Motor Transport 10 June 2019 by Motor Transport

Sharp ■ Informed ■ Challenging

10.6.19

QUALITY. COMFORT. PERFORMANCE. Confused allocation process leaves road transport sector guessing

Hauliers slam DfT over EC permit allocations

MAKE A SPLASH IN YOUR INDUSTRY

BOOK NOW MTAWARDS.CO.UK

NEWS INSIDE

By Louise Cole

Testing times

Will the DVSA allow operators to conduct annual tests? p3

Time’s up

Nicholson’s Transport Logistics enters administration p6

On side

German owner sticks by Hellmann Worldwide

Cross Transport ............................................ p4 DHL Supply Chain ......................................... p4 DX Group ...................................................... p6 Duncan Adams ............................................. p4 Eddie Stobart Logistics .................................. p8 Europa Worldwide Group ............................... p8 Hellmann Worldwide Logistics ...................... p8 Lenham Storage ........................................... p3 Nicholson’s Transport Logistics ..................... p6 XPO Logistics ............................................... p4 Suttons Tankers ...........................................p30

Smart webinar MT sister title Commercial Motor is running a free webinar on 18 June explaining all you need to know about smart tachograph technology. This month sees the biggest change in tachograph legislation in 12 years, with the introduction of the new generation of on-board, mandatory digital recorders to enforce drivers’ hours rules. ■ To register, go to commercialmotor.com/webinar.

Shutterstock

OPERATORS INSIDE

Hauliers have criticised the DfT over the way it allocated European Conference of Ministers of Transport (ECMT) permits after MT discovered that it issued less than half of the UK’s share. The permits are the only device that will allow international hauliers to operate on the continent if the UK leaves the EU without a deal. Ahead of the original Brexit leaving date of 31 March, the Df T urged more than 10,000 firms to apply for them. However, MT can reveal that just 697 of the 1,610 permits were allocated by the end of the process. The bid was oversubscribed, with 11,392 applications made by 1,991 companies. This left hundreds of hauliers without any permits or with significantly fewer than they had applied for. They were notified by email in February. Louise Debbage, director of MAC European Freight, which transports headstones to Europe for the Commonwealth War Graves Commission, said of her refusal email: “We were informed, without any reasons, on 10 February. That was appalling; there was a lot of anger about that. It gave no reasons. It’s not clear how the next application process will work, but given that you have to account for recent journeys, I suspect we’ll have to do it all over again.” Debbage said it remained unclear whether a licence application in Q3 will give the company a 12-month permit or one until

the end of 2019. “None of that was clear before and even less so now,” she said. Brian Yeardley Continental applied for 70 permits. Operations director Bruce Newton said: “We were granted 14. It’s nothing like sufficient. The whole thing was a shambles. We’ve had many conversations with the Df T and it doesn’t seem to understand the process or what’s going on.” Sarah Laouadi, European policy manager at the FTA, said the DfT had tried to optimise a hopelessly inadequate system. “ECMT was never meant as the solution for Brexit,” she said. ECMT permits were designed as an ancillary system to work alongside European Community licences and many bilateral agreements, but they are now the only mechanism available to authorise freight movements outside a

comprehensive transition deal and the EU is reluctant to make concessions. “EU contingency plans for free movement end on 31 December 2019, so we will face this again,” Laouadi added.

FIND OUT MORE. mantruckvanandbus.co.uk

Focus: warehousing p12 Tyre management p16 Marketplace p18 Interview: Michael Cundy p30 MT Awards shortlists p34-38

MRE_100619_001.indd 1

06/06/2019 17:46:49

Image shows optional larger screen.

Everyone talks, one delivers. The new Actros. Multimedia Cockpit. The innovative Multimedia Cockpit combines with the multifunction steering wheel and its Touch Control Buttons to bring enhanced comfort to the new Actros, enabling drivers to operate a varied range of vehicle functions with the greatest of ease. www.mercedes-benz-trucks.com For more information scan the QR code.

AD_100619__P2.indd 1

06/06/2019 09:08:29

News

motortransport.co.uk

Earned Recognition operators could conduct annual tests to alleviate ATF tester crisis

DVSA mulls self-testing By Chris Druce

The DVSA is considering allowing operators within its Earned Recognition scheme to conduct their own annual tests. Speaking to MT at last month’s Microlise Transport Conference, Marian Kitson, director of enforcement at the DVSA, said: “The minister is telling us he is not confident of the ability of the industry to move to self-testing. “But he wants to look at it again in another year’s time for Earned Recognition operators, so that might be another benefit for Earned Recognition operators in the future.” Tom Cotton, head of policy and infrastructure at the RHA, said the association supported involving the private sector in test provision. “We’d rather not see operators testing their own vehicles,” he said. However, he conceded that airlines essentially do so under rigorous criteria. Irrespective, anything is better than the place we are now,” he added. Cotton used the example of a member in Scotland that has to make a 50 to 60 mile round trip to get their vehicles tested due to a lack of authorised testing facility (ATF) provision. With 270 vehicles this adds up to approximately

13,500 miles a year for them, he continued. “How is that compatible with the government’s stance on clean air?” he asked. Stephen Smith, chairman of the

Authorised Testing Facility Operators Association, said an industry stakeholders group, which includes the RHA, FTA and SMMT, had been lobbying govern-

ment to conduct a trial of ‘selftesting’ of PSVs for some time, as it wouldn’t require a change in the law. “There is an important caveat that we must also consider; many ATF operators cannot gain Earned Recognition because they do not run their own fleet, so a ‘nonDVSA testing certification’ could be accredited and delivered to private technicians to ensure ATFs are allowed to use their own technicians to test vehicles,” he said. Kitson refuted claims that traffic examiners were being pulled off roadside checks to fill annual testing shifts at private ATFs due to a staff shortage. “That is not the case,” she said. “I think it happened before I joined but it is not happening now. DVSA has cancelled a tiny percentage of test slots.” However, Smith said: “The industry knows that DVSA’s single strategy – to recruit themselves out of the tester shortage – is still failing. “The FOI [from June 2018] made it clear that the DVSA recruitment attrition rate meant there were 7% fewer testing staff [year on year]. The staffing problems were exacerbated when enforcement were no longer allowed to fill in the gaps. In effect, DVSA’s wheels fell off,” he said.

Lenham Storage opens in Midlands, while group pre-tax profit dips Lenham Storage Company has taken on a production and quality director and expanded its geographic footprint with the launch of new subsidiary Lenham Storage (Midlands), which is based in Loughborough.

Julian Maturi In ‘Palletways boss retires’ (MT 27 May), we said Julian Maturi had returned to the business to take on the role of chairman. We are happy to clarify that Maturi stepped down from that position in July 2016 following the sale of the network to its current owner Imperial Logistics in the same month. 10.6.19

MTR_100619_003.indd 3

The newly created role has been taken by Ian Rose, who was Lenham’s group warehouse manager between December 2012 and May 2014. He joined Lenham from Aqualisa where he was operations director from May 2014 until April this year. His appointment closely follows the publication of annual results for the group comprising the Lenham Storage Company and sister business Lenham Storage (Southern) for the year to 31 August 2018. Both parts of the group saw profit fall last year with the former hit by the cost of a warehouse enhancement programme and the latter by the loss of two medium-sized clients. At Lenham Storage Company, which contributes the lion’s share of the group’s business, turnover increased to £36.9m (2017: £34m)

while pre-tax profit fell to £1.2m (£1.5m). Lenham Storage (Southern)’s turnover decreased 2.4% to £10.3m, and pre-tax profit fell to £373,454 (£540,830) according to its latest annual results. The operator added that the impact of the UK’s approaching

departure from the EU had resulted in the firm struggling to retain not only HGV drivers, but also warehouse and office staff, “which places pressure on the business to recruit locally”. The company has not provided any comment.

