connection with the breaches and said loans and accrued interest were due to be repaid by January 2024. Tevva was provided with a $6m (£4.9m) credit facility by ElectraMeccanica as part of the original deal. A Tevva spokesman said: “We are deeply disappointed by ElectraMeccanica’s abrupt decision to terminate the proposed merger agreement and are considering our position.”
across the UK, mainland Europe and Scandinavia, as well as storage and warehousing services. In its latest annual results to 31 October 2022, the company reported a profit of just over £590,000. In March this year, Olanrewaju Lawal, an investment professional, who is a director of Norland Equity Partners, became the largest shareholder in Mark Stewart with a stake of over 75% in the company. At the same time, Robert Van Den Berg joined the board as a part-time member. At the time of his appointment Van Den Berg, a consultant with a wide portfolio of specialisms, including data sciences, vaccines innovation, talent development and driving change, said on his LinkedIn account: “I am keen to do my part to take the company to the next level.”
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Good times roll on Tranche of sites allows business to grow its presence in IDW market for John Raymond Bridgend-based John Raymond Transport saw another year of gains in 2022 after boosting profit by 50%. The transport and warehousing haulier increased pre-tax profit by almost £260,000 to £776,000 in the year ending 31 December 2022, its latest financial results showed. The result almost returned the haulier to the profit it reported in 2020 of just over £800,000. However, turnover fell during the period by 11.7% to £26.2m. This was still significantly more than revenues reported in the year to 31 December 2020 of £20.8m. Haulage accounted for £12.3m of the company’s revenue.
DX Group reopens 10 Tuffnells depots By Carol Millett
DX Group has reopened a further 10 of the 15 former Tuffnells Parcels Express depots that it took over from the Tuffnells’ administrator in June this year. These latest reopenings take the total number of depots brought back into operation to date to 12, with all 10 depots in this latest tranche serving the group’s freight division, focusing on its irregular dimension and weight (IDW) delivery services. Four of the 10 sites see the freight division expand into new locations, in Andover, Haydock, Merseyside, Leighton Buzzard and Lockerbie. The remaining six depots
replace existing freight locations and are in Carnforth in Lancashire; Crawley; Dewsbury and Leeds; Northampton and Sheffield in South Yorkshire (pictured). DX said all the new depots were acquired for their purpose-built cross-dock facilities and transport links. DX has added over 700 former
Tuffnells customers to date, and over 350 former Tuffnells employees to its roster, and estimates its market share in the IDW market has grown from 15% to around 25%. Paul Ibbetson, DX chief executive officer, said: “We expect to be able to report on further openings over the coming months.”
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CELEBRATING
50 YEARS! OF BEING THE STRENGTH BEHIND THE HAULAGE INDUSTRY
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Positive outlook despite dip in profit and revenues
DPD grows market share By Chris Tindall
DPD Group saw revenues fall by 5% last year, but the parcel company said it believed it had grown market share during the period. Latest financial results for the year ending 1 January 2023 showed that the group’s turnover was £1.5bn, down from £1.6bn in 2021. Pre-tax profit was also down marginally, to £300m compared with £302m the year before. However, DPD Group said it was “another successful operational period” and that it had met all stakeholder expectations, delivering strong revenues, volumes, profits and service levels. “The largest share of revenue comes from next-day parcels, although the company continued to grow revenue from its premium
and specialist value-added services,” it added. “For international deliveries the company continued to benefit from its group membership of the leading European road-based DPD network.” In November 2022, the company said it would begin switching its 1,600-strong truck fleet over to Gd+ HVO and this should be complete by the end of this year, reducing emissions by 70,282 tonnes compared with 2021.
Panattoni passes £350m mark in southern acquisitions in 2023 Panattoni has acquired a 26-acre logistics development site in Sittingbourne from Abrdn for £150m, taking the total of the developer’s acquisitions in the south this year to £350m, along with sites in Poyle and Newport Pagnell. This location offers access to local and national distribution routes facilitated by the M2, M20 and M25 motorways. It will also provide seamless connectivity to markets such as London, the South East, and Europe via London Thamesport, Dover and the Port of Tilbury. The zero-carbon development has planning consent for two distinct units, spanning 439,228sq ft and 205,320sq ft, which will be speculatively developed. Construction is targeted to be completed in the fourth quarter of 2024. The first quarter of this year saw Panattoni acquire a west London redevelopment site near Heathrow Airport, where an 80,000sq ft unit, dubbed Panattoni Poyle, will be delivered for Q3 2024. The start of the third quarter saw the acquisition of a 800,000sq ft site in Milton Keynes and the end of the third quarter delivered the acquisition of a two unit park totalling 626,468sq ft in Sittingbourne (pictured).
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Former owner leaves business after 34 years at the top – and gives successor his seal of approval
Duffy steps up for Expect role By Chris Tindall
Expect Distribution’s commercial director and former owner Neil Rushworth (pictured right) will step down from his current role at the end of the year, to be replaced by Bob Duffy (left) from Menzies Distribution. Rushworth, who has spent more than 34 years at the helm, expressed his confidence in his replacement, stating: “When considering my successor, Bob
was at the top of the list. I am delighted to welcome him to the business at this crucial time. We are aiming to exceed 2023’s growth in 2024 and his appointment is a key one in helping us achieve this.” Duffy has served as a sales director and provided solutions for warehousing and distribution for 15 years. He said: “I’ve known Neil for almost 20 years and have been very much aware of Expect, its growth over that time, and its
successes. After meeting the rest of the board and gaining a deeper understanding of the business, it certainly got me thinking about a new challenge and a new journey.” In January 2022, Expect underwent a management buyout, with Andy Taylor and Matthew Kilner taking over as joint owners. The majority shareholding held by Robert and Neil Rushworth was sold, with Neil continuing to retain a minority equity.
Winever snaps up Circle Express for £2.1m Air freight delivery firm Circle Express has been sold by TVS Supply Chain Solutions subsidiary Rico Logistics to Indian behemoth Winever Industrial Enterprises (UK) for £2.1m TVS, another Indian powerhouse, said Circle Express had “very little synergy” with its core activities.
10 MotorTransport
The acquisition comes as Circle Express continues to struggle to fight its way out of the red. Its most recent annual results to 31 March 2022 revealed its pre-tax losses had deepened to £4m (2021: £1.7m), despite revenues rising to £24.2m (2021: £22.1m). Circle Express, which was bought by Rico
Logistics in 2016, has its headquarters in West Drayton, close to Heathrow. It offers UK airfreight forwarding services, employs around 200 staff, and operates around 300 vehicles from eight depots located near UK airports. The sale sees Sanj Sharma, founder of Rico Logistics, continue at the helm of Circle Express as MD, while Mike Prosser, group IT and commercial director at Rico Logistics, takes on the role of chief financial officer.
23.10.23
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Photo: Shutterstock
The DVLA is calling on commercial drivers to test a new site launched by the agency, which allows them to view their Driver Certificate of Professional Competence (CPC) and tachograph information. The service is part of the recently launched DVLA Driver and Vehicles account, giving drivers access to information in one place. Drivers will need a UK passport to sign up to the service, which then allows them to view their driving licence information, including endorsements and penalty points, view vehicles registered to them including tax and MoT status, change their contact preferences, and set up vehicle tax reminders by email and text. They can also view their CPC and tachograph information Julie Lennard, DVLA chief executive, said: “Since we launched the account into public beta in August we have worked to add more services and we continue to do so, and we are encouraging drivers to test out the service and provide us with any feedback they have.”
Photo: Shutterstock
DVLA asks drivers to trial one-stop information site Four charged over HGV theft spree Police in Cambridgeshire said they had charged four men with a series of HGV thefts at services in the county. Officers were called to Cambridge Services in Boxworth just after 1am on 4 October. Four men, all from Leeds, were later arrested on Granchester Road in Coton, a village just outside Cambridge. Three men, one aged 21 and the other two aged 30, have now been charged with 20 counts of vehicle interference and one count of
going equipped. A 36-year-old man has been charged with the same offences, as well as failing to stop. The arrests came after hauliers complained to MT about thefts their drivers had endured at MSAs near Warwick and Keele. A spokesman for one of the firms, M Threlfall Transport, said: “The fact this happens so often and on paying sites is unacceptable and it feels like there is no prevention to this happening.”
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23.10.23
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BJS Haulage and Construct IT opening
Pegasus Group adds tipper grabs Construction and utilities services firm Pegasus Group has taken delivery of 15 new tipper grabs on contract hire for emergency repair work. The 32-tonne DAF CF 450 trucks, fitted with Thompson tipper bodies and Epsilon M125 grabs, are joined by two new service vans and were supplied by MV Commercial. Pegasus transport manager Daniel Joyner said: “With emergency utilities work, we have to be on site quickly to carry out repairs.
The last thing we need is for our vehicles to be off the road because of a mechanical issue. For our customers, reliability is all important and MV has again answered our call, delivering some outstanding new vehicles that will improve the efficiency of our business operations.” The FORS Gold-compliant DAF trucks feature high-specification equipment, including cameras and sensors, to ensure the safety of road users and pedestrians.
