Motor Transport 29 April 2019 by Motor Transport

Sharp ■ Informed ■ Challenging

29.4.19

QUALITY. COMFORT. PERFORMANCE. ‘Over-optimistic assumptions’ meant 3PL failed to deliver promised savings

Knights of Old replaces DHL as Eurocell partner

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NEWS INSIDE Fire damage

ArrowXL profit up in flames p3

Aspray green light

Creditors approve CVA plan p4

Emissions challenge EU agrees new CO2 limits

OPERATORS INSIDE ArrowXL........................................................ p3 Aspray Group ................................................ p4 Gerrard’s of Swinton .....................................p10 Gundel & Son Transport Services.................... p4 John Jempson & Son ..................................... p8 Kepair & Sea ................................................. p8 Kuehne + Nagel............................................. p3 Meachers Global Logistics ............................. p8 Owens Group................................................. p4

DHL Supply Chain has been replaced by Knights of Old as Eurocell’s logistics partner after failing to deliver a promised £1.3m of annual cost savings. UPVC manufacturing and distribution business Eurocell has turned to Knights of Old, offering them a deal that will see the Kettering-based firm take over the transport operations from DHL Supply Chain in September. The move comes after the 3PL failed to deliver projected annual cost savings of £1.3m from the first year of its five-year contract, which was awarded at the end of 2014. Eurocell attributed the costsavings shortfall to “assumptions made at the inception of the contract over the ability to reduce historic warehouse labour costs, which were too optimistic”, in its 2016 annual report. As a result Eurocell took the warehouse operations back in-house in January 2017 and began

working with DHL to “deliver more efficient services and improve end to end customer focus and supply chain support”. It is understood that Eurocell will continue to run the warehouse operation itself. The win follows Knights of Old’s successful bid to become Irish parcel carrier CAE Delivers’ long-

distance partner, which was revealed in January. Both contracts will add momentum to the haulier’s recovery from a challenging period that saw it record an operating loss of £2.7m in its most recent trading period, the year to 31 May 2017. Eurocell and Knights of Old declined to comment on the deal. A spokesman for DHL said: “On conclusion of our existing contract, on 29th August 2019 DHL will cease to manage Eurocell’s transport operation, which will transfer to a new provider. Affected staff have been informed of the situation and will shortly enter into consultation with the company and their representatives to discuss their options, including transferring to the new provider under TUPE regulations. “Both DHL and Eurocell thank colleagues for their understanding at this time and stress the decision has been taken for strategic reasons and in no way reflects on the quality of service delivered to date.”

CM Downton showcases contract wins and renewals CM Downton has publicised a slew of contract wins and renewals gained during the past few months, including a deal to work with Blackford, Perthshire-based bottled water company Highland Spring. The Gloucestershire-based firm, which is part of EV Cargo, has also been revealed as the transport successor to collapsed Canute Haulage Group at Mirius. It has been handling the distribution requirements for the hygiene solutions provider since late last year.

Both firms have manufacturing or warehousing facilities based in the Midlands and required national distribution at short notice.

CM Downton has also renewed or extended deals with UPM, Rockwool and Hydro. The haulier said that cumulatively the new business will add £30m to its top line on an annualised basis. The wins and renewals come after CM Downton suffered a blow with the loss earlier this month of long-term client Frontline Group, a magazine sales and distribution company, to Menzies Distribution (see motortransport.co.uk).

FIND OUT MORE. mantruckvanandbus.co.uk

Focus: Urban p12 Viewpoint p14 CV Show preview p16 Interview: Mark Cartwright p20 Finance: p26 Awards shortlists p34

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25/04/2019 14:03:12

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24/04/2019 15:51:54

News

motortransport.co.uk

C+E licence for LGV Driver apprenticeship?

Company insists customer base ‘supportive’ and is optimistic for future

Fire causes profits to plummet at Arrow XL

By Carol Millett

A major fire that destroyed ArrowXL’s Worcester hub, combined with a “deteriorating” retail environment, dealt a body blow to the company’s pre-tax profit last year. Reporting its annual results to 30 June 2018, the Yodel sister company, which specialises in twoman delivery and installation services, unveiled a 70% plunge in pre-tax profit to £862,000 (2017: £2.9m). Annual turnover also declined in the period to £78.1m (2017: £82.6m). In its strategic report to the results, the company said that the

business had been affected by “the market-wide deterioration in the retail environment and the impact of the April 2017 fire at the Worcester hub”. The hub handled 43% of the operator's delivery volume. Costs incurred due to the fire and subsequent disruption amounted to £2.7m (2017: £1.8m). It added that while losses from the fire were insured, “a number of clients” had diverted volume to other carriers until it fully restored network capacity in January 2018. It did this by opening a temporary hub in Chepstow soon after the disaster, which will close

when Worcester reopens, and adding a medium-term replacement site in Droitwich in September 2017. ArrowXL said that its customer base continued to be “hugely supportive,” adding that there are no “ongoing service issues” from the fire and pointing to its high Trustpilot score of 9.4 in December 2018 as evidence of this. Looking to the future, the company said EBITDA for 2019 will show “significant improvement”. ArrowXL is planning to hold a reopening ceremony at its rebuilt Worcester hub this September.

The Large Goods Vehicle Driver apprenticeship could soon include category C+E after hundreds of hauliers backed the suggestion in an official survey aimed at gauging industry support for its inclusion. The survey was carried out by the logistics industry Trailblazer Group on behalf of the Institute for Apprenticeships and Technical Education (IFATE), the body that approves apprenticeships. It requested the survey last month to test industry appetite for the potential addition. It followed mounting industry concern at its exclusion, with the FTA having warned that without the licence the apprenticeship was “not fit for purpose”, as it failed to address the needs of most hauliers and therefore wouldn’t help tackle the HGV driver shortage. MT has learned that of the 413 respondents, the majority supported the inclusion of the C+E licence in the apprenticeship. It appears that most respondents want both licences included in the apprenticeship, and this means IFATE will now have to consider how the scheme can be modified so it does not penalise those who only want to pay for a category C licence. The survey also found in favour of funding for the apprenticeship, including the C+E licence, to be increased from £5,000 to £7,000 – a move also supported by the majority of survey respondents. A meeting to decide whether to include C+E in the apprenticeship will be held on 1 May.

Kuehne + Nagel in Overland switch Clipper Logistics lands major Shop Direct Kuehne + Nagel is closing down its Birmingham and Nottingham depots and transferring 270 staff to East Midlands Gateway (EMG) as it gears up to reach full operational capacity at the new hub by the end of this month. The new hub, which will house Overland, the logistics company’s road and rail division, includes 40,000sq ft of temperaturecontrolled warehouse space dedicated to pharmaceutical products and a 155,000sq ft cross-dock area for general cargo. A spokeswoman said: “We are moving activities in Nottingham 29.4.19

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and Birmingham to the East Midlands Gateway hub and the existing sites will close. All Nottingham and Birmingham employees have been offered jobs and the majority will transfer to EMG in their current roles.” She added that an additional 20 people will be employed to fill roles in the newly launched temperaturecontrolled operation. Jim Hedderwick, Kuehne + Nagel UK Overland director, said the company had made “significant” investment in new technology at the hub. The hub was officially opened earlier this month.

returns deal and 400 Raven Mill staff

Clipper Logistics has wrapped up a deal with Shop Direct, the owner of Very.co.uk and Littlewoods.com, to provide returns management and pre-retail services. Ranging across 1,800 brands from fashion to housewares and electronics, the operation will initially continue to be housed at the existing 215,000sq ft Shop Direct facility at Raven Mill near Oldham, Greater Manchester. As part of the five-year deal, which starts on 1 July, the Raven Mill premises are to be leased to

Clipper Logistics. It will also see approximately 400 Shop Direct personnel based at the Raven Mill transfer to Clipper Logistics’ employment under TUPE. Ultimately the returns management and pre-retail services activity will move to Shop Direct’s new East Midlands fulfilment centre in 2021. After this time, a number of Shop Direct’s specialist returns management services will transfer to Clipper’s returns site at Swadlincote in Derbyshire too. MotorTransport 3

25/04/2019 14:18:34

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motortransport.co.uk

Owner says trade suppliers will be paid in full within six months

Creditors approve Aspray CVA rescue By Chris Druce

Creditors of Aspray Transport have voted in favour of a company voluntary arrangement (CVA). The full details of the CVA have not been released, but Aspray owner Bushell Investment Group said 99% of the company’s trade suppliers had supported it, representing a clear “reflection of their support of the proposed turnaround strategy”. It added that the CVA would be completed in six months or less and “trade suppliers will be paid in full on their normal trade terms”. Following the passing of the CVA last week (23 April), John Gillam has been appointed interim CEO of the Willenhall-based company that trades as Aspray24.