MotorTransport 3

06/06/2019 18:13:29

News

motortransport.co.uk

Retailer’s single-tier distribution network project gathers pace but 3PL remains key to success

M&S and DHL to endure By Chris Tindall

DHL Supply Chain remains a key partner of Marks & Spencer (M&S) as the high street retailer’s transition towards a single-tier distribution network gathers pace. With the planned closures of 110 stores announced last month, comprising 85 full stores and 35 Simply Food branches, M&S CEO Steve Rowe said the retailer was now deep into the first phase of its transformation programme. “While there are green shoots, we have not been consistent in our delivery in a number of areas of the business,” he said. Key to the transformation is reducing the complexity of its logistics network, which led to the closure last year of four DCs and warehouses, including its Neasden DC, operated by XPO Logistics with DHL Supply Chain supplying the transport. The closure of two DCs alone led to a net charge of £14.3m, which M&S said was “for redundancy, accelerated depreciation and project costs”. Further charges

of approximately £12m are expected for 2019/20. However, DHL Supply Chain has not been left on the shelf. Earlier this year, M&S opened a national DC in Welham Green, which it said is“ramping up its boxed storage capacity”. M&S confirmed to MT that the 3PL was operating the Hertfordsite site. The investment in Welham Green led to the retailer’s supply chain capital expenditure more

than doubling to £48.7m in 2018, but it has helped move M&S towards a single-tier network for Clothing & Home while improving its capabilities at Castle Donington. “We are still at the early stages of modernising our supply chain network, technology and process and this remains a priority,” the retailer said in a statement. An M&S spokeswoman told MT the rationale behind the singletier network was to make the

retailer faster, more agile and reduce costs. She said: “A singletier network ‘moves’ or ‘touches’ a product once and is more effective than a network that moves or touches products more times.” A DHL Supply Chain spokeswoman said: “DHL continues its relationship with M&S and remains a strategic partner in its supply chain network, including operating its Welham Green site.” XPO Logistics declined to comment.

Unite warns that Duncan Adams staff may have long wait for claims

CHANNEL CROSSING: Cross Transport has taken delivery of 56 DAF XF tractor units to facilitate its Amazon contract. The full-service contract hire deal from Asset Alliance Group is valued at approximately £4.5m and replaces older vehicles on its fleet with new tractors specced with SuperSpace cabs. The DAFs will cover 140,000km a year and the agreement covers safety inspections, maintenance, servicing and repairs. The trucks operate throughout the UK and on the continent from the operator’s Nuneaton depot.

4 MotorTransport MTR_100619_004.indd 4

The Unite union is still pursuing claims on behalf of former employees at Grangemouth haulier Duncan Adams, which entered administration in March. However, regional officer Mark Lyon warned that it could take years for the 50 claims to be processed by the employment tribunal. The union said Duncan Adams had failed to consult with staff about their redundancies before it was wound down following significant losses. Lyon said: “It can take years to work through the tribunal list. It’s not a compensatory payment, it’s a protective award claim. We have the claims for our members, in the region of 40 to 50. They never had any notice of losing their job, or a consultation on it. Not every employee put a claim in.” The comments came after administrator Deloitte published a report stating that employees owed money for arrears of wages, salaries, holiday pay and pension

contributions will probably not be paid in full from the administration. “We estimate that there will be 143 preferential claims totalling circa £188,000,” it said. It is understood staff could make a claim through the redundancy payments service. The report added: “The company incurred significant trading losses between 2016 and early 2018, which the director attributes largely to one key customer contract. The extent of the losses were not known to the director for some time as the audited accounts contained material misstatements (due to accounting errors) that were corrected in the accounts for the 18 months to 30 April 2018. “Despite trading recovering to an approximately breakeven position in 2018, the build-up of creditors during previous years restricted the company’s cash-flow, which was exacerbated by the tightening of credit terms following the filing of the April 2018 accounts.” 10.6.19

06/06/2019 18:42:30

UNBEATABLE

4 YEAR WARRANTY FOR THE 8X4 MARKET

Extended warranty across the MAN TGS 8x4 range At MAN, we aim to deliver products that allow our construction customers to thrive in this booming market. We’re now offering the 8x4 market a four year comprehensive warranty* that is included in the capital / weekly rate free of charge for your customers. We call it the 8x4x4. The warranty applies to the full MAN TGS 8x4 range – any weight, any engine, any cab. The offer can be used on stock and factory order vehicles. The only models H[FOXGHG IURP WKH RIIHU DUH WKRVH FODVVLÀHG DV KHDY\ KDXODJH For more information, please email us at info@man.co.uk or call 01793 448 000 *The warranty covered by this offer is code 6KP – 48 month, entire vehicle, up to 400,000 kms

AD_100619__P5.indd 1

06/06/2019 09:11:31

News

motortransport.co.uk

DX Group loses HMPO contract DX Group has suffered a setback after learning that its long-standing deal to provide a secure delivery service to Her Majesty’s Passport Office (HMPO) will end next year. In a statement to the stock market, the loss-making operator said that following a tender process, its bid, based on ‘commercially realistic terms’, had proved unsuccessful. DX Group’s contract will expire in January after a transition period with the new, as yet unnamed, provider. The timing of the contract’s end means that the company’s results for the year to 30 June 2019 – where it expects to remain loss making in regards to the bottom line – will not be affected.

Group division DX Express has provided secure services for HMPO since 2004. It remains under pressure as fewer physical documents are sent, and management have been working to reposition the Exchange part of the division as an exclusive member’s network to offset this. DX chairman Ronald Series said: “Having held this contract for 14 years, we are disappointed not to have been successful in our bid, which we believe was based on commercially realistic terms. “Over its tenure, DX set new and higher service standards for this important contract, and we are proud of what has been achieved for HMPO.” Series added that the group’s

turnaround strategy still remained on track and DX is “well positioned to achieve market forecasts for profitability in the next financial year”.

Asked who the successful bidder was, a Home Office spokeswoman said: “We are unable to comment while the procurement process is ongoing.”

Contingency plan launched to ensure service continuity for TPN as haulier enters administration

Nicholson’s Transport ceases trading By Chris Druce

Billingham-based Nicholson’s Transport has entered administration and ceased trading. Nicholson Group – the parent company – is not affected with its general haulage, Hiab, warehousing and pick and pack services continuing. However, the firm’s work for The Pallet Network (TPN) and The Hazchem Network has stopped. Nicholson’s Transport, owned by MD David Nicholson, held an

O-licence, now surrendered, which authorised 14 vehicles and 15 trailers. Its most recently published accounts for the year ended 31 March 2018 state that net liabilities at the transport business were more than £1m at that point. A call to Nicholson’s Transport confirmed the administration. It also revealed that 23 drivers and warehousing staff affected by it and the subsequent closure had transferred over to a temporary

operation instigated by TPN to ensure service continuity. TPN MD Mark Duggan told MT that the contingency service was being run out of Prestons of Potto’s Stockton-on-Tees site as part of a collaboration between the pallet network and the haulier. “The service is undiminished, as it is the same team doing the same job as before at TPN,” he said. According to Duggan, Nicholson’s Transport made its

intentions clear to the network several weeks ago, prompting a contingency plan to be put into place. Stiller Warehousing & Distribution is covering the DH and DL postcodes previously handled by Nicholson’s Transport for The Hazchem Network. It is also covering the TS and SR postcodes for the hazardous goods network, mirroring its coverage for Palletline. David Nicholson declined to comment.

