Sharp ■ Informed ■ Challenging
12.4.21
Gas trucks sitting idle after leading supplier withdraws from UK market
Hauliers in limbo after BOC ceases LNG supply By Chris Tindall
EXTENDED ENTRIES DEADLINE 23 A P R I L 2021
NEWS INSIDE Shock sacking
DPD chief exec dismissed
p3
Palletline expansion
PF Whitehead arm acquired p4
Vox pop
Business prospects for 2021 p6
OPERATORS INSIDE Bacton Transport........................................... p4 DPD .......................................................p3, p26 DX................................................................. p8 Eddie Stobart ................................................ p3 Expect Distribution .......................................p24 Jack Richards ............................................... p6 Hermes......................................................... p8 Palletline ...................................................... p4 PF Whitehead................................................ p4 Turners ......................................................... p6 UPN .............................................................. p3
Hauliers have been forced to park up their LNG-fuelled trucks after gas supplier BOC withdrew from the UK market. Robert Gilmour, transport manager at Lanarkshire-based GBT Group, said: “BOC stopped supply about a month ago. We heard rumours they were going to stop and then they said they were pulling out of it [LNG] completely.” The company fitted a BOC mobile refueller in 2018 for its LNG trucks and Gilmour added: “BOC are removing the tank; it’s disconnected – we’re just waiting for them to collect it. “We have three gas trucks on the fleet, parked in the corner of the yard – they are not worth anything. We have asked LNG suppliers for a solution, but we just get fobbed off.” Andrew Malcolm, chief executive of Malcolm Group, said it had stopped its trial of LNG trucks due to BOC’s decision: “We have had five vehicles on trial with LNG; we were going down the route to buy two ex-demonstrators from the trial, plus we have one truck ourselves.
SIZE MATTERS: Jaguar Land Rover (JLR) will become the tenant of the UK’s largest-ever single occupier logistics park when construction is completed in September 2022. Contractor Winvic Construction said it had been awarded the contract to build the 2.94 million sq ft global parts centre at
“We have temporarily suspended the trial and we have had to park that truck against the fence. We were on the verge of starting to order a number of LNG trucks going into the last quarter of this year into next year.” Malcolm said it would revisit the trial in six months, but added: “The problem is we have no imminent supply and there is nothing north of Boroughbridge just now, which is quite concerning when we are all trying to do our best to move forward with alternative fuels. “We are still committed to continuing with it, but there is no point having an LNG truck if you haven’t got the supply.” Gas supplier Gasrec told MT it was looking to work in Scotland
and was in discussions with local operators, but chief commercial officer James Westcott also said: “Our focus is going to be in providing the right kind of infrastructure for the longer term. The big challenge is now not the trucks but the infrastructure. “Small container-sized facilities are not necessarily the best solution for the medium to long term.” BOC confirmed its withdrawal of LNG supply from the UK market but was unable to provide any further comment. ■ CNG Fuels has started building Scotland’s first public access renewable biomethane HGV refuelling station. The site near Glasgow will refuel up to 450 trucks per day from November.
Mercia Park in Leicestershire, with all five industrial units leased to JLR. Two of the sheds will take up 1,000,000sq ft, with 514m x 181m x 18m steel frames, with the others measuring between 200,000sq ft and 300,000sq ft. Winvic said bulk earthworks excavations and bund creation works had been completed since construction began in February and the planting of thousands of trees and shrubs was now underway. Unipart Logistics already has a contract to service JLR’s battery assembly centre in the West Midlands, as well as delivering parts and aftermarket support on its behalf, but it is not clear whether it will also be servicing the Mercia Park site. Jason Jasper, UK project director for site owner IM Properties, said: “This is not only the largest single occupier deal ever to be agreed and funded, but a major planning, construction and project delivery accomplishment. We have worked hard with Winvic and our supply chain to manage the logistical challenges that come with building this volume at the same time, together with managing a phased handover of the development to JLR.”
Legal focus: Brexit O-licence issue p10 Viewpoint p12 Telematics p14 Interview: Carlos Rodrigues p18 MT Awards winners p24-27
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Staff learn by email that chief executive Dwain McDonald dismissed ‘with immediate effect’
DPD boss leaves after ‘internal investigation’ DPD chief executive Dwain McDonald (pictured) has been dismissed with “immediate effect” after an “internal investigation”, according to an email to staff. McDonald’s dismissal was revealed on Monday 29 March by Yves Delmas, DPD Europe’s chief operating officer. A DPD spokesman has since confirmed the news to MT, adding that Delmas will be taking over as interim chief executive until a permanent replacement is found. In January, DPD was forced to suspend its parcel deliveries to Europe as it struggled to cope with
the fallout from new post-Brexit customs requirements. The company suspended its Classic European Road Service to Europe after being forced to manually process thousands of parcels that had been returned to senders due to missing customs data. DPD estimated at least 20% of all parcels processed by the service had been returned. DPD also faced challenges with the UK government’s New Computerised Transit System (NCTS), which it said had failed to “meet the company’s needs”. The company said at the time
it had worked around the clock with government and customs officials and the NCTS team to sort out the problems. McDonald, 54, worked for DPD for 33 years, joining as a 22-yearold salesman in 1988. He became chief executive in 2008. DPD has launched many ‘industry firsts’ during his tenure including its Predict one-hour delivery window service, real-time driver tracking service FollowMyParcel, Precise which allows customers to choose their own delivery window, and the YourDPD delivery app.
UPN hails six additions for Euro ambitions Dawsongroup UPN has welcomed six new hauliers into its network, plus a partnership agreement with Francebased Euro Channel Logistics. The new members are JDE Logistics near Tunbridge Wells; Pallet Delivery Services in Hertfordshire; Chester Le Street’s Logistics North East; Express Transport (UK) in Guildford; Maidenhead-based 737 Logistics; and Runcorn’s WS Transportation. UPN MD David Brown said the new additions will provide “valuable extra support” as it grows the business over the next five years. The network has also struck an agreement with Euro Channel Logistics in Dieppe, which has a UK sales office in Newhaven.
UPN regional director Mark Drobka said: “This new agreement will ensure we provide the best possible European services to both UPN members and service users.” UPN also hailed the “significant progress” it made last year, after turnover grew by almost 4% to £9.9m. The pallet network also saw a reduction in its pre-tax profit for the year ending 31 March 2020, to £2.4m from £3.4m in 2019. However, it said that when adjusting for duplicated costs across two sites, dilapidation costs at its old site and move costs associated with its new Lichfield SmartHUB in May last year, it had turned in “an excellent performance”.