Sister firms BJS Haulage and Construct IT have opened a new site together in Wolverhampton in order to expand both operations. The purpose-built base in Wednesfield has been built on a renovated plot and is now home to the majority of the growing firms’ fleet. It is equipped with standard charging points for its electric auxiliary vehicles and a heavy-duty charger as part of the HGV fleet’s electric future. Amarat Gill, operations director for BJS Haulage and Construct IT, said: “The new Steelpark Way
site is a welcome addition to the BJS and Construct IT portfolio and a further statement of our commitment to investment in the local area.”
FORS Annual Conference puts focus on resilience The sixth FORS Annual Conference will explore how operators can work together to build a resilient FORS Community. Held on 2 November at the ICC in Birmingham, the agenda will feature speakers and panel presentations from a variety of industry experts. The conference is free to the FORS Community and will include an exhibition area showcasing the latest technologies and innovations from the road transport industry. Exhibitors include ACSS, AlcoDigital / WorkSober / Drivealyzer, Aspöck UK, Brigade Electronics, Driver Hire Training, Fastview360, TDi Software and Webfleet.
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23.10.23
News focus: zero emissions
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Industry already demonstrating a collaborative approach to roll-out of zero-emission HGVs
Getting ready for ZERFD By the time you read this, we believe (or hope, at least) that the official announcement of the Zero Emission Road Freight Demonstration (ZERFD) projects will have been made. It means a very broad community of vehicle OEMS, infrastructure providers, energy companies and – most importantly – HGV operators will all be able to speak freely about their roles and the work already under way. Perhaps the worst-kept secret in transport decarbonisation, the ZERF programme actually began with the £20m trials announced in the 2020 ‘Ten point plan’. In 2022, as ZERFT became ZERFD, bids for the large-scale demonstration of zero-emission HGVs were submitted, based around battery and fuel cell 40-tonne and 44-tonne trucks and the energy and infrastructure needed to operate them.
Hitting the spot
While we await the fanfare and photo opportunity that will accompany the announcement, there has been a lot of activity in the background to make sure this programme delivers on a wide variety of objectives. The trucks themselves are arguably one of the easier pieces of the jigsaw – pretty much every OEM now has battery electric products commercially available – and fuel cell vehicles are emerging or in development in a way we probably didn’t see when the bids were being submitted. But the operating and economic models for these vehicles are still
challenging, hence the need for government support. Our learning from the ZERFD projects must be as rapid and widely disseminated as possible if we are to make the fleet transition at the pace needed. To capture that, a separate project has been funded to bring data from all the trucks, operators, infrastructure and energy providers together. Hopefully Zemo’s experience of engaging with the Low Carbon Truck Trials and Low Emission Freight Trials will prove to have been of benefit in shaping this monitoring and analysis project, which we expect to be announced at the same time. I have also been pleased to support, with many others, another strand of work with the
Connected Places Catapult (CPC) and the British Standards Institution, looking at the standards that will be needed for these new technologies and operations. The first phase was to search for comparable standards and codes from experience around the world, to avoid duplication and help create the right frameworks.
Team effort
For the last few years a core team from groups as diverse as Innovate UK, National Grid, National Highways, CPC and Zemo have been working to support DfT on every front, in order to make ZERFT/D the best it can be. Progress has been made behind closed doors, regardless of public announcements.
A key takeaway for me based on long experience working in this space is that we need to work far more concurrently and less consecutively on activities to shorten the time it takes to make progress. That means that to decarbonise at the pace required, we must develop the vehicles, the technology the infrastructure and energy supply, all in parallel with the skills, the understanding, operational and financial models as well as the appropriate legislation. We may not have all the right pieces of the jigsaw when we start, but I have seen how working collaboratively can avoid many of the wrong turns and help us find the shortest route to net zero. Q Andy Eastlake is MD of Zemo Partnership
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Look east for electric future he sad news that Volta has entered administration and a US electric truck maker has scrapped its proposed merger deal with Tevva is a sign of just how hard it is going to be to decarbonise road freight transport. These start-ups raised millions of Steve Hobson pounds on the basis that they were going to Editor sell thousands of zero emissions vehicles, Motor but their subsequent problems showed Transport they were just too far ahead of the curve. Arguably there is a reason the major European and Scandinavian truck builders dominate their markets – and probably will continue to do so as we head down the road to net zero; it needs very deep pockets to fund the R&D and manufacturing plant that is needed to produce high volumes of commercial vehicles.
T
In contrast Electra is taking a very different and more cautious approach, starting out making hundreds of electric vehicles based on established OEM chassis, rather than trying to challenge the current world order. It is more likely that the real challenge to the big six will come from China as the barriers to entry to Europe presented by the Euro diesel emissions standards melt away. Assuming battery electric will be the quickest and most cost-effective route to zero emissions for the bulk of short- to medium-distance freight transport, then securing battery supplies will be essential. Quite apart from the purchase price of electric vehicles, where the Chinese might also have an advantage, it is the ability of China to produce enough batteries that might prove decisive.
Peace of mind comes with hire love ur forefathers bought everything. Part habit, part reflection of growing bank and finance company loan availability, part acceptance of ‘buying on the never, never’. Today, many operators maintain this historical fixation, often taking on significant debt to achieve status, as though owning vehicles is somehow noble. Yet owning trucks and trailers is not a sign of corporate virility; that everything is alright with a business. As proven by the all-too-many businesses that didn’t worry about debt until overwhelmed by it! I believe it’s time for operators to take a hard look at ownership. Costs of ownership are at record levels, with little we can do except brace ourselves for paying more for almost every aspect of running a business. Times change, and while some operators have changed with them in terms of operating and employment legislation, too few looked at alternatives to ownership. And that simply isn’t good common sense. Sticking with the devil you know is understandable, but not when the devil has had its day. There are compelling factors supporting this view. Despite historical practice, today’s operators don’t have to own trucks and trailers. It might sound fanciful, but they don’t need the hardware, just the miles and capacity it brings. And you can have that without the stress of managing servicing, maintenance, inspections, tyres, tax and MoTs. So why on earth wouldn’t you? Today’s focus should be on ‘usership’. From basic rental or leasing to all-inclusive contract hire of liveried trucks and trailers, usership makes perfect sense. The way to run cost-efficient fleets, always with the right numbers to meet seasonal and new
O
John Fletcher MD, Dawsongroup truck and trailer
18 MotorTransport
contract demands. It keeps operator investment capital intact in the business, usable for positive infrastructure additions, staff benefits and expansion, rather than feeding a depreciating asset base. The case stacks up for FDs and company accountants too. While asset loan debt from banks and other lenders can look efficient, it can also be restrictive. It uses up valuable credit facilities and inhibits investment, robbing operators of the flexibility to terminate early and demanding capital outlay for VAT up front. It also increases gearing and borrowing ratios, which can have a detrimental impact on a business’ credit rating. On the other hand, lease rentals are 100% tax deductible, whereas capital allowance at 18% reducing balance take 23 years to recover 99% of the capital outlay. It’s worth noting though, while all companies can obtain 100% capital allowances on the first £1m invested, many SMEs won’t have this advantage. Rental, leasing and contract hire also bring better cashflow. VAT is payable on monthly rentals, so more manageable, and, if business demands change, operators can stop hiring and save cash on leases and rentals almost immediately. They don’t have to try to sell assets to get funds back into the business. Additionally, beneficial balance sheet impacts include flexibility, lower gearing and removed residual risk of owning outdated assets in a rapidly changing industry. As we say – a smarter asset strategy.
The newspaper for transport operators
To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Head of content Tim Wallace2158 Events and projects editor Hayley Tayler 2165 Group production manager Isabel Burton 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 07780 604075 Divisional director Vic Bunby 2121 MT Awards Katy Moyle 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 RoadTransport@abacusemedia.zendesk.com 020 8955 7034 Motor Transport Subscriptions, Abacus, 107-111 Fleet Street, London EC4A 2AB Rates UK £156/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 ©2023 DVV Media International Ltd ISSN 0027-206 X
Got something to say? If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 23.10.23
Crane-equipped vehicles
motortransport.co.uk
RISK MANAGEMENT: Simple control measures can prevent falls from vehicles
A risky business A
fatality involving a lorry loader crane resulted in a timber distribution company being fined a six-figure sum last autumn, with almost £20,000 in costs. The tragedy highlights one of the hazards associated with loader crane deployment and the dangers faced by driver-operators who have to climb up onto a truck’s cargo bed when loading or unloading. In this particular case, Robert Gifkins, who worked for Arnold Laver & Company of Bramall Lane, Sheffield, was delivering timber to a company in Whaddon near Salisbury on 16 November 2020. He had climbed onto the bed of his trailer to sling the load and attach it to the vehicle-mounted crane. While moving the load using the crane’s remote control he was struck by the crane and fell from the vehicle to the ground. He was taken to hospital and subsequently died a month later. An investigation by the HSE found that the incident was the result of health and safety failings by the company. The risks associated with working at height had not been properly assessed and the risk of falls had not been adequately prevented or controlled. The company had 20 MotorTransport
also not provided Gifkins with sufficient training and instruction on the safe operation of the remote crane controls on the vehicle. At a sentencing hearing at Salisbury Magistrates’ Court on 13 October 2022, the company pleaded guilty to breaching Section 2 (1) of the Health and Safety at Work Act. On 9 November 2022 it was fined £400,000 and ordered to pay costs of £19,841.99. Speaking after the hearing, HSE inspector Leo Diez said: “Falls from vehicles can be overlooked by ➜ 22
Photo: Nigel Spreadbury
Remote controls for lorry loader cranes have been a huge benefit to the industry, but they bring with them some inherent risks. Operator training and fall-arrest systems are vital to ensure worker safety, writes Steve Banner
HIGH AND MIGHTY: The Volvo FH 8x2 with Palfinger crane operated by Dorset-based Phill Balcombe Transport has a removable personnel basket, making a fall-arrest device essential 23.10.23
Crane-equipped vehicles
employers when considering risks from work at height. Simple control measures would have prevented this accident.”