@277.;

,RQWUDFW 1LUH

/OHHW 6DQDJHPHQW

?HKLFOH ;HQWDO

ZZZ KH[OHDVH FRP LQIR KH[OHDVH FRP

=KH<KDSH8I;HQWDO ;HQWDO 5HDVLQJ DQG ,RQWUDFW 1LUH 9URYLGHU DQG =UXFN 5HDVLQJ ,RPSDQ\ RI WKH BHDU

mKH[OHDVH

6 MotorTransport MTR_100619_006.indd 6

mKH[DJRQ OHDVLQJ

mKH[OHDVH

mKH[DJRQOHDVLQJ

10.6.19

06/06/2019 12:39:56

AD_100619__P7.indd 1

06/06/2019 09:13:00

News

motortransport.co.uk

German owner pledges support for loss-making UK division until at least September 2020

Hellmann stays on side of UK arm By Carol Millett

The German parent company of logistics f irm Hellmann Worldwide Logistics has pledged to back its UK division until “at least” September 2020, after the Lichfield-based firm saw its operating loss almost double last year. According to its latest annual results for the year to 31 December 2018, the company saw its operating loss swell to £2.4m (2017: loss of £1.7m). This was despite its turnover rising to £75.6m (2017: £74.9m), which the company attributed to its contract logistics division moving from Lichfield to a larger capacity site in Burton upon Trent. However, £4.1m of dividends from affiliated and associated group companies, including £577,000 from joint venture Rudolph & Hellmann Automotive, helped the company deliver a pretax profit of £1.6m in 2018. This compared to a pre-tax loss of £1.6m

in the previous year. The company also undertook a major restructuring, which saw the liquidation of its subsidiary Kensington Freight Services with its trade and assets transferred to Hellmann Worldwide Logistics this January. In its strategic report the company said the key challenges in the year had been “operational issues”. These included the open-

ing of its new contract logistics site in Burton upon Trent, an 87,716sq ft premises taken on a 10-year lease; “changes in seasonal trends”, which it attributed to uncertainty around Brexit; and the need to reduce operational costs in the business. Pointing to the restructuring of the group following the liquidation of Kensington Freight Services, the directors said they “are confi-

dent that the work done to date will continue the move back towards profitability”. The report also noted that the “explicit support” from parent company Hellmann Worldwide Logistics SE during a review of the business to December 2021 had “reassured the directors that the company has the necessary resources to remain in operational existence for the foreseeable future”.

Eddie Stobart in good spirits after clinching five-year tanker deal

Trade bodies criticise U-turn on relief road The industry’s leading trade associations have slammed the Welsh government’s decision to ditch plans for a £1.4m M4 relief road. The scheme would have seen a second stretch of motorway built, parallel to the existing M4 motorway between J23A at Magor and J29 at Castleton, to help ease congestion around Newport. However, it has been shelved due to the cost of the project and its environmental impact. The FTA blasted the decision 8 MotorTransport MTR_100619_008-009.indd 8

and urged the first minister to reconsider. Head of Welsh policy at FTA Sally Gilson said: “The M4 is a vital stretch of infrastructure with international economic importance, yet it is blighted by heavy congestion. FTA’s members have consistently evidenced the urgent need to tackle these congestion issues.” The RHA said the move would “dash the hopes of firms expecting improvements to a creaking road network after years of promises”.

Eddie Stobart Logistics (ESL) has extended its reach in the bulk sector after clinching a five-year deal with Lallemand Biofuels and Distilled Spirits (LBDS). The contract began this month (2 June) and will see ESL deliver logistics support for the LBDS bulk cream yeast business for the UK’s distilled spirits industry. LBDS will use ESL’s specialist food-grade tankers, which have temperature-maintaining insulation. The vehicles will also use telematics technology to help

distribute bulk cream yeast to a number of major distilleries in Scotland. It came after staff on ESL’s Walkers contract suspended strike action in favour of further talks (MT 27 May). Unite members at the contract had voted to strike over what the union viewed as the operator’s failure to honour an existing industrial agreement. Staff at Walkers Snack Foods joined ESL via TUPE last year after the snack manufacturer outsourced its transport.

Europa expands to handle Brexit backlog Europa Worldwide Group has spent £2m expanding its Dartford hub to cope with any customs backlog after Brexit. The company, which is celebrating its fourth anniversary at its Dartford HQ, fast-tracked plans to expand the 86,509sq ft facility to ensure it was “Brexit ready”. Under the recently completed expansion programme, the central hub, which handles all the

firm’s European consignments, has seen its racking and transit zone increased to create 75% more space. Europa operations director Dan Cook said the number of European consignments handled at the site had increased by 64% since it was opened in May 2015, from 22,000 to 36,000 a month. Staff numbers on-site have also increased from 220 to 360. 10.6.19

06/06/2019 15:21:31

News

motortransport.co.uk

Michael Ellis is DfT’s latest minister

Quality in end-point assessment By David Coombes MD, Skills for Logistics

‘Quality’ has always been a key focus in the world of apprenticeships. At Skills for Logistics, we are involved specifically as an end-point assessment (EPA) organisation, in ensuring the quality of this process is consistent with the plan of training providers and apprentices – especially since the change from frameworks to standards. There are a number of subtle differences between the frameworks and the standards, with the EPA being the most significant. The old frameworks saw apprentices continuously assessed through their apprenticeship, but it was found that many of them would finish the process without being ready for employment. Fast-forward to the standards where employers really help design the apprenticeships to ensure they’re relevant and specific to the occupation, while delivering a pipeline of talented individuals that are ready for the real world of work. As chief executive of the Institute for Apprenticeships and Technical Education Sir Gerry

Berragan said in Further Education Week last month: “EPA is not just a well-administered test, but a relevant, reliable assessment of the knowledge, skills and behaviours that apprentices need in order to perform in their chosen occupation.” The external quality assurance (EQA) process has been identified as one of the key drivers in quality where EPA is concerned. Its purpose is to monitor the EPA process, ensuring its consistency across different apprenticeship standards and that it’s fit for purpose. I couldn’t agree more. The overhaul the EQA process has seen recently, with multiple EQA providers, has really enforced a robust quality process ensures a deep dive assessment approach, relevant to the industry. However, I also think that the employer engagement in creating the standards has played and still does play a fundamental part in ensuring a robust and high-quality standard, as well as EPA. As a route panel member for the transport and logistics sector at the institute, I’ve experienced complete transparency and the collaborative working drive that operates on the panel, which gives a voice to the employers who are the ones with the occupational requirement. So it’s really about continuous improvement and high quality, and that’s exactly what these changes to the process represent.

9418

Michael Ellis has been appointed minister of state for transport, taking over the role from Jesse Norman, who has joined the Treasury after two years at the DfT. Ellis previously served as parliamentary under secretary of state at the Department for Digital, Culture, Media and Sport from January 2018 to May. He has also worked as deputy leader of the House of Commons. As well as taking responsibility for freight, Ellis will lead on electric and autonomous vehicles; the future of mobility; transport technology; cycling and walking policy; Highways England and roads; international vehicle standards; light rail; motoring agencies; road safety; traffic; transport and the environment.

Employer engagement has helped to create high-quality standards

Improved transport efficiency with TrailerConnect® TrailerConnect® by Schmitz Cargobull, the telematics system for your trailer fleet, keeps you up-to-date with your freight and trailers with real time data. The system also helps you to document full cold chain compliance, monitor your freight’s location with geo-fencing, reduce time and maintenance costs, and streamline fleet management thanks to extensive analysis functions. www.cargobull.com/uk

10.6.19

MTR_100619_008-009.indd 9

MotorTransport 9

06/06/2019 13:30:51

Show report

motortransport.co.uk

The Tip-ex Tank-ex show in Harrogate showcased manufacturers’ latest innovations and designs

Mantrans shows its new moves THE MAIN EVENT

Thursday 30 May - Saturday 1 June Harrogate Convention Centre www.tip-ex.co.uk

Trailer and bodywork manufacturer Martrans has developed a moving-floor trailer using a retractable conveyor belt. Fleet sales manager Geoff Howard said using a conveyor belt system, as opposed to a traditional moving floor with slats, is lighter, quicker and easier to keep clean. The Multidrive Horizontal Ejector (MHE) floor is supplied by Multidrive, based in Worcestershire, and is made of silicon rubber with a synthetic fabric layer underneath designed to withstand 200C heat. The floor is reciprocating rather than a continuous conveyor belt, and uses a Bosch Rexroth gearbox to move the floor backwards and forwards.

On the Martrans trailer the MHE system weighs up to 925kg. “With a 10.8m-long planksided aluminium body the trailer weighs 7,100kg, which is much lighter than a similar sized trailer with a moving floor. It discharges in one minute on tickover,” Howard said. Stephen Boughton, head of technical and sales at Multidrive, said the company supplies the floor, hydraulics and a cleaning strip that removes any residue before the floor coils up. “We produce two types of floors: a 12mm-thick floor for asphalt and aggregate and a 10mm type for just aggregate. It is versatile and there are fewer moving parts so it requires less maintenance.”