Focus delivers rewards for Eddie Stobart parent The holding company for Eddie Stobart saw revenues increase by 2% for the year ending 30 November 2020, to £874.3m. GreenWhiteStar Acquisitions (GWSA), which as well as Eddie Stobart also includes Eddie Stobart Europe, iForce, The Pallet Network, Logistics People and an investment in Speedy Freight, said underlying EBITDA profit during the period was £47.8m, compared with £4.2m the previous year. Changes in accounting standards – IFRS 16 – further increased its underlying EBITDA profit to £145.5m. In its review, GWSA’s minority investor, Logistics 12.4.21
Development Group (LDG), said it was supportive of measures that had streamlined and refocused the business. LDG added: “GWSA Group performance has exceeded our expectations and the business is well placed to continue to benefit from the increasing growth in e-commerce and a wider appreciation of the importance of the supply chain.” The results came as Eddie Stobart began advertising for Class 1 drivers in the North West, as well as in Doncaster – where its Twitter feed said they were needed “to support a new contract with one of the UK’s major leading retailers”.
promotes duo
Dawsongroup truck and trailer has promoted two senior managers to director level following “consistently impressive results”. James Gysin (pictured top) has been appointed contracts director from his previous role as general manager for national and key accounts. Gysin began at Dawsongroup in 1994 as a branch sales manager, but within 18 months was running its Milton Keynes branch and went on to deliver 20 years of growth to make it the leasing and contract hirer’s largest location. Meanwhile, Nick McGowan (pictured bottom) moves from head of operations to operations director. He joined in 2011 and increased turnover by 100% as branch sales manager in Manchester. Latterly, his responsibilities included customer fulfilment, service delivery and operating procedure across Dawsongroup’s nationwide network. MotorTransport 3
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Miniclipper Logistics invests £5.5m in fleet upgrade and relocation Miniclipper Logistics is celebrating half a century of trading with a £5.5m investment in a new four acre site, as well as truck and trailer acquisitions. The company, which launched in 1971, will relocate its entire transport operation on 12 April to the Dunstable premises and this will be topped
off in late spring with the delivery of two new 12-tonne MAN rigids and five Lawrence David trailers. This will add to the 11 MANs it took delivery of at the end of the first lockdown in June 2020 – part of a £500,000 fleet investment. The site relocation frees up its Leighton Buzzard location in order to expand its ware-
house capacity, which previously housed its trucks and trailers. It is also investing an additional £2.2m in this site to increase capacity to 10,000 pallet spaces by October 2021. Family-run Miniclipper said it had ridden the pandemic well with strong growth, particularly in the pharma and industrial sectors.
Purchase of overnight delivery business is network’s fifth acquisition
Palletline makes move for PF Whitehead arm Palletline Logistics, part of the palletised freight distribution network Palletline, has acquired the overnight delivery business of South London-based PF Whitehead Logistics. Under its new ownership, the business will operate as Palletline Whitehead. PF Whitehead Logistics had been a member of the Palletline network for 10 years and has sold its overnight service operation to focus on other areas of its growing business. “This is the fifth acquisition of a member business by Palletline,”
said Palletline Logistics MD Paul Elson.“It demonstrates our commitment to providing highquality service levels in areas of the country where strong, quality driven and reliable logistics providers are in short supply.”
EASY RYDER: Bacton Transport in Suffolk has taken delivery of 12 Mercedes-Benz Actros 2543 tractor units for use on one of its supermarket distribution contracts. The units were supplied by Ryder from its existing fleet. Nick Newman, general manager of the Stowmarket haulier, said: “The average mileage on these vehicles is 220,000km – we hand vehicles back with anything upward of 750,000km, so that kind of mileage is not a concern for us. I know Ryder maintained and prepared the trucks, so I’m not worried. We haven’t had any issues with them, and we’re getting good fuel figures out of them.”
4 MotorTransport
Palletline said maintaining service to its network was key to its decision. It added that the deal was enabled by a strong relationship with PF Whitehead Logistics and reflected an ongoing partnership with PF Whitehead Transport Services. “As long-time members of the network, we enjoy an outstanding relationship with the Palletline team,” said PF Whitehead Logistics MD Peter Whitehead, son of the founder. “This deal allows us to focus on our fast-growing warehouse, contract logistics and commercial property divisions.”
Net zero target helps CNG Fuels to ‘mad growth’ Demand for gas-powered trucks more than doubled last year and could triple this year as operators and their customers ramp up efforts to meet net zero targets, according to industry experts. Phillip Fjeld, chief executive of CNG Fuels, which develops and operates CNG refuelling stations, said the company had seen “mad growth” in the first three months of this year, after a record 2020. He predicted the number of CNG trucks on the UK’s roads would rise from around 500 to up to 1,500 this year, and then double again in 2022. Matthew Hunt, Gasrec key account director, estimated a current total of around 1,100 CNG and LNG trucks on UK roads. Gasrec operates six LNG refuelling stations and three offering both LNG and CNG. Hunt said: “The fact that truck manufacturers are now producing gas-powered trucks has given the market confidence to drive them.” Fjeld said users were keen to demonstrate their eco credentials, which was the main factor in driving the market. “Green logistics is increasingly becoming the norm in a number of industries, such as food retailers. There is a general and growing focus on greening the economy and meeting net zero targets.”
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VOX POP How’s business...and what’s the outlook for 2021? “Volumes remain high – 30% up year on year – and we remain massively confident. Inevitably as ‘non-food’ shops fully re-open, it will impact home delivery. But the Covid-19 exit point will see us significantly above the entry point. Some of our clients’ product supply remains unreliable because of the container crisis, but we can adapt. Busy sectors include homeware, fitness, white goods and garden.” Dionne Redpath, director, Europa “Business is great. Europa Flow customers are feeling the benefit of being able to ship on Delivered Duty Paid (DDP) terms with zero-rated VAT. We’re onboarding around 30 new DDP clients a week and our processes are very quick. We are extremely optimistic – growth indicators are very good.”
Moreton Cullimore, MD, Cullimore Group “Hopefully we’ll see events work which we were involved in begin to rekindle and come back online. Aggregates and concrete work continues to enjoy an uptick, which we would seasonally expect anyway. The big question will be in September when furlough comes to an end. We see no warning signs, but I’m not taking anything for granted.” Bob Terris, chairman, Meachers “We walked away from a £3m per year contract due to lack of margin, gained new business in the health industry, and completed the purchase of another company in the first three months. We expect our cruise-related activities to pick up gradually during the second half of 2021. We’ll have a big change of mix over the year which will present challenges, but we’re optimistic.”
James Wroath, CEO, Wincanton “Underlying revenue is expected to be around 15% ahead of the prior year. Digital and e-fulfilment is set to be around 40% up. The whole sector has been bolstered by the start-up of new business for Dobbies and Dwell. Performance in grocery and consumer is expected to increase by around 3%. We’ve also opened our Rockingham site to capitalise on the growth in online retail.” Dan Myers, MD UK and Ireland, XPO “Brexit has certainly added complication and volumes have been down on our EU-UK flows. We are seeing this return. Other parts of our business are flying high, such as our two-man home delivery operation. Overall I’m very optimistic about what the future holds.”
CHOCS AWAY: XPO Logistics and Nestlé have announced that their flagship distribution centre and technology hub in the UK has completed its phased opening to full operations. The companies began collaborating on the design and construction of what they term the “digital distribution warehouse of the future” in 2018, together with technology partner Swisslog Logistics Automation. The 638,000sq ft facility at the Segro East Midlands Gateway in Leicestershire includes advanced solutions customised by Swisslog and integrated with XPO’s digital warehouse ecosystem.
Turners sees potential in Jack Richards & Son Turners’ MD has said he has not changed his opinion about buying general haulier Jack Richards & Son, almost two years after snapping up the Norfolk family business. Paul Day said he remained optimistic about improving and growing the Fakenham firm following Turners (Soham)’s move into the general haulage market in 2019. Asked why it had branched out into the notoriously competitive sector, Day said: “It’s the development of Turners over time. “We are, in my view, good at operating trucks, and knowing the Jack Richards family for a long period of time, I believe it is a good company.” Day’s comments followed the publication of Jack Richards’ financial results for the seven months ending 5 January 2020, which brings it into line with Turners’ accounting period. 6 MotorTransport
Turnover was £37.4m and pre-tax profit was £463,000. Day acknowledged that even taking into account the shortened period, the results were “slightly negative”, but said they were skewed by the effects of Christmas and New Year.
