Sharp ■ Informed ■ Challenging
25.11.19
NEWS INSIDE Not so pretty
Distributor Beau enters administration
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Future fuels
Findings of latest Operational Fleet Insight Report p4
Down the pan
FTA slams government for lack of action on toilet facilities p7
A third party enters the ring to rescue failing Eddie Stobart Logistics
Ex-Stobart boss in £75m rival rescue bid By Tim Wallace and Carol Millett
Safety campaign targets HGV drivers Midlands Expressway, which operates the M6 Toll, has joined forces with police to target HGV drivers in a bid to improve their driving skills. The safety campaign focuses on the five most common offences on UK roads, which are tailgating, using a mobile phone or tablet while driving, stopping or reversing on a motorway, parking on the hard shoulder and not using mirrors correctly. The programme is supported by literature and a video to help raise HGV driver awareness. Sion Hathaway, motorway inspector at Central Motorway Police Group, said: “We have cameras and patrols as well as marked and unmarked police vehicles across the country and so we see a number of very avoidable incidents and accidents on UK motorways every day.”
A three-way battle has broken out for troubled 3PL Eddie Stobart Logistics (ESL) with former group CEO Andrew Tinker the latest to throw his hat in the ring. Tinkler, who headed up the business until 2014, is putting together a £50m rescue package, with an additional £25m being raised by shareholders. He is also lining up heavyweight support for his offer and is reported to have been in discussions with major fund managers M&G and Ruffer. His plan will allow ESL to continue trading over the busy Christmas period and is aimed at preserving value for shareholders still reeling from news that the company is expecting losses of at least £12m when its delayed halfyear results are finally published. ESL has also revealed that yearend net debt is expected to be approximately £200m, which the board said was “unsustainable”. Tinkler is confident he can work with the Stobart board despite previous bitter clashes, which ended in court. “We put that stuff behind us,” he said, adding that the new chairman David Shearer “respects what I am trying to achieve and supports my solution”. Tinkler’s bid came only a week after ESL conditionally agreed a £55m deal with private equity firm DBAY Advisors which would see it take a 51% stake in the company. The funds would be raised through a high interest loan. If the deal succeeds, William Stobart – the fourth child of
founder Eddie Stobart – will be brought in to help stabilise the company. Other board members lined up by DBAY include Mike Branigan, former CEO of Transport Development Group (TDG), Geoffrey Bicknell, former TDG chief financial officer and Saki Riffner, former Eddie Stobart chairman and DBAY chief investment officer. Meanwhile, Wincanton is currently carrying out due diligence on ESL after revealing its interest in a merger in September. It has until 27 November to make a bid or withdraw. Wincanton has urged ESL shareholders not to consider DBAY’s bid until auditor PWC’s review of ESL’s finances are revealed. Wincanton CEO James Wroath claims there is an “industrial logic” to a deal between the two companies, particularly on the transport side where ESL has a shared user network. “Our transport business is much more of a dedicated open book
model where we manage assets on behalf of our customers,” he explained, “so putting the two things together at the right price and with the correct due diligence done is absolutely of interest to us. That is why we are looking at it and it would still be interesting to us even if the share price had not been suspended.”
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08/11/2019
11:41
News
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Distributor ceases trading following challenging market conditions
Beau in administration Supermarket distributor Corporate Road Solutions 24:7, which traded as Beau, has entered administration with the immediate loss of 66 jobs. Based on the Redmill Industrial Estate in Bathgate, West Lothian, the company had operated as a road haulage contractor and freight forwarder since 2005.
KPMG was appointed as administrator on 11 November and the firm has now ceased trading. KPMG said the company had suffered from increasingly challenging market conditions and cost pressures and in 2019 its problems were intensified by the departure of key freight forwarding staff to a competitor, along with the loss
of a major customer. Discussions were held with third parties with a view to securing investment or a business sale, but no offer was forthcoming. Joint administrator Blair Nimmo said: “We will be working with all affected employees and government agencies to ensure a full range of support is available.”