Stock Sweepers sweeps in orders Gloucestershire-based manufacturer Stock Sweepers made its debut at Tip-ex and came away with a bank of new orders. Sales manager Haydn Buckland said the company scouted the show last year and, with so many of its customers attending, decided to exhibit this year. That decision paid off with the number of confirmed deals struck going into double figures before day two of the show had even begun. One of its latest products is the QuadVac S9400, which is fitted with a 9.4cu m hopper with a twindischarge system (electric and PTO). Buckland said:“It is a heavyduty system designed to last as long as possible, so it works harder for longer.”

The body is fitted to a Volvo FM370 18-tonner belonging to Burcombe Haulage, based in Cornwall. “The mild and stainless steel components that we use are thicker than the road sweeper industry standard to ensure the longest life span achievable. All equipment is precision-fabricated, powder-primed and coated, which gives a durable and quality finish,” he added. Buckland said the company had consolidated its operation by moving into a new £3m facility in Cinderford. “Previously the business operated from three sites, but is now in a new 50,000sq ft production site under one roof,” he said.

FOUR TO TWO: LC Vehicle Hire showed the first 8x2 rear-steer truck on its 300-strong tipper fleet. The DAF CF FAX, which is fitted with a Thompsons tipper body and Palfinger Epsilon crane, features a host of safety features including cameras and a glazed passenger door. It also rides lower than a conventional 8-legger, which enhances visibility. LC Vehicle Hire sales director Paul Bunford said that while the truck is not as capable off-road as an 8x4, it is more manoeuvrable and boasts improved fuel economy. He said fewer customers are operating in landfill sites, so do not require the superior off-road ability and ground clearance associated with conventional 8-leggers. He estimated that 40% of customers would switch from 8x4 to 8x2.

10 MotorTransport MTR_100619_010-011.indd 10

10.6.19

06/06/2019 14:38:59

Tip-ex Tank-ex

motortransport.co.uk

Lomas wins Innovation Award Lomas Distribution’s new electronically steered Feldbinder silo tanker was the worthy winner of the Tip-ex Tank-ex 2019 Innovation Award. Believed to be the UK’s first twin-steer silo trailer, it is more manoeuvrable than its 4-axle 32-tonner predecessor. Lomas Distribution fleet manager Eddie Marritt said: “In addition to manoeuvrability, the other big issue for us is safety. For this reason, it is fitted with numerous safety features, some of which are standard for Lomas and some of which are new thinking.”

An example of this is the eightchannel camera recording system, which has been enhanced to allow the traffic office to view the driver. If the Feldbinder emergency stop system is activated, head office is immediately alerted, and can log onto the system to see what is going on. “The camera on the back of the cab gives us a 360-degree view, so we can see the driver,” said Marritt. “If the driver is unconscious or ill, we can send assistance. It cuts out the risk of lone-working with a hazardous product.”

WHALE OF TIME: Whale Tankers showed its eWhale at Drain-ex, which it described as the UK’s first fully electric MVC (medium-volume combination) tanker. The 19-tonne zero-emission gully-cleaner and drain-jetter, which is designed to operate in inner city night-time environments and ultra-low emission zones, started out as a dieselpowered DAF LF. It then went to Holland’s electric vehicle specialist EMOSS, where a 250kW electric motor and two banks of lithium-ion batteries were installed. Fitted with a twin compartment tank – a 3,600-litre water tank and a 4,600-litre debris/sludge unit – it has a range of 68 miles, and can empty and jet 150 gullies on a single charge. The truck, which was highly commended in the Tip-ex Tank-ex Show Innovation Award category, is set to go on trial in London with Veolia.

“We were happy to place another major order with Cartwright after being impressed by continuous improvements in build quality and their competitive price offer.” Colin Keegan, Transport Operations Manager

Innovation . It’s in our DNA . t: 0161 928 0966 | e: sales@cartwright-group.co.uk | www.cartwright-group.co.uk 10.6.19

MTR_100619_010-011.indd 11

MotorTransport 11

06/06/2019 14:39:26

Focus: warehousing

motortransport.co.uk

Warehouse occupiers are still holding back in the face of political uncertainty, say property agents

Brexit stifles Q1 demand The continued deadlock over Brexit has dampened demand for large warehouses this year, according to leading property agents. However, there is underlying demand that could lead to a recovery in the next few months. Avison Young’s ‘Global industrial report spring 2019’ found that: “While industrial continues to be the best performing UK commercial property sector, occupier activity for large warehousing was not immune to the pre-Brexit slowdown during the first quarter of 2019.” This follows a record year for take-up, which reached 32 million sq ft in 2018. Cushman & Wakefield’s ‘UK logistics & industrial market outlook’ found a similar picture with Q1 take-up of 6.5 million sq ft, 16% below the 10-year Q1 average of 7.9 million sq ft and 44%

below last year’s Q1. The report calculated that online retailing accounted for a third of the take-up, including a 730,000sq ft build-tosuit deal with Amazon at iPort in Doncaster. Despite the overall drop in takeup in Q1, enquiries for units of 50,000sq ft and above were at their highest since 2016, implying that the market will revive when there

is greater certainty about the future. “Subject to a positive resolution of the Brexit impasse, this high level of enquiries points to activity picking up momentum in the second half of the year,” the report said. According to Avison Young, the East Midlands saw the greatest levels of take-up, but the company

suggested that non-prime locations will become increasingly popular as operators try to solve recruitment issues. “Occupiers are placing increased importance on the availability and cost of labour, and this trend will intensify, as sites need the right employment demographics as well as an excellent location to succeed,” the report stated.

Scottish warehouse market dogged by fears over longer-term availability

DOWN SOUTH: Logistics property developer db symmetry has gained planning consent for a 661,000sq ft DC to be built for the Co-op Food Group in Biggleswade. Construction of the facility, which will support the Co-op’s expansion in London and the south, is due to start later this year and the centre is expected to open in early 2022, creating up to 1,200 jobs. Co-op supply chain and logistics director Andy Perry said: “The infrastructure and site selection will deliver agility, scale and efficiency – improving service and availability at stores while building capacity to support our store investment programme.” The Co-op has taken the building on a 20-year lease, which starts on completion of the building. Once the site is complete, the retailer will spend more than £30m on fitting out the building to handle frozen, chilled and ambient food. As well as the Co-op building, db symmetry has also gained planning consent for a 2.3 million sq ft distribution park in Kettering. This could accommodate a single warehouse of more than 1 million sq ft as part of the development. The Co-op and Kettering projects are the first to be announced since specialist investor Tritax Big Box acquired an 87% stake in db symmetry in February. The deal provides Tritax with access to development land that could accommodate 38 million sq ft of warehousing.

12 MotorTransport MTR_100619_012.indd 12

Scotland’s warehousing market is seeing strong levels of interest but deals are taking a long time to come to fruition as companies remain cautious. In the medium and longer term, there are fears poor availability could restrict activity. CBRE associate director David Reid said: “There are active requirements in the market; the problem is that they are not fast moving – companies are not quick to make decisions.” Some of the demand is coming from parcels firms looking to modernise networks, but there is little direct demand from internet companies. “Internet retailers are serving the market from the north and are reliant on 3PLs and parcels firms to make deliveries in Scotland,” Reid said. If a number of deals do start to go through, there could be pressure on Scotland’s supply side. The final building in a speculative scheme by Muse Developments at Eurocentral in Motherwell, a 129,000sq ft warehouse called Vertex, was sold to craft beer firm BrewDog at the end of last year. Some second-hand units are available at Eurocentral, but the

latest Scottish Property Review from agent Ryden suggests the west of Scotland is heading towards the lowest level of overall availability since records began: there is a vacancy rate of 4.6% in the Greater Glasgow area. “The situation will become acute on completion of the considerable volume of deals in legal hands,” it predicted. Much of what is available is not of good quality, meanwhile: according to the report, more than 40% of stock is over 40 years old. There is some speculative development taking place, but this is mainly aimed at occupiers with smaller requirements. For example, Chancerygate has begun work on its first speculative scheme in Scotland, involving eight units from 3,500sq ft to 10,000sq ft in Livingston.