Photo: Shutterstock
Charlie Shiels, CEO, ArrowXL
Driver arrested after stowaways in truck call cops An HGV driver was arrested on the M11 recently after a stowaway in his truck rang the police for help. Cambridgeshire police said the driver was arrested on suspicion of assisting illegal entry into the UK, but after being interviewed would face no further action. In the incident on 20 March, the police received a call from one of four people in the back of the lorry. The truck, believed to have come from Dover, was stopped just after 12pm near junction 11 of the M11 near Trumpington. Those inside were not injured and are being handled by the immigration services. The rescue follows two similar incidents last month in the county in which 21 stowaways were rescued. 12.4.21
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Positive courier feedback sees partnership with tech firm extended
Hermes backs PostTag following trial success Hermes has extended its deal with last-mile delivery tech firm PostTag after positive results from a six-month trial. The home delivery company said the technology helped it maintain a high first-time delivery rate, despite a huge upturn in volumes as a result of the pandemic. The new deal means every part of the business and all of Hermes’ customers will now benefit from PostTag, which checks, verifies and locates precise addresses, as an order is placed. Chris Ashworth, Hermes UK CIO, said: “Since the start of the pandemic we have experienced a huge increase in parcel volumes and have invested in technology to help support our couriers in achieving safe and efficient deliveries. “The PostTag platform is one of the steps we have taken, and we have seen over 600 million address
verification enquiries using the technology.” n A new pay deal will see around 20,000 Hermes Self-Employed Plus (SE+) couriers benefit from increased rates for parcels collections. It follows a ground-breaking deal in 2019, the first of its kind
designed to support the rights of self-employed workers operating in the so-called ‘gig economy’, which included paid holiday and guaranteed minimum payment rates for SE+ couriers and the ability for the GMB to secure further benefits on their behalf.
Driver gets 19 years after cocaine bust A German truck driver has been jailed for 19 years after he attempted to bring almost half a tonne of cocaine into the UK hidden in a load of tyres. Kawus Rafiei, 57, was sentenced after being found guilty at Canterbury Crown Court of attempting to import Class A drugs following a five-day trial. The drugs were uncovered at Dover’s Eastern Docks on 18 March 2020. Officers from Border Force scanned his HGV and detected an anomaly in the load. Within the trailer, they found two shrink-wrapped stacks of tyres concealing packages of cocaine weighing 470kg. Rafiei, who had paperwork for two legitimate deliveries on board, produced additional documentation for the tyres which showed they were loaded in the Netherlands and heading to a car fitting company in the UK. But National Crime Agency officers were able to show the paperwork had been doctored for the cover load. Forensic experts believe the drugs would have had a street value of £37.6m.
DX opens new Glasgow depot Delivery specialist DX has opened a new 20,000sq ft depot in Glasgow at Gartcosh Industrial Park as part of its £10m capital expenditure programme. DX Express, which specialises in secure, next-day parcel delivery, will move its operations from its depot at Eurocentral Industrial Estate, near Mossend, 13 miles east of Glasgow. DX Freight will move into the Mossend facility and further investment is planned. The group said the move 8 MotorTransport
provides both DX divisions with dedicated facilities, allowing them to increase capacity and service levels for the central belt of Scotland. This latest expansion follows the opening earlier this month of a DX Express depot in Rotherham. Further depot openings are planned this year. DX said it sees “significant growth opportunities” for DX Freight and DX Express, and is looking to expand market share through a focus on driving strong customer service.
Scania saw net sales fall across the board by 18% last year, in what it described as ‘a year like no other’. Operating income decreased by 49% to SEK 8.8bn (£750m) and truck sales fell by 8.5% to SEK 89.93bn (£7.55bn). Its results also showed that in the fourth quarter, net sales decreased by 6% to SEK 36.2bn (£3.05bn) and operating income increased 1% to SEK 3.64bn (£305.4m). Henrik Henriksson, Scania president and chief executive, said a large part of the organisation was put on hold during the first few months of the pandemic, but that sustainable solutions and electrification continued to move forward and accelerated the firm’s transformation. Last year saw the launch of
Photo: Shutterstock
Scania bullish on electric future despite ‘a year like no other’
Scania’s first fully electric truck range and Henriksson said it had made significant investments in a battery assembly plant, lab and partnership with Northvolt. He said: “We are in a period of transformative change – a time when the industry will experience some of the greatest shifts in its history. “As electrification and autonomous technology disrupts our industry, exciting new business opportunities are emerging.” 12.4.21
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Focus: legal
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A little-known condition of the UK-EU trade deal will see vans over 2.5 tonnes sucked into O-licensing
A weighty Brexit worry Historically, goods vehicles with a maximum permitted weight over 2.5 tonnes but lower than 3.5 tonnes have not required an O-licence. However, these rules have been disrupted, and this landscape looks likely to change. Article ROAD.6 of the UK-EU Brexit trade deal (officially known as the Trade and Cooperation Agreement or ‘TCA’) contains the list of the types of international transport journeys that are exempt from the requirement to carry the ‘UK Licence for the Community’ (UKLC), which was introduced to replace its predecessor, the Community Licence. Under Article ROAD.6(c) and (d), from 21 February 2022 the permissible laden weight threshold for vehicles exempted from the requirement to hold a UKLC falls from over 3.5 tonnes to over 2.5 tonnes, meaning that vehicles with a permissible laden weight falling in the 2.5 tonne to 3.5 tonne bracket used for commercial purposes (which is not necessarily the same as own account) will need a UKLC to move goods internationally. Although we understand that there may be plans to push this back to May 2022 in the actual legislation. It is interesting to speculate how 10 MotorTransport
the UK government is intending to implement this requirement into domestic UK law. Unlike with EU regulations, the TCA does not have a directly binding legal effect in the UK and EU, but instead makes the rules that the two parties must introduce within their own territories through their own legislation.
