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name will appear above the windscreen but that’s it. “Dominic Quigley, who built Fresh Freight, now runs distribution in the North for me and Matt Hathaway runs the South. Then I’ve got a fulfilment and logistics business and Anita Donohoe is the MD of that.”
He also hinted at further acquisitions to the group: “It’s on the table – we have access to funds,” he said. “With the economy as it is we’re a bit more cautious but we’re keen to broaden the services we offer so we may acquire in the logistics and fulfilment sector.”
Sharp ■ Informed ■ Challenging 29.8.22 WhitesWarburtonsSaintsRTPall-ExJohnGXOClipperArchboldAmazon........................................................p10Logisticsp4Logistics............................................p3Logistics................................................p3LewisPartnershipp10London..............................................p4Keedwellp3Transportp4p4TransportServicesp3OPERATORSINSIDE End of the road Whites Transport boss throws in the towel as fuel costs rocket p3 Unholy mess Brexit and Covid caused demise of Saints Transport p4 NEWS INSIDE Business barometer p6 Viewpoint: the case for 5G p8 Emissions control: ‘dieselgeddon’ ahead p10 Interview:
Denton p16
“The strategy is to grow primary, grow fulfilment and logistics, standardise distribution and unify the business,” Hobbs continued. “We’ll retain all the strengths of that local family business mindset but the market will now see a more prominent Kinaxia Logistics brand.” He admitted there had been a recent “slight reduction” in Kinaxia’s e-commerce business but the company was “significantly up on last year in all metrics” and on course for a good year despite the economic challenges.
“If volume drops, smaller organisations who have maybe 30 trucks will still send them all out but with less on,” he said. “But we park vehicles and spread it out to protect gross margin. I now see an opportunity to sell that spare capacity.”
A new transport management system will be piloted in the North West from next month and be rolled out to the rest of its network by the middle of 2023. This will allow the group to share work more efficiently and become less dependent on the pallet networks, HobbsKinaxiaexplained.hasalso published fullyear accounts for 2021 showing a surge in net profit to £3.2m from £157,000 in Revenue2020.was up by 8.3% to £185m while operating profit was up from £11.3m to £11.75m. Since its launch in 2012, Kinaxia has acquired the likes of Bay Freight, William Kirk, NC Cammack & Sons and Mark Thompson Transport.
By Tim Wallace Kinaxia plans to standardise its operating process and complete the rebranding of its 13 transport companies next year, following a refinancing deal back in March which cleared a £42m debt. Chief executive Simon Hobbs (pictured left with CFO Ben Warrillow) told MT the restructure was a “massive step forward” and would better connect its group of family-run businesses while maintaining their entrepreneurship, agility and customer focus.
“This is a wake-up call for the industry,” Hobbs said. “We’re growing fast and have restructured the“Markbusiness.Thompson will control all our primary movement –e-commerce and trunking etc. That will be our yellow fleet and our local distribution businesses will be the blue fleet. The family
BUOYANT BUSINESS: Logistics group EV Cargo is mulling a £1bn London stock market flotation in a bid to raise funds to buy more companies. However a spate of failed flotations in the UK may lead it to play safe and chose either the New York or Hong Kong stock exchanges, according to founder and chief executive Heath Zarin (pictured). EV Cargo includes EV Cargo Logistics, NFT Distribution, Palletforce and Allport Cargo Services in its group and employs 5,000 people in the UK, including 2,200 drivers. Zarin said it is aiming to become one of the world’s top 20 logistics firms through growth and acquisition. Nick
Uniting group’s 13 transport brands will boost efficiency and allow expansion into new areas
Restructure for Kinaxia
Manchester’s Mercure PIccadilly Hotel on Friday 7 October, the event includes a ‘Full English’ Champagne breakfast, followed by awards presentations hosted by TV newsreader Sameena Ali-Khan, and talks from well-known industry figures. Tables for 10 are still available. Phone 01355 279077 for details.
motortransport.co.uk News MotorTransport 329.8.22
By Tim Wallace European perishable foods haulier Whites Transport Services has blamed rising fuel and energy costs for its decision to wind down the 1992 by haulage veteran Ray White, the Hungerford-based company owns 18 Scania and Volvo trucks and a range of refrigerated trailers, which it estimates to be worth up to Ray’s£4m.son, Pete White, transport manager, told MT that all of its drivers had found new jobs. “We’ve achieved everything we want to achieve and feel that with the residuals as high as they are, and the uncertainty with what’s to come with energy prices and fuel prices, we just want to take the money and run,” he said. “It’s nothing to do with Brexit.”
Northern Rewards celebrates the achievements of road transport companies and individuals located in the north of TakingEngland.placeat
RT Keedwell shapes up with review
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n Welsh haulier Scott Commercials has closed down with the loss of 10 jobs, almost a decade after it was first established. The Ebbw Vale firm blamed the soaring price of fuel and recent rises in PAYE, Adblue and the cost of tyres.
GXO-Clipper deal in the spotlight
The company said its 2019 performance followed by the Covid-19 pandemic were catalysts to it carrying out a “fundamental review” of its operations and this resulted in a 27% reduction of its overall group fleet size.