10.6.19

06/06/2019 12:43:04

Driving down your fuel costs 5IF .FSSJEBMF SBOHF JODMVEFT GVFM NBOBHFNFOU T TZTUFNT GVFM QVNQT BOE EJTQFOTFST GVFM TUPSBHF UBOLT U UBOL HBVHFT BOE GVFM NB NBOBHFNFOU TPGUXBSF G MJ E GPS DMJFOU BOE XFC CBTFE TPMVUJPOT .FSSJEBMF TZTUFNT BSF JOTUBMMFE BU PWFS TJUFT UISPVHIPVU UIF 6, *SFMBOE $IBOOFM *TMBOET BOE )PMMBOE 6Q UP WFIJDMFT GVFM FWFSZ EBZ PO B .FSSJEBMF TZTUFN

â&#x20AC;° )JHIFTU CVJME RVBMJUZ â&#x20AC;° %FTJHOFE UP MBTU B NJOJNVN PG :FBST â&#x20AC;° .FFUT "5&9 GPS EJFTFM TUBOEBSET XIFSF BQQMJDBCMF â&#x20AC;° 0QUJPOBM SFQPSUJOH TPGUXBSF â&#x20AC;° "DDVSBUF SPCVTU SFMJBCMF BOE VQ HSBEBCMF â&#x20AC;° 6, EFTJHOFE EFWFMPQFE BOE NBOVGBDUVSFE

.FSSJEBMF -UE .FSSJEBMF 8PSLT è&#x2C6;¹-PXFS 8BMTBMM 4USFFU è&#x2C6;¹)PSTFMFZ 'JFMET 8PMWFSIBNQUPO 87 &6 è&#x2C6;¹6, 4BMFT 5FM &NBJM TBMFT!NFSSJEBMF DP VL

4FSWJDF BOE 4VQQPSU 5FM &NBJM TVQQPSU!NFSSJEBMF DP VL

XXX NFSSJEBMF DP VL

AD_100619__P13.indd 1

06/06/2019 09:23:08

Viewpoint

motortransport.co.uk

Join the best in the business I Steve Hobson Editor Motor Transport

t is now just three weeks until the biggest night in the road transport calendar – the Motor Transport Awards. This event, the 33rd without a break since 1986, has no fewer than 62 companies shortlisted, from small start-ups to the largest fleet operators. It may be a cliché but it is still true to say that all of these companies are fantastic case studies that show off the best the road transport industry has to offer. But attending the MT Awards isn’t just about the glitz and glamour of seeing who is presented with those 21 iconic hand-made bronze trophies by an A-list celebrity. It is not even about enjoying some of the best food, drink and entertainment London has to offer. Many of the 1,500 people who will cram into the Great Room of the Grosvenor House Hotel are there to see and be seen – everyone who is anyone

will be there on 3 July and while ‘networking opportunity’ is another cliché, there really is none better than the MT Awards. One story from last year’s awards is a great example. Mark Duggan, MD of The Pallet Network, was so impressed by the speech made by Hall of Fame inductee Anne Preston MBE that he introduced himself after dinner. This led to an invitation to visit Prestons of Potto’s Northallerton HQ and, almost a year later, when a TPN member signalled it would be entering administration (see page 6) Duggan picked up the phone to Prestons and a collaboration that saved jobs and ensured network integrity was agreed. Yet another reason to make sure you are there at the transport sector’s premier event. To book one of the last few tables available, go to mtawards.co.uk.

Transport leaders’ drive for digitisation A Chris Fenton MD, Industrial and transport, Wincanton

s we enter the ‘fourth industrial revolution’, we are beginning to reap the benefits of digital technologies in the supply chain, from cloud-based transport management systems and artificial intelligence through to 3D printing and fleet telematics. Digitisation of the supply chain – whether in part or using a full suite of technologies – is a necessary but challenging process. And it’s one that presents opportunities, if properly embraced. Wincanton believes the benefits of these new technologies will only be fully realised if they are converged, rather than operating in isolation. The ideal level of visibility across the supply chain covers everything. It’s a full view of your suppliers’ supply chain, your customers’ and, of course, your own. With the certainty of this level of understanding, businesses will be able to plan effectively and mitigate risks within and beyond their control. The problem is that few businesses boast this reach right now. The introduction of blockchain technology presents an opportunity to go beyond traditional methods to better ensure

14 MotorTransport MTR_100619_014.indd 14

provenance of raw materials and goods. Better analysis of data will support faster and more accurate decisionmaking. A top-down view of the data in a business can help break down silos of information. This, in turn, could allow for better integration and co-operation with customers and partners, and more effective use of human resources to manage customer, supplier and partner relationships. People remain at the heart of logistics. From drivers and warehouse operatives through to operational experts, logistics won’t deliver if people aren’t at the centre of the process. So getting the most from people is where future success will be defined, with businesses that successfully manage interactions between humans and automation the ones that will benefit. Fundamentally, leadership has not changed, but the rapid development and deployment of digital technologies means that the expectations for leaders are shifting and evolving. Technology is moving forward faster than anybody would have thought just a few years ago, and success will hinge on the ability to thrive on uncertainty.

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 group production editor Isabel Burton 5205 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

Got something to say?

If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 10.6.19

06/06/2019 16:26:23

MTR_100619_D035327.pdf

31/05/2019

14:52

Temperature Controlled Transport..

THINK

2019

www.tcsdshow.com #TCSD19

Registration Now Open AD_100619__P15.indd 1

EXHIBITION

CONFERENCE

2 5 th & 2 6 th J U N E 2 0 1 9 EAST OF ENGLAND ARENA

06/06/2019 09:45:38

Tyre management

motortransport.co.uk

A rolling revolution Goodyear has unveiled some new rubber and a Total Mobility concept that seeks to revolutionise the way fleets deal with tyres. Dougie Rankine reports

etailed research suggests a much greater willingness among truck fleets to embrace telematics and technology now and tyre manufacturer Goodyear is keen to capitalise on this with its ‘Total Mobility Packages’. Fitting a set of tyres to your truck and simply running them until they wear out is very much the old way of doing things, it seems. Tyres play a huge role in creating efficiency savings and it’s an area the operator can have a great deal of control over, with the right training and support. As a premium tyre manufacturer, Goodyear says it is essential to look beyond the initial purchase price of the product. Savings made via improved fuel economy, extended tyre longevity and greater uptime can be considerable, it points out. Of course, truck fleets are complex operations and each one has unique requirements in terms of tyres; but Goodyear aims to find you the optimum set-up for your vehicles and give you the tools to maintain it at maximum efficiency. Just 1 bar less pressure results in a 1% increase in fuel consumption, it says. If you’re running 100 trucks averaging 100,000km per year, with one tyre on average underinflated at any one point, you could be looking at a fuel cost surplus of nearly £30,000, it suggests. Playing with the pressure can some provide eye-watering results.

GETTING A GRIP ON FUEL EFFICIENCY Goodyear has launched the new KMax and FuelMax GEN-2 ranges for long-distance and regional haulage. Engineers have “profoundly modified” the tread patterns on these to maintain maximum possible grip even when a tyre is nearly worn, it says, leading to a 25% improvement in traction over the life of the tyre. The new KMax is said to yield a 5% improvement on the previous version in fuel efficiency with an economy rating moving up from band D to C, and a 15% increase in damage resistance. The FuelMax is said to provide 12% better fuel economy, meanwhile, as well as 30% more traction and 10% more longevity. These are serious figures, and certainly enough to make even small fleet operators take notice. The idea of buying into a full tyre package is becoming increasingly attractive. Between the performance gains of these new tyres and Goodyear’s Total Mobility approach to tyre management, many fleet operators may feel they can’t afford to ignore it. 16 MotorTransport MTR_100619_016.indd 16

Goodyear’s first challenge has been to keep track of the tyres and ensure they are always in perfect health. In the fast-paced world of road transport, manually checking tyres to such a degree is near impossible, and variances in pressure are inevitable. Goodyear has a couple of solutions it believes can help out, however. First up is Fleet Online Solutions (FOS), which provides a one-stop central billing system across a network of more than 2,000 TruckForce (Goodyear’s 24/7 tyre service operation) tyre partners. The fleet manager gets clear pricing, consolidated invoicing and reports for analysis. FOS is integrated with a new tyre pressure monitoring system. The TPMS is linked to Goodyear’s cloud server so the operator, supplier and driver (as necessary) can view live data on each of a vehicle’s tyres (truck or trailer). Pressure can be shown live in an app and alerts can be set up for when it drops out of range. There are two apps: Fleet Manager and Driver Assist. The system uses a sensor fitted on the wheel rim that also detects temperature (potentially useful in the event of brake or bearing problems). An on-board router with GPS and battery back-up is used to transmit the information. Goodyear says the system can reduce tyre-related incidents by up to 85%, in addition to the cost-savings associated with keeping tyres correctly inflated. The second product is the Drive-Over Reader. As its name implies, you just drive the truck over a plate set in the ground and all the tyres are analysed in seconds. The system, which uses number plate identification, uses a sensor to scan the tyre and other vehicle parameters, checking pressure, tread depth, axle load and total vehicle weight. Reports can be sent automatically to the transport office. There are huge potential benefits to this approach for fleets whose trucks return to base each day, in terms of long-term tyre replacement planning, says Goodyear. 