Tough ask
The UK operator licensing regime does not currently require an operator to hold a licence where they are running vehicles with a permissible laden weight of 3.5 tonnes and under. However, if the UK intends to give effect to those provisions agreed in the TCA, then lawmakers will have to carve out of that exemption operators who run goods vehicles internationally with maximum permitted weights of over 2.5 tonnes and make it a requirement for those operators to hold a UKLC. This is easier said than done. UKLCs are currently only issued to operators possessing a standard international O-licence, which, in accordance with the present legal position, are only applied for and issued to operators running vehicles with a maximum weight of
over 3.5 tonnes. The international position is therefore different to the current domestic position in the UK. Provided that the 21 February 2022 (or May 2022) deadline is not moved, the UK has roughly just under 12 months to decide how it is going to make the position in domestic law align with what it has agreed to be the international position in the TCA. How it is going to do that is not obvious. The two UK approaches could be: n Making it automatically a requirement that all operators running vehicles internationally over 2.5 tonnes apply for a standard international O-licence, thereby making sure that they are also issued with a UKLC; n Developing some form of alternative application/administrative procedure to allow for operators running such vehicles to apply for a UKLC without having to also apply for an international O-licence. Regardless of which approach is taken, there is a risk that operators running the vehicles soon could be caught by the regulations. And that means having to meet the requirements to hold a licence, namely:
(a) To have professional competence; (b) To have a stable establishment; (c) To have financial standing; (d) To be of good repute. This would be quite a burdensome demand for these operators in such little time. According to Annex ROAD.1 of the TCA, the ‘deal’ does list levels of financial standing that operators should be required to meet to run vehicles with a maximum permissible weight of over 2.5 tonnes but under 3.5 tonnes. Operators of such vehicles will have to show £1,600 at their disposal in capital and reserves for the first vehicle and then £800 for every additional vehicle thereafter. In summary, operators who currently run vehicles with a maximum permissible weight between 2.5 tonnes and 3.5 tonnes must be aware that the O-licensing regime will be stretched to cover them. Thought should be given now as to how they may want to restructure or position themselves so that when these new regulations/obligations take effect, their businesses are not too heavily impacted by the changes. n Patrick Boyers, solicitor, Backhouse Jones
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Time for a clean break C lean air, like safe drinking water and the right to peaceful protest, should be something we all take for granted. While 126,000 people dying after catching Covid-19 is a tragedy, an estimated 40,000 people every year still Steve Hobson die prematurely as a result of poor air Editor quality in our major cities. In 21st century Motor Britain that is a national scandal. Transport The pandemic and lockdowns have changed road traffic patterns, especially at rush hour, possibly forever, giving time to pause for thought on the introduction of clean air zones that discourage the most polluting vehicles entering city centres by charging them. Lockdown or not, there is no excuse for running anything dirtier than a
Euro-6 diesel or gas truck into city centres that suffer from poor air quality. It would be better if a CAZ only applied at times of highest air pollution and businesses were forced to accept deliveries out of peak hours – and maybe that will come when road pricing as a way of raising tax instead of fuel duty comes in. But zero emissions zones are something else entirely. Requiring freight deliveries to go electric when the technology just isn’t ready would be a huge and costly mistake. Not every urban delivery can go on a 3.5 tonne van, so for now let’s focus on getting everyone using Euro-6. We have to walk before we can run.
Uber ruling will raise status of driving T Des Evans Honorary professor, Aston Business School
he GMB Union has warned that a Supreme Court ruling that Uber drivers should be regarded as employees is the end of the road for bogus self-employment. Uber said that all its 70,000 drivers will be paid holiday time, automatically enrolled into a pension plan and will earn at least the minimum wage. The Uber work classification is another step along the road of digitisation in the transport and logistics sector. It is potentially a big win for the drivers themselves and will help raise not only the remuneration of drivers but also the profile of a career in the transport sector, which has been undervalued for many years. This ruling will also have implications for other Uber applications, such as Uber Freight. This application was launched in 2017, initially to match truckers with shipments. The aim was to give truckers greater control over work schedules and avoid unnecessary delays and uncertainty. It has been successfully implemented in the US and has helped transport companies improve their overall productivity, reduce empty running and cut their carbon footprint. Uber Freight could also encourage younger people into the industry and address the age issue, which is a current problem for the sector. With regard to the increased cost of employment as a result of this ruling, it
12 MotorTransport
needs to be seen in a wider context of total costs and improved operational benefits. There is a possibility of a marginal increase at first, but in the medium term the increased costs of employing drivers on improved terms will be factored into transport rates. From an overall cost perspective, it should be understood that driver costs are in the region of 30% of total costs, so a 10% increase will raise transport prices by 3%. This is not an unreasonable increase, in my opinion. There could also be additional benefits to the transport sector through the use of Uber drivers, as the Uber digital system can provide very professional data tracking and customer satisfaction reporting. For transport operators such as Royal Mail, Parcelforce, DHL and DPD, the use of Uber drivers in the homedelivery sector could see improvements in productivity and solve the alleged 45,000 driver shortage. This ruling will have implications primarily for the light commercial vehicle sector, but hopefully it will raise the status of all drivers in the industry, which is long overdue.
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Telematics
Extended connections
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or those who remember the argument over the compulsory fitting of the tachograph back in 1986, telematics is simply a smarter, better-connected younger sibling of what many viewed back then as ‘Big Brother’. In the same way that the tachograph was regarded as a spy in the cab, a permanent recorder of speeding infringements or breaches of drivers’ hours regulations, that ‘spy’ became the driver’s best friend when it proved that they were blameless in an incident. And so it is with telematics: although better information on driver behaviour in the cab can provide details of drivers’ misdemeanours, any haulage company that simply uses the technology to monitor their drivers is missing the opportunity to improve performance and safety. On one level, telematics can make managing a haulage operation easier. If you know where your drivers and vehicles are, it makes it simpler to respond to an unexpected change in the schedule, or get to the bottom of why one vehicle may not be delivering the fuel returns expected, or help a driver to avoid a long hold-up. Telematics systems can also do much more than monitor drivers, however. The amount of data produced by a modern electronically controlled engine on a vehicle with an electronic braking system (EBS) and a range of advanced driver assistance systems such as autonomous emergency braking (AEB), adaptive cruise control (ACC) and many others means that a wealth of vehicle data is available to share with the transport office, workshop or anywhere else it is needed to help alert hauliers to potentially costly problems before they cause a breakdown. Improving safety and minimising risk in the broader sense are recurring themes, and when these also cross over into the potential to reduce maintenance costs or downtime, it looks like a positive combination for any operator. “In terms of telematics, the ability to monitor trailer brake performance is becoming increasingly important,” says Stephen Watson, head of product at Microlise. “With the Earned Recognition scheme in place, the DVSA recommends regular rolling road tests to ensure the trailer EBS is functioning correctly. Our trailer telematics monitors the performance of the EBS, feeding back information into the system, allowing users to manage their trailer fleet by exception and carry out repairs swiftly where necessary.” Obviously this does not replace the need for annual testing or regular safety inspections, but it does offer the potential to plan servicing better and minimise service downtime.