Tuning in
These days the term ‘remote control’ usually refers to a radio-operated unit carried on a belt or a neck strap. It allows the user to move around unhindered rather than having to use a remote attached to an umbilical cord or truck-mounted levers. While they do make life easier, radio remotes clearly harbour hazards too. Says Martin Caddick, head of transport and outbound logistics at Bradfords Building Supplies: “A driver should never have the remote on him while off the ground in any operation. Absolutely never.” Yeovil, Somerset-based Bradfords operates around 120 trucks fitted with lorry loader cranes. They are used to deliver building materials from its 40-plus branches, primarily across the South West of England but extending as far afield as Worcester, and Ross-on-Wye in Herefordshire. Caddick says that loader crane remote controls should always be operated from ground level. “The operator should stand outside the crane’s swing zone,” he states. “A pedestrian exclusion zone should be set up, and operations should cease if anyone enters this zone.” Drivers may still need to climb up onto the load bed to sling loads before off-loading them using the remote at ground level. This clearly exposes them to the risk of falling or being knocked off the truck if the crane starts moving. This may not be because they are operating it deliberately; they could have the remote about their person and accidentally press a button on it, which causes the crane to swing round. Construction sites and other delivery points may be unhappy about drivers climbing onto their trucks because of the health and safety implications, but imposing a blanket ban is unrealistic, Caddick contends. “I am aware that some drivers stop off before getting to the delivery point to sling their loads ahead of each delivery,” he observes. “The danger here is that they are potentially alone at the roadside, creating increased risks for themselves. This operation is far better carried out on a site or where there are other people to hand. “Our belief is that safety is best served by allowing drivers to work on the bed of the vehicle if absolutely necessary. However the crane must be isolated and the remote not on the person in question.”
Learning for life
Training to ensure that drivers are conscious of the possible hazards involved in crane operation and conduct themselves accordingly is vital, Caddick stresses. “Training is key, to highlight risk and embed safe working practices,” he says. “We’ve got two dedicated 22 MotorTransport
motortransport.co.uk
GROUND FORCE: Bradfords Building Supplies makes a point of insisting drivers only ever operate crane remote controls from ground level, never on the load bed. Its safety training regime counts towards the Driver CPC
driver assessors/trainers and we’ve helped a third-party training provider develop a safe loading/unloading and load security course. It’s JAUPT-approved and counts towards the Driver CPC.” Travis Perkins runs some 1,100 trucks fitted with loader cranes. Says group health, safety, environment and fleet director, Richard Byrne: “There is still the odd occasion when getting on the bed of a vehicle is unavoidable, but the key is to make this the exception, not the rule. And if colleagues are required to go on the bed of a vehicle then the crane must be isolated first.” Ensuring the body’s sides remain in place, and are topped off with safety rails, fall restraint poles or mesh fall prevention straps which can be folded away is one way of preventing individuals tumbling out. Dylan Roberts, UK director for health, safety, wellbeing and quality at construction industry giant Skanska, says: “All tier one construction companies require side protection to be in place.” While appreciating that it would present building materials suppliers making deliveries to several sites during the course of a day with a challenge, he believes that loads should be pre-slung wherever possible. Doing so reduces the exposure of drivers to risk. Not all bodies are fitted with sides because the loads craned on and off may occupy the entirety of the cargo floor; a prefabricated office for a construction site for example, or a container used to store tools and consumables while building work takes place. If this is the type of load that is being transported, rather than, say, lengths of timber, then there will be no requirement – or space – for a driver to climb up and sling the load. Transport fleets can always consider fitting a fall-arrest system. A strong lanyard spooled out from a drum is attached to a harness worn by the user. If he or she starts to tumble then a brake on the drum engages and arrests the fall. One business that makes use of such a system is Phill Bascombe Transport. The Wimborne, Dorset-based firm runs nine trucks, eight of which are fitted with loader cranes, and the nature of the work it is engaged in means drivers sometimes need to operate many metres off the ground. ➜ 24
LESSONS IN BEST PRACTICE ALLMI has a training course for lorry loader operators which consists of up to 15 modules. It lasts for a day for experienced candidates and a minimum of two days for novices, and both courses culminate in written and practical exams. The written exams consist of a set of core multiple choice and open questions, as well as questions which relate specifically to the crane attachment being used. The practical assessment is designed to identify whether the candidate has the appropriate practical skills to operate a lorry loader safely and efficiently. On successful completion of the course every candidate receives an identity card and certificate and is registered on the ALLMI operator database. Both are valid for five years and state the categories for which the operator is licensed, with distinctions made between different types of attachment and the capacity of the loader among other considerations. Somebody who has been certificated to use a loader with a capacity of up to 20 tonne/metres for example should not use a higher-capacity loader without additional training. Once the five years are up he or she will have to undergo refresher training and assessment. The programme has been commended by the HSE, says ALLMI, is recognised by Build UK, which represents the UK construction industry, and is approved by the Construction Skills Certification Scheme. ALLMI offers a variety of other loader-related courses, including courses for transport managers, and lists over 130 training providers on its website (www.allmi.com). It also publishes a number of guidance notes covering various aspects of loader crane operation. It has produced the ‘Safe use of lorry loaders’ best-practice guide in conjunction with the Construction Plant-hire Association which, among other things, details all the legislation companies operating trucks equipped with lorry loaders must obey. 23.10.23
Crane-equipped vehicles Two years ago it acquired a Volvo FH 8x2 rigid fitted with a Palfinger PK 92002-SH F crane with a PJ125 E fly-jib, which can be extended up to 30.4m. It is fitted with a personnel basket that allows staff to work at great heights – this means that a fall-arrest device is essential. The basket can be removed when not required. The company’s loads include large panes of glass, cabins and containers as well as more unusual cargo. Over the years it has shifted everything from a Victorian railway footbridge in its entirety to a huge stone lion, which had to be transported to Longleat Safari and Adventure Park. The Palfinger crane can be operated with a remote if required. “We supply a service to tree surgeons dealing with the removal of trees suffering from ash dieback,” says the firm’s MD, Phill Bascombe. “They can be highly dangerous and need to be worked on from a distance of at least 10m. With the Volvo we can handle the work using the remote, ensuring our staff are safe throughout.”
motortransport.co.uk
SAFETY FIRST: Travis Perkins emphasises to its drivers that getting onto the bed of a vehicle should only be done in exceptional circumstances
metres sold in the UK during the first half of this year was supplied with a control unit of this type. They invariably have safety devices built in to reduce the risk that they will activate a loader accidentally. “A remote may switch itself off after 15 to 30 seconds of non-use,” Taylor observes. He knows of one building materials supplier that is equipping its trucks with infrared beams that shut the crane off automatically as soon as somebody steps through them. As Roberts points out: “Some remotes are fitted with a dead man’s handle.” Caution should still be the watchword, however, and the remote should be placed somewhere secure before a driver climbs aboard and slings cargo. Says ALLMI: “Always ensure the remote is deactivated when not in use.” Q
Words of warning
While a fall-arrest system may be invaluable at the sort of heights Bascombe’s colleagues sometimes work at, it may be of less help when it comes to protecting a driver who is standing on a truck’s load bed, says Andrew Taylor, projects and technical manager at Atlas Cranes UK. “If you’re on brick and block work, say, then you may be 1.6m off the ground,” he observes. If you fall, then you are likely to hit the ground before the arrest system’s lanyard goes taut, he points out, so upright sides around the cargo bed are preferable. The use of remote controls to operate loader cranes is growing in popularity, according to the Association of Lorry Loader Manufacturers and Importers (ALLMI). Every loader with a capacity of more than 26 tonne/
FREE ‘bridge strike’ toolbox talk
24 MotorTransport
23.10.23
Culina Group
motortransport.co.uk
Food for thought Since its formation almost 30 years ago, Culina Group has grown steadily through multiple acquisitions. Steve Hobson jumped at the chance to speak to three very experienced industry giants at the top of the business t is not often MT gets to interview three recent winners of the Motor Transport Service to Industry Award, who between them have almost 150 years’ experience in the transport industry. But this rare opportunity came about in August, when Culina Group CEO Thomas van Mourik, his deputy William Stobart and non-executive director Glyn Davies agreed to run through their plans for the £2.2bn-a-year 3PL, which seems likely to leapfrog DPD to take third place in this year’s MT Top 100, behind Royal Mail and DHL Supply Chain. Davies has been a non-executive director for 14 years and brings a lifetime of experience in the logistics industry, having started his first business, Russell Davies, in 1974. He has set up and sold three more successful companies since, the last being truck dealer Hanbury Riverside, which he sold to Asset Alliance Group in 2018. Stobart joined the family firm at the age of 15 in 1976 and has spent most of his working life with Eddie Stobart.