The UK’s Competition and Markets Authority (CMA) has launched an investigation into GXO Logistics’ £965m acquisition of Clipper Logistics. The CMA is looking at whether the deal will result in a substantial lessening of competition. When it was announced in February, Clipper Logistics and US-listed GXO said the merger would create a “compelling strategic combination which significantly increases the opportunities for both businesses in the highgrowth e-commerce/e-fulfilment areas.”Shareholders voted in favour of the deal, which was completed in May, with Clipper de-listing from the London Stock Exchange.
Turnover remained steady at £28.8m (2020: £28.9m) whilst pre-tax profit rose to £1.2m from £502,000 in 2020.The company said the driver shortage crisis added a “further layer of challenge”, which it tackled by instigating a “fundamental” review of pay rates to stabilise staffing levels. At the same time the pandemic continued to impact on business, requiring the firm to “perpetually appraise customer demand, supplier availability and resource utilisation”, the report added. On the upside Elddis’ warehousing business, particularly at its Gamston site in Nottinghamshire, saw “significant” revenue growth in the period.
“However, it is noted that the turnover increase is in part driven by the transfer of trade from another group company.”
The family-run firm had decided not to implement a fuel surcharge, saying it “wasn’t fair” for customers to absorb extra costs: “We just discussed it month by month,” White said. “We didn’t demand anything.”
The CMA served an initial enforcement order in May to prevent both parties taking preemptive action that might preju dice the outcome of any potential investigation by the regulator.
RT Keedwell bounced back from the pandemic’s initial waves of disruption to report a 34% increase in revenues to £21.9m lastInyear.the year ending 31 October 2021, the Somerset haulier also increased pre-tax profit to £1.01m, from £416,000 in 2020.
“To date, the resultant changes have enabled the company’s turn over to return to pre-pandemic levels whilst improving gross and net profits by £804,435 and £678,357 respectively,” it said.
Elddis Transport (Consett) saw its pre-tax profit more than double in 2021 aided by “significant” revenue growth in its warehousing business and the expan sion of its Consett site.
Owner says high fuel prices mean it’s time to ‘take the money and run’
Black day for Whites as rising energy costs bite
He added that he expected many smaller operators to close in the months ahead. “I’ve had a dozen hauliers message me to say they feel exactly the same,” he said. “They think it’s a good time to get out.”
The County Durham-based haulier, which is a founder member of the High Cube Network and a Palletforce member, specialises in FMCG, general road haulage and warehousing and employs around 320Instaff.itslatest annual results for the period ending 31 December 2021, the company hailed its “solid” performance in the face of the ongoing challenges.
While the order did not prevent completion of the deal, it does require Clipper to be run indepen dently from GXO until the CMA has completed its review.
Foundedbusiness.in
Warehousing expansion helps fire Eldiss to bumper profit
Fleet operators are invited to enter now for the prestigious Transport News Northern Rewards, or simply book their place to attend this popular networking event.
At the same time we have seen tens of millions of square feet of big sheds brought to market, which is creating a glut of new warehousing.”
By Carol Millett
The impact of the Covid-19 pan demic and Brexit were highlighted as two of “numerous reasons” why Heathrow-based air freight special ist Saints Transport was forced to close its doors this month, accord ing to Theadministrators.privatelyowned company, founded in 1968, employed around 350 staff and operated a fleet of 200Ontrucks.1August
Pall-Ex highlights logistics offering
An oversupply of PPE, combined with a shrinking economy, the decline of the online shopping boom and a major expansion in storage space are creating a glut of new warehouses which will struggle to find occupiers, a senior figure at one of the UK’s biggest logistics operations has warned. According to recent research by Knight Frank, nearly 37m sq ft of warehouse space was slated for construction last year, up from 23m sq ft in 2020. However, a senior source at a major logistics enterprise told MT that demand for warehouse space is already falling. He said: “Six months ago warehouse brokers would have 50 enquiries for space and they would struggle to find any warehouse keepers to take that. “But in the last six months the pendulum has swung, with brokers more likely to have 50 warehouse keepers contacting them looking for customers.
He cautioned logistics firms against taking on new sheds at what may be the top of the market.
n West Midlands haulier Adam Jones and Sons collapsed into administration after racking up losses of more than £450,000 due to the Covid-19 pandemic, accord ing to insolvency experts. The Halesowen business folded on 24 May, just three years after it was acquired by investment firm OTIF Holdings.
“To rack out a shed in 2020 cost £50 for every pallet location, that is now £100 a pallet,” he said.
Familiar double-whammy killed off well-known Heathrow operator Brexit and Covid took down Saints
Paul Ellison and David Taylor of Reading-based KRE Corporate Recovery were appointed as its administrators. The company’s main contract terminated on administration and has been awarded elsewhere while its fleet of tractor units has been sold to an independent third party. In its latest annual results to 31 December 2020, published in September last year, the family firm revealed that turnover was £12.3m for the year, compared to £11.3m in the six months to 31 December 2019, with pre-tax losses standing at £167,006 – the same amount as reported for the six months to 31 December 2019.