A big step forward
But telematics linked to high-resolution video cameras has probably provided one of the biggest growth areas in recent years – and the roll-out of the 5G phone network will make it easier to handle greater volumes of data and transmit it faster than ever. “We are seeing a very large uptake from the telematics providers across our industry and also starting slightly more internationally as well, in terms of telematics companies embracing camera technology,” says Richard Lane, commercial director of VisionTrack. “Where once there were telematics companies and camera companies, we are now finding that the two are starting to blend more into one.” Integrating data-rich camera footage with telematics provides some technical issues and, from the operator’s perspective, the possibility of even more data to work through to extract the information required. “For heavier trucks you tend to see more multiple camera systems on the truck than you would on a car or a van, so there is a huge volume of information that has gone up exponentially,” says Steve Thomas, MD of 12.4.21
Telematics developments continue to transform the landscape for vehicle operators, writes John Kendall
telematics provider Ctrack. “Consequently, I think one of the ways in which telematics systems have to change is to still make it quick and easy for customers to get the key bits of information out.” Most of the telematics and camera systems providers MT spoke to for this article agree on this point. Customers can be presented with a vast volume of data and what might be relevant to one vehicle operator may not be all that helpful to another. Although artificial intelligence (AI) offers the prospect of being able to sift such data automatically, it may not be as intelligent as necessary yet, says Michael Bloom, vice-president of products at SmartWitness. “The AI just isn’t that intelligent on the devices,” he says. “The system has created a new core problem of too many false positives being generated. This means fleet owners end up watching hours of video footage where the driver isn’t doing anything a human would consider wrong, but the AI device does.” An example of this is a speed bump or pothole. Even at low speeds, these can trigger the kind of movement that sensors might interpret as an impact. In such cases, a video recording can be triggered and logged as an event for review. Accurately sorting these from safety-critical events is bound to be a focus for telematics providers and as computing develops further, AI will be better able to make the distinctions too. Although doubt has been cast on how far we will progress towards autonomous vehicles in the coming years, there is little doubt that the current level of autonomy involving ACC, AEB, lane keeping assistance and 360 degree vehicle monitoring will be developed further – and telematics will inevitably be part of that development. “Telematics data is also essential to the smart ➜ 16
TELEMATICS KEY TO ELECTRIFICATION Widespread adoption of electric heavy vehicles is still some way off, but many of the same concerns that already affect electric vans will apply. “Key things our customers are telling us are: I need to be able to see the range; I need to be able to see the charge status; I need to see the charging history; and I need to see the real world figures of how many miles I get to a charge,” says Ctrack’s Thomas. For fleets considering adopting electric distribution vehicles, telematics could also provide useful further information on vehicle charging. Last-mile delivery company Gnewt uses Geotab telematics to provide information on which vehicles are being charged and when, as well as state-ofcharge information. “This allowed the company to increase the number of vehicles it was charging over the course of one day from 30 to 80, equating to hundreds of tonnes of CO2 delivery emissions saved and hundreds of thousands of emission-free miles driven each year,” says Geotab’s Savage. MotorTransport 15
Telematics
A BETTER VIEW: Internal and external vehicle cameras have drastically extended the functionality of modern telematics systems
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city movement, and the data provided will help to contribute towards the build and design of both autonomous vehicles and smart cities”, says David Savage, associate vice-president of Geotab. “This can help create socioeconomic benefits for smart cities, given their abilities for efficient routeing, safer roads, fewer greenhouse gas emissions, and a more efficient supply chain, leading to more productive businesses and safer communities.” Although telematics can help to reduce risky driving behaviour, accidents still happen and understanding what occurs during these events immediately before an incident could be critical. The combination of cameras and telematics can help to eliminate doubt. “For example, understanding what happened in the lead-up to a driver swerving enables fleet managers to respond appropriately”, says Damian Penney, vice-president of Lytx Europe. “Was the driver distracted or were they trying to avoid an obstacle in the road? Precise, accurate data can help answer those questions and allows fleet managers to proactively detect risky driving habits and correct them through personalised coaching, reducing the likelihood of potentially dangerous road incidents.’’
Streamlining claims
Should any insurance claim become necessary, it can be time consuming and among the current developments in telematics are steps towards reducing some of that administrative work, according to Emily Harding, UK marketing manager at Brigade Electronics. “First notice of loss (FNOL) allows operators to immediately report or manage the incident,” she says. Using telematics, it is possible to integrate directly with insurers to provide that FNOL, which could yield potential insurance savings, as Geotab’s Savage explains: “With telematics and camera systems installed in fleets, data will be readily available in the event of an incident, providing evidence and defence against false and fraudulent claims.” The construction of a 5G cellular phone network may not have been far from the headlines in recent years, but since telematics systems use the current 3G and 4G networks for data transfer from moving vehicles, the 5G network offers the potential for further development. 16 MotorTransport
“The greater speeds offered from 5G systems will open up the opportunity for greater autonomous control and more sophisticated advanced driver assistance systems (ADAS),” says SmartWitness MD Fearghal MacGowan. “The fact is that autonomous vehicles will have to have the latest camera telematics to ensure safety and also prove fault in the event of a road incident.” VisionTrack’s Lane thinks it unlikely that 5G will make much difference to traditional telematics data transfers, however, because ‘black box’ systems don’t tend to consume much data. It’s the addition of cameras that will make 5G more attractive, he suggests. “The download of 30 minutes’ worth of video footage from say, four, five or six cameras around a vehicle would definitely be quicker,” he states. “Currently, over 4G we could probably download 30 minutes’ worth of video on four channels in about five to 10 minutes. On 5G, that would be more like 30 seconds.” Cameras and telematics systems can easily be seen as an additional cost when developments such as the Direct Vision Standard and low emissions zones are already placing additional demands on expenditure. But if these systems can help to reduce accidents and risky behaviour, reduce fuel consumption, drive down maintenance costs and help to manage electrification plans, the case for making the outlay could still be a strong one. ■
12.4.21
Proactively detect risky and distracted driving behaviours With our innovative technology, you can identify and assess risky and distracted driving behaviours that might not be detected by traditional telematics. Connect with us today! Visit lytx.com/lytx-surfsight-solutions for more information.
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06/04/2021 11:17
Interview: Carlos Rodrigues
Standing out from the pack
Renault Trucks UK & Ireland MD Carlos Rodrigues reckons his optimistic nature has got him through the trials of lockdown – and he’s taken that approach to ensuring the manufacturer can emerge smiling too. Steve Hobson reports
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arlos Oliveira Rodrigues was appointed MD of Renault Trucks UK & Ireland in September 2018, a role recreated after parent Volvo Group decided to once again separate the Volvo and Renault UK sales and marketing operations in Warwick. Volvo Group acquired Renault Trucks in 2001 but ran the UK sales and marketing operations separately until 2015, when they were merged for three years under Volvo UK MD Arne Knaben. Rodrigues had been Volvo Group UK chief financial officer from 2016 and was with Volvo Group for 12 years before that, including almost four years as vice president, commercial controlling, where he oversaw truck sales and marketing across the EMEA region. While Rodrigues is Portuguese, he was born and grew up in France and did his first accountancy degree at the scenic Université Savoie Mont Blanc in southern France. He started his career in Paris as an auditor and joined the Volvo Group in 2004, since when he has worked in Spain and Sweden before coming to the UK. He speaks four languages – Spanish, French, Portuguese and English – along with some Swedish. While lockdown has been hard on everyone, it has meant Rodrigues has been stuck in the UK with his wife and two boys, unable to see the rest of the family since
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the Covid-19 pandemic broke in February 2020. But he says he is an optimist by nature and tries to look on the bright side. “We haven’t seen our parents or grandparents for over a year,” he says. “But there are people in much worse situations than we are so we just have to cope with it and obey the rules. Okay it’s not great, we have the kids at home and it can be a struggle, but we are so lucky that we are in good health and are looking forward to when this is all over, hopefully in a few months’ time.”
Safety first
FULL KIT: Renault’s extensive ZE range features EVs of all sizes, putting it ahead of the game as operators look to make the leap to electric
From a business perspective, the start of the pandemic saw Renault go into “crisis mode”, with the factory in Lyon closing in Q2. The UK dealer network however soldiered on, with only a handful of days lost due to Covid-19 outbreaks among staff. “I was very proud of the dealer network from a health and safety point of view,” says Rodrigues. “We stayed very close to our customers and we reviewed contracts and payment plans with around a third of them. We supported them in sectors that needed it and we have had some really good feedback from customers thanking Renault Trucks for standing by their side. These are the critical moments where you build relationships with your customers and I think we did that very well.” This proactive approach meant that no customers went under or had to return vehicles. “Working with customers through that period is in the interests of our business as well,” says Rodrigues. “The end goal is that we want them to stay in business, so let’s work together.” The reward was a 10% increase in market share in 2020 compared with 2019, with Renault selling 1,769 vehicles over 6 tonnes last year to give it a 5% share, according to SMMT figures. The Range T tractor
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performed especially well with a number of conquest deals and the flagship Range T High has exceeded expectations. Comparative fuel consumption tests have put the Range T at the top of the leader board, a result borne out in real-world operations, while Renault has also done well in the 8-wheeler construction sector with its Range C and Range K.