I
26 MotorTransport
AMPLE ASSETS: Culina Group boasts a fleet of 4,000 trucks and over 9,000 trailers
Changes in ownership eventually saw it back in private hands when it was bought in 2021 by Culina Group, which is still 100% owned by the Müller family.
Shaping networks
Set up by van Mourik in 1994 in Market Drayton as Müller Dairies’ UK distribution arm, Culina Group has grown steadily through a series of strategic takeovers and now includes Culina Logistics, Fowler Welch, CML, MMiD, Stobart, Stobart Europe, Great Bear, Warrens, The Pallet Network, International Road Ferry, iForce, IPS and The Logistics People. While each subsidiary continues to operate as an autonomous unit, van Mourik is shaping the business into national ambient and chilled networks. The group’s 4,000 trucks and over 9,000 trailers are all operated under the umbrella of Culina Asset Management, with overall responsibility sitting with William Stobart. A third division, Industrial Support Services, pulls together the group’s e-commerce fulfilment, contract packing and labour resource provision, while CML, a supplier consolidation operation, provides services specifically for discount retailers. MMiD runs the milk operation for Müller Dairies with a separate fleet of 1,000 trucks. Van Mourik is also focusing more of Culina Group’s 20 million sq ft of warehousing into the Great Bear ambient business and more of the transport operation into Stobart. But his argument for avoiding other ➜ 28 23.10.23
Culina Group groups’ error of absorbing acquisitions completely into the parent company is clear. “Customers will still deal with Great Bear, Stobart or any of the other businesses in the group which have retained their identities,” he says. “Probably one of the biggest mistakes I could make is turning it all into Culina.” There have been a couple of exceptions to this rule in that AIM and Robbie Burns have gone into Fowler Welch, though the management of both businesses have stayed on. Enabling the operating companies to share resources has allowed Culina Group to reduce its overall fleet and headcount through efficiency gains, but customer service remains king. “Ultimately we will end up with a control tower that will recommend how a particular flow is handled,” says van Mourik. “But service levels come first and the rest will follow. We also try to keep cost within the business as much as possible. We will always use subcontractors but we can use a few less if we get ourselves organised better.”
motortransport.co.uk
BUSTING THE MYTH OF A CULINA SALE
BRAND LOYALTY: Culina Group CEO Thomas van Mourik believes subsidiary identities are worth retaining
Bucking the trend
Coping with peaks in demand is made easier by the large number of trampers that Stobart still operates, contrary to trends elsewhere in the haulage sector. “We find it easy to get trampers as so many drivers want to tramp, especially at night and weekends,” explains Stobart. “They are getting a good wage and are flooding back into the industry. Give them a good truck with a microwave and a shower and they will stay.” The trampers are allocated brand new trucks and the majority of the time they are the only driver of the vehicle – still 50% Scania R-series – for their first year, before they go on to be double-shifted elsewhere in the business. To streamline the business further the management is rolling out a group-wide SAP enterprise resource planning system that will centralise 18 existing separate finance and HR functions. The different businesses also still operate a variety of inherited transport management systems and the company is planning to standardise the chilled network on one platform and the ambient network on another. “We have all sorts of transport systems at the moment and that is unsustainable long term,” van Mourik says. “Equally we have a variety of warehouse management systems, some of which are bespoke, and do we want to carry on rolling them out or go for the system that has been a great success within the businesses? “In the long term it would be great to have SAP – responsible for finance and HR, one or two warehouse and transport management systems and one vehicle management system. “We will then carry on growing organically and by acquisition. Certain deals we have talked about haven’t
LONG-DISTANCE LOVE: Deputy CEO William Stobart says drivers are keen to pick up tramping work
come off yet largely as a result of the economy and I want to see where we are going in 2024.” Through iForce, Culina Group is a major player in e-fulfilment and has benefited from the boom in online retail. One area van Mourik had looked at was home delivery and, while he says the prices of companies in this space have “come down a lot,” he wants to wait and see how the UK economy performs before committing. “If I compare the FMCG volumes we shifted against where we should have been, we are 10% down across the business,” he says. “We haven’t lost any customers, it is just because we are all buying less as everything is so expensive. I want to see the dust settle.”
Growth aspirations
SUSTAINABILITY COSTS: Non-executive director Glyn Davies wonders who will foot the bill for decarbonisation
STREAMLINING STRATEGY: Culina is assessing its multiple warehouse management systems
28 MotorTransport
Before our interview, MT had been contacted by a number of people who had seen a prospectus for a sale of shares in Culina Group valuing the business at £1.5bn. But van Mourik was keen to quash rumours of any impending listing. “The Müller family received an unsolicited approach by an international broker who said, ‘if you ever want to sell Culina Group or Müller, now is the time’,” he says. “Theo Müller is now 83 so he asked what value the broker would put on them. An enquiry was made in the marketplace and certain big shipping lines would have seen it, and that is how this rumour came about. “Will anything be done with it – no. It is a bit like getting your house valued even if you are not selling. The only thing Theo has ever sold was a restaurant chain and it took years to convince him it wasn’t core and should be sold. He’s happy now because that was just before Covid. “Culina Group is not for sale.”
Van Mourik does not see any natural limit on the scope of Culina Group, which doubled in size in 2021 with the acquisition of Stobart parent GreenWhiteStar Acquisitions (GWSA). “You can never say it is big enough because when you stop growing you go backwards,” he says. “We have aspirations to grow but it has to be profitable. Nobody is holding a gun to our head saying we must achieve XYZ in the next couple of years. If the opportunity is there we will grow but if the market isn’t ready for a new move we don’t need to do it. It is a relatively relaxed position to be in. We are not a PLC.” As for strategy, Culina only buys strong companies with good management. “We have no time to start rebuilding businesses, we just want plug and play,” says van Mourik. “When we bought GWSA all the so-called bad things had already been dealt with and all the plans about how we were going to take it forward strategically had already been agreed up front as part of the due diligence process. Two years on, nothing has changed in our plan.” Culina Group’s chilled network is, however, now very nearly complete and van Mourik says there isn’t much left in that market worth buying. Stobart pulled out of chilled transport 10 years ago because stiff competition had driven rates down below costs, and van Mourik says it is still a tough market. “The entry barrier is not cheap and even for the players left to go out and make a major investment in a new warehouse is not easy,” he says. “The levels of automation required are also increasing. It works where you have one long-term customer and the pallets are all the same size and weight, like we have with Müller at Market Drayton, for example, but it is more difficult to automate warehouses for multiple customers.” ➜ 30 23.10.23
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Supporting hauliers with a new revenue stream
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They pay a contribution to reduce their haulier partners’ GPS tracking costs
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Haulier partners’ day-to-day business is not affected
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Adriver’s solution can be used by haulier partners for their own PR activity
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Operations in Great Britain only at this stage
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Largely return to depot over the weekend
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ʶ ˧˔˖˧ ˗˘˧˔˜ ˦ Adriver has developed a new medium which supports hauliers with an additional revenue stream. Interested parties should contact their Fleet Recruitment Director, Franck Marcaire, who can be reached at: ˙˥˔ ˖˞ʡˠ˔˥˖˔˜˥˘ ˔˗˥˜˩˘˥ʡ˖ More information on their ad compaigns is available on their website, ˨˞ʡ˔˗˥˜˩˘˥ʡ˖
23/10/2023 12:45
Culina Group More automation seems inevitable as the tight labour market, exacerbated by Brexit, is making it more expensive to employ warehouse staff. “The driver problem has more or less gone away because of the pay adjustment we have all made,” says van Mourik. “But in the warehouse the labour shortage is still there and turnover is high, especially in a cold environment. We are seriously looking at automation in both ambient and chill.” As well as higher labour and warehousing costs, prices of new trucks and trailers have rocketed, and Culina Group is having to pass some of these increases on to customers. “They have had to take quite a bit as there is only so much we can absorb,” says van Mourik. “Lead times on new trucks have come down but prices are a lot higher. Electric trucks will be even more expensive and we can’t afford that. I think everyone is in denial at the moment.”