10.6.19

06/06/2019 08:24:21

ADD A SPLASH OF GLAMOUR

BOOK YOUR PLACE AT THE 2019 MOTOR TRANSPORT AWARDS Motor Transport Awards 2019 | 3 July 2019 | Grosvenor House Hotel, London

MTAWARDS.CO.UK | #MTAWARDS2019 @motortransport

AD_100619__P17.indd 1

Motor Transport

@Motor_Transport

BOOK NOW View the shortlist on our website

06/06/2019 09:47:44

Marketplace

motortransport.co.uk

Mercedez-Benz’s WorkReady programme offers off-the-shelf trucks for busy customers

Want a truck in a hurry? You need WorkReady Mercedes-Benz has launched an off-the-shelf offering for its trucks to allow customers to get vehicles in a hurry. The WorkReady programme covers both rigid and tractor units and includes both new and Approved Used chassis. Trucks are available to customers “at very short notice” and can be put to work, in some cases, within days. Units currently WorkReady include Actros StreamSpace and BigSpace tractor units, as well as 530hp Actros1 models with GigaSpace cabs. Rigid vehicles including the 8x4 Arocs are also

available with Boweld and Thompson tipping bodies. There are also Thompson tipper-grabs and Hyva hook-loaders – which can also be found in an 8x2 configuration on the scheme. Mercedes’ full range is represented by the programme with 26-tonne Antos and Actros models with box bodies, as well as 18-tonne Antos trucks. FUSO vehicles will also be available at short notice with its range of Canters from 3.5 to 7.5 tonnes. Speaking about the WorkReady programme, Mercedes-Benz

Trucks UK marketing communications manager Ben Grayson said: “WorkReady is aimed at operators who, for a multitude of reasons, may not have the time to acquire a vehicle in the conventional way. “The process of ordering the base chassis from a dealer and then, when it arrives in the UK, waiting for one or more third-party suppliers to build the body and, potentially, add ancillaries or undertake further modifications, can take months. For some, that’s not an option. If they’re faced with an urgent business requirement,

WorkReady is the answer.” Approved Used trucks available through Mercedes will come in many models, sizes and specification but will all be under seven years old and have less than 700,000km on the clock. Grayson added: “Most customers will continue to order their chassis from the factory, then get them built or converted by a bodybuilder, and one or more other parties. “However, given the time these processes take, some operators will be better served by a WorkReady vehicle.”

LOW RIDER: Specialist bodybuilder MV Commercial has unveiled a new Volvo FH 6x4 crane truck on a super-low subframe. Developed with Hiab, it sits 34mm lower than a standard design and incorporates a Hiab X-HIPRO 858 crane capable of lifting 4.1 tonnes at a reach of 16.3m. The design reduces the coupled height of the trailer to provide increased lifting capacity over the rear legs as the crane is closer to the cab. Designed and built at MV Commercial’s hub in Airdrie, the new truck specification has now entered regular production at MV Commercial, with eight units currently in build.

Operators being ‘forced into a corner’ over Euro-6 The forthcoming prospect of clean air zones in cities across the country means operators should look to invest in Euro-6 vehicles as soon as possible, according to Evans Halshaw group used truck sales leader Guy Pinder. “Operators are being forced into a corner. The Euro-5 market is at an all-time low, so the longer operators leave trading in their trucks the less value they will get for part exchanges. They need to 18 MotorTransport MTR_100619_018-019.indd 18

be looking to change them as soon as possible. If you do leave it too long you will have to panic and that will cost you. There are still people who think it’s [clean air zones] not going to happen, but we know they are going to, so it’s just a case of trying to get the customer to switch to Euro-6 as soon as they can.” Pinder believes the market for used Euro-6 trucks has now reached a point whereby they are

a sensible investment for companies not looking to commit to a new vehicle. “Brexit is affecting people’s buying decisions, but you can’t ignore that clean air zones are coming to several major cities. If operators do buy a Euro-6 they don’t have to worry about any additional costs for taking vehicles into city centres. Many operators aren’t confident in buying new, but rather than wait on the uncertainty, my

opinion is to buy a used Euro-6 before preparing to make the commitment for a new Euro-6 truck. That way you’ll have been running with a Euro-6 and can go into any zone in the UK, but then when confidence to the industry returns you can commit to a new one. “It’s all about getting the customer the right vehicle for this moment in time and I believe that is a used Euro-6,” Pinder said. 10.6.19

06/06/2019 15:10:42

Marketplace

motortransport.co.uk

MW Truck Parts offers a wet kit alternative

Business growth prompts move to new 3.3-acre site in the north-east

MAN Truck & Bus expands dealership into Gateshead MAN Truck & Bus has broken ground on a new dealership in Gateshead to house new and used sales as well as providing servicing and maintenance to customers in the north-east. The existing Earlsway facility will be closed when the new site becomes operational towards the end of the year. The new 3.3-acre site in Team Valley is being developed to support the growing busi-

ness in the area. An ongoing £20m investment has been made across the MAN Truck & Bus UK network, with the new Gateshead site the latest phase providing maintenance workshops operating six-days a week. Vehicle emergency breakdown coverage will also be provided through MAN’s 24-hour breakdown service, Mobile24. Using steel from across the North East, the building’s frame

was fabricated by Durham-based WRAM Fabrications. Development director at UK Land Estates Tim Witty said: “This is a fantastic investment by an international company in the North East, and a real vote of confidence in the region. MAN has been in Team Valley for more than 23 years but continuous business growth meant it has simply outgrown its existing premises.”

Manheim auction back by popular demand

Auction giant Manheim has reintroduced a physical HGV auction with the inaugural drive-throughauction proving to be a huge success. The Bruntingthorpe- based sale at the end of May saw close to £1m in sales with more than 150 HGVs going under the hammer. The sale was the first of its kind in two years, and was brought back due to customer demand. 10.6.19

MTR_100619_018-019.indd 19

Despite it being a physical sale, 37% of the trucks and trailers sold went to online buyers using Manheim’s Simulcast real-time buying platform. A total of 72% of the stock sold on the day, with the sale achieving 105.6% of the vendors’ listed reserves. In addition to the traditional sale, a new virtual lane auction was also conducted with auctioneers offering 40 lots to the physical

attendees as well as those buyers online. The mixture of trucks, trailers and plant equipment was located at Manheim’s de-fleet hubs at the auction centres in Shotts, Washington, Gloucester and Colchester. Director of commercial vehicles at Manheim Matthew Davock said: “We know that our vendors trust us to maximise returns and that their biggest need is for de-fleet and storage facilities. Bruntingthorpe’s 600-acre site offers the necessary scale and size required to run our new HGV proposition and works perfectly when supported by the four de-fleet hubs. “This strategic move will allow Manheim to meet customer demand in the HGV market for a flexible service that helps vendors maximise sale returns, minimise movement costs and splits duplicate model volumes.”