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Rodrigues puts this success down to a combination of quality products that are changing perceptions of the Renault brand and the strengthening of the dealer network to give better density and consistency of coverage across the UK. “We are step by step building confidence out in the market,” he says. “The trucks business was good but the parts business was down about 10%, a direct effect of the pandemic with some vehicles standing still and MoT suspensions. “We had a fantastic year on used trucks and the big success of 2020 was the light commercial business. The market was down 25%, but we grew 86% on the year before. It was phenomenal for us.” Trying to predict the market in 2021 is incredibly difficult and Rodrigues admits: “If I give you a number, it will be wrong! “All I can say is I think 2021 will be a bigger market than 2020,” he says. “We are expecting that by summer things will open up. But will there be another variant of the virus? We have to work with what we have, and we have lots of customers talking to us.” 12.4.21
One of Rodrigues’ passions is the role electric vehicles and electro-mobility will play in cutting carbon emissions. Being ahead of the curve on EVs is opening doors to customers who might not otherwise have looked at Renault but are keen to make progress on electrification.
Clean and simple
Renault Trucks and its dealer network have committed to achieve net-zero greenhouse gas status by 2030, (scope 1 and scope 2), and the manufacturer has introduced a full range of EVs from 3.1 to 26 tonnes. It recently added a low-entry cab Direct Vision Standard-compliant version of its 26-tonne D Wide ZE electric truck to the lineup that is ideal for urban refuse collection. But the challenges for operators around the upfront cost, charging infrastructure and range of EVs means their uptake remains slow. “Sales are still not where we want them to be,” admits Rodrigues. “One thing holding us back in 2020 was that we were waiting for the 3.5-tonner [Master ZE] and now that is ready it is creating more demand for small tippers and minibuses. This year we will see a significant step forward in electric vans.” While sales of electric vehicles will go some towards achieving the EU mandatory target of cutting CO2 emissions from new trucks over 16 tonnes by 15% by 2025, most of this reduction will come from improving the efficiency of diesel drivetrains. “We are at the front of electro-mobility and are providing solutions that are no longer prototypes so operators can place an order today,” explains Rodrigues. ➜ 20 MotorTransport 19
Interview: Carlos Rodrigues
➜ “Sales of electric vehicles will be more than people
now think and the 15% reduction will be achieved, that’s for sure. The next target – 30% by 2030 – will require further developments, but we have access through Volvo Group to fantastic R&D resources.”
Crowd pleaser
TALK OF THE TOWN: The new D Wide ZE 26-tonner now has a Direct Vision Standard low-entry version that makes it ideal for urban refuse collection
Rodrigues is convinced that despite some remaining uncertainties over electrification of heavier vehicles, it will emerge as the best route to a low-carbon future for urban and local distribution. Renault’s 16-tonne Range D ZE now has a range of up to 400km when fitted with six 66kWh battery packs which can be recharged in under two hours with a DC rapid charger. “Electric trucks will reach a point where – depending on the application – the cost of operation will be very close to diesel,” he says. “This is a big shift to a different technology and it is about future-proofing your business because there is no debate about what is the future. There is now consensus that electro-mobility is the future. Up until only a year ago there was a debate about what it would be, but it is going to be electric. “I would say to customers ‘don’t wait’ because they
THE BREXIT EFFECT While 2020 will go down in history as the year of Covid-19, it also saw the UK effectively leave the EU after the referendum in 2016 and several false starts. With the pandemic causing wild swings in truck demand through the year, did Brexit have any discernible effect? “It is very difficult to answer that question,” says Rodrigues. “One way or another Brexit has been impacting on the market for four years. We have seen ups and downs and pull forward in anticipation of a no-deal. “All I can say is that we did very well at the back end of 2020, but the fact we have grown our market share is down to the quality of our sales force and the fact that we were agile and proactive. The market was really down on the year before, but that was more down to the pandemic than Brexit.” Despite the factory closure in Q2, Renault had good availability of trucks in the UK, meaning it was in a position to meet demand from those sectors such as food retail and home delivery that were very busy during lockdown. “We came out of Q2 very strong and we could supply our dealer network with trucks,” says Rodrigues. “As soon as we could restart we came out of it very quickly. We always have a pipeline of vehicles coming through, so we never really had a break in supply. “Everything is built to order, so we didn’t pull forward any orders for stock.” 20 MotorTransport
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have to get onboard this train sooner rather than later. Is there a fuel cell or battery electric vehicle for all applications today? No. But do we have battery electric vehicles available today that will do the job for urban operations and to a certain extent back-to-base, regional operations – the answer is yes.”
Power arrangers
Renault is already working on battery electric vehicles above 26 tonnes, but Rodrigues remains cagey about when we will see the first battery-powered urban tractor unit. For 44 tonners, however, battery power alone is not currently viable and hydrogen fuel cells seem to offer the best route to electro-mobility for heavy, long-range trucks. Volvo Group is jointly developing hydrogen fuel cells with Daimler and Renault will be a beneficiary of any output from this R&D. “Battery electric will not be the answer for every application,” says Rodrigues. “A 44-tonne truck would need nine or 10 tonnes of batteries and it would require a lot of power and infrastructure to charge a battery of that size. So the answer will be hydrogen and Renault will come at the right time with its hydrogen products.” Rodrigues is not concerned that the switch from Euro-6 diesel to electro-mobility will open the floodgates to a wave of cheaper mass-produced Far Eastern vehicles, as he believes that a brand represents far more than just the hardware, with the support network being as, if not more, important. “There is much more in the commercial world than only the product,” he argues. “Volvo Group and the Renault Trucks brand have a very strong proposition. We have just launched the Volvo Energy business unit, which will offer customers infrastructure and charging solutions and recycling of batteries after their first life, while Renault is unique in offering a 10-year warranty on its batteries. “Customers want partners to engage with them on their sustainability journey and we are ready to provide turnkey solutions. This is why we have built a plan with our dealer network because we need to do more than just bring electric trucks to the market. “I am very proud of the dealers’ buy-in when we said ‘Let’s go for net-zero by 2030’. That was something we needed to do because when we talk to customers, they are very open about their own targets.” n 12.4.21
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12/03/2021 10:09
MT Awards 2020 winner profile Haulier of the Year
Greater expectations Surging profits, a string of successful contracts and a shrewd growth plan have made Expect Distribution a stand-out performer in the haulage sector. But the Bradford-based 3PL has also made the welfare and gender diversity of its staff a top priority
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hese may be uncertain times, but the only concern for Expect Distribution MD Neil Rushworth (left) right now is ensuring the company can meet growing demand. Our 2020 Haulier of the Year has prospered during the pandemic, aided not only by having contracts in the right sectors, but also by new deals that have quickly added to its bottom line. But with Covid-19 sparking what Rushworth describes as an “explosion” of business for the Bradford-based 3PL, capacity is becoming a growing issue, especially amid signs of a more general market upturn as the year unfolds. “The concern is, if the economy recovers at pace, can our industry cope with it?” he explains. “Over the last few years it’s not necessarily become less competitive, but lots of hauliers have become content with what they have. There aren’t enough out there wanting to grow, so it will be interesting to see what happens. “Expect wants new sectors to move into. Others are less ambitious and happy to stick with the hand they’ve