Archbold reports record year Pall-Ex London is changing its name to Pall-Ex Logistics (Basildon) with business opera tions set to accommodate a wider variety of logistical services. The move aims to communicate that Pall-Ex Logistics is more than just a pallet network service provider and will instead empha sise the multi-service logistical offering that it will provide. Pall-Ex Logistics will now deliver a ‘complete logistics solution’, including container devan, cross dock, full load, storage and sameday delivery. This will provide additional revenue streams. Updated branding, including newly liveried vehicles and re-branded property, will also accompany the changes at the Basildon site. n Pall-Ex Group has purchased 66 trucks from lease supplier Ryder with rapid support from Metro Bank. The deal, one of the bank’s largest asset finance deals, involved securing terms for in excess of £4m of finance at near 100% loan to value on the trucks.
Beware warehousing glut, senior industry figure warns
ROLL WITH IT: UK bakery giant Warburtons has taken delivery of 26 new DAF XF 480 tractor units from Asset Alliance Group (AAG). The trucks take Warburtons’ fleet to over 1,000 vehicles and have been supplied on a three-year full-service contract hire basis, replacing previous rentals supplied by AAG. They will be based at sites in Bellshill, Wakefield, Nottingham, Bolton and Enfield, delivering products from the firm’s 11 UK bakeries.
motortransport.co.ukNews 4 MotorTransport 29.8.22
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Greater Manchester-based Archbold Logistics saw its pre-tax profit quadruple in 2021, aided by the company’s “significant” invest ment in its fleet and staff and its focus on delivering a high quality service across multiple sectors. The logistics company, which is a member of Palletforce, has its headquarters in Heywood, Greater Manchester and has operating licences for 144 trucks and 465 trailers.According to its latest annual results to 31 December 2021 the company’s turnover leapt 49% from £16.8m to £25m with the gross profit margin being main tained at 20% of turnover. UK turnover jumped to £18.5m (2020: £13.1m) in the period, whilst overseas turnover rose to £6.5m (2020:Pre-tax£3.7m).profit came in at £1.7m for the financial year, a significant rise on the prior year pre-tax figure of Over£383,553.the same period, the company’s balance sheet saw net assets increase to £3.2m from £1.4m in the previous reporting period.MDAlan Maher (pictured) also revealed that it had invested over £500,000 in upgrading elements of its fleet during the year.
Annual CPI inflation hit 10.1% in July and is set to continue at doubledigit levels for a year. July’s figure is already a 40-year high, but earlier this month the Bank of England forecast it will peak at just over 13% in the final quarter, before easing next year to average 12.6% in Q1, 10.8% in Q2 and 9.5% in Q3. Then comes a sharp drop, to 5.5% in Q4, the Bank reckons, but it will be Q3 2024 before CPI returns to the 2.0% targetOverlevel.thepast couple of decades it has been the rising price of services, rather than of goods, that has been the dominant element of CPI inflation. But, as our chart shows, the reverse is now true. Fuel, gas and electricity are the real culprits, of course, followed by food and various household goods such as Thefurnishings.UK’sCPI inflation rate of 10.1% in July is fairly typical: the corresponding EU-wide average is 9.8%; it is 8.5% in the US and 15.1% in Russia but just 2.7% in China. Gross domestic product The latest GDP data show the UK economy in Q2 was 0.1% smaller than in Q1. This initial estimate represents a sharp slowdown from Q1’s 0.8% growth. Nevertheless, in its Monetary Policy Report, pub lished earlier this month, the Bank of England expects growth of 0.4% in Q3, followed by a contraction of almost 1% in Q4. The Bank thinks the economy will continue to shrink in all four quarters of next year, leaving it 1.5% smaller than in 2022. So we seem destined for at least two successive quarters of contraction, thus fulfill ing the definition of recession: the only question is whether it will start this year or next. The UK’s Q2 GDP shrinkage of 0.1% looks poor compared with average growth of 0.6% in the EU, but not as bad as China’s 2.6% contraction or the 0.2% in the US.
The European market for new trucks of 16 tonnes GVW or more at the mid-point of the year is patchy. At the same juncture in 2020, when Covid took hold, reg istrations of heavy trucks in the EU were 44% down on the previ ous year. They rebounded by 39% in the first half of 2021, but at the half-way point in 2022 EU registra tions are just 0.4% up on last year’s.Our chart of Europe’s six biggest truck markets shows some coun tries are ahead of last year while others lag behind. The situation is more polarised in medium-sized markets: Austria is 16% down, but neighbouring Hungary is 27% up; Sweden is 9% down, whereas the Netherlands is 9% up. Estimates for the UK suggest first-half numbers are 2.6% up. Supply-side pressures are skewing the data. These include supplychain repercussions of war in Ukraine, the semiconductor short age and Chinese factory closures owing to recurrence of Covid. But ACEA, the European vehicle manufacturers’ association, which collates the data, points out that EU-wide totals in both May and June were up on last year’s, so there is reason for some optimism. UK heavy truck registrations were particularly strong in June, 21.9% up on last year.