Expanding horizons
While a large majority of Culina Group’s activity is in the UK, it is growing its continental European business. Stobart Europe’s general cargo division is run from Bulgaria and Belgium, and provides pan-European transport plus warehousing in Belgium and Germany. International Road Ferry (IRF), acquired in January, specialises in short sea mainly unaccompanied trailer movements between the Netherlands, Germany, Switzerland and the UK. IRF is now shipping around 70 trailers a day in and out of the UK. “Culina Group never really got involved in collecting or organising trailers from the continent for our customers,” says van Mourik. “It was the next opportunity as we can only go so far here in the UK. I wouldn’t say we are at the end of the journey but we have to be careful with the Competition Commission, so are looking more towards Europe – in a controlled manner. We are looking at other acquisitions that can support that.” Brexit is still causing friction on the UK’s borders with the EU and the island of Ireland, and avid free trader van Mourik still finds it hard to accept. “Tell me one good thing that has come out of Brexit,” he says. “It was all about emotion. The EU is our biggest trading partner and it is a real problem. But we are where we are and have to get on with it.” Culina Group’s strapline is ‘Delivering Sustainable Solutions’ and while it is experimenting with alternative fuels including electric vehicles, its immediate priority is to run the existing fleet as efficiently as possible by sharing capacity and reducing empty miles. As a result, the group fleet achieves an impressive 86% load fill, well above the industry average of 72%. William Stobart is testing two electric refrigeration units partially powered by solar panels on the trailer roof, but is finding them operationally more restrictive than conventional diesel engine-powered versions. “They only work on a hot, sunny day when the fridges are working harder and we have to plug them in as soon
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COMMON THREAD: Culina Group subsidiaries retain their individual liveries, but are all tied together with the distinctive Culina cog logo
as they arrive at the DC to maintain the temperature,” he says. “They are not as versatile. It works on a straight A to B journey but I can’t put them in the network.” However, van Mourik is well aware of the increasingly pressing need to find alternatives to diesel trucks and fridges. “The industry has to find a solution,” he says. “The truck manufacturers are committed to going electric and trailers will be the same. “Sooner or later the industry will have to bite the apple. What is for sure is that distribution costs will be affected by the change needed.” Squaring the circle of decarbonisation and affordable transport remains a challenge. “Customers are coming to us saying we have to deliver sustainable solutions and we are asking our suppliers to help us with this,” says Davies. “We are all looking at each other and no one wants to pay. We can’t be the innovators here. We are reacting to market pressures, whether that is customers or government, and that is what we have always done.” ■
23.10.23
Electra
Bright sparks EV manufacturer Electra Commercial Vehicles has become a specialist in ‘building vehicles other people won’t build’. Steve Hobson investigates
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lackburn-based electric truck maker Electra Commercial Vehicles, winner of the 2020 Motor Transport Innovation Award, is continuing to develop its range of battery electric vehicles and looking to move to a bigger factory as it ramps up production. A tour of Electra’s current factory – or “small shed”, as MD Ben Smith calls it – on the Shadsworth Industrial Estate just off the M65 in south-west Blackburn demonstrates just how cramped the site has become. The pioneering electric vehicle (EV) builder has been ramping up production over the past four years, since it was founded by Yorkshire entrepreneur Sid Sadique. Sadique started out as an apprentice fitter working on Kirklees Council’s refuse collection vehicles, and got the idea for Electra when he wanted some batteries for a solar power installation on his house. “He spoke to a battery supplier and they said they also supplied batteries for trucks,” Smith says. “That’s what started the journey. He also owns a truck leasing business and was having conversations about low emission zones coming into London. That was the spark of the idea to do this.” The company now has its eye on a new 38-acre site to give it room to grow, as well as to provide a base for some of Sadique’s other business interests. Electra plans to build 48 vehicles this year – as a result of a major engineering design change across the platforms – increasing to more than double that in 2024. “We never say we are going to build thousands,” Smith says. “We are currently scheduled to build 120 next year and that is a realistic figure. It could be more – if someone says they want 100 trucks, we can ramp up and build the product anywhere in the world in less than two weeks.” Focusing on popular chassis for city refuse collection vehicles (RCVs), the platforms used by Electra are the Mercedes-Benz Econic, Iveco Eurocargo and Dennis Eagle Elite. All three manufacturers have given Electra full access to their systems, including the CANbus, so important areas such as automatic braking and lane assist are not affected by the chassis being electrified. It has also more recently electrified an Isuzu N-Series forward cab chassis for smaller GVW platforms.
Photo: Tim Wallace
Bigger and better
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Electra produces mainly rigid electric trucks between 12 tonnes and 27 tonnes GVW, but is developing a 16-tonne Eurocargo 4x2 tractor unit that could go up to 33 tonnes, with a 19-tonne unit achieving 40 tonnes already available. It is also in discussions to launch the first 12-tonne tractor unit on its already available 12.5-tonne platform. Electra fits a range of motors but mainly uses a 350kW direct drive motor and an active liquid cooling system to keep the batteries within a specified temperature range, and so improve their performance and life. This also enables fast charging using a 150kW DC supply, a charge rate that can overheat batteries without a cooling system. Battery packs are fitted to the customer specification; the 700V batteries are made by Chinese manufacturer CATL, said to be the world’s biggest EV battery maker. On the day of our visit the factory was pretty quiet, as ironically Electra is suffering from a shortage of wiring looms – not made in Ukraine but by a local firm that is in a two-week shutdown for staff holidays. “We used this opportunity to take staff holidays and stocktake,” Smith says. “We are now planning to schedule a two-week shutdown every year for the facility, as many factories do the same.” The first vehicle Electra built in 2018 – a 26-tonne RCV – is now termed generation 1. After building 70 of its generation 2 vehicles, Electra halted production in February 2022 to begin designing generation 3. The first prototype was built by July last year, with new metalwork, batteries, 23.10.23
motortransport.co.uk
charger, compressor, steering and wiring looms, and production of the new version began in October 2022. Vehicle #3 was back at the factory for a refresh after operating with the London Borough of Waltham Forest for three years. “We have brought it up to the same standard as all of our generation 2 vehicles,” Smith says. “It had a handmade loom, so that has been replaced. We have modified the batteries, updated the EPTO [electric power take-off] and software settings and fitted airconditioning. Nothing major but it now meets the exact same standard as the newer models.” Smith does not foresee the day when Electra will build its own chassis, as he believes its current suppliers will always be happy to sell it gliders. However, plans to build a radically altered platform are afoot. “We are a niche player, so even though they have their own electric products coming they will carry on supplying us,” he says. “We can do an Econic with 140kW or 420kW of batteries whereas the eEconic comes with 300kW and that’s it. We can put the batteries on either side or remove them from one side, and also do any wheelbase. “We can build vehicles other people can’t. The Eurocargo isn’t being electrified by Iveco, so that gives us the whole range to focus on.” The variety of vehicles operators want electrifying seems endless. There was a 7.5-tonne Isuzu N-Series in the factory being fitted with a break frame for its VCA testing. It has 140kWh of batteries on board which have all been squeezed under the cab to leave space at the sides specifically for food waste collection. Under the UK government’s latest environmental strategy, all food waste must be separated into a different bin for collection as it must be recycled rather than sent to landfill or incineration.
NEAT WORK: (clockwise from above) batteries can be mounted on either side of the vehicle; in the Generation 3 design, the key components are arranged in an easily accessible configuration; a single motor turns a conventional drive shaft
City work
QUICK FIT: Electra’s first tractor unit will have its batteries in cassettes, enabling rapid swaps
EVs REALLY DO NEED LESS MAINTENANCE THAN DIESELS One of the biggest cost savings when switching from diesel to electric should be in reduced routine maintenance. While the conventional running gear, including brakes, steering, suspension and tyres will still require regular – though not necessarily six-weekly, as the traffic commissioners often point out – inspection, the electric drive train is virtually maintenance-free. EVs still use oil for the air compressor – but it needs changing only every 3,000 hours, and Electra advises annual changes. While there is less than a litre, it is not run-of-the-mill 10W40 and a service kit costs about £300. And that is it. 23.10.23
“The opportunity for food waste is clearly huge,” Smith says. “There will be 2,000 vehicles required and on this type of vehicle they collect the bins from the side. This whole concept was built around the body, which we wouldn’t normally do.” When completed, the vehicle will be able to run at 7.5 tonnes or 8.6 tonnes GVW – at 8.6 tonnes it will have a far superior payload than the equivalent diesel. “The government’s 2-tonne increase in GVW for zeroemission platforms has created a problem – they haven’t increased the axle weights, so we are scratching our heads as the axles are already at their limit,” Smith says. In one corner of the factory is Electra’s first tractor unit – termed generation 3.5, as it will carry its batteries in “cassettes” to enable rapid battery swaps. At the recent Road Transport Expo, Electra’s engineers spotted a company making interconnectors for battery electrical and cooling connections that will enable batteries to be rapidly replaced rather than recharged. “Everyone is jumping up and down for it,” Smith says. “It is a Eurocargo urban artic and we are not trying to do 300 or 400 miles. It is designed for a market such as supermarkets delivering in the city. It is not a sleeper cab because you can’t go out trunking in it. “What we are aiming for is to be able to lift the batteries on and off – that is the dream for operations that can’t have a super-fast charger.” The system is also completely scalable, allowing more batteries to be fitted if range takes priority over payload. The batteries are built into cassettes on the bench rather than on the truck to speed up production and make them easier to swap on and off the truck. “This is a 210kWh system but it leaves us space for another two packs, which takes you to 280kWh,” Smith says. “We can do 420kWh of batteries on three levels if required.” There is a second chassis awaiting development work that will be fitted with a hydrogen fuel cell range extender, supplied by Canadian manufacturer Ballard Power Systems. However, Smith expects that the next generation sodium-ion batteries coming in 2024 (see panel) will give enough range and be charged fast enough to potentially avoid the need for battery swaps or fuel cells ➜ 34 in many cases. MotorTransport 33
Electra
Photo: Tim Wallace
motortransport.co.uk
Electra is currently sticking with a single motor turning a conventional drive shaft, diff and rear axle rather than a gearbox or e-axle, although the technology is moving fast. “One of the biggest conversations we have been having recently is about motors,” Smith says. “The manufacturer of the motor we use now is discontinuing production of the current unit. It has been used in the industry for a long time and it is a fantastic motor. “But now you can get motors from America with the inverter bolted to it in a smaller package. This manufacturer is also bringing out a two-speed version, which would enable a truck to run at 40 tonnes up decent gradients.” The conventional system for EVs uses DC batteries with an inverter to convert the current to AC for the electric motor. While DC motors are available, they are less efficient – and because they use brushes and a commutator they require more maintenance than an AC induction motor. The DC batteries are usually charged with AC mains electricity, which requires another inverter to convert it to DC.