Jigsaw wins biggest ever deal with Refresco Transport consortium Jigsaw has won its largest ever contract, with bottling giant Refresco. The deal involves the transport and distribution of 200m cases of soft drinks and beverages annually, from 10 UK sites direct to customers and for warehousing. Part of EV Cargo, Jigsaw companies including CM Downton and Sparks Transport will play key roles in the contract, as well as Palletforce for the distribution of
smaller consignments. Alongside a core fleet of more than 50 vehicles, Jigsaw said it will have an on-site logistics presence at two manufacturing sites with 45 staff moving across to its network under TUPE. Jigsaw MD Andy Humpherson (pictured) said: “Securing the Refresco transport
contract is a huge business win for Jigsaw and EV Cargo and a major milestone in our history. “Our client offering has developed over the years and, as part of EV Cargo, we’re more than capable of competing with the large multinationals at the top of the managed transport sector.”
Mixed fortunes for Wincanton Wincanton’s half-year results to 30 September have revealed a 5.3% fall in group pre-tax profits year on year to £28.5m and a 1.9% rise in group revenue to £592.9m in the same period. However underlying profit before tax climbed 9% to £26.3m, while net debt fell almost 40% to £14.8m compared to the same period a year ago. Recent contract awards include a five-year deal with Morrisons and long-term renewals with clients William Sonoma, Cormar and Husqvarna.
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25.11.19
MotorTransport 3
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DHL mulls takeover of Sunseeker’s logistics operations Job cuts ‘likely’ at SDC Trailers DHL Supply Chain is set to transfer 80 Sunseeker International logistics staff in a deal which will see it take over the luxury boat builder’s logistics operations. In a statement Sunseeker said the negotiations had reached an “advanced” stage. Under the agreement DHL will provide logistics services, including the management of all in-bound freight, receiving stores, kitting, shipyard material movements and the line-feed of production parts.
The transfer of Sunseeker’s logistics and warehouse staff will affect employees based at the boat builder’s headquarters in Portland and at its facility in Poole.
Michael Straughan, chief operating officer at Sunseeker International, said: “Our supply chain is a critical function given the value and volume that we manage on a daily basis. “Our colleagues will be joining a leading global brand in the logistics industry and will remain key to the ongoing success of our complex supply chain. Sunseeker employs around 2,600 people and produces around 150 luxury boats a year.
Report shows hauliers accept need for change but will ‘wait and see’
Fleets weigh up benefits of alternative-fuel future By Tim Wallace
New research by Rivus Fleet Solutions and the AA has revealed that, while fleet managers accept the need to move towards an alternatively fuelled future, many are continuing to invest in “more costeffective” Euro-6 diesel vehicles. In a survey of 500 car and light CV fleet decision makers for the latest Operational Fleet Insight Report, researchers found the remaining barriers were cost, charging location, charging time and driver training. A “wait and see” attitude remained prevalent, the report said, although researchers noted that larger operators in particular were
4 MotorTransport
moving to “the small-print phase” of adoption. EVs, in particular, are becoming “a very real option”, it said, and many businesses are looking at the detail of ‘what’, ‘how’ and ‘how much’, rather than putting their plans on hold. The report found that 89% of fleets are still using diesel compared with 87% last year, while 75% are still expecting to be using diesel in five years’ time. However, 57% of fleets expect to be using EVs within the next five years versus 29% at present, and 53% believe their drivers would prefer to drive EVs. A total of 34% of those not using
EVs list the initial cost and the time it takes as reasons. Meanwhile, 13% cite a lack of skilled engineers as a concern and 10% the need for multiple payment apps for electricity. The report also found that 67% of fleet managers think the range of EVs on offer has improved in the past year, but 70% claim there is a lack of consistency between different UK CAZ schemes. However, 82% of fleet managers support the introduction of ultra low emission zones and only 11% oppose their wider expansion. A total of 23% of fleet operators admitted paying charges while 24% had moved their fleets to areas where ULEZs didn’t yet exist.