There is cause for optimism in the UK’s heavy truck market, despite the grim economic outlook
Tough – and getting tougher Inflation
Oil and fuel After hitting a monthly average of $123/barrel in June – a 10-year high – the softening of the Brent crude oil price to $112 in July came as some relief. At the time of writing, the August average is shaping up to be about $95. This reduction is partly attributed to Opec and its partners agreeing to a small pro duction increase in September, plus the prospects of Iranian oil returning to the global market.
motortransport.co.ukBusiness barometer 6 MotorTransport 29.8.22
EUROPEAN TRUCK REGISTRATIONS (JAN-JUNE) GROSS DOMESTIC PRODUCT INFLATION – GOODS VERSUS SERVICES 15%12%9%6%3%0% ServicesGoods JulJunMayAprMarFebJan -0.3%-0.6%-0.9%-1.2%0.0%0.3%0.6%0.9%1.2%1.5% Q4 2022Q3 2022Q2 2022Q1 2022Q4 2021Q3 2021 30,00025,00020,00015,00010,0005,0000 202220212020 SpainItalyPolandUKFranceGermany Trucks of 16 tonnes GVW and over Percentage change on previous quarter
Truck registrations
For anyone about to prepare next year’s operating budget, that fore cast of $94/barrel next year suggests an average of 115ppl to 140ppl for full loads of bulk diesel. That wide range reflects the uncertainty of the pound’s value against the dollar. Its July average of $1.20 was the lowest since 1985. Bulk diesel could be close to 140ppl next year if this weakness persists, but a more typi cal exchange rate should bring it nearer 115ppl. ■
Collating the analysts’ latest (August) forecasts suggests Brent will average about $105 in 2022 as a whole, easing back to average $94 next year owing to the anticipated global economic slowdown. However, the prospect of using more oil instead of Russian gas for power generation may upset those demand projections.
motortransport.co.ukViewpoint 8 MotorTransport 29.8.22 Got something to say? If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 5G future is about smart connections Steve Hobson TranspoMotorEditorrt Driver shortage here to stay?
In a ground-breaking trial, Nissan, Sunderland Council, the North East Motor Manufacturers Group and Three have collaborated to deliver 5G-connected, autonomous 40-tonne trucks to distribute parts and assemblies across the Nissan plant. The trial looked to apply 5G to ensure the safe and secure operation and handover of the vehicle from autonomous mode to remote manual operation when a situation arises outside of the autonomous logic of the vehicle.
As part of the 5G testbeds and trials programme, projects across the UK have been exploring different use cases for 5G across multiple industries from manufacturing to the creative industries. A core finding across all these sectors is similar to transport – 5G deployment is almost always only commercially viable if it benefits multiple use cases. This is what we call stackable use cases. Very few single ‘killer’ applications exist that might alone justify the expense of 5G investment.Automated last-mile logistics is one of the major innovation challenges in the automotive sector with its synchronous and complex supply chains.
The project deployed a private 5G network that allowed secure, reliable and ultra-fast communications between the vehicle and the operations centre, which used several key features of 5G such as machine to machine type communications, ultra-reliable low latency communications, massive throughput of data and secure communications.Thisisjustone example of the use of 5G in the transport sector, and how collaboration between private and public organisations can work together to help build the case for investment in 5G. The same principle of stackable use cases exists within private transport and logistics organisations, such as ports. 5G connectivity can enable connected devices to monitor passenger movements, pallet locations and more. But there are still challenges to overcome. This includes a lack of skills required to manage and optimise 5G infrastructure deployments through to limits on the availability of 5G compatible devices and components, although over the past year we’ve seen clear progress on thisAtfront.itscore, and as a way forward, the key to making the UK a leader in 5G is collaboration between private organisations, technology providers and the public sector. And that’s something we can all, be it through conversation or real-life trials, start working towards now.
uring the long hot summer (in the South of England, anyway) the driver shortage has dropped off the news headlines, but many in the industry are already worrying about the consumer spending peaks to come in the autumn andHigherwinter.wages and some crazy signing-on bonuses averted a total meltdown last year, and better pay will help keep some drivers behind the wheel who might otherwise have looked for less stressful work.
The newspaper for transport operators To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Head of content Tim Wallace 2158 Events and projects editor Hayley Tayler 2165 Group production manager Isabel Burton Senior display sales executive Barnaby Goodman-Smith 2128 Event sales Tim George 0755 7677758 Classified and recruitmentrtmclassified@roadtransport.comadvertising 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 WestPerrymountRockwoodQuadrantEmail:customercare@dvvsubs.comSubscriptionServices,House,Road,HaywardsHeath,SussexRH163DH Rates UK £146/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 © 2022 DVV Media International Ltd ISSN 0027-206 X
UK5GHead
But when marriage and family come along the early starts and long, unpredictable hours are far less attractive. When he reaches his 50s and the kids have grown up, going back to driving becomes more appealing again, especially if higher pay and fixed shifts are available.
D
W hen it comes to 5G, transport and logistics organisations are united in one thing – there is no point paying a premium for 5G unless it meets their specific needs. 4G and wi-fi networks work well in many cases, so 5G has to deliver something they can’t.
For a young single man (and let’s be honest, that is what 95% still are) truck driving is a good job with decent pay. It even offers an enticing element of freedom out on the road, although mobile phones and telematics have reduced that considerably.
Bob Driver
But the fundamental problem of drivers leaving the industry in their 30s and 40s remains, and will take years to address.
It has always been questionable if the industry can train its way out of the driver shortage, but unless it finds a way to hang on to drivers in their 30s and 40s then it will have to rely on a steady stream of new entrants to plug the gap.
The move follows last year’s £20m trial which included 20 DAF battery electric HGVs, as well as the trial of an electric road using overhead catenary on a 20km stretch of the M180 near Scunthorpe. Some operators are well advanced with zero-carbon strategies.