He was MD at Waldron Supply Chain Solutions. Gillam said: “This represents an exciting new chapter for the business. The CVA addresses many of the legacy issues that were

impacting on Aspray Transport and ensures that we can now focus our attention on looking to the future. “As a result of the CVA new funds will be invested and we are firmly committed to growing the business.” The CVA does not encompass group companies Aspray International, Aspray Logistics and Aspray History. RSM Restructuring Advisory and Shoosmiths advised on the insolvency process. Earlier this month MT revealed that Aspray founder Pat Laight had severed ties with the business and would not be its chairman, as advertised after the operator was sold in March (MT 15 April).

NEWS IN BRIEF Owens Group enjoyed another year of significant growth in 2018, with turnover rising 27% to £70.5m. The company said the growth follows a similar pattern to previous years and stemmed from opportunities arising from both existing and new customers. Pre-tax profit for the period ending 30 June 2018 was £1.6m (£2.2m), although gross profit was up slightly to £9m (£8.7m). Gundel & Son Transport Services has become the 300th FORS gold member. Gold status is the top level members can achieve in the scheme. Mansfield-based Gundel & Son specialises in the transportation of abnormal loads and mechanical handling. Kevin Gundel, owner and transport manager, said: “Safety and fleet management has always been really important, but FORS has helped us quantify and record our practices correctly and effectively.”

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24/04/2019 15:54:02

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motortransport.co.uk

Nikola unveils range of EU green lights hydrogen fuel cell trucks

new CO2 rules By Chris Druce

The European Parliament has approved the first EU regulations governing CO2 emissions for trucks, which will force manufacturers to slash emissions by nearly a third no later than 2030. The text of the new legislation, which was informally agreed between MEPs in February, will now go before the European Council (EC) with ratification expected next month. It means that CO2 emissions from new trucks will need to be cut by 30% by 2030, with an intermediate reduction target of 15% by 2025. This is based on a baseline of 2019/20 truck emission levels. The new law has already left major truck manufacturers fuming with the European Vehicle Manufacturers’ Association having described the mandatory reduction

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as “highly ambitious”. However, lobby group Transport and the Environment (T&E) welcomed the move. Stef Cornelis, cleaner trucks manager at T&E, said: “This law is a pivotal moment for the truck industry in Europe. “After 20 years of very little progress in fuel efficiency, and the biggest cartel fines in the industry’s history, truck makers have to cut emissions by almost a third over a decade and start supplying zeroemission trucks. “But this is just the beginning and the rules will need to be made a lot more ambitious when they are reviewed in 2022.” Bas Eickhout, rapporteur at the European Parliament, said: “The future of cleaner trucks will be driven by innovation. This legislation should therefore encourage the industry to spur on change and advances in technology.”

Nikola has unveiled its range of hydrogen fuel cell-powered trucks, including one that is planned for export to Europe. “We want to transform everything about the transportation industry,” said Trevor Milton, Nikola CEO. “With Nikola’s vision, the world will be cleaner, safer and healthier.” Of the trucks shown in Scottsdale, Arizona, arguably the most interesting was the Tre (pictured), which will be aimed squarely at the European market. When launched it will have a range of between 500 and 750 miles depending upon load, and fast hydrogen fuelling in under 15 minutes. Like the other vehicles in its growing portfolio, the Tre has been future-proofed with autonomous driving hardware in place. “Think about Europe with no more diesel trucks,” said Milton. “The roads will be clean, quiet and beautiful.”

Image: Arjan Velthoven

Emissions will have to fall by one-third by 2030

So far Nikola has received 13,000 orders worldwide for its zeroemission trucks, including 800 from Budweiser brewer AnheuserBusch. This comes as a report from the Na t i o n a l I n f r a s t r u c t u r e Commission said a ban on the sale of diesel HGVs by 2040 to decarbonise freight could be practicable, but only if the government and industry worked together on alternatives.

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24/04/2019 15:56:50 25-03-19 14:50

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motortransport.co.uk

MD says funding for trainee HGV drivers is vital

John Jempson & Son backs government loan proposal John Jempson & Son has backed the call for a government loan scheme for trainee HGV drivers, which would operate along the same lines as a student loan. MD Jonathan Jempson lent his support to Massey Wilcox Transport MD Robert Wilcox’s demand (MT 25 March) that the government tackle the driver shortage crisis via a loan scheme. The company, which specialises in construction haulage, operates around 80 trucks and 150 trailers. Jempson told MT: “The driver shortage is the biggest crisis facing this industry. Something needs to be done. Providing a loan to fund the cost of training to become an HGV driver is an excellent idea. “Being an HGV driver is becoming much more of a profession with the need for regular CPC training every five years. That should be recognised by providing

grants for trainee drivers. “Why is this less important than funding students to study degree courses that cannot guarantee them work when they graduate?” He added: “It could also solve the problem of driver retention. This would avoid that problem of losing drivers that you’ve paid to train, while at the same time addressing the skills shortage.” Jempson said the company had turned its back on the new LGV Driver apprenticeship scheme. “We would rather do it ourselves. We don’t like the government apprenticeship scheme. We tried to get involved but it took too much time and was too expensive with not much money coming back.” In its results for the year to 31 October 2018, turnover was down to £13.3m (2017: £13.8m) with pretax profit also falling to £289,915 (2017: £391,590).

PLAIN SAILING: Meachers Global Logistics has bought the business trade of Southampton-based freight forwarder Kepair & Sea. The acquisition, which will take effect on 30 April, forms part of Meachers Global’s strategy to expand its freight-forwarding capacity and bolster key markets. For the financial year-ending 31 May 2018, Meachers Global reported a turnover of £26.2m, with around half coming from freight-forwarding activities, a spokeswoman told MT."We are delighted to be making the business trade acquisition of Kepair," said Gary Whittle, commercial director at Meachers Global. He added that the deal would allow an expansion of its customer base and provide additional avenues for growth. The Kepair brand will be phased out and all five employees will transfer across to Meachers’ own freight-forwarding team.

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24/04/2019 15:58:30 16/04/2019 15:49

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Tipper operator extends links with military charities to fund training

James Gysin joins Dawsongroup to run central rental desk

Gerrard’s opens centre to train former soldiers Lancashire tipper operator Gerrard’s of Swinton has opened a new training centre to expand its capacity to train ex-services personnel as HGV drivers. The company, founded in 1864 by Jonathan Gerrard, is now run by his great-great grandson, MD and former soldier Sebastian Gerrard. Since leaving the forces, Gerrard has made it his mission to offer free training and support to ex-servicemen and women, and working with charities including Walking with the Wounded and supporters such as Tarmac and Renault Trucks, he has helped 600 ex-soldiers build careers as drivers. “After the 100% success rate of our free courses that have helped hundreds of people from long-term unemployment into jobs over the past few years, we have invested in a new training school that will

Image: Katherine Hobson

By Steve Hobson

From left, Tarmac’s Sean McGrae, Sgt Major Steve Garrett of the Royal Electrical and Mechanical Engineers, Gerrard’s of Swinton MD Sebastian Gerrard and Renault Trucks’ UK MD Carlos Rodrigues

offer more than 200 free courses to more out of work ex-services personnel and help to increase desperately needed driver numbers,” said Gerrard. “Up to now we have funded this entirely

ourselves, but now we will also provide training to third parties so we can help more people. “After the course, all trainees will have priority for any jobs with us or other firms around the country.”