Brexit uncertainty and slowing sales have forced SDC Trailers to look at cutting “a number of jobs” at its plants in Mansfield and Toomebridge in Northern Ireland, the manufacturer has revealed. The planned cuts also follow the loss of SDC Trailers’ major chassis-building contract for Peterborough-based trailer manufacturer Lawrence David. The chassis deal saw SDC Trailers making around 4,000 chassis a year for Lawrence David. However the sale of 75% of Lawrence David to Polish trailer manufacturing giant Wielton in September last year has seen the company restructure its supply chain, resulting in the firm sourcing its chassis from Wielton from January next year, MT has learned. Lawrence David said at the time of the sale to Wielton that the deal would not affect its contract with SDC Trailers “in the short term”. In a statement SDC Trailers said: “SDC Trailers is the largest manufacturer of semi-trailers in the UK and Ireland employing more than 800 employees groupwide at our manufacturing plants in England and Northern Ireland. “In recent months, it is clear that the uncertainty of Brexit and other economic concerns has resulted in a slowing down of capital purchases from retailers, logistics firms and others.”
25.11.19
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Despite Brexit planning expense, Europa MD says year-end profits are up after restructuring
‘Brexit is in your best interests’ By Tim Wallace
Europa MD Andrew Baxter has revealed the company has spent at least £1m on Brexit preparations in 2019 alone but said year-end profits would still be up and that leaving the EU is the right outcome for the logistics sector. Baxter told MT that the Dartford-based business had been significantly complicated by the reinstatement of customs clearance and the need for import and export declarations. “It’s been incredibly complicated and massively frustrating,” he said. “It’s cost us at least £1m off our profitability this year. For the 31 March deadline, we had to bring in 45 additional people and create new office space.”
Baxter bought the Europa business in 2013 and had since overseen a successful restructure that has helped boost 2019 turnover by 22% to £220m and profits to more than £6m. “The interests of this business, and British
transport, and British business as a whole are best served by operating in a successful economic environment,” he claimed. “That is most likely to happen outside the EU. “Our business is to put in place mechanisms to deal with increases in the price of fuel, currency adjustment factors and competing for labour. Lots of hauliers spend their lives complaining. But that’s what the business is.” Baxter likened Brexit to the Europa restructure: “If you have something that’s flawed you have to get out of it, put it straight and once it is you’re in a position to grow,” he explained. “The answer isn’t to say, ‘leaving is too scary so we’ll stay here forever.’”
R Swain & Sons enjoys pre-tax profits boost
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R Swain & Sons defied adverse weather conditions to boost turnover by almost a third and pre-tax profit by close to three-quarters last year, helped by its acquisition of Express Freight in June 2018. In its annual results to 31 December 2018, the family firm, which is based in Medway, Kent, announced a 32% rise in turnover to £65.4m (2017: £49.7m) and a 73% uplift in pretax profit to £1.9m (2017: £1.1m). R Swain & Sons is the largest flatbed operator in the UK and specialises in heavy haulage, specialist lifting, container haulage, bulk solutions and general haulage. Speaking to MT, managing director Matthew Deer said that the firm’s acquisition of Express Freight Services (Birmingham) in June 2018 had played its part in boosting turnover. However Deer said adverse weather conditions created by the “Beast from the East” in March 2018, which hit the family firm’s construction logistics arm, combined with “volatility” in the market, created by the uncertainty surrounding Brexit and fuel price rises had made 2018 “a difficult year”.
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6 MotorTransport
25.11.19
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BALANCING ACT: Truck registrations over 6 tonnes fell 13.1% to 8,557 in the third quarter of 2019 as the market “rebalanced” after higher than usual sales in the first half, according to the SMMT. However 3-axle tractor units remained popular, with sales down only 2.5% to 3,623. The big losers were rigid trucks below 16 tonnes, with volumes down 28.5% to just 1,507. H1 sales were artificially inflated as buyers sought to avoid proposed import duties ahead of the original Brexit deadline of 31 March and beat the June deadline for the requirement to fit ‘smart’ tachographs to new trucks. In the first nine months of 2019, overall sales of tractor units were still up 22.4% to 15,651, with rigids up 16.2% to 20,370. In 2018 the market for artics totalled 19,287 (88% of which were 3-axles) while 23,812 rigids were sold last year. SMMT chief executive Mike Hawes said: “Given the rush to register new trucks before the introduction of new regulations in June, the slowdown in the third quarter was anticipated, and we expect to see the market rebalance in the final part of the year.”