After the 2035/40 deadlines, operators will be able continue using existing vehicles, but, says Andrew Scott, head of electric mobility at Renault Trucks UK and Ireland: “Renault Trucks’ understanding is that government policy requires ‘zero emissions at the tailpipe’. If this definition remains, only synthetic ‘efuels’ could ➜
After 120 years of loyal service the diesel atextinctionisenginefacing–forroadtransportleast.It’stimetothinkaboutwhatcomesnext,writes
The government has been ramping up technology trials. In May, the DfT unveiled a £200m zero-emission road freight (ZERF) programme. This three-year compar ative programme will begin later this year with trials of battery electric and hydrogen fuel cell technology. The aim is to gather evidence on the future refuelling and recharging infrastructure needed for a smooth transition to a zero-emission freight sector by 2050.
Biofuel route
There is a measure of agreement that biofuel is currently the way forward for HGVs. Alternative fuels consultant Martin Flach is clear that there are environmental benefits to be had now from it.
Hydro-treated vegetable oil (HVO), for example, offers a significant reduction in CO2 emissions compared to standard diesel and works with existing vehicles. Adds Andy Eastlake, chief executive of the Zemo Partnership: “It’s critical to remember that the end of sale dates (2035 and 2040) are for new vehicles, so the fleet will take much longer to transition. Therefore the biggest reduction in carbon emissions in the near and medium term (necessary to meet carbon budgets and mitigate warming before Net Zero) will come from decarbonising the current parc of vehicles. That is most readily done with lower carbon fuels.”
Malory Davies
motortransport.co.ukEmissions control 10 MotorTransport 29.8.22 ‘Dieselgeddon’ on the horizon
The sale of non-hydrogen zero-emission trucks under 26 tonnes will end in just 13 years, while five years later sales of all non-zeroemission HGVs will be ended. It’s time to plan to ensure a smooth transition. And this year’s big rises in the price of diesel are making electric vehicles more attractive.
12
LOOKING UP: Roads with overhead catenary systems are one solution for EVs but the infrastructure challenge involved is substantial, especially in the UK
John Lewis Partnership, for example, has some 5,500 vehicles from cars to 44-tonne trucks. Fleet manager Justin Laney is targeting being fossil-free by 2030 and zero-carbon by 2035. This involves switching cars, vans and light trucks to electric vehicles. For HGVs, at this stage, the strategy is to go down the biomethane route – so far more than half of his 600 heavy duty vehicles have made the transition.
Battery electric has been gaining ground for vans and light trucks but the technology is still problematic for heavier trucks. Nevertheless, in March Amazon introduced five 37-tonne battery-electric DAF CFs at its fulfilment centres in Tilbury and Milton Keynes, where it has installed 360kW electric charging points for rapid charging.
Renault’s head of electric mobility Andrew Scott reckons that the technology may be viable in a number of specific locations but adds: “Renault Trucks does not expect widespread adoption of catenary systems in the UK, in part because of the high costs to install the infrastructure.”Zemo’sEastlake points out: “There are a number of potential technical solutions to delivering electricity to vehicles while they are on the move, as well as the now resurgent idea of battery swapping. All come with considerable investment requirements and significant technical challenges.
Russell Fowler, senior project manager, transport decarbonisation at the National Grid, points out that the government’s energy strategy includes a fivefold increase in power generated by offshore wind farms to 50gW by 2030.
Electric vehicles are key to making the best use of wind power, he says, because they can be charged at night when demand for electricity is lower.
motortransport.co.uk
Zemo’s Eastlake agrees: “Electrifying our road transport sector gives us a great opportunity to balance electricity demand with supply by recharging vehicles when electricity is abundant and cheap and replenishing the system when it is expensive and in short supply. The Zemo-convened EV Energy Taskforce and many of the key energy providers and stakeholders have been focusing considerable time resources on maximising the opportunities available to the UK’s energy system through smart charging.”
CAN WE GENERATE ENOUGH ELECTRICITY? ➜ 14
The five vehicles replace diesel HGVs, travelling up to 100,000 miles a year and avoiding 170 tonnes of CO2 from being emitted. They are the first of nine electric HGVs expected by the end of 2022.
“We’re committed to becoming net-zero carbon by 2040, and this is a milestone as we continue to decarbonise our transport network so we can deliver more customer orders using zero-emissions vehicles,” says Amazon country manager John Boumphrey.
control 12 MotorTransport 29.8.22
Emissions be considered for vehicles. Our expectation is that biofuels will be prioritised for those areas which are considered hardest to decarbonise, such as domestic heating, avia tion and maritime, rather than road transport.”
LEADING THE WAY: John Lewis Partnership has been an early adopter of zero-carbon vehicles, from cars up to 44-tonners
“ZERF will be considering electrified road systems in the future as one of the potential options. All have pros and cons so we must scrutinise these robustly, independently and from every angle, to make the best decisions.”
The National Grid calculates that if all the HGVs in England and Wales were battery electric, they would have an annual energy demand of 29tWh. That’s equivalent to a continuous energy demand of 3.3gW – about 10% of the total amount of electricity generated in 2019. If all the HGVs in England and Wales were hydrogen fuel cell, with hydrogen production by electrolysis, they would have an annual energy demand of 98tWh. That’s equivalent to a continuous energy demand of 11.2gW – about 30% of the total amount of electricity generated in 2019.