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got. But every risk we take is calculated.” A founder member of Palletline, the family-owned business has 296 staff, four sites and 110 vehicles. Two years ago it added a new 215,000sq ft site near its head office overlooking the M606. Rushworth describes winning the award as “a morale booster” for the whole business. “It certainly felt like we’d earned it with the amount of work we’ve put in,” he laughs. ”But volumes returned after the initial lockdown period to about 15% above what we’d budgeted for.” He agrees that the spike is down to the customers and sectors that the business works for being exceptionally busy in the pandemic, such as food and drink and pharmaceuticals. Expect also has a lucrative partnership with the Astonish cleaning products and deals with many online retailers. “Call it fortunate, but the markets we deal in have been unaffected,” he says. “With online retail, we’ve seen people spending money on bathrooms, wood-burning stoves, kitchen worktops – we deal with all those guys. We’re also a nominated courier for Amazon.” The company looks to grow at 10-12% a year. “We turn over just under £35m, with profits of just over £3m,” Rushworth reveals. “The profit has been really pleasing; it grew from just over £2m in 2019, so quite a hike.” Expect furloughed half its staff in the “total confusion” of a year ago, but within three months they were all back. A Covid management team was set up, but wild predictions of an Armageddon of liquidations failed to materialise. Conversely, Rushworth feels the government overcompensated in protecting businesses. “The volume was still there for a lot of hauliers, and the industries where they were strong, they were really strong!” The company also worked to lift morale – the management team even made sandwiches every Friday for drivers and staff. And with doubts hanging over summer holidays, Expect kindly converted part of its site into a beach. Rushworth also wrote emails to everyone 12.4.21
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on furlough every week, giving updates on the business so they weren’t sitting at home feeling isolated. Six redundancies were made, but only because Covid exposed inefficiencies. The proof-of-delivery document has been scrapped, for example, in favour of a digital approach, in a move universally welcomed by customers. Expect places huge emphasis on the welfare, development and diversity of its staff. Prior to the pandemic it progressed five drivers from Category C to Category C+E, took on six new apprentices, and moved two warehouse workers through its Warehouse to Wheels scheme. It also works with Huddersfield University to take students on placement and holds four driver open-days each year.
Best part of the job
The best part of the job, Rushworth says, is contract logistics. “It’s giving customers a solution, a longer-term win. With general haulage you can speak to them one day and turn it on the next. But this is a three- to six-month planning process with the customer.” The company also partners with energy drink Boost and in January signed a five-year contract with Dutch veterinary products manufacturer Beaphar. “They wanted a 3PL that could manage the warehousing and picking operations – those are the sort of contracts we’re aiming at,” Rushworth says. Expect’s biggest customer is Card Factory, a contract it won through 10 years of engagement. “Rather than them just ploughing all the freight through a pallet network, we’re servicing 1,200 stores in a more costeffective way,” Rushworth explains. “We can manage their growth better as well.” The ultimate aim, he says, is to be in a niche between the SMEs and the 3PLs, rather than in a race to the bottom where it’s all about the tariff: “We charge a fair price and the customer feels like they’ve got a partner, not just a supplier.” The next step is catering for the growing B2C market, which takes up nearly 20% of volume. This brings us back to the firm’s expansion plans, which centre on growing the contract and warehousing division, not the fleet. “We have a number of partners who we run direct trunks to, so the aim is to deal with the volume we have efficiently,” Rushworth says. “It’s about growing the bottom line. We’ve always grown organically as well, although acquisitions are on our radar if we find the right fit.” Targets extend to the south of England, with all four operating bases currently in the West Yorkshire area. “We channel a lot of freight through the Palletline network into that south-east pocket, so perhaps it might be best having our own operation down there,” he says. “Then maybe local acquisitions. We’re not at that stage, but in order to cater for our growth, how are we going to do that? Our site here in Bradford doesn’t have infinite capacity. We need to cater for our customer base in this area by having another base in the West Yorkshire area. That might happen during 2021.” Ultimately, Rushworth is confident he has the team to take the company forward. “Being in a family business you can be a bit vertical,” he admits. “Everything used to be channelled through me. You can only grow so far with that approach. So yes, I feel as though we’ve got the right model, but there’ll be a few more hurdles along the way. There’s still an air of uncertainty, but there’s a better feel about it than people thought there would be. The industry is in a good place.” ■ 12.4.21
A MAN’S WORLD? Expect Distribution is urging transport and logistics businesses to tackle the lack of gender diversity in the industry. Four women with senior roles in the firm explain the challenges they face and how the industry could do more...
■ Kirsty Maginnis, service excellence manager: “I feel I have to prove myself before I gain a male colleague’s respect. Your job title isn’t always taken at face value, unlike with men in this industry. That’s fine as I don’t mind being underestimated. “We need more diverse workforces for different points of view. Women and men are different, and we should embrace this. Women are more intuitive to others’ feelings and likely to confront issues, own up to mistakes, and ask for help. We should speak out more on all platforms to attract more women into logistics and warehousing.” ■ Gemma Bentley, sales and marketing manager: “One of the main challenges is changing the perception some men have and how they should act differently around women. Teams work better when they get on and can be honest with each other, so over the years I have made a conscious effort to join in with the banter and this has helped me to formulate good working relationships and trust. “The industry can attract more women by connecting with education settings and organising talks from women in the industry, as well as spreading the word across social media.” ■ Anna Konaska, contract manager: “The main challenge is to earn respect from all employees. Sometimes we aren’t taken seriously, so you need to show what you are capable of. My way of tackling this is to take more responsibility in other areas and show my potential. “Operators should do more articles like this one, getting the word out there, showing more case studies of what women do in the industry, how they enjoy it and how well they do. I would also suggest doing open days, or career days for schools and colleges.” ■ Sophie Metcalf, head of HR: “Stereotypes are still a big problem when getting into male-dominated industries and this affects the way women are treated in some cases. I’ve learnt over the years that being quietly confident and just doing a good job eventually earns the respect of those around you, regardless of your gender or the role you do. “Education is really the key here; making sure we educate our employees, educate the next generation about the opportunities available to them, and making sure we spread our messages about equality as far as possible when we recruit.” MotorTransport 25
MT Awards 2020 winner profile Clean Fleet Van Operator of the Year
Spark of genius DPD’s commitment to an all-electric fleet has seen the firm take bold and innovative decisions
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n line with its wider urban delivery strategy, parcels firm DPD is aiming to build an all-electric fleet in “double-quick” time. By the end of 2020 it planned for more than 600 vehicles, around 10% of its fleet, to be fully electric – up from 147 by the end of 2019. The total EV fleet is now 730 vehicles. To overcome the many barriers to achieving its ambition, the business has been innovative in its approach to securing new vehicles, with seven key models in operation or on order in 2020. Largest of these was a pair of 7.5-tonne all-electric FUSO eCanters, which carry out 200 vehicle movements each week transporting goods into DPD’s city centre mirco-depots for onward last-mile drops. These are joined by more than 300 zero-emission vans, including Nissan e-NV200s, Peugeot ePartners, Mercedes eVitos and DPD’s ‘workhorse’ 3.5-tonners in the guise of the new MAN eTGE, which joined the fleet in summer 2020. So keen was DPD to transition its 3.5-tonne models, it even decided it would order left-hand-drive variants for conversion in the UK, rather than wait until righthand-drive versions were available.