Toilet facilities ‘getting worse’ By Carol Millett
The FTA has slammed the government for breaking its vow to improve and expand the number of toilet facilities for HGV drivers on the national road network. The criticism follows an FTA survey which revealed that almost all respondents believe toilet facilities have not improved since the government pledged to upgrade them 18 months ago, with some drivers claiming they had become worse. Speaking on the UN World Toilet Day (19 November) Elizabeth de Jong, UK policy director at the FTA, said many of the UK’s HGV drivers are deprived of their legal human right to sanitation as a result of the dearth of toilet facilities on Britain’s motorways and highways. She called for the government to prioritise the provision of welfare facilities for professional drivers across the UK. De Jong added: “The logistics sector is the lifeblood of the UK economy, ensuring businesses, schools and hospitals are all stocked with the goods they need to operate. “But despite the invaluable contribution HGV drivers provide to the economy, they are often
November 26th, 1919
Motor Transport was launched in 1905 as Motor Traction. We look back at a story published 100 years ago this week
Motor Fire Vehicles:
denied access to even very basic amenities. “The inconsistent provision of toilets and other facilities for HGV drivers across the road network is not good enough. Access to hygiene amenities and other welfare services is a basic right for all workers. No other industry would be expected to work without access to toilets, so why should HGV drivers? “More than 18 months ago, the government vowed to improve and expand the provision of facilities for those charged with keeping Britain trading, but since that promise, amenities have actually become worse. “In an industry where you are compelled by law to take regular breaks and rest, it is vital drivers have access to these most basic facilities.”
The Views and Experiences of Fire Brigade Chiefs At the Roads and Transport Exhibition at the Royal Agricultural Hall are to be seen examples of the most up-to-date types of motor fire engine vehicles. The special utility of this class of machine has been so widely realised that the majority of towns and cities in this country have substituted them for horse-drawn appliances to an extent that promises the entire disappearance of the latter, except in the smaller towns and villages. We are able this week to publish the opinions of a number of fire brigade chiefs in the country of the utility of the motor for fire brigade work. These officers have kindly related their experiences in this connection at our request, and it will be seen from the extracts of their letters that they consider the self-propelled fire vehicle provides the most efficient means of carrying out the special work of their departments. One of the most important branches of municipal transport in which the motor has replaced the horse is the fire-fighting appliance, and now no fire station of any size is considered incomplete without one or more motor fire engines. When a fire occurs, time means more than money – it means life – and this is but one of the advantages of the motor fire engine, striking testimony to which is provided by many fire brigade chiefs in the accompanying article.
So many reasons to choose Goodyear.
25.11.19
MotorTransport 7
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Failing to prepare The 2014 Glasgow bin lorry case should serve as a wake-up call to all. Operators unfamiliar should place the postcatastrophe recommendations at the top of their reading list. We saw similar themes – and the effect lethargy may have – again, when a Leamington Spa bus driver crashed into a branch of Sainsbury’s. Here, the operator in question did not identify a change in the relevant driver, a man with an historically good driving record, and therefore did not address it before the cumulative effect of his symptoms manifested in an incident. Naturally, this shone a light on the importance of an awareness of change in an employee’s behaviour, no matter how subtle, and the speed of investigating any concerns. Act first – take the driver off the road as soon as you think something may be wrong, then you can investigate without taking a risk. These incidents have brought into focus the obligations on operators to monitor and take an active role in relation to the health of their drivers. Sheriff John Beckett QC, in the aftermath of the bin lorry crash, made multiple recommendations for consideration by operators, the DVLA and local councils. Many of these relate to the review of the employment processes. Constant assessment and review of internal recruitment procedures and sickness absence records will assist in identifying at an early stage potentially unwell and dangerous drivers on the road. Further to this, a vital suggestion was
Image: John Linton Photography/Shutterstock
Operators need to be aware of any driver health issues, writes James Backhouse
should be sent in advance to the practitioner, in order to hone the medical review. Even before such a health check, should a driver display symptoms that might indicate a compromised driving ability, they should be removed from those duties immediately. Overall, the message is one of attentiveness and an awareness of change. Operators must be alive to the situations of their drivers – including the fact that the driver might not be aware he or she has a problem, or even hide the fact of a known condition from his or her employers, as was the case in Glasgow – and have in place pre-emptive procedures and processes in a way that maintains public safety.