JLP’s Laney is enthusiastic about the potential for using electric catenary systems for powering heavy goods vehicles and is looking for good results from the government trial currently underway. All the alternatives to diesel have issues, says Laney, but catenary is less challenging.Nevertheless, the obstacles are still significant. “You’ve got to wire up a lot of motorway,” says Flach, who points out that there is an issue in the UK with the height of the wire. Motorway bridges are 5m high and double deck trailers can be up to 4.9m high, leaving very little space for a catenary. In practice the pantograph would have to be retracted, he argues.
Making the transition from fossil fuels to electricity for motive power means increasing the amount of electricity generated as well as having enough charging points where they are needed.
Nevertheless, there are still problems with battery electric technology for heavy vehicles. Flach says: “There is no question that OEMs can produce zero-emission vehicles. The challenge is to produce them at a cost that the customer can afford.”
Overhead solution One of the solutions being explored is so-called electric motorways, which use a catenary system to deliver power to the truck via a pantograph. This has the twin benefits of reducing the size of the truck battery and charging the battery on the move.
Another issue is the weight of the battery which can reduce the load capacity of the vehicle significantly.
Range extension
In terms of the cost of providing charging points, Fowler points out that if they are far away from existing infrastructure, then the cost will be higher. And he argues that there might sometimes be a case for relocating an operating centre closer to an electricity sub-station.
“Despite this, the relative cost of production for BEVs will reduce to the point where the total cost of operation (allowing for the savings in energy costs) of a battery electric vehicle is lower than diesel. This can already be There has been a lot of work on building charging points for electric cars, but these are not configured for commercial vehicles. Not surprising, perhaps, that John Lewis’s Justin Laney says: “I have got real concerns about public charging.”
Andy Eastlake, Zemo: ■ Keep abreast of the changing outlook for, and availability of, zero-emission vehicles in the areas where that can impact today ■ Where electric (or other zero-emission) options are not currently available, look at the options for incorporating the use of renewable fuels into operations
WHERE CAN YOU CHARGE AN HGV?
So can the cost of battery electric vehicles (BEVs) be brought down? “A hundred years’ experience in engineer ing and manufacturing has made it very cost-effective to produce diesel-engined trucks today,” says Renault’s Scott. “Manufacturers are currently accelerating the adoption of new technologies and building up manu facturing capability; however some materials used in a zero-carbon vehicle are likely to remain more expensive than those used in an equivalent diesel model and econ omies of scale have not yet been realised.
Andrew Scott, Renault (left): ■ Assess the availability and suitability of zero-carbon vehicles for your operations and consider any changes you may need to make ■ Consider the energy requirements for the business in the light of any changes to the fleet and the type of charging infrastructure that might be needed (in-depot, en route and/or destination)
At Road Transport Expo in June, Tevva unveiled its 7.5-tonne battery electric truck using hydrogen fuel cells to extend the range to up to 310 miles. CEO Asher Bennett says: “By embracing hydrogen, we are futureproofing ourselves, our clients and the industries and communities they operate in.”
Another option is the use of hydrogen fuel cells as range extenders.
However Laney is not convinced that hydrogen has a major role, arguing that it is too inefficient in its use of energy. And Eastlake says: “The economic case for green hydrogen is linked to the efficiency with which it can be produced, stored and delivered to vehicles. There are considerable challenges in this regard.”
“Zemo has long championed the expansion of the plug-in truck grant which is still not currently sufficient to make the economic case attractive. Support for infra structure is also key in other sectors like buses. So currently, we feel further support is needed to enourage the introduction of zero-emissions trucks,” he says. ■
BACK TO BASE: Amazon has recently installed 360kW charging points at two sites
the case in some applications such as refuse vehicles where fuel costs are particularly high.”
Clearly, operators will need to ensure that operating centres have adequate power supplies to support electric vehicle fleets.
He highlights one challenge for operators: where sites are leased, occupiers could have a hard decision to make about whether to invest in charging infrastructure, if they are not sure they will be there in the long term. He asks whether it is possible to design the infrastructure to “lift and shift” or be reconfigured, so that the majority of assets can be moved if needed. “We have got to de-risk the possibilities of moving,” says Laney.
motortransport.co.ukEmissions control 14 MotorTransport 29.8.22
There needs to be collaboration between the transport and energy industries to achieve this, he adds.
Martin Flach: ■ Don’t wait until 2040. There is time to experiment and gain experience with different technologies
Russell Fowler of the National Grid expects most electric vehicles to be charged overnight at the operating centre with between 10% and 30% of the charging taking place en route at motorway service areas. He recognises the need for dedicated charge points for trucks but says it’s up to the transport industry to decide where the charge points should be.
John Lewis has almost 300 sites, a “handful” of which might be problematic in terms of charging infrastructure, says Laney.
WHAT OPERATORS CAN DO NOW
Zemo’s Eastlake argues that “particularly in the early stages of market development, government and other external support will be needed to make zero-emission trucks economically attractive to operators.
“Our job is to get the wires there,” says Fowler. “So we need to know where the charge points are needed.”