Neat layout
The generation 3 Electra has been laid out to be much easier to work on than its previous incarnation. “The generation 2 has everything built into a frame, which has proven difficult to work on in the field,” Smith admits. “We have now developed a unique layout where we have the compressor, steering, 24V batteries, DC/DC and on-board charger – which plugs straight into a 32A
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BUILD QUALITY: (above) electric vehicles require less maintenance than diesel equivalents; (above, right) the Mercedes-Benz Econic is one of the standard bases for Electra’s trucks
POWER SHIFT: (below, left) DC current from the batteries is converted to AC for the electric motor
three-phase supply – all boxed in an incredibly accessible configuration to make it easy to work on. “Before, changing a compressor could have taken six to eight hours. Now it takes 15 minutes. This means we can send our trucks anywhere in the world and they can be easily supported and worked on.” Although generation 3.5 is just being built, Smith’s engineering team is already working on generation 4. “Most other companies are still on their generation 1 EV, but this small company in Blackburn has already learned that people are reluctant to work on these vehicles – so how do we make it easy for them? “We are also simplifying production. These used to take six weeks to build. They now take 10 to 11 days and we will get that down to five days in the next couple of months.” ■
BATTERY LIFE OF UP TO 14 YEARS Electra built its first prototypes five years ago and Smith says battery degradation has been minimal. “We have not even seen 5% degradation,” he says. “Other manufacturers use NMC [lithium nickel manganese cobalt] but we have always used LFP [lithium iron phosphate] batteries.” These are heavier for the same power capacity but last longer and operate at lower temperatures than NMC batteries, making them ideal for commercial vehicles. “In a truck they don’t get used and abused like they would in a car or van where they are rapid-charged all the time,” Smith says. “These trucks go out in the morning and work steadily all day. We are very happy with what we are seeing on battery degradation. “When we first started we thought the life would be seven years but we are now looking at whether we can make them last 14 years. I can guarantee they will be on the road in 10 years and it is likely they will do 14 or maybe even 20 years.” The generation 2 batteries were good for 3,000 charge/discharge cycles but the new versions can handle at least 5,000 cycles. Smith predicts that the next battery technology on the horizon – sodium-ion (SIB) – will be a game-changer for the electric truck market. “The cost of lithium is already becoming an issue and fast charging them every day isn’t good for them,” he says. “We have only just started fitting DC fast chargers to our trucks, so the operators are not fast charging them at the moment. Some trucks are using only 15% of the battery capacity every day, so we are saying to the operator ‘don’t charge it every day’ – otherwise it will get battery memory. “A truck that is using less than 20% of its battery capacity can easily be triple-shifted and a number of our clients are managing this from vehicles that were not originally designed for it. “There are councils now saying they may double-shift their RCVs and having a quiet, zero-emission vehicle means they can do so. Some clients, such as Lancaster council, want to collect rubbish from the university in the evening, so that would be a double shift.” Electra supplies all its vehicles with a built-in charger so the customer does not need to buy a separate charger. 23.10.23
MT Awards 2023 winner profile Business Excellence Award
Moving into pastures new Miniclipper’s new 100,000sq ft site in Burton upon Trent will enable the 3PL to reach a new customer base across the Midlands
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he winner of this year’s Motor Transport Business Excellence Award, Miniclipper Logistics, has officially opened its newest site in Burton upon Trent. Located on Avro Business Park between the M6, M42 and M1, it’s ideally placed as an additional transport hub for the Bedfordshire-headquartered firm. MP for Burton and Uttoxeter Kate Kniveton visited the site to cut the ribbon at the opening ceremony. Miniclipper is a 3PL that has almost 600,000sq ft of warehousing, which it runs alongside a transport arm of the business. Until now, the company’s warehousing portfolio was based across four sites in Leighton Buzzard, Dunstable and Houghton Regis, all within a 15-mile radius. Its new Burton base, 100 miles up the road, adds nearly 93,000sq ft of warehouse space and the ability to expand its transport operations into the Midlands. MD Peter Masters says: “It’s a very exciting time for Miniclipper as this venture pushes us into pastures new. We’ve expanded our service further into the Midlands and this was very much a long-discussed strategic move for us.” This will allow Miniclipper to offer its services to customers across Manchester, Sheffield, Nottingham, Derby, Stoke, Birmingham and Coventry among others.
The new facilities
VISITING DIGNITARY: Peter Masters welcomed local MP Kate Kniveton to the opening ceremony for Miniclipper’s Burton site
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Set on a 100,000sq ft site, the warehouse covers 92,826sq ft, leaving the rest for office space and a large yard. This was a significant factor behind choosing the site, says commercial director Jon Parish: “It’s unusual to find a site with a footprint like this.” To begin with there will be seven trucks operating from Burton, but there’s ample room to run more trucks as Miniclipper’s customer base in the area grows. The new facility is manned by 11 staff plus the seven drivers and it’s operational from 8am until 7pm. To ensure its drivers have the correct qualifications to deal with dangerous goods and machinery, Miniclipper enrolled its new recruits on a three-week training programme before they got behind the wheel. This covered ADR and forklift training so the drivers could hit the ground running. The warehouse has three racking areas, including standard racking, very narrow aisle (VNA) racks and bulk storage on the floor. Since April the warehouse has been operational for Panasonic products and there’s space for an extra 2,500 pallets, which Miniclipper aims to fill by early next year. This is the only warehouse capacity left
across the company’s 50,000 pallet spaces, a testament to its impressive growth over the past five years. Access to the warehouse is provided by a covered cross-docking area so trucks can be loaded and unloaded in all weather conditions. There’s a six-bay dock-levelling area with a large turning circle to make it easy to reverse up to, and at the far end of the warehouse there’s a fullheight door for double-deck trailers. Miniclipper has four double-deck longer semi-trailers (LSTs) with rearsteer axles from Lawrence David on fleet and Burton can comfortably accommodate these. To get the site fit for operation, it was completely overhauled, cleaned up and equipped with motion sensor LED lighting. Although Miniclipper’s owned facilities are all fitted with solar panels, the new location is on a 10-year lease so the company is employing other strategies to minimise its environmental impact. The transport fleet currently runs on diesel but its company car fleet has transitioned to electric, so there’s electric vehicle charging on site. Assessing the potential for introducing electric trucks, Parish says: “We’ll probably end up moving from diesel to hydrogen in one step rather than going via electric on the way.” However, if Miniclipper does invest in electric trucks, Burton has a more robust infrastructure to support charging for an electric truck fleet compared to its Dunstable site. In the meantime, Miniclipper is using Microlise telematics to monitor fuel usage and Paragon software to plan the most efficient routes. It’s also updating and adding to its fleet. The new location opening coincided with the delivery of two new Volvo FH trucks and a DAF 23.10.23
Partnered with
XF tractor unit to bolster its 50-strong fleet. Miniclipper runs a mixed fleet of MAN, DAF, Iveco and Volvo trucks including tractor units and 7.5-, 10- and 12-tonne rigids.