that an entity hiring drivers to operate PSVs or HGVs should not permit employment to commence without attempting to receive references from past employers. Without an historical record of a driver’s performance, an operator or entity does not have the complete picture of a driver’s risk to the public. In the bin lorry incident, had Glasgow City Council waited to receive the references, they may have been made aware of the driver’s past history of falling unconscious at the wheel. It is fair to say that references can be very basic and unhelpful, however if you don’t ask, you won’t know. In respect of driver health, regular checks with occupational health providers are vital, as is the information provided to the medical professional beforehand. Targeted questions and specific descriptions of fresh symptoms
n James Backhouse is a partner at transport law specialist Backhouse Jones
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25.11.19
New safety and tougher emission standards are coming to London The new Direct Vision Standard and tougher low emission standards are coming to Greater London to help improve road safety and air quality for everyone. From 26 October 2020, heavy goods vehicles over 12 tonnes will require a HGV safety permit and will need to meet the new Euro VI emission standards. Check your vehicle and start to prepare. Search â&#x20AC;&#x2DC;HGV checkerâ&#x20AC;&#x2122;
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22/10/2019 18:20
News Focus IVECO reckons it will be more than ready to take on the big boys in the new low-emission world of 2025, thanks to its tie-up with Nikola
Up for the challenge By Will Shiers
In 2025 European truck makers will have to slash new trucks’ CO2 emissions by 15% or face hefty fines, but Gerrit Marx, CNH Industrial president of commercial and speciality vehicles (pictured), isn’t daunted. In fact, following the announcement that IVECO’s parent company CNH Industrial has invested $250m (£195m) in Arizona-based hydrogen fuel cell specialist Nikola Motor Company, he’s embracing the challenge. “We are among the first to have realised that something is happening in 2025 that will completely turn around this industry,” he says. “There is no point in lobbying Brussels to make legislation easier to achieve, as that won’t work following ‘dieselgate’. These are
tough targets, but they will be enforced and will need to be complied with.” According to Marx, truck makers have two options – electrification, or what he terms “the IVECO way”.
Tough sell
Referring to option one first, Marx says truck makers will need to electrify roughly 10% of the vehicles they sell. “We will start to see 800kWh or 1gWh batteries in trucks. They will have to charge €250,000 [£215,000] and how many would they sell? Not many! But they need to sell them or else they will be sued €200m [£173m] a year by Brussels,” he says. The IVECO way – made possible thanks to its tie-up with Nikola – is hydrogen fuel cells. Marx admits that we may well see some
IVECO long-haul trucks with large 800kWh batteries in the near future, but stresses these will purely be a way of testing electric powertrains ahead of range-extending with fuel cells. “Batteries are chemical nightmares,” he declares, “and we are convinced that for long-haul, batteries need to be as small as possible – maybe 125kWh – and fuel cells as large as possible.” Industry sources suggest that Nikola had the pick of all the major truck makers, so why did it choose IVECO? “Because we are the perfect partner,” answers Marx, before giving us three reasons for the match. “Firstly, we are the pioneers of LNG,” he declares proudly. “We have launched a new powertrain technology with a new refuelling
network. Although hydrogen is very different to gas, we have proved we can revolutionise a segment.” Reason number two, he continues, is IVECO’s absence from Nikola’s home market. “Trevor [Milton, CEO and founder of Nikola] said: ‘You are not in the US, so I can fully trust you not to try to make me fail at home. You want me to be successful in the US because you will enter the US
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with me. If we partner with someone who already has a big US operation, they will never love us.’ But we are a problem-free partner,” explains Marx. The third reason, it emerges, is IVECO’s size. “We are the smallest heavy-duty truck maker in Europe,” Marx says. “We are, and have proven to be, the most resourceful. We know how to fight in difficult positions, how to operate with small market shares, and how to work around the challenges that this brings. You could call us the humble fighters.”