Dawsongroup has appointed James Gysin general manager for national and key accounts at its truck and trailer operation. Gysin was previously general manager for the company’s southern region, which is made up of 13 Dawsongroup branches. There he worked closely with the Crown Commercial Services, which had major contract successes with the MoD and Highways England. In his new role he will take on responsibility for Dawsongroup’s central rental desk, which functions as an external fleet management department for a number of key account customers. Prices and vehicle profiles are agreed centrally, allowing major operators’ individual branches to deal with a single point of contact.

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24/04/2019 16:10:33

Focus: Urban

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LoCITY LoCITY looks lowdown More than 30 industry experts came together

beyond ULEZ With London’s Ultra Low Emission Zone (ULEZ) launched earlier this month, LoCITY took the focus of its latest industry roadshow beyond this world-first policy and into the future of cleaner fuels for commercial vehicles. The aim was to support the freight industry as the mayor of London continues the capital’s transition to a zero-carbon city by 2050. ‘Fuels in Action: Beyond ULEZ’ took place at Kempton Park Racecourse on 20 March 2019. More than 30 industry experts took part in the event to share their first-hand knowledge of using clean vehicle technology, or provide an insight into air quality policy under development in the capital. Delegates were able to pick from a series of informative and practical seminars focused on different technologies and operational approaches successfully being used today on London’s roads by fleet operators large and small. The event was technologyneutral and featured seminar content and exhibition stands spanning electric, gas, hydrogen, LPG and cargo bikes, with delegates also able to head outside and explore a wide range of vans and trucks on the day. Opening the event, TfL delivery planning manager for air quality and environment Lucy HaywardSpeight highlighted that this was the seventh LoCITY roadshow to date, all designed to support operators working across the capital. “Making clean choices has never been more important… and in doing so making the right choice for your business,” she said. “TfL recognises freight is crucial to London’s success." But goods vehicle movements are up 20% since 2010 and they are therefore a contributor to the air-quality issue. “We look forward to working with you to reduce harmful emissions,” she added. TfL city planner Tim Sider took delegates through the mayor’s freight and servicing action plan, launched on 7 March. The new strategy, he said, sits within the wider mayor’s transport strategy, launched in March 2018, which prioritises the healthy streets 12 MotorTransport MTR_290419_012.indd 12

approach and contains some “significantly ambitious targets for our city” to support London's growth while making it a sustainable, clean and safe environment. This includes the ambition to have a zero-emission transport network by 2050, in the interim looking to reduce freight vehicles by 10% in morning peak by 2026. Around 90% of all goods transported in London are handled by road and a fifth of vehicles are freight-related, rising to one-third in morning peak. “We’ve seen massive increases in vehicle kilometres from freight and servicing trips in the past 25 years, almost 40%, and this trend is expected to grow at the same rate for the next 25 years,” Sider said. The growth is almost entirely down to vans, he added, with HGV journeys stable in numbers. A series of actions has been put in place to manage freight movements in the capital and ensure goods vehicles can operate safely, cleanly and efficiently: ■ London's Direct Vision Standard to promote safer lorries; ■ Supporting modal shift opportunities to rail and water ■ Boosting click and collect use; ■ Safeguarding of land for logistics purposes to enable cleaner lastmile vehicles to be used; ■ Clear guidance for London boroughs when it comes to adopting new policies affecting the freight sector to ensure consistency of approach. A final point Sider noted was to say TfL was keen to launch a consumer campaign to inform them of the choices and impact that their delivery options can have. “It’s really a combination of measures that makes up this plan, there is no single element that is the key,” he said. “This is the approach we feel is the best to support the industry and allow London to grow.”

Print distribution company London + Culture Calling made sure it was ready for London’s Ultra Low Emission Zone

London + Culture Calling is a print distribution company that delivers print marketing for the arts and culture sector across the UK. As part of its business plan it encourages print marketing to be green, but knew that it could do more in other areas of the business. In November 2018 it replaced its entire London fleet with electric vans as part of its goal to be more environmentally friendly. When the Ultra Low Emission Zone (ULEZ) was first announced, this only confirmed to London + Culture Calling that it was time to make a positive environmental change – a big change for a small company that covers a lot of ground. Head of distribution Marc Randall is proud of the move the company has made in its environmental decisions. He said: “This change makes a positive environmental impact at such a critical moment in climate change history, and could hopefully encourage other businesses to follow suit, which is a massive reward in itself. The benefits are huge when you get it right.” The company replaced its entire fleet with electric Citroën Berlingos, and to keep its vans ready to go has had charging ports installed by Pod Point onsite, so they can charge on rotation overnight. “For a small to medium-sized fleet such as ours, the electric Berlingo was the perfect fit and has integrated smoothly into our operation, thanks to preparation and forward planning," said Randall. All eight vans are ULEZ-compliant and deliver to an incredible 20,000-plus venues, where they display print advertising for arts and culture organisations and are out on the road every day. Migration to electric vans has lowered London + Culture Calling’s carbon footprint and in doing so, has lowered its clients’ carbon footprint too. As more suppliers and distributors across all sectors reduce their emissions, this in turn will reduce the carbon footprint for their consumers too. It is not just up to the large brands to make a positive environmental change, it is up to all companies to be responsible for their impact on the environment and with ULEZ in action, we should start to see more and more electric vans on the road. Read more about London + Culture Calling at culturecalling.co.uk 29.4.19

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24/04/2019 16:16:18

Viewpoint

motortransport.co.uk

We need a co-ordinated effort

Steve Hobson Editor Motor Transport

e have long said that, instead of complaining ‘something should be done’ about the shortage of HGV drivers and other skilled workers, transport firms should all be doing their bit to promote the industry to young people and other potential recruits. So it was heartening last week to hear about two firms doing exactly that – read all about Manpower and Gerrard’s of Swinton’s excellent initiatives in the Careers section of motortransport.co.uk. But at the risk of contradicting my opening paragraph, the depressing thing is both projects are happening in complete isolation, with no support from existing programmes such as Think Logistics, the RHA’s Road to Logistics or Sir Mike Penning MP’s recently formed APPG on freight and logistics. Sir Mike, who will be addressing the Microlise Transport Conference on 15 May, has made it his personal mission to

alleviate the driver shortage, partly by bringing more ex-services personnel into the industry. Road to Logistics is “a training programme to encourage new talent into the transport and logistics industry from sections of society where individuals need help and support”. While MT is not advocating that transport operators abdicate their responsibilities for working with their local communities to bring fresh blood into the industry, we badly need a co-ordinated effort here. As Steve Granite of Think Logistics points out below, more firms are desperately needed to offer internships for students interested in a career in logistics, Manpower needs more firms willing to give newly qualified drivers experience and Sebastian Gerrard needs more support for his driver training centre so he can give more ex-servicemen and women the help they need to get started as drivers.

losing the skills gap the logistics industry faces is the goal of Think Logistics, the industry-led not-forprofit project involving some of the UK’s best-known logistics companies. This year the project is calling on all logistics companies to get behind the project and provide much-needed support by offering internships or work placements to students, to meet demand and introduce them to an exciting and rewarding career in logistics. Internships are four-week positions, usually paid at minimum-wage levels, in which a young person is fully integrated into a company to gain a solid understanding of a number of roles. Alongside internships, Think Logistics is also looking for supporters to provide work placements for students – one-week unpaid placements, generally aimed at students soon to be leaving education and looking for vital experience in the world of work. Employers receive support from Think Logistics’ delivery partner, the charity Career Ready, whose team of regional managers work with employers and students to ensure they are properly prepared for the experience.