The company
Miniclipper is a family-run business that was founded in 1971 by Mick Masters. Speaking at the Burton opening, Peter Masters explained: “My father responded to an ad in the local paper in Leighton Buzzard for a man and a van to operate a courier service into London.” He identified a lucrative gap in the market that later led to the purchase of Miniclipper’s first freehold premises in 1985, the same year Peter joined the family firm. On Mick’s retirement in 2005, he waved goodbye to 80 employees, a fleet of 35 vehicles and three sites. In the 52 years since Miniclipper’s humble beginnings, Masters says: “We’re now a multi-award winning 3PL with over 200 employees and a portfolio of over 300 customers operating from six sites. And I’m very proud that we now have a third generation in the family business as well.” As a FORS Bronze accredited operator, the company handles palletised freight and ADR goods. Miniclipper has been a Palletline member for more than a decade, part of UPN since 2021 and was a founding member of The Hazchem Network in 2005. In 2023 alone Miniclipper won six awards including its MT accolade. This is the second time Miniclipper has been awarded MT’s Business Excellence trophy. In 2018 the firm took home the prize thanks to the team’s hard work to continually grow the company. Retired sales director Jayne Masters commented at the time: “We’ve got fantastic people who are committed to relentlessly improve the business and without them we wouldn’t be here.” This sentiment was echoed by Peter Masters at Burton’s opening, where he praised local support for the new depot and the team who transformed the building into a fully operational warehouse and transport hub in a matter of months. To support its growing warehousing and distribution services, transport operations were relocated to Dunstable in 2021. The 4.5-acre site saw a £5.5m investment to become the new home of Miniclipper’s 24-hour distribution centre. Masters says: “Now we have a trunk route between the two depots. We can deliver freight to Burton, cross dock it and ship it out.” This means driver nights out are minimised as any freight travelling further up the country can go through Burton. As well as streamlining the company’s UK-wide transport solutions, Masters explains “the new site is more of a transport strategy than a warehousing strategy, because we could have put warehousing somewhere close to the headquarters in Leighton Buzzard”. Opting for a site further afield means Miniclipper can reach a new customer base across the Midlands.
To this end, transport operations from Burton launched at the start of September and, once the warehouse is full, there’s scope to scale up logistics in the area. Four rigids and three articulated trucks will be based here for the foreseeable future, with the fleet growing as needed to meet demand. Masters comments: “This is definitely a future-proof site, we’re not about short termism”. While the site has a decent size cross-docking area, the team is already planning to install a second one to maximise and optimise loading efficiency and capacity. After a successful recruitment drive, an in-house training programme is already under way at Burton. In dealing with driver shortages a couple of years ago, the team decided to launch a ‘warehouse to wheels’ programme, designed to upskill warehouse operatives and help them achieve their Class 2 licence with the option to go for a Class 1 afterwards. One of its new recruits in Burton has enrolled on the programme to become an HGV driver and two ‘warehouse to wheels’ graduates joined the driving ranks this year, significantly lowering the average age. With the team already settling into its Burton premises, a 10-year lease term will give Miniclipper plenty of time to establish itself in the Midlands as a service provider, employer and member of the community. Masters says: “We look forward to bringing the community spirit that we pride ourselves on in Bedfordshire to the Burton area. We'll be actively pursuing opportunities so that we can support local causes and charities too.” ■
ROOM TO GROW: The footprint of the Burton site, with space for a 92,826sq ft warehouse, office space and a large yard, was a significant factor behind choosing the site
Annually, Miniclipper manages in excess of 300,000 warehouse picks, handles over 375,000 pallets and delivers 200,000 pallets. The expansion into Burton is a key facilitator in the next phase of its growth. In 2022 Miniclipper saw the best turnover and profit in the company’s history, increasing turnover by 19.5% and profit before tax by 46.5%. Based on this impressive period and its new site, annual revenue of £25m is expected in the not-too-distant future. 23.10.23
Photos: Picture Press
The future
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MT Awards 2023 winner profile Customer Care Award
Strong engagement with its clients has helped Walkers Transport to achieve enviable customer satisfaction scores
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alkers Transport is a leading UK 3PL providing palletised transport, storage and fulfilment solutions to 500plus customers, manufacturers and wholesalers. With an annual turnover of £49.5m, it operates from four sites in Leeds, Manchester and Lichfield and is a key member of Palletways, running the pallet network’s Northern Superhub as part of a joint venture. Customer service has always been at the heart of Walkers’ operating strategy, but never more so than during 2022, when it found macroeconomic disruptions continuing to apply pressure to the wider haulage market as the world still grappled with the repercussions of Covid-19. Demand and expectation from end-consumers on delivery and convenience increased disproportionately to available driver and vehicle resource. MD Jason Scott says of this turbulent period: “It was imperative that we continued to deliver superior service levels to our customers during 2022, all whilst resisting macroeconomic challenges, navigating resource shortages and ensuring our customers were shielded from any impact.” He adds: “We hyper-focused on retention of existing loyal customer accounts and forwent ad-hoc opportunities and new business to give the best possible service to our customer base. “This allowed us to position our resource into protecting key accounts at times of industry instability and embed into their operation as an indispensable, long-term strategic partner.” Thankfully, Walkers Transport’s long-standing strategy
Photo: Steve Sharp
Never say ‘no’
in serving a diversified customer base and premium service positioning provided operational resilience against the impact of industry pressures.
New partnerships
A deep understanding of individual customers’ needs is essential for Walkers to be able to deliver its awardwinning customer service, as well as ensuring it is highly agile in responding to changes in requirements. To embed itself fully in its customers’ organisations, Walkers adopts a thorough onboarding programme for all new customers, which is very well received, says Scott: “The more support you can provide in that [initial] period, the better.” The process involves an initial Transport Health Check of new customers’ existing transport operations, exploring if there are inefficiencies and areas for improvement. At this stage, Walkers will also clarify exactly what the customer’s requirements are from their transport provider and the key performance metrics they would like to measure. A Trading Agreement is developed with new customers, which pledges the volume of pallets Walkers will move for the customer along with the agreed rate card. Customers’ preferred software is also embedded into the purpose-built Walkers Insight Portal (see box), with thorough training on all features and functionalities provided. At around the two-week point, the new customer receives a site visit to ensure that everything is running smoothly and that there are no friction points. An appointment check sheet is used as a framework to gauge satisfaction. 23.10.23
Partnered with
The final stage of the official onboarding process is a six-month review to assess account and service performance. The customer is then handed over to their dedicated account manager and team of front-line customer service advisors. Walkers believes that its customer-facing activity and investment in operational technology offer a significant differentiation from competitors, allowing its team to truly embed into customers’ operations as a key strategic partner. Its team of 17 specialist customer advisors is always available to provide support and guidance, while a weekly service update bulletin is emailed out from senior management every Friday to keep everyone in the loop concerning service disruptions, fuel price fluctuations and anything that may impact their operation. Such transparency is a vital ingredient to a successful working partnership between Walkers and its customers, Scott adds. Co-branding opportunities also exist for key accounts, even going as so far as to provide liveries for their customers’ customers, which the MT Awards judges felt was a particularly special touch.
Agile approach
Walkers aligns its capacity closely with the changing needs of its customers and is quick to adapt should volumes fluctuate, or if they call for additional warehousing, specialist fleet vehicles or bespoke requirements. For example, in April 2022, Walkers invested £250,000 into finding a new Leeds site, racked to accommodate 5,500 pallets, to enable customer Sika EverBuild to manage the growth within its own business. This has enabled EverBuild to store raw materials with Walkers and receive just-in-time deliveries into its production facility when needed. Walkers also added specialist ADR capabilities to its operation for EverBuild and has since won new hazardous goods contracts through its partnership with Hazchem. “There’s never a ‘no’ with our business,” says Scott, “there’s always a solution.” Most customers use Walkers as their single-source transport provider, which the company puts down to its capacity and exceptional service. To measure satisfaction levels, Walkers’ dedicated account managers will regularly call or visit customers and complete a Satisfaction Appointment Checklist, with the results shared internally to continuously improve and smooth out any issues that might have been mentioned.
FULL TRANSPARENCY The Walkers Insight Portal is a proprietary in-house system that gives customers a single integrated portal for managing quotes, consignment tracking, invoice management and other queries. All Walkers customers are presented with a highly customised dashboard via the Insight Portal, serving headline information by way of live consignment data. This offers complete transparency and high levels of efficiency. All data and performance metrics are live and readily available, allowing the customer to self-serve and access the data whenever they want to. 23.10.23
A formal annual review with all customers also helps Walkers make key strategic decisions across the operation. One such decision based on valuable feedback has been the development of an in-house system to help customers track their carbon emissions, which they are able to do for every consignment. Scott says: “We built a system and came up with a method to calculate emissions and then a tool to offset the carbon. It’s been a really big development piece for us.” Walkers’ customers are also able to regift any offset carbon to their own customers, adds Scott, with a certificate sent directly to them and a link on how to track the process. “For new business, we also offer something else on top of this service. For every consignment booked, we’ll plant a tree, which can also be regifted, so we can make this our customers’ USP to their own customers,” he says. To gauge satisfaction right through to the end recipient (often the customers’ customers), an open reviews platform is used to enable end users to judge the final leg of the journey. An independent review carried out by CIL Management Consultants gave Walkers Transport a high-ranking net promoter score of +70. “They did a really good job on the review process and we were absolutely astounded by how happy our customers were, which of course all feeds into the wider retention piece,” says Scott. The results of this attention to customer satisfaction speak for themselves: during 2022, not only did Walkers retain 94% of existing customers, but it also secured an additional 88 account wins. In the same period, the company improved its on-time-in-full deliveries from 96.5% to 97.86%.