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Steve Hobson reports for standards
In 2009 the UK’s system of transport regulation was incorporated into EU law and since then all EU-based HGVs are in theory subject to the same level of regula tion. In practice, however, Denton says the standards are “applied with varying degrees of rigour in different member states”.
Standing up
After spending a decade as a Traffic Commissioner Nick Denton has seen the good, bad and ugly sides of the UK’s logistics sector – and he doesn’t intend to let all that experience go to waste in retirement.
Interview: Nick Denton 16 MotorTransport 29.8.22
ick Denton recently retired from his full time role as traffic commissioner (TC) for the West Midlands after 10 years regulating the road transport industry. Quite rightly, he takes immense pride in the quasi-judicial role of TC, which is a far from easy balancing act of keeping Britain’s roads safe from rogues while allow ing the 69,500 licensed HGV and 6,600 PSV opera tors to go about their legitimate business without the burden of unnecessary regulation.
“We will always take the one which is most advanta geous to the operator and apply common sense. If an operator needs to show funds of say £80,000 and can only show £78,000, then broadly speaking financial standing has been achieved. The cases where I have revoked because of financial standing tend to be where an operator needs to show £80,000 and can only demon strate £3,000 over the past few months.” He is also frustrated that numerous reviews of the TCs’ functions have not led to any action on a number of other long-overdue changes.
VOICE OF REASON: Long-time TC Nick Denton says he and his colleagues have little opportunity to shape regulations, but believes the current system – on the whole – works well
Taking a lead One area that TCs do have some discretion over is the thorny subject of financial standing.
“If financial standing cannot be shown, a TC may allow up to six months for an operator to demonstrate that it will be able to meet the requirements on a perma nent basis,” says Denton. “There are also many possible sources of finance which can be taken into account, including factoring agreements, loans, overdrafts etc.
Like judges, TCs can only apply the laws passed by government and Denton says the TCs have limited influence when it comes to setting policy and standards. That means TCs have very little room to interpret the regulations. “Basically we are here to enforce the law,” he says. “We don’t really have a major role in shaping policy, though the DfT does consult us from time to time as we have a feel for how the policy is playing out and can offer ideas based on that experience. “But it is their decision if they want to change the law or not.”
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“It’s pretty common ground that the requirements for advertising new operating centres need to be adjusted to bring them into the 21st century, that a pan-GB O-licence should be a possibility and that vehicle discs can be dispensed with,” he argues. “Various reviews have recommended them but there have been no changes in the 10 years I have been a TC.”
“There is also some flexibility about how average funds are measured over a three-month period – it can be the average of the highest and lowest balance every month or the average closing balance every 10 days.
A LIFE OF SERVICE ... AND NO SIGN OF SLOWING DOWN ➜ 18
Murder is not, in fact, a good enough reason to prevent someone holding an HGV operator or driving licence – it was actually a bus driver who was deemed unfit to continue in his role as a result of his conviction for matricide. Although retiring as a full-time TC, Denton has no plans to “take up golf, gardening or river cruises”. He will act as a deputy TC in any of the eight UK regions that need him and has been appointed to the new Civil Aviation Authority independent review panel that will consider appeals by pilots and air traffic controllers who do not believe that the CAA has followed due process in suspending or revoking their licences.
“UK industry could employ UK companies to carry their goods to and from the UK but they don’t because the foreign competition is cheaper. Part of the reason is lower wages and possibly lower standards in some areas as Despitewell.”
As TC, Denton held over 2,000 public inquiries, revoked 550 operator licences, and suspended or curtailed 750 more. “There have been 120 appeals against my decisions to the Upper Tribunal, only 18 of which were wholly or partially successful,” he says. “I have revoked or suspended around 1,600 HGV or PSV drivers’ licences for reasons varying from mobile phone offences to sexual assault and murder.”
“I also plan to be involved in a range of activities – transport manager CPC exam setting and marking, writing and delivering training courses, and auditing operators – which all have the common theme of aiming to make the road transport industry more professional,” he says. “When it comes to writing and marking CPC exams, I want to give more focus on what transport managers are expected to do on the frontline. It is amazing, for example, that the current CPC training does not seem to go into the need to inspect and interpret maintenance records rigorously, download tachographs and look for missing mileage, or how to manage drivers.
MotorTransport 17 motortransport.co.uk 29.8.22
“Since Brexit there has been no appetite even amongst drivers for the UK to change its regulations on drivers’ hours – why would they want to work more hours?” he asks. “Have you ever tried driving for 10 hours and work ing for 15 hours a day?”
“The fact that Germany’s environmental regulations are so strict means that to get to the UK a Romanian lorry has to meet quite high standards enforced rigorously by Germany. So we are protected from the fag end of the continental industry.
Raising the game While he cannot say whether or not the professionalism of drivers has been improved by the introduction of the Driver CPC in 2009 Denton does believe in the value of training.“Alotof drivers and operators think it is a complete waste of time but I disagree,” he says. “If you select the right course it is valuable but I’ve come across drivers who have done the same course five days in a row just to meet the deadline and no wonder they are bored. If you do one day a year training who could object to that?”
There is no EU-wide regime for periodic maintenance inspections (PMIs) of trucks and trailers and UK opera tors tend to carry out much more frequent PMIs than their EU counterparts.