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In just five years, Think Logistics has brought together more than 40 leading companies to join its delivery group. But there are thousands more UK logistics companies that it wants to join the initiative to provide the support required to satisfy the demand from students keen to learn about the industry. The logistics industry is facing a skills shortfall, and no-one is going to wave a magic wand and make the skills gap go away. It is up to us as an industry to get out and tell young people that there are genuinely exciting and fulfilling opportunities available in our sector. We know from the companies that have hosted interns and work placements that they have seen big benefits from the experience – such as extra resource, management training, and fresh ideas the students bring to a company. This adds real value to the experience, and all companies that have taken part are always keen to host more interns and work placements.

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Editor-in-chief Christopher Walton 2163 Head of content Chris Druce 2158 Deputy head of content Hayley Pink 2165 Group production editor Clare Goldie 2174 Deputy production editor Jo Saunders 2173 Key account manager Andrew Smith 07771 885874 Display telesales Barnaby Goodman-Smith 2128 Event sales Richard Bennett 07889 823060 Tim George 0755 7677758 Classified and recruitment advertising rtmclassified@roadtransport.com Head of sales Emma Tyrer 07900 691137 Divisional director Vic Bunby 2121 Head of marketing Jane Casling 2133 Head of events/MT Awards Stephen Pobjoy 2135 Managing director Andy Salter 2171 Editorial office Road Transport Media, Sixth Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Tel 0330 333 9544 Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £135/year. Europe £163/year. RoW £163/year. Cheques made payable to Motor Transport. Apply online at mtssubs.com Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2019 DVV Media International Ltd ISSN 0027-206 X

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25/04/2019 12:05:04

THE CV SHOW 2019 30 APRIL - 2 MAY • NEC • BIRMINGHAM THE UK’S LARGEST C OMMERCIAL VEHICLE SHOW

The showroom for excellence One event. Three days. Build your industry knowledge at The Commercial Vehicle Show 2019 in an interactive way. Explore the latest products and developments in the show halls and discover the dedicated Cool and Workshop zones. The Commercial Vehicle Show 2019 is the showroom for excellence, providing an ideal opportunity to network and engage. Visit us at the NEC Birmingham, Tuesday 30th April – Thursday 2nd May 2019.

@TheCVShow

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Get your FREE ticket. Register today www.cvshow.com

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Preview

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Show and tell

The road transport industry is about to make its annual pilgrimage to Birmingham’s NEC for the Commercial Vehicle Show. Jack Carfrae previews the 2019 event

he 2019 Commercial Vehicle Show kicks off at the Birmingham NEC on 30 April, runs until 2 May and remains the biggest event of the year for the UK’s road transport industry. Organisers expect the show to reel in close to 21,000 visitors, all of whom will be able to touch, see and feel all the latest vehicles, gadgets and services from anyone who’s anything to do with the CV scene. Manufacturers in attendance this year include MAN Trucks (5D10), which is out in force. Head of product management Nick Handy describes the show as “a springboard for launching new products”, and 2019 is no different, as the firm is unveiling four new ones, starting with the XLion range – a special edition line available to the long-haul distribution and construction sectors; the TGE flatframe chassis cowl, which is 190mm lower than the company’s conventional chassis cab and aimed at low-height Luton and box van applications; the 17-seater TGE Minibus and finally, an all-new D15 Euro-6 9-litre engine, which is 250kg lighter than the outgoing D20 unit it replaces. If that weren’t enough, there’s also a separate display dedicated to alternative fuels.

DAF back with a vengeance

DAF Trucks returns to the CV Show this year (it operates a year-on, year-off policy) and it’s back with a vengeance, sporting its biggest-ever stand (5A70). The company is showing off its full range of LF, CF and XF chassis across two exhibition areas. You’ll find a new CF 8x4 tipper with 250kg of additional payload compared with its predecessor; a lightweight CF 450 FTP 6x2 tractor unit designed for the petrochemical market and ADR compliance; a compact LF City 7.5-tonner, which includes a PACCAR

ON THE SLOPE: Trailer manufacturers Don-Bur (top) and Lawrence David are exhibiting at the show

box van body; and a CF 370 FAN 6x2 rigid with an electrohydraulic rear-steer system. DAF has another stand outside the hall focusing on vocational vehicles, including multi-axle tractors and rigids, along with a series of approved used trucks. In addition to the strictly vehicular, it’s highlighting a series of aftersales initiatives, including its online fleet management system and Fleet Services maintenance and support package, as well as a driver training voucher scheme for new customers. The UK’s largest IVECO dealer, Guest Truck and Van and Sherwood Truck and Van, is exhibiting a series of vehicles (5F90), while BIL Group will display its new, lightweight AluTruck range – said to turn what is normally a three-man payload-handling exercise into a one-man job – along with its 1,000kg-rated Payload Truck (4G107). If you’re in the business of urban deliveries – which also means low-emission zones are more than likely on your agenda – then check out Paneltex (3B50), which is showcasing four alternative fuel vehicles, including a 4.25-tonne refrigerated electric grocery delivery truck and a series of 7.5-tonne electric trucks built on Isuzu N75 chassis.

Trailer time

If it’s trailers rather than trucks you’re after, then there is no shortage of manufacturers and suppliers at the show. Transdek is revealing its new curtainsider wedge double-deck (3C40), capable of hauling 52 pallets up to 1,760mm tall, due to the firm’s specific focus on internal clearances. There’s also a 10.6m urban wedge trailer, again majoring on space; it’s said to offer up to 166% more payload capacity than a typical 18-tonne rigid, can carry pallets or cages up to 1,862mm tall and the extra room can supposedly reduce urban HGV mileages by up to 62%. Finally, the company is running live demonstrations of its modular V2G loading pods that can fill up anything from a double-decker to an urban delivery van provided there’s a flat-floor loading bay around. ➜ 18 16 MotorTransport MTR_290419_016-019.indd 16

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Preview Don-Bur is presenting a series of aerodynamic technologies on stand 5A50, while fellow heavyweights SDC, Lawrence David and Cartwright can be found on stands 5D85 and 5B55 and 3A40. A regular at the CV Show by virtue of its trailers appearing on multiple exhibitors’ stands, Hireco (5B10) is back with a standalone spot for its second year. In addition to its core trailer business – which is the largest in the UK with a fleet in the region of 6,500 units – the firm will be chatting about its recent move into truck rental, headed up by industry veteran Michael Williams, its new 5-acre truck park at the DP World London Gateway and its moves into wider equipment finance and leisure vehicles under the Overlander banner.