Bridlington-based MW Truck Parts has launched a new division to provide customers with a cheaper alternative to hydraulic wet kits. The new MW Hydraulics company will sell wet kits for a wide range of vehicle gearboxes from Volvo, Scania, MercedesBenz, DAF, MAN, ZF and Eaton. The equipment, which includes hydraulic oil tanks, hydraulic pump and the PTO (power take off) unit are all manufactured to TUV Austria standards and come with a six-month warranty.

MW Hydraulics director Hazem Watti said: “We are expanding as a business and becoming more known in the marketplace for our used truck parts. Market leaders like Edbro and Hyva are already in the market, but to buying a wet kit from us it would cost £1,800.” With a significant price difference claimed by Watti, he believes its new range will help diversify its business with MW Hydraulics selling new equipment rather than the used parts that MW Truck Parts is best-known for. “It’s just a good alternative to the market leaders,” Watti continues. “Hydraulics are very expensive, so we’re a good quality alternative option to the market leaders” MW Hydraulics, which in the interim will operate as a subbrand within the parts business’ main website, currently only stocks the hydraulic equipment rather than the cylinders or rams needed to lift a body or run a crane, but will sell all the components either individually or as part of a full kit with aluminium tank, 45-tonne max-lift pump and the directional valve including all hoses, fixtures and fittings. MotorTransport 19

06/06/2019 15:11:25

Marketplace

Cheap

as chips What 6x2 tractor unit can you buy for £20,000? George Barrow scans Commercial Motor’s online classified pages to find out

he used market for traction is becoming increasingly price sensitive, not in terms of the prices themselves, but the residual values of the trucks that operators are looking either to move on or purchase. An interesting situation has been unfolding in which holding the cards to a Euro-5 unit would seem to be a duff hand, but replacing it with a Euro-6 truck could easily leave you paying over the odds. New vehicles, operated on a lengthy contract, could provide a solution, of course. But lead times and prices are still a hindrance. So what if you really need a vehicle now? Do you stick (with an aged unit), twist (with a brand new one), or call, and buy something in between? The market for late-plate Euro-5s and first-registration Euro-6 is where you should be looking for a short-term view on affordable operation. The budget we’ve picked for this exercise is £20,000, which is a nice amount of money that can get you a wide range of vehicles. The scope of units under this threshold is varied, particularly if general haulage is your business. If it’s a defined contract that doesn’t require you to venture into a major city anytime soon then a decent Euro-5 is well within the budget, but it’s also possible to get a Euro-6 truck with a modest number of miles on the clock. Whichever you decide to go for, you’ll be looking at something from around 2012 or 2013. Depending on the marque, it is even possible to get a vehicle from 2014 for this amount. Of course you could simply purchase something considerably older and save yourself a chunk of change. To provide some context, for approximately £10,000 you can pick up a premium 6x2 sleeper cab from around 2011. There’s a wide choice from any of the manufacturers, but you will be looking at around 1,200,000km on the clock. It’s more than likely, of course, that this is exactly the type of vehicle you’ll be looking to replace, so we recommend sticking to the £20,000 budget. Having said that, you may not get much more for your money, and mileages generally are higher as operators have looked to work vehicles harder during the past five years to maximise returns. But, crucially, the later models will be Euro-6. Here are some of the best deals we found...

20 MotorTransport MTR_100619_020-021.indd 20

Scania R450 Highline

A Scania R450 Streamline is the ultimate example of reliable traction. A well-used and looked-after 6x2 with mid-lift-axle, Streamline cab on a 63-plate and 975,000km under its belt comes in at under £19,000 from an independent dealer. Opticruise transmission and two-thirds MoT, combined with Scania’s reputation for reliability, will provide some peace of mind, and the Scania badge and R-series desirability will ensure you aren’t left with a quickly depreciating asset in 12 months’ time.

Renault Range T

But what about something from some marques that are perhaps seen as less desirable than the R series? The Renault Range T might not be every driver’s first choice but if they were to spend a bit of time in the cab they’d begin to appreciate just how much of an advance it is from the Renault Premium – which incidentally you can comfortably snap up for sub-£10,000 on an 11-plate. The Range T on a 63-plate with a high-roof sleeper cab is almost the top-of-the-range truck – it was back in 2013 – and as a result you’ll find them with almost everything fitted as a matter of course, from the fridge-freezer to climate control, and full aluminium catwalks to air suspension. They’ll probably have the Optidriver semiautomatic gearbox fitted and with a mid-range Euro-6 engine you’ll be paying close to the full budget. But mileage will be less than the Scania and the quality of the examples still left in circulation is generally higher. We’ve found trucks with fewer than 850,000km on the clock, single owners and full service history. They are more expensive than a Scania R series, but they’ll have a lot more equipment fitted and in the year, or years, to come that uniqueness of it not being a run-of-the-mill, available-everywhere example could keep the residuals a shade higher.

MAN TGX

An MAN TGX would also make a suitable choice. We found 64-plate specimens with approximately 700,000km that were under our budget. These trucks, generally 10.6.19

06/06/2019 08:21:01

motortransport.co.uk

powered by a Euro-6 480hp engine, tend to have XLX cabs, automatic gearboxes and plenty of extras. As a Euro-6 they will have no problems venturing into any number of proposed clean air zones, either. All of our finds so far have generally been from independent dealers, but buying from a main dealer tends to be a fleet operator’s preferred method.

Mercedes-Benz Actros

A Mercedes-Benz Actros from its own dedicated used truck centre, Wentworth Park, with just 500,000km on the clock, is likely to be of considerable interest, for example. As it is less than seven years old and has under 700,000km on the clock, it qualifies for Mercedes’ Approved Used scheme. This means it has undergone a thorough inspection and is backed up by a six-month driveline warranty. A 6x2 from a single operator, fitted with the StreamSpace cab, under-bunk fridge and a full aero package, comes in at £5 under budget. But there is a drawback to this truck, which is that it has a Euro-5 engine. This, then, really is top money for a truck of this age and emissions standard, although this particular example is in excellent condition and there are plenty of others like it available. Alternatively, for the same money – £19,995 – you could get a Euro-6 Actros day cab on a 64-plate with 755,000km, although this would leave you with a smaller engine and a much smaller cab.

All spent?

So if you’ve got £20,000 to spend, it turns out that you can buy a hell of a lot of truck for your money. Choice in the Euro-5 market is still at a point where there is enough variety to get really cheap traction or a healthy and low mileage unit such as the Mercedes. Alternatively, Euro-6 truck prices have now reached a point where early examples without crazy mileage now fall within this threshold. It’s not just a case of finding a few good examples either. The classifieds are now jam-packed with options and as more Euro-6 vehicles get de-fleeted, the choice will only get wider.  10.6.19

MTR_100619_020-021.indd 21

MotorTransport 21

06/06/2019 08:21:33

Interview: Michael Cundy

motortransport.co.uk

well for them and is interesting for us.” Many of DHL’s chemicals customers already work with Suttons, which Cundy says has helped make the transition “as seamless and as straightforward as possible for employees, for customers, for DHL and for our business”. “We know the people we’re dealing with,” he says. “We know the customers, we clearly know the sector, so customers are not having to learn about Suttons. In many cases they’re working with us, so they’ve been extremely comfortable and, without exception, very positive. “The DHL staff are being integrated into Suttons and it’s not going to be run as a separate business.” Cundy explains that deals like these are necessary for the Tankers division to achieve the growth ambitions of the Sutton family shareholders. “There are not massive amounts of business moving around between hauliers, and if an operator is doing a good, safe and reliable job, and it’s competitively priced, that business may only periodically come up for tender,” he says. “If people are getting it wrong, then those customers will look elsewhere and potentially move that business. “For us to deliver our growth strategy, we can’t simply wait for other operators to get it wrong, particularly with quality firms like DHL, so we go out and look for acquisition opportunities. This was an obvious one for us on the back of Bullard a year ago and Imperial five years ago.”