The right stuff
DPD has made no secret of its impatience with the slow pace of availability of right-hand-drive EVs from the major OEMs in the UK, something which some observers attribute to a desire by the manufacturers to maximise their investment in the development of low-emissions diesels. DPD has been a loyal buyer of Mercedes-Benz Sprinters for its diesel 3.5-tonne fleet and it is leaving its options open for the expansion of its electric van fleet. “Given that only 34% of the world’s population uses an RHD vehicle, we think that from a manufacturer point of view, it’s more common-sense than conspiracy,” says DPD head of CSR Olly Craughan. “The last 12 months have seen an increase in RHD vehicles coming to market. Our buying preferences are determined by how technologies are evolving and on feedback from our drivers.” It also knew how important it was to use the right vehicles for last-mile drops in congested areas, opting for two UK-first EVs: Norwegian-built Paxster microvehicles, and a bespoke electric cargo bike developed in partnership with British start-up EAV. The nimble Paxsters travel up to eight miles per day, 26 MotorTransport
FOUR WHEELS GOOD: DPD developed the electric quadracycle with partner EAV, a vehicle that can be used on roads, cycle lanes and pedestrianised areas
delivering up to 137 parcels in a single charge in highly optimised routes around DPD’s urban micro-depots. “EVs are just as productive as diesels, or more so, provided they’re on the right routes with the right parcels on board,” says Craughan. “In practice, this usually means smaller parcels on a route with short stem mileage and high stop density. So an EV in London might make 250 stops on a 30-mile route and return to depot still partially charged. Another factor to consider is reliability. Our EVs have covered 6.1 million miles in the last 15 months and we’ve not had a single breakdown so far.” However, the process of importing the Paxsters was certainly not easy. Gaining government approval for the vehicles was a time-consuming affair, while the Paxsters also failed to qualify for the usual clean vehicle funding, making them a costly investment. “We discovered the Paxster while researching vehicles already available in Europe and saw that it was performing well for Norwegian Post,” explains Craughan. “It has more capacity than you might think at first glance.” Given the relative simplicity of electric vehicles, many operators question their high purchase price, which some also believe may be partly to discourage early adoption. The UK government has just caused huge controversy by reducing its plug-in EV grant, though it was never enough to entirely offset the higher purchase price and so make them cost-competitive with diesel. 12.4.21
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“Any new tech is expensive to begin with – mobile phones, smart TVs, electric bikes,” says Craughan. “But when economies of scale kick in, prices drop – we’ve seen this happening recently with batteries. Yes we qualify for the government grant, but early adoption is not all about costs; for DPD it’s about doing the right thing for future generations, and given what’s at stake we believe that’s an investment worth making.”
PROMISED LAND: DPD head of CSR Olly Craughan (right) says the firm’s switch to electric vehicles has been a hit with drivers and customers
Thinking ahead
DPD’s venture with EAV saw it unveil a new electric quadracycle, which the business says is the first delivery vehicle in the world that is simultaneously suitable for pedestrian zones, roads and cycle lanes. “We developed the EAV because we felt that the existing two-wheel models on the market did not offer sufficient driver safety or security for our customers’ parcels,” says Craughan. “We prefer the stability of a quadracycle.” With careful planning, few if any of DPD’s daily routes require mid-round charging, meaning they can handle a full round on a single overnight charge. “Very rarely do drivers need to top up en route,” says Craughan. “Our strategy is to promote home charging as the primary solution. However, we’re also expanding
JUDGES ELECTRIFIED BY DPD’S LOW-CARBON AGENDA WINNING SMILES: Steve Hobson, MT editor; Dwain McDonald, CEO of DPD UK; and Carlos Oliveira Rodrigues, MD of sponsor Renault Trucks
Our judges were clearly impressed with DPD’s commitment to electrification, saying: “They demonstrate a pioneering approach, trail-blazing and more importantly taking a leading position for clean 12.4.21
vehicles in our industry – outstanding. “They are not just leading the way, they are driving government and vehicle manufacturers to change and step up to delivering the results for our planet. They are pioneers.”
our charging network at depots and believe that rapid public charging infrastructure needs to play a role in supporting drivers who don’t have off-street parking.” To further support its transition to a fully electric fleet, DPD also focused on supporting its driver workforce to install home-charging technology. DPD provides them with £350 funding towards the charging stations and helps them access a further £350 from the government to adopt the technology. “Now 63% of our EV drivers have these stations,” says Craughan. “Anyone with off-street parking can have one installed.” But DPD argues that developing a public EV charging network that would enable en route charging should be a shared responsibility. “We are lobbying government to work closely with transport operators,” he says. DPD has not encountered any resistance from drivers to the EV roll-out. “Our experience so far shows that drivers love EVs – they’re automatic, quiet and easy to drive,” says Craughan. “What’s more, customers love seeing their parcels arrive on an all-electric vehicle, which means drivers get a warm welcome on the doorstep, so it’s an all-round win-win.” So far, EVs have been limited in both capacity and range and no one has yet commercialised a heavy tractor unit suitable for trunking parcels between the hubs and depots. DPD is looking at alternatives to diesel for its trunking vehicles that usually haul double-deck trailers. “We are trialling a 100% natural gas tractor unit – the Iveco Stralis 460NP,” says Craughan. “It runs on biomethane from waste food and produces up to 80% less CO2 than diesel. It’s also worth remembering that driver behaviour can make a positive impact on MPG and emissions and that’s something we monitor closely, in order to maximise marginal gains.” DPD also wants to provide full transparency for its customers around its clean fleet strategy. As well as creating a website feed to show real-time CO2 savings from electric vehicle deliveries, it also sends each customer a carbon savings statement each year based on electric vehicle deliveries made on their behalf. One of the original EV delivery pioneers Gnewt was recently snapped up by Menzies, but DPD is happy to plough its own furrow along with other parts of its French parent company La Poste. “Our growth strategy in the UK is organic rather than by acquisition,” asserts Craughan. “But our electrification strategy does involve co-operation with other DPD business units, as the group has pan-European sustainability targets.” n MotorTransport 27
SHOW HOW YOUR BUSINESS IS GOING IN THE RIGHT DIREC TION A P P LY F O R Y O U R E N T R Y E X T E N S I O N A T M T A W A R D S . C O . U K
EXTENDED ENTRIES DEADLINE - 23 APRIL 2021
APPRENTICESHIP OF THE YEAR
LIVERY OF THE YEAR
BEST USE OF TECHNOLOGY AWARD
LOW CARBON AWARD
BUSINESS EXCELLENCE AWARD
OPERATIONAL EXCELLENCE AWARD
CUSTOMER CARE AWARD
PARTNERSHIP AWARD
CLEAN FLEET VAN OF THE YEAR
SAFETY IN OPERATION AWARD
CLEAN FLEET VAN OPERATOR OF THE YEAR
SERVICE TO INDUSTRY AWARD
FLEET TRUCK OF THE YEAR
TEAM OF THE YEAR
HAULIER OF THE YEAR
TECHNICAL EXCELLENCE AWARD
HOME DELIVERY OPERATOR OF THE YEAR
TRAINING AWARD
INNOVATION AWARD
URBAN DELIVERY OPERATOR OF THE YEAR
2 S E P T E M B E R 2021 G R O S V E N O R H O U S E H OT E L , LO N D O N MTAWARDS.CO.UK
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