Telematics talk

TomTomTelematics’ Webfleet system and Hireco’s new truck park at the DP World London Gateway (bottom)

Telematics specialists have a huge presence at this year’s CV Show, underlining just how important the technology is to the road haulage sector. Trakm8 (5E92), is showing an updated version of its telematics camera, which can now monitor and issue alerts for distracted or drowsy drivers, along with a refreshed version of its plugand-play telematics device that has seen a price reduction and runs on a 30-day rolling contract for ease of application. “It gives people much more flexibility about how they use telematics; really good if you have got short-term hire vehicles,” says the company’s

marketing manager Dan Jenkins. Smart Witness (5E90) is revealing new software called Smart API, which will allow other telematics providers to hook up to the company’s systems and add a video surveillance service to their existing feed. Orbcomm (4D50) is showing its truck telematics and tachograph management systems as well as launching the GT1210 container tracker and cargo sensor. Masternaut (4F75) is promoting increased and more targeted data with a view to improving efficiency and vehicle utilisation. “One of the initiatives we launched last year was a CO2 certification. We have really accurate technology that captures data from the vehicle around fuel consumption, and our data science team puts that into context by comparing vehicles within the same industry, and with the same makes and models,” says Albert Chu, the firm’s vicepresident of strategy and marketing. It’s also revealing an entry-level £5.99 a month telematics system, dubbed “no commitment, no install”. Visiontrack (4E30) is going bigger this year, on the back of a 250% spike in business in 2018, and is displaying a series of driver fatigue and advanced driver assistance systems (ADAS) products, which can alert those behind the wheel to dangerous events or habits, flag up the same issue to a transport or fleet manager back at base and even send them video of the incident. “This allows fleet operators to take meaningful interventions to improve driver and public safety,” says commercial director Richard Lane. AAMP Europe (4G70) is unveiling a new cloud-based video telematics platform known as EchoMaster Connected, which includes live video feedback and historic downloads, as well as a heavy-duty audio system for the CV and agricultural markets. Centrad (3A03) is exhibiting a series of FORS-compliant mobile CCTV and telematics systems that can operate anything up to 16 cameras, while TomTom Telematics’ ‘The Hub Village’ (4E31) will include demonstrations of its new Dot Connect system, which is said to improve compliance, safety, efficiency and productivity as well as cutting administration.

Tyres and tech

If you fancy a break from perusing the stands and you’re keen to brush up on your operational knowledge, then head to room nine of the NEC’s piazza for one of Continental’s seminars. The tyre and tech company is running a series of hour-long classes throughout the show about smart tachograph technology and the future of transportation. You can sign up for them before the show by emailing uk@vdo.com. Other offerings from the tyre community include Giti Tire (4F55), which is showing off its new 385/65 R22.5 GTR955 product and latest generation of trailer tyres, while 10-time British Truck Racing Champion Stuart Oliver will also be gracing the stand. Fellow tyre giants Hankook (5B50) and Yokohama (5B116) will present their latest suite of rubber, while retread specialist VacuLug (4F100) is demonstrating its tyre management service, which includes a new app that gives users remote access to their vehicle data. Tough Tech (4A80) makes its CV Show debut this year and is launching what it claims is an industry-first tyre-pressure monitoring system known as Atlas, which can connect any tractor unit to any trailer.

Green fuels

Check out the greener and, indeed, gassier side of the trucking industry on stand 5F92, where you’ll find both Agility Fuel Solutions and CNG Fuels. Agility specialises in CNG, LNG, propane, hydrogen, and battery electric storage systems and propane and natural gas engine fuel systems, and it’s exhibiting a 44-tonne 6x2 bio-CNG truck, with a range of up to 600 miles – and there’s also a trailer-mounted CNG system that can extend its reach to more than 700 miles. CNG Fuels deals in the infra18 MotorTransport MTR_290419_016-019.indd 18

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structure side of natural gas and claims to be the only com company approved by the Department for Transport to provide renewable biomethane through the UK gas grid; it’s developing a network of bio-CNG refuelling stations, which are due to pop up across the UK by mid-2020.

Zoned out

Visiontrack (above) and Waitrose CNG-fuelled trucks

If all this has left you hot and bothered, swing by the Cool zone, located between the visitor entrances to halls 3A and 4. It’s one of two major themed areas at the show and is dedicated to companies, systems, products and services that specialise in the temperature-control business. Coolertech (3F60) is rolling out its full range of vehicles, including everything from panel van conversions through to 3.5- to 26-tonne insulated box bodies, and also offers a mobile body repair service. Gray & Adams (3D60) has an example of its latest refrigerated lifting-deck model and an aerodynamic rigid, while refrigerated HGV body specialist Chereau (3F40) and temperature-controlled equipment specialist Carrier Transicold (3A50) are also rolling out some of the latest equipment. At the other end of the Cool zone is Eberspacher and its Coldtainer dealer DBS (3A79). The firm does, of course, do cooling, but it is revealing a new hot meal line of insulated transport containers that can keep cooked food at more than 65C for an extended period of time, which is due for launch in May. The second of the 2019 CV Show’s designated zones is Workshop, which is located in hall 4 and champions

all things aftermarket and maintenance, described by organisers as “all-encompassing shop window that spans the whole automotive aftermarket and CV maintenance sector”. Sealey Group (4D101) is laying out its range of recently updated commercial vehicle tools along with some tried and tested best sellers, including a patented 360deg inspection lamp and recent consumable range, which was launched in 2015 and expanded to almost 2,000 individual tools, and the firm is offering a series of promos and deals to showgoers. TotalKare (4E80) is displaying three new products: a brake tester, wash bay column lift and light commercial four-post lift, while Butts of Bawtry (4C81) is exhibiting equipment and workshop furniture from a series of different suppliers. 

“The trailers are fantastic and we have had no problems whatsoever. We need to have top quality equipment to carry expensive kit for some of the world’s most famous names and we get a fantastic service product from Cartwright to meet our needs.” Richard Brown, Transport Manager at FLY BY NITE

Innovation . It’s in our DNA . t: 0161 928 0966 | e: sales@cartwright-group.co.uk | www.cartwright-group.co.uk

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Interview: Mark Cartwright

Best of British Cartwright Group MD Mark Cartwright talks to Steve Hobson about the business’s diversification, its plans for the future and its pride in focusing on homegrown innovation, engineering and manufacturing

t is five years since Mark Cartwright was appointed MD of Cartwright Group. In that time the firm’s annual turnover has grown from £89m to £148m as it has diversified into rental, conversions, finance and services, and it is building record numbers of trailers. Cartwright was founded in 1952 by father and son Stanley and Alan Cartwright, and Alan worked together with his brother Peter for more than 50 years to lay the foundations for the current successful business. Peter remains chairman and his son Mark took over as group MD in March 2014 after 20 years working in most areas of the business. Mark’s sister Lisa Cartwright joined the business in 1993 and is now group director, playing an active role in all of the Cartwright divisions as well as overseeing the group’s facilities management and 38-acre Altrincham production site. The diversification and restructuring saw several new key appointments – including technical director Lionel

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Curtis, recruited from Gray & Adams to develop a new range of Cartwright fridge trailers – and an expansion of the group’s activities outside trailer manufacture. “A lot of our success is based on an increase in expenditure within the sector following a lack of spending after the financial crash of 2008,” says Mark Cartwright. “We have benefited greatly from the boom in internet shopping and our positioning in that space. “Some other facets to the success we’ve enjoyed over the past five years were our diversification, including bringing in the new refrigerated product line. I think you make your own luck in business. It’s one thing having

BLAZING A TRAIL: Trailers are at the heart of Cartwright’s business operations 29.4.19

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the opportunity; it’s another to go out there and grab it. “We’ve been successfully doing that. That’s based on the people that we brought in... I said: ‘you focus on quality, on efficiency, on getting the products out on time, and the rest will take care of itself’. We focused on getting our structure and processes right. That needed quite a bit of work and getting the right people is the cornerstone of any business.”