Technology focus
Always looking to improve and grow, Walkers Transport has plenty in the pipeline for the coming year. A key initiative will be the opening of a brand-new, 70,000sq ft purpose-built HQ in Morley, Leeds, adjacent to the company’s existing premises. A significant investment for the business, the site will create an additional 12,000 storage spaces. “It will be a far more efficient site for us,” says Scott. “It’ll be an absolute gamechanger and will reduce our turnaround by at least a couple of hours, enabling a better service for our customers.” Also under development for Walkers is a series of technology advancements, including an IT resilience project where the company’s systems will move into the Cloud, alongside a real-time collection notification system being designed and built in-house. The latter will enable customers to track vehicles on the way to their sites and see how long they will likely be due to current traffic conditions. “Full transparency is the key bit here,” says Scott. “It gives them true expectations of where vehicles are at any moment in time.” During 2022, Walkers Transport achieved a 10% yearon-year revenue growth of £49.5m. Scott tells MT that its key focus as a business is “stability and service”, with customers at its core. He adds: “We are growing, but we’re not focused on doing this quickly and want this growth to be on the right kind of course.” The business currently has a couple of acquisitions on its radar and outside of that any growth will continue to be organic to support the needs of its customer base. ■
DEDICATED TO SERVICE: With a team of account managers and 17 specialist customer advisors, Walkers Transport aims to become a key strategic partner for each of its clients MotorTransport 39
MT Awards 2023 winner profile Haulier of the Year
Aiming higher While Covid-19 was a disaster for many in the haulage sector, airfreight specialist Goldstar used the pandemic to seek out new opportunities and showcase its resilience
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n 2023 Haulier of the Year, airfreight specialist Goldstar, impressed our judges with its “clear, honest and factual submission that ticks every box”. Goldstar, formerly known as Goldstar Heathrow – and not to be confused with Turners (Soham) container haulier Goldstar Transport – celebrated its 25th anniversary in 2023. Its traditional dark green livery underwent a modest refresh to mark the silver anniversary, finally getting a gold star for the first time. Over a quarter of a century, the business has grown from a modest courier service to become one of the most prominent operators in the commercial airfreight sector. It is led by MD Katie Crozier, operations director Kirsten Crook and commercial director Charlie Fulk. The company operates from its HQ at Heathrow, plus sites close to Birmingham and Manchester airports. It also has teams based in-house at customer sites across the UK and employs close to 300 people. Its entry described the devastating impact Covid-19 had on the business and the airline industry: “On 20 March 2020, all flights to and from the US were suspended. This was the last in several countries to stop international travel in the fight against Covid-19.” Crozier says: “As soon as flights started to reduce and we heard the word ‘Covid’ in January 2020, we knew something negative was happening. Then on that Sunday in March, almost without warning, the US flights stopped and everything ground to a halt. “After what seemed like an eternity but was probably only a couple of weeks, the government introduced phase
one of the furlough scheme. We had already let our vulnerable staff go home but the scheme allowed us some respite while we worked out how to restructure.” The pace of change bought about by the pandemic and subsequent lockdowns was something the UK had never witnessed before. “We’d gather at 5pm everyday to listen to the government announcements, which were changing so quickly,” Crozier goes on. “It was a different world to the one we previously lived in, but everyone here adapted and fought for the company’s survival.”
Positive change
Then, in May, the business was thrown something of a lifeline when freighter aircraft and some passenger planes converted to carry freight resumed flights into the UK. Goldstar was also able to switch some of its pharma fridge trailers to carry food for companies like Gist and Fowler Welch. It then secured significant agreements for personal protective equipment (PPE) warehousing and delivery to NHS sites across the UK. “We had thousands of pallets across all our sites,” says Fulk. “We had three sites at Heathrow and depots in Birmingham and Manchester, along with another site we rented short term in Leicestershire. “We turned up at Leicester with our first two loads, to be asked by the warehouse guy ‘how are you going to unload those?’ In the rush to secure more space it hadn’t occurred to us that they didn’t have any forklifts, so we had to run back to Heathrow to collect one.” The PPE movements kept the company busy through 23.10.23
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that summer and when people at home in lockdown started buying over the internet, volumes increased. This phenomenon, along with the PPE, saw a huge increase in charter aircraft. At one point the company was receiving one or two freight aircraft each day into the UK.
WINNING SMILES: The Goldstar management team (from left) of MD Katie Crozier, commercial director Charlie Fulk and operations director Kirsten Crook didn’t let the pandemic kill the business
Custom made
Expanding its warehousing capacity has been a big driver of growth for the business. “We played at warehousing for a while, but we made a conscious decision to move into it five years ago,” says Fulk. “It’s really a cross dock rather than storage and most of the freight is in day one and out day two. When it comes in, we either wait for customs clearance and then deliver it, or for the exports we screen it with X-rays, explosive trace detection (ETD) or free-roaming dogs.” Goldstar now has 100,000sq ft of warehousing close to the airports it serves, much of it bonded so goods can go direct from the aircraft to the warehouse for customs clearance and then onward delivery. The truck fleet grew from 117 to 204 between 2020 and 2022 and, with a combination of more fuel-efficient vehicles and better use of telematics to encourage fuelefficient driving, average economy increased by 10% to 10.62mpg, delivering an equivalent cut in CO2 emissions. “We used to be predominantly Mercedes-Benz but now buy Mercedes and DAF,” says Fulk. “As we have grown in the regions we have found DAF has more accessible aftersales service. We picked up our first new DAF XFs in 2021 and have had great feedback from drivers.” Our judges described Goldstar as an “outstanding example of adaptability and resilience”. “With the collapse of the airfreight sector Goldstar was able to deliver a 60% increase in turnover and 163% increase in profitability over three years through the development of new customer relationships. In addition,
it achieved an amazing 10% reduction in CO2 emissions,” they said. “When you look at where this business was three years ago, to recover to where it is today is testament to the team. A well-managed, agile and robust business with a clear customer focus.” The company has also achieved outstanding financial results. Turnover grew from £21m in the year to March 2020 to a projected £35m in the same period in 2023, while pre-tax profits increased from £1.2m to £3m. Key to this has been tight cost control using weekly P/L reports – daily at the height of the pandemic – to match cost to revenue. The company tends to buy its vehicles to minimise fixed lease costs and internally funds some of its purchases by reinvesting profits rather than using external finance. Apart from some asset finance it is relatively debt free, and prudent use of spothire vehicles and agency drivers to handle peaks means costs can be quickly curtailed if revenue dips. This was the first time Goldstar had entered the MT Awards and Fulk says it was a “brilliant experience” to win. “I’ve been to the event a few times but to win on our 25th anniversary brought it all together,” he says. Q
GOLDSTAR – A BRIEF HISTORY Goldstar Heathrow was founded in 1998 when Charlie Fulk and his partner Mark Basil bought a firm called Heathrow Haulage. It had four trucks in Egham, Surrey doing airport work for a single client. Turnover in the first year was £326,000. “We had an appetite to grow and started going in to see other customers,” says Fulk. “By 2011 we were a £10m-revenue business with 50 trucks and Mark started indicating he wanted to exit the business after a 30-year career in the industry. “I came back from a meeting one day quite excited that I had won some business, and his reaction wasn’t quite so excitable as mine and so I realised that he did really want to either step back or find a way to leave the company. We decided to try a management buyout. We found a bank, the Clydesdale, that would back us – the bank we are still with today - and in 2012 a deal was agreed.” At that time, Katie Crozier had just joined the firm as its first HR manager after getting a degree in hotel and catering management and working in the hospitality and leisure industry for 12 years. “I fell into HR and then fell into transport,” she says. “It was a start-up role and I started doing three days a week. Then I took on more of the support services.” She became operations director in April 2019 before stepping up to MD in May 2022. On leaving school, Kirsten Crook started out with a parcels company before spending 15 years with DB Schenker. She came to Goldstar as operations manager in February 2019 and succeeded Crozier as operations director in 2022. 23.10.23
Crook was well known to Fulk as she was one of his early customers when he and his partner formed Goldstar. “I’ve known her nearly 30 years and we have crossed paths over the years,” he says. “We tried to hire her before but she always refused until four years ago.” Goldstar’s winning entry said the management “prides itself on not being a stereotypical transport team” and from the outset Fulk had a “vision to be a more professional transport company”. “Many competitors will outsource most of their compliance, health and safety and HR,” he says. “I wanted to build a business that would include all of that. I believe that to give our customers the quality of service I wanted we have to have all of that in-house. “It is a very flat management structure. Below the three directors there is a senior management team of five people who run the business day to day and below them is the middle management team. We all know each other very well and communicate effectively on a daily basis. Everyone knows what the plan is and what we want to achieve that day, that week, that month. That paid dividends in Covid.” The name Goldstar and the dark green livery were Basil’s idea – but until 2022 the star on the livery was also green, not gold. “In 2022 we changed our livery and strapline to ‘Your freight, our focus’,” says Crozier. “It used to be ‘Transport you can trust’ but we wanted something that included our warehousing. We dropped ‘Heathrow’ from the name to reflect where the business is now.” MotorTransport 41