Time is right
Marx believes the time is right for hydrogen, not just due to European legislation but also to a change in attitude towards fossil fuels. “There is an entire new generation of young people who don’t accept that we should be consuming natural resources,” he explains. “IVECO will still invest in diesel engines, don’t get me wrong, but the generation connected via Facebook and multimedia are globally aligned in their feelings. This wasn’t there five years ago.” In early December IVECO and
Nikola will hold a joint press conference in Turin at which they will set out further details of their partnership. What we already know is that the Nikola Tre, the company’s European offering, will be based on the S-Way and is likely to be built at one of IVECO’s existing factories. Marx confirms that the first examples will appear on our roads in 2023 and will “look kick-ass”. But despite his enthusiasm, he’s the first to acknowledge that there will be some challenges on the road to hydrogen fuel cells. He says: “Will it be a huge breakthrough in 2023? Of course not! Will we have a few hundred trucks on the road? Of course. Will a few of them break down? Of course!” Still, he is convinced that IVECO is on the right road and that it’s one that will give his company a serious advantage over the competition. “Everyone can put together a truck with batteries that drives around emission-free like a Tesla,” he comments. “Anybody with money can do that. IVECO can’t outspend the competition but we can outpace and outsmart them.”
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16/10/2019 16:12
News Focus
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Electric vehicles are about to go mainstream as big orders finally start to be placed by operators
Electrics offer ‘practical alternative’
By Selwyn Parker
The fleet of electric commercial vehicles on British roads will jump by hundreds and perhaps thousands in the next two to five years as some of the biggest logistics companies put their faith in battery power, especially in the cities, in the wake of rapid improvements in range and payload. DHL Express led a spate of electric vehicle (EV) orders in September, with the addition of 10 Renault ZE Masters as the first step in a plan to add 400 EVs to its UK fleet by 2025. That’s at a rate of about 80 a year. With a range of 75 miles and a payload capacity of about 10cu m, the ZE now provides a “practical alternative to traditional-fuelled vehicles,” said DHL Express fleet director Richard Crook. “We can now deploy these more sustainable vehicles as part of our fleet and be confident in their ability to meet operational requirements.” Previously, he added, it was issues over range and load capacity that limited the viability of e-vans in commercial fleets.
Expansion plans
DHL Express does not plan to confine its EV fleet to the urban environment. “As electric vehicle innovation continues and the range a vehicle can cover on a single charge grows, we plan to expand the electric fleet outside of city locations,” Crook said. Currently, the DHL Express fleet comprises 1,300 diesel vans, and the EVs are part of a long-term replacement strategy. “Our current commitment to replace 400 of our diesel vans with electric vehicles is the minimum we expect to achieve by 2025,” a spokesperson said. “As [electric] technology and infrastructure continue to develop, we will contin-
ually review our target. This is just one step towards our Mission 2050 target of zero logistics-related emissions.” In another statement of intent made in September, Amazon announced plans on an even bigger scale as chief executive Jeff Bezos ordered a big step towards a company to be run on 100% renewable electricity. Amazon has committed to the purchase of 100,000 EVs to be delivered between now and 2030. The first 10,000 will be on the road by 2022, with an unspecified number destined for the UK. The supplier will be Michigan, US-based manufacturer Rivian, which was founded 10 years ago by chief executive Robert ‘RJ’ Scaringe, rather than an established OEM. Amazon has a $700m (£560m)
stake in Rivian, which has not yet sold a single EV, but plans to launch electric pick-ups and SUVs in the US in 2020. According to test reports, they could rival Tesla in performance and space. The first models will feature 180kWh battery packs, almost twice the size of Tesla’s largest power unit and enough to drive up to 400 miles. The Rivian is based around a “skateboard” platform engineered by Mark Vinnels, the designer of the MP4-12C supercar, who was poached from the McLaren Group. The platform allows for plenty of space – the load bed is 1,400mm long and up to 1,385mm wide. “We are beating Tesla and the big three to market,” said Scaringe. However, at least two of the big three may not be far behind. Ford, which earlier invested $500m in Rivian, announced in September that it is developing an electric pick-up of its own, while General Motors’ GMC brand has said it is considering a similar move as the group embarks on what chief executive Mary Barra