Power to the people

Getting the right people has been crucial as the company payroll has gone from 500 to 1,100 people in the past five years. That isn’t just about hiring highly experienced engineers and directors; Cartwright has a strong track record in apprenticeships and staff development. “We’ve been recognised for our apprenticeship programme [winning the Motor Transport Apprenticeship of the Year Award in 2016], but it’s not just about apprentices,” says Cartwright. “It’s about giving people the opportunity to move forward in their careers.” One example of the diversification of the group has been the expansion of the rigid body building business, Cartwright Conversions, which is relocating to larger premises just two years after being created. “Initially, I’d attempted to try and do that here in Altrincham,” says Cartwright. “That wasn’t too successful. One minute, you’re talking about a trailer, the next you’re talking about a 3.5-tonne panel van. There might be some similarities in skill sets but there is a different customer base. “Then we got an opportunity to set up in Doncaster, since when we have never looked back. It got to a point where we pretty much had outgrown those premises in less than two years. Again, that’s another case of getting the right people, structure and processes in place, and we’ve got some excellent people over there.” The Conversions business has a diverse customer base, often very different from that of the trailers, and the output ranges from patient transfer vehicles and welfare vans to mobile banks and security vehicles. “They’re now in the process of moving into the new 75,000 sq ft facility so they’ve got even more scope for growth,” says Cartwright. “That’s a really exciting opportunity. In the last financial year [to July 2017], they achieved around £10m turnover. That £10m from zero in two years is good but we’re not standing around. We’ve tripled the floor space and our ultimate plan is around £30m. It allows us to grow without affecting the other parts of the business. “Since then we’ve taken on the IVECO dealership [Kerr & Smith of Glasgow in 2017], there are also some synergies with the IVECO panel van.” Other growth areas have been Rentals, which now has a fleet of almost 6,500 trailers, including 600 double-deckers for hire from eight locations; the ➜ 23 MotorTransport 21

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Interview

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acquisition of specialist aircraft ground support equipment manufacturer Emtek; and trailer exports. “The export side really came from Brexit,” explains Cartwright. “When that was announced, we watched the exchange rate descend like a downhill skier and we were thinking ‘that’s going to have a huge impact on the business’ because a large percentage of what we buy is imported. “We’ve been introducing some buy-in-Britain policies and looking to improve efficiencies where we can, and at the same time I was thinking ‘that means there’s an opportunity for export, surely’. Export is easier said than done but in the last couple of years we’ve been doing quite well with pan-European companies like Amazon. This is mainly on the higher value, lower volume products to reduce the impact of transportation costs, because obviously, if you’re exporting, you’ve got a higher cost than their local supplier. “In Australia, we’ve been successful with refrigeration. We’ve been able to build to their specification and their quality standards and offer a very thermally-efficient product. We’ve had a degree of success there and in the United Arab Emirates.”

The inevitable Brexit question

While Brexit is undoubtedly causing uncertainty in the UK market, Cartwright is optimistic that leaving the EU would allow the UK to rebuild some long-standing trading links. “We still have strong relationships with the Commonwealth countries,” he says. “Particularly in these uncertain times, those would be the better countries to work with because they have stronger ties with the UK. If and when the UK ever leaves Europe, there will be a potential benefit post-Brexit.” A no-deal Brexit would also see import tariffs imposed on complete trailers coming in from the EU, which should help the domestic players who only import components. But tariffs could damage Cartwright’s exports to the EU. “It’s a concern, but it’s the same for everybody,” ➜ 25

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Interview

says Cartwright. “We’re only bringing in some of the materials and the products that come over in their entirety have a greater risk. We’ve looked at how we can mitigate some costs, and some products we were buying in from the continent we’re now making in-house. “I think most businesses’ strategy is stockpiling in the short term. That will only last for so long and then the costs of any tariffs would have to be borne by this economy, because individual businesses won’t be able to soak them up for very long. “It’s a concern for every business in the UK. I just don’t know how sustainable 20% tariffs would be for the UK and European economies. We would need a resolution.” The UK trailer market could be about to see another new entrant, with former SDC Trailers MD Mark Cuskeran reported to be setting up MAW Engineering with William Stobart to build trailers in Northern Ireland. “Is there room for another trailer manufacturer?” muses Cartwright. “There’s been great growth in the sector and they obviously believe that to be the case. It’ll be interesting to see. “Increased competition just means we have to work a bit harder in terms of being more productive, efficient and focused on design and innovation. We’re also the only UK manufacturer offering funding direct, which is still a popular model for acquisition of assets. “Our product diversity also gives us the opportunity that, if a certain product line is competitively priced or saturated, we can focus on other things. It’s going to be an interesting place to be.” 

BANKING ON BARCLAYS The investment and subsequent expansion in the Cartwright business since Mark Cartwright took over as MD has been helped by a switch to Barclays Bank. “That was a move we instigated about a year after taking control,” he says. “They’ve been really key to some of that growth. They’ve introduced us to different forms of finance to help us provide cash to the business to build it and are very proactive in that space. “John [Egerton, Cartwright Finance commercial director] has been working very hard maintaining the relationship with our funders to keep providing finance opportunities for us to grow not only our rental fleet, but also our customers’ fleets.” After the growth spurt of the last couple of years, Mark says the business might now go through a period of consolidation. “We’ve had quite rapid growth in five years,” he says. “If there is a period of consolidation that is actually just as successful as the growth. When you plot what we’ve done there were a couple of periods where we grew a significant amount and the following years you might say ‘you’ve not done as well’. These elements of consolidation help you take stock and then get ready to go again.” 29.4.19

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Seeking security

Operators are exploring various options other than purchase to navigate uncertain times, including longer leasing deals. Simon Jack reports

hoosing when and how to acquire vehicles is a difficult decision at the best of times, but it has become even harder as operators face up to overall economic slowdown, the effects of Brexit uncertainty and the need to move to Euro-6 trucks in order to meet clean air legislation. Many companies are looking for longer leasing deals to remove ambiguity about their finances. Others are looking to extend their current deals while they meet the challenges – especially if they have Euro-5 vehicles to dispose of at a time when residual values are low. Given these conditions, it is perhaps unsurprising that truck registrations declined during last year. According to the Society of Motor Manufacturers and Traders (SMMT), new HGV registrations fell by 4.3% to 43,103 in 2018 compared with the previous year.

Extended contracts

MD of Dawsongroup truck and trailer John Fletcher says that some companies are choosing extended contracts that last for five or seven years, but with break clauses. “It gives you the flexibility to end the contract between, say, year three and year five,” he explains. Prohire’s sales and marketing director Andrew Morley says there are also changes to the way vehicles are being specified. There is a growing trend to make sure trucks comply with the FORS Silver and Direct Vision standards and to increase the GVW from 7.5 tonnes to 12 tonnes, which can double the payload. “This is all about using a finite budget wisely and being 26 MotorTransport MTR_290419_026-028.indd 26

able to have fewer trucks that can carry more,” Morley says. Abbey Logistics is among those to have specified FORS Silver for a fleet of Mercedes-Benz Actros tractors that it will use for national bulk flour distribution on behalf of Hovis – the units were supplied by Prohire on a fiveyear contract. SW Group also specified FORS Silver, as well as Crossrail compliance, for DAF tractors supplied on a three-year contract. As well as looking for longer leases when acquiring new vehicles, some firms are looking to extend the life of their existing fleet. “Extensions of anything from six to 12 months are quite typical. Clearly, the age and mileage of the vehicles concerned are important as it isn’t always viable to extend the older/higher mileage vehicles,” Morley says. Similarly, Ryder will speak to customers about the timing of a vehicle’s return if they are uncertain about what the future holds or are worried about what residual value they will achieve if they are responsible for it. Ryder Europe MD David Hunt says: “We pride ourselves on working with customers to find a sensible balance when they wish to return a vehicle. We anticipate that anyone who has delayed the refresh of their fleet will refresh once Brexit uncertainty has gone away.” Other truck suppliers are seeing a mixed picture when it comes to extensions. Fletcher says that there was an upsurge in people wanting to extend contracts when the prospect of Brexit got nearer. Retailers facing structural changes to their markets due to online shopping have also taken this approach. “In the past couple of months, companies wanting to extend the lease they already have in place has become increasingly frequent. At a time of change and turmoil it can make sense to extend the life of the asset by a year or a few months,” he says. However, Dave Potter, MD of contract hire and leasing at Asset Alliance, says there has so far been only a limited effect. “We haven’t seen any sudden increase at this point. It might happen, but not as yet,” he reports. Marketing and product development manager of Scania Financial Services Tom Brewin says that it is vital to be flexible to meet operators’ needs. This could include a contract extension on an existing truck if, for example, a haulier is waiting for a new vehicle. “We wouldn’t leave a customer in the lurch. We want an ongoing partnership with them, not a transactional relationship,” he says. The process starts with establishing their needs when acquiring their vehicles. “Whether they have one vehicle or a large fleet we must have relevant options and build a profile of their needs,” Brewin explains. This could involve waiting to take a deposit, for example, while the haulier disposes of an existing vehicle. Scania also tries to build flexibility into some of its products. Its Freedom hire purchase agreement allows for payment breaks during the contract while its ➜ 28

A NEW DIRECTION After 40 years as a trailer rental specialist, Hireco launched into truck rental last year. It appointed former Dawsongroup CEO Michael Williams as director of contracts to spearhead the operation. He argues that most fleet operators are no longer chasing the cheapest deal. “Nobody wants to pay more than they have to,” he says. “But there is a recognition that you have to pay a fair price. They want to know they’re getting the reliability and low vehicle downtime they need. People want their vehicles looked after properly.”

Hireco’s finance division provides funding for longer term acquisitions, covering any type of commercial equipment and property. It offers a suite of financial services including contract hire, hire purchase, lease, and sale and leaseback. Finance director Tim McCarthy says: “We’re funding so much equipment ourselves that we’ve established excellent working relationships with our banks. I’d describe them more as partnerships now and that allows us to obtain the best possible rates for our customers.” 29.4.19

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RENT-TO-OWN PRODUCTS Hexagon Leasing says it is currently seeing a boom in rent-to-own products for both new and used equipment, a result of the uncertainty surrounding Brexit. Commercial director Mark Fletcher says: “People are increasingly looking at fixing their monthly costs on contract hire with maintenance packages and not taking on the residual value risk. “We have more than 500 vehicles on order for 2019, which is a mix of additional and replacement fleet. We have seen an increase in people who normally purchase now looking at leases between 12 and 24 months, which will allow them time to gauge the effects of Brexit.” Rates have also had to go up due to rising whole life vehicle costs, says Fletcher, adding that Hexagon seeks to keep these as competitive as possible. Hexagon’s offerings include: HexFlex, which provides flexible rental packages that allow customers to quickly change their fleet; Trux4All, which provides a range of quality used trucks and vans to buy online; and Smart Objects, its bespoke web-based system which includes fleet management, vehicle history, rental system, maintenance control and breakdown.

Flexi-buy hire purchase agreement allows hauliers to pay lump sums back if they have spare cash available.

Clean air zones

Many believe that the introduction of London’s Ultra Low Emission Zone and the creation of a number of clean air zones around the country has put hauliers in a difficult position where they have to make what is a major switch to Euro-6 while some of their existing vehicles are relatively young. Fletcher says: “Euro-5 vehicles have often become obsolete within the working lifecycle of the asset. We are trying to help our customers mitigate against that.” This has included taking customers out of Euro-5 contracts and replacing them with Euro-6. In fact, by the middle of this year Dawsongroup will have no Euro-5 vehicles in its rental and contract hire fleet. Similarly Mark Barton, a director of MC Rental, which offers both rental and contract hire, says: “We now have very few Euro-5 vehicles left on the MC Fleet.” However, there are operational benefits that could influence the decision of when to move to Euro-6, says Morley.

“Hauliers need to look at whole-life costs. Contrary to original belief, Euro-6 vehicles are returning much better fuel economy than their Euro-5 predecessors so the savings can outweigh the cost difference, taking into account the whole-life cost of ownership or contract hire term,” he says. Another way to overcome short-term challenges is to rent vehicles. Danny Glynn, MD of Enterprise Flex-E-Rent, says this is becoming more popular as it is flexible and avoids major capital investment. “Rental is an effective way for businesses to reduce expenditure and risk during periods of political and economic uncertainty,” he says. The push towards cleaner air quality is also having an effect, with operators able to use rental agreements to meet legislative requirements instantly. “We can provide compliant vehicles that will not be charged and can provide a much cheaper alternative to buying a whole new fleet in anticipation of these measures,” Glynn comments. With pressures on operators bearing down on several sides, they are keen to turn to anything that reduces risk and increases efficiency and cost-effectiveness – both in the short and the long term. 

THE BUSINESS FAILURE Last year saw the collapse of two high-profile truck hire firms and many believe they will not be the last. In December, Gulliver’s Truck Hire went into administration with the loss of 311 jobs after attempts to turn the company around failed. It ran into difficulties when an increase in new and existing competitors coincided with a fall in demand for trucks. In addition, it encountered performance problems with some vehicles after switching R&M from the dealers to less reliable suppliers. David Pike, restructuring partner at KPMG, said at the time: “Unfortunately, the Gulliver’s team faced significant challenges in tough market conditions. Despite efforts to deliver a turnaround and reposition the business, further losses have been incurred. This has affected cashflow and led to the directors taking the difficult step of appointing administrators.” A number of vehicles have been sold, while property agent Avison Young has been appointed to market properties in Heathrow, Bristol, Cardiff, Glasgow and Walsall. The demise of Gulliver’s followed the collapse of TOM Group in March 2018 after it encountered challenging trading conditions, 28 MotorTransport MTR_290419_026-028.indd 28

which led to low utilisation of its rental vehicles and liquidity problems. A spokeswoman for administrator EY says: “Considerable efforts had been made to restructure its operations and, when that proved too challenging, the owners marketed it for sale. Unfortunately, no suitable interested parties emerged, due to the scale of the losses and the investment required to turn the business around.” However, some parts of the business were sold, including the overall business and some assets of TOM’s van arm Transflex Vehicle Rental to Dawsongroup Vans. Many believe that there could be further fallout from the sector. Prohire’s Andrew Morley says that leasing companies could potentially get into difficulties if they are overly focused on short-term, flexible contracts. “When you think about the monthly rates in that market in relation to the capital value of the vehicles concerned, some of the deals just do not stack up,” he says. Dawsongroup’s John Fletcher adds: “I would be surprised if there weren’t other casualties or rationalisation through acquisitions.” 29.4.19

24/04/2019 14:24:34

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25/04/2019 09:22:56

Alternative fuels

How low can you go? Following on from Martin Flach’s first article in the last issue, here he continues his review of the various low carbon alternatives to diesel Hydrogen

On the face of it, hydrogen sounds like the ideal alternative fuel. It can be used in an internal combustion engine or a fuel cell and the emissions from the vehicle are water. Some car OEMs have produced limited numbers of hydrogen vehicles. BMW had an internal combustion engine vehicle in production about 10 years ago, while Toyota, Honda and Hyundai now all have fuel-cell vehicles available. Current costs are high both for purchase and for operation, but will certainly come down as we move to a more hydrogen-based economy. IVECO and FPT showed a hydrogen fuel-cell concept artic at IAA in 2018. The technology is feasible, but this concept demonstrated one of the limitations of hydrogen – the energy density is low, and so you need a lot of space to store the fuel. On a 4x2 artic, with the space between the front and rear wheels on both sides of the chassis filled with tanks, range was only about 200km, compared with a diesel vehicle where this could be as much as 4,000km. Just imagine the challenge for a 6x2 artic. There are currently a few buses running in the UK on hydrogen. These are short-distance, back-to-base operations using long-wheelbase single-deck vehicles with plenty of space for fuel tanks on the roof. Range is not an issue in this operation. In the UK, ULEMco is producing some diesel conversions (pictured right) and Arcola is offering fuel cell conversions. Hydrogen does not occur naturally in the environment. It can either be produced by removing the carbon from a hydrocarbon (such as steam-reforming methane) or by electrolysis of water to create hydrogen and oxygen. Either way, it only makes sense if the energy used to generate the hydrogen comes from a renewable source. Such a scenario could be useful for excess renewable wind or wave power at night. Hydrogen has been seen as the fuel of the future for many years, but still seems a long way away from mass production. The most likely use of hydrogen could be as a zero-emission range extender for an electric vehicle if the cost and weight of the fuel cell and hydrogen tanks can be made competitive against an additional battery. This is the approach being taken by Arcola, which believes that at weights over 7.5 tonnes this already makes economic sense.

motortransport.co.uk

In more recent years, ERF was noted for its supply of gas-powered vehicles to customers such as Safeway and Marks & Spencer. The real step forward came in the mid-2000s, when the engine technology was revised to meet the requirements of the Euro-4 regulations that for spark ignition required emissions meeting the EEV level. This was better than Euro-5. To achieve this, improvements had to be made to the combustion technology and most importantly the introduction of electronic control of the engine. IVECO and Mercedes-Benz were active in this period, with products from 3.5-tonne vans up to 26-tonne rigids. Gas-powered artics from Volvo were available in the market with a Euro-5 methane/diesel dual-fuel engine. This was a compression ignition engine where a percentage of the diesel fuel injection was substituted with gas. This technology was also available as aftermarket conversions from Hardstaff and Clean Air Power, among others. Although there were mixed reports about the reliability of this dual-fuel technology, the main downside was highlighted in work carried out for the DfT as part of the Low Carbon Truck Trials, where methane slip was shown to be significant. Methane is about 30 times worse than CO2 in contributing towards global warming. The Euro-6 requirements proved to be a step too far for the aftermarket converters, most of which are no longer trading. Euro-6 did, though, bring spark ignition offerings from Scania and IVECO, initially at 330-340hp but more recently at 400-460hp. Volvo has also recently returned to the market with an engine featuring high-pressure direct injection (HPDI) technology. This is still a compression ignition cycle but uses only a small amount of diesel as a liquid ‘spark plug’ to ignite the gas. While the spark ignition engines are available with either CNG or LNG tanks, the Volvo HPDI is only available for LNG. The choice of LNG or CNG will depend on the vehicle operation. LNG has an energy density that is around 2.5 times that of CNG. This means that in a limited space available for tanks, the LNG vehicle will have a range ➜ 32

Compressed and liquefied natural gas

Gas-fuelled spark ignition engines have been around since the birth of the internal combustion engine. Indeed, Nikolaus Otto used town gas as the fuel for his early developments. 30 MotorTransport MTR_290419_030-032.indd 30

29.4.19

24/04/2019 14:10:29

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Alternative fuels

IT’S BACK: Volvo has returned to the gas market with its LNG-only HPDI engine

2.5 times better than the CNG vehicle. LNG is a cryogenic liquid and needs drivers to have the necessary training and personal protection equipment. Cooled down to -160C, it must be treated with respect. Filling a CNG vehicle is simpler, with no PPE required as the gas is compressed at around 250 bar at ambient temperatures. CNG is often a few pence cheaper than LNG per kg and the vehicle will be cheaper. LNG tanks are unfortunately expensive but potentially could be given a second life on a replacement vehicle. For vehicles on operations where range is not an issue, CNG can be a good choice but for most artic operations, LNG is usually the choice. As the fuel is identical in composition, the emissions will be the same with either fuel.

Motorway trials

Recent testing by the DfT as part of the current Low Emissions Freight Trial has shown good results on CO2 emissions on long-haul motorway operation. This was sufficient for the DfT to convince its Treasury colleagues to extend the guaranteed fuel duty differential between gas and diesel until 2032 in the 2018 Autumn Statement. With 6x2s now available from Volvo and IVECO and the economics looking good for long distance, now seems to be the time for gas vehicles to take a slice of the market. We’ll look at operator experience in a future article. While most natural gas is still a fossil fuel, it can also be produced as biomethane from landfill or more typically now from anaerobic digestion (the big domes you often see in the countryside on farms). Biomethane is useful as it can reduce the CO2 emissions from vehicles on a well-to-wheel basis by 80% or more. NOx and particulates are usually better than diesel vehicles, but since Euro-6 the improvements are smaller than they were with Euro-5. Natural gas vehicles are a here-and-now technology that may well be replaced in the long term with other zero-emission alternatives, but for now is the only real game in town for long distance operations.

GTL and HVO (biodiesels)

In the days of mechanical in-line fuel pumps and low injection pressures, diesel engines would run with virtually any hydrocarbon. They may have been difficult to start and may have smoked a lot but they would run. 32 MotorTransport MTR_290419_030-032.indd 32

motortransport.co.uk

Modern engines are not so flexible. The first-generation fatty acid methyl ester (FAME)-derived biodiesels worked OK in the days of Euro-4 and Euro-5, particularly with engines using unit injectors, but in Euro-6 and engines with common-rail fuel injection, with much higher injection pressures and temperatures, they struggle to be stable enough at anything except low blends. Gas-to-liquid (GTL) and hydrogenated vegetable oil (HVO) are second-generation biodiesels. These are much closer to mineral diesel in the hydrocarbon chain and hence are usable as direct replacement or drop-in fuels. This means that the engine will work well without any changes to maintenance regimes even at 100% biodiesel. Some OEMs have approved and certified engines to use these. GTL can be made from natural gas or biomethane. UK availability is limited, and higher costs are an issue, but fleets that have trialled them report good results. The challenge that any biodiesel will have is not the emissions from the tailpipe or well to wheel, but the public perception that this is still a diesel vehicle. With the current demonisation of diesel, this could prove to be an impossible task.

Other bio and synthetic fuels

The benefits of liquid fuel’s energy density for vehicle applications have long been recognised, with range being the main objective and easy refuelling also important. Many will recall the Volvo study of seven fuels on seven vehicles some years ago that explored alternatives to diesel. There is not much visible change yet, but extensive work is being carried out in research laboratories to investigate the potential for synthetic fuels. With the premise of abundant solar or renewable energy available, the concept is to use this energy to split water into hydrogen and oxygen and then to combine the hydrogen with CO2 to produce hydrocarbons. These can then be transformed into liquid form and used in internal combustion engines. This process of chemical engineering offers the prospect of designer fuels tailored for specific applications able to achieve low emissions for air quality and effectively zero emissions for global warming, with the CO2 emitted only being that used to produce the fuel in the first place. These fuels are still some way from production but could well be part of the future.  29.4.19

24/04/2019 14:11:32

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25/04/2019 09:27:29

MT Awards 2019 shortlists Team of the Year MT profiles the shortlists for this year’s awards Collett & Sons

In a strong category that was very hard to call for our judges, heavy haulage specialist Collett & Sons made it to our shortlist with an impressive entry describing a unique project to deliver three 169-tonne electrical transformers for the National Grid in just four weeks. The Collett team had only six months to plan and execute the three moves, which involved shifting the transformers a total of 270km from ports to substations. Planning involved liaising with several local authorities and police forces to minimise disruption and ensure safe passage for the 66m-long, 5.4m-wide combinations pushed and pulled by MAN 4-axle heavy haulage tractor units. Judges said the project was extremely challenging, especially as these high-profile moves had attracted a lot of publicity and so the team was under great pressure to deliver. One judge was especially impressed with the breadth of the service provided by Collett, while another said the team had only one shot to get it right and they had “smashed it out of the park”.

DPD UK

In an honest entry that did not pull any punches, DPD described how a below-par performance in the peak of 2017 led to the creation of Project Shine, which pulled together a team of 140 people from 10 disciplines to ensure

peak 2018 went like clockwork. The team was not looking for a single silver bullet but covered 23 separate projects designed to give marginal improvements in key areas including better dialogue with customers, engaging more weekend drivers, better co-ordination with a new Intelligent Operations Centre and providing transparent data to customers. The results – peak 2018 service levels improved to 99.8% from 96.5% and DPD retained all those major clients who were unhappy in 2017. Judges loved DPD’s usual exceptional and detailed submission and noted that possibly the biggest cultural benefit DPD had gained from Project Shine was head office staff learning to treat shop floor colleagues as internal customers. One judge commented that even after six years of solid growth, improvements in customer service remained a priority.

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