As a transport manager CPC holder, Denton says it’s “crazy” that drivers are required to do regular refresher training under the EU Driver CPC rules but transport managers are not. “I can’t see the government imposing more regulation here so we do what we can to encourage regular refresher training for TMs,” he says. “We make it quite difficult for a new applicant with a transport manager who qualified in the 1990s with no training since, and we are unlikely to accept them until they have done a two-day CPC refresher course.”
caustic comments by former PM Boris Johnson while he was London mayor about the restrictiveness of EU drivers’ hours laws Denton says there are no plans to repeal them in the UK.
“I recall a conversation in the early 1990s with James Fells, the DfT assistant secretary in charge of road haulage policy, in which he explained that the forthcoming Goods Vehicle (Licensing of Operators) Act 1995 was designed to address the problem of the UK road transport industry’s long, underperforming, tail. “While the situation today is undoubtedly an improvement on 1995, the number of operators who still come before me because they are operating vehicles out of tax, out of MoT, driven by drivers without the required entitlement, in a poor roadworthy condition, or because they do not understand how to monitor drivers’ hours, is quite depressing. There is still a lot to do!”
By the time he retired at the end of May 2022 Nick Denton had completed more than 37 years in the civil or public service, the last 10 being as traffic commissioner, first for London and the South East and then for the West Midlands. When he joined the then Department of Transport in January 1985, Nicholas Ridley was secretary of state and since then he has served under no fewer than 19 Denton’ssuccessors.pre-TCcareer was centred more on aviation than road transport, although he spent six months in the European Commission drafting common EU rules on seatbelt wearing and MoT tests – rules which he fiercely opposed two years later as the UK’s transport negotiator in Brussels.
“That was a great success for the UK because it took our approach to O-licensing and exported it to the rest of the EU,” he says. “Germany and the UK are at the top end of the spectrum for enforcement with some of the Eastern European states towards the bottom end.
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NO EXCUSES:
“One might argue it is too easy to get an operator licence – you just fill in a form and away you go,” he says. “They sign all these undertakings – the Ten Commandments as we call them – but they never prop erly look at them. Then they are surprised when they find themselves at PI two years later because they have never downloaded their drivers’ hours or have missed maintenance inspections.
“If you are running a fleet of 15 or 20 vehicles on a standard licence you need a transport manager, so it doesn’t make much sense for the same fleet of 15 vehicles running on a restricted licence not to have a transport manager,” says Denton. “In the dim and distant past nobody needed a transport manager: when it was decided that for people carrying for hire and reward that require ment should be imposed, they left own account alone.
EARNED RECOGNITION IS STEP IN RIGHT DIRECTION
motortransport.co.ukInterview: Nick Denton 18 MotorTransport 29.8.22
“In the skip industry a lot of people run on restricted licences because they say ‘we are carrying waste which is our own goods’. But recently we have taken a more robust attitude because it doesn’t really matter who the waste belongs to, they are carrying it for hire and reward. Unless they operate a big waste transfer station and transport is only a small part of the operation, they meet the criteria for hire and reward and so need a standard licence.”
The aim of Earned Recognition is to free DVSA resources to focus on the serially and seriously non-compliant operators.
As a transport manager CPC holder Denton is critical of operators that fall foul of whenregulations,O-licensingespeciallytheirnon-complianceisdowntoignoranceoftherules
He also finds it incongruous that even large own account fleets are not required to employ a qualified transport manager.
“It is important to retain the idea of a ‘preventative’ maintenance inspection which will identify developing issues and rectify them before they impair the roadworthiness of the vehicle. Remote diagnostics, though helpful, sometimes only identify issues once they become a problem.”Dentonhas found that own account operators with restricted O licences make up a large proportion of operators for whom ignorance rather than wilful non compliance has brought them into his inquiry room.
“Some cowboys do operate under the radar without licences and it would be good to see more resources deployed to identifying their vehicles and impounding them,” says Denton. “There is tentative evidence of more referrals of bad operators to TCs, and I have been conscious of an uptick in references from DVSA over the last few months, but it is hard to identify the precise reason for that.“It could be that the end of Covid-19 is releasing more examiners onto the roadside or it could be Earned Recognition or it could be a bit of both.”
“Most, but by no means all, of the operators before me at public inquiries tend to operate HGVs between five and 20 years old,” says Denton. “There is no mandatory requirement for an operator to have inspections every six weeks and longer intervals of up to 13 weeks could be justified depending on mileage etc and providing that the vehicles don’t have long lists of defects when they do go in for inspection.
In 2018 the DVSA launched Earned Recognition, a voluntary scheme designed to let operators able to show an exemplary record on drivers’ hours and vehicle maintenance get on with their business without the inconvenience of their vehicles being stopped in routine roadside inspections.
“The concept is excellent,” says Denton. “If you have good enough compliance systems to warrant Earned Recognition you are not over-regulated. It is also true that if you don’t have Earned Recognition but are nevertheless green/green on your OCRS you are much less likely to be stopped than a red operator.”
“Everyone getting an O licence gets three invitations to a new operator seminar that explains their obligations. Too many people either don’t turn up or don’t absorb the lessons. If they ignore all three invitations they will get a visit from the DVSA after 12 to 18 months and that is often when they are referred to me.”