Building volumes

Achieving gain without pain Suttons Tankers MD Michael Cundy tells Steve Hobson how the firm has integrated DHL Supply Chain’s bulk chemical business without compromising its key business relationships 30 MotorTransport MTR_100619_030-032.indd 30

n 2016, two years into his role as MD of Suttons Tankers, Michael Cundy, along with the Suttons Group board, completed a strategic review of the business, including the UK road tanker business. The outcome was a renewed focus and long-term commitment to the UK bulk logistics sector and in April this year Suttons Tankers acquired DHL Supply Chain’s domestic bulk chemical business. The DHL chemical business complements Suttons’ current operations, and saw employees including drivers and trucks move from two DHL depots and a number of customer sites to merge into Suttons’ national shared user network. “They predominantly work in the north-east, and that fits very well with our large presence in Stockton,” says Cundy. “They also work out of the north-west, and that business will be coming here to Widnes. It is about a 60/40 split in terms of liquid product versus powder, and a good proportion of the work is currently going through a sub-contract model. “That seems to be an arrangement that has worked

Suttons’ strategy to build volume in its hazardous products network to achieve efficiencies of scale, something DHL could not achieve with just two sites. “Our strategy is to commit to grow and to invest in UK domestic chemical transport,” says Cundy. “We have scale now and a shared user network that’s unique to our business. We are investing in the chemical sector – it is central to our strategy and we have great support from our shareholders. As this is no longer an area of focus and growth for DHL, this became a really positive process as it made sense for DHL as much as for us.” Increasing scale for Suttons does not come at the cost of its personal business relationships, however. “If you start from the Imperial acquisition and work up to where we are now, not just in terms of acquisitions but also investment in new trucks, in tanks, in the infrastructure of our business, we’re showing that long-term commitment,” he argues. “We have scale, but we’re not such a size that, if necessary, you can’t speak to either the managing director or the chief executive of the business. That’s reassuring for our biggest customers.” The former DHL trucks, office staff and drivers in the north-east have relocated to Suttons’ Stockton depot. “We’ve invested quite heavily in that site,” says Cundy. “We’ve built capacity with the knowledge that we wanted to do things in the future. It’s worked really well and the integration has been a very positive experience.” As with the acquisition of Imperial Tankers, there are a number of drivers to integrate into the business, and as Suttons’ former HR director, Cundy understands the importance of handling TUPE well. “When we bought Imperial back in 2014 we had our legacy Suttons drivers and our Imperial drivers, which were two comparable groups in terms of size. The Imperial drivers were earning considerably less than our guys and that created some challenges. “We said right at the outset that we would commit to harmonising rates of pay within five years and we’ve just this year completed that process. That’s a massive step forward because we have done what we said we were going to do and that builds trust and confidence. “The DHL guys who have come in, if you look at overall value of their terms of conditions, they’re almost identical. In pounds value, they may look different. That’s a good thing for us and if those guys who are transferring 10.6.19

06/06/2019 08:09:09

Quiet Vehicle Sounder (AVAS) Designed for electric and hybrid-electric vehicles of all types, the New QVS Quiet Vehicle Sounder warns pedestrians and other vulnerable road users that a quiet vehicle is approaching.

Designed for electric and hybrid-electric vehicles of all types Incorporating bbs-tekÂŽ technology - Multi-frequency, directional and instantly locatable sound which is only heard in the hazard zone. Front speaker system. Pitch and volume increase with vehicle speed in a similar way as an internal combustion engine. Sound cuts out above 20mph.

01322 420300 brigade-electronics.com AD_100619__P31.indd 1

06/06/2019 09:51:24

Interview: Michael Cundy across value certain elements of the historic legacy DHL terms, we’re comfortable with those guys to stay on that. If they want to move across onto Suttons’ terms we are comfortable for that to happen. We’re not imposing any major change on anyone. “DHL is a good employer and we’re a good employer. The core of my outlook is the value of drivers within the industry and we do not have a business unless those guys come to work, get in a truck, load the product, take the product and deliver it. That is the life of our business and we do value our drivers. Perhaps sometimes we need to show that more. We do value them and we’ll value the DHL guys who come across as well.” The harmonisation of pay rates has meant good rises for many former Imperial drivers, but Cundy insists the way drivers are treated is just as important as pay when it comes to recruiting and retaining them. “Drivers are no different to any other employee in our business,” he says. “They value good communication and they value good equipment and a safe working environment. They want to be respected, they want to be spoken to politely and with proper courtesy. They don’t want to be ignored or left in the dark or not have a voice.” The proportion of DHL work being done by subcontractors is higher than that in Suttons’ existing business. “There are no plans to change that,” Cundy says. “That’s a model that is clearly working. There’s actually an opportunity for us to understand that more and learn from it. Clearly, with that you get an element of flexibility. Do I see the rest of our business moving to a similar ratio of subcontract versus core operations? Not to any great extent, but we have been working on it around our flexible resource model. We need to support the changing demand profiles of our customers because that’s what they’re telling us they’re looking for.”

Merging the fleet

The vehicles Suttons has inherited from DHL will be integrated into its fleet of 500 trucks, and will eventually be replaced with Volvos, which Suttons has been buying exclusively for the last two years. “They will get incorporated within our five-year truck replacement schedule,” confirms Cundy. “We’re also building over 30 new tanks this year and refurbishing another 30, so all the road barrels will go into that cycle of replacement or refurb – ensuring that our fleet is operating to the highest standards and equipped with the latest technology that our customers expect. “This is us showing our long-term investment in this sector. We simply cannot run our business without trucks that are reliable and tanks that are fit for purpose.” So far Cundy has decided to stick with Euro-6 diesels rather than trying out Volvo’s latest natural gas powered tractors.

32 MotorTransport MTR_100619_030-032.indd 32

motortransport.co.uk

“I spent some time with Volvo last year and they talked us through it and showed some demo vehicles,” he says. “That whole issue around alternative fuel trucks such as gas and electric feels like it’s yet to gain real traction. “There are more immediate things that we can address within our business. We have to invest in new trucks and barrels. The focus of our investment is on the fleet and the infrastructure of our business. It’s gone into acquisition as well. Let’s just focus on those immediate things and get the basics right. The market in alternative fuels will develop and at the right time we’ll choose to do something with it. “We do look to embrace new ideas and concepts though. We are putting mobile technology into all of our trucks this year, which has been working in the parcel sector for a long time but within this sector it’s fairly new. That’s going to be massively significant for our business. “Its advantages are numerous, for both ourselves and our customers, in terms of the immediacy of proof of delivery and what that might do for transaction speed. It’s also very much advantageous in terms of safety, allowing us to further improve our excellent vehicle road compliance and safety operations. Being able to carry out electronic vehicle checks, hold risk assessments and note safe systems of work for each delivery point – all of which has to be completed before a task is conducted – ensures we are providing our drivers with the safest working environment and our customers with the reassurance that their products are in the safest pair of hands. “The mobile technology also gives drivers the capacity to take photographs providing evidence of damage, defects, issues or challenges they may face. Of course there are risks and challenges but the upside of going paperless far outweighs the downside.”

Four-way vision

Suttons is also fitting a four-way camera system to its fleet, which includes two external cameras to the side of the vehicle, one outward facing camera in the cab and one reversing camera. Suttons has decided against cameras looking into the cab though. “A lot of drivers felt that the in-cab camera is very invasive,” says Cundy, “particularly for people overnighting in the trucks.” When MT spoke to Cundy shortly after he stepped up to the MD’s role in 2014, he described the experience as a “steep learning curve”. But he has enjoyed the support of group CEO John Sutton and the rest of the Sutton family owners. “I came to Suttons when I was 27 or 28 and I thought I would be here two or three years and then move on,” he says. “I’ve never once had the desire to do that for obvious reasons. “Part of the attraction for me is what it feels like to work in this business. The family are great and we see a lot of them. They are ambitious and expect results, but they offer great support, knowledge and experience. Together with the senior team, we have a great working environment with genuine interest, affection, loyalty and attachment for the business. It’s nice to see.”  10.6.19

06/06/2019 08:09:30

Always the right choice for used vehicles

Find the best deals on used vehicles quickly and efficiently on a website which has been

designed to help you find what you want! Go online today at: commercialmotor.com AD_100619__P33.indd 1

06/06/2019 09:53:12

MT Awards 2019 shortlists Livery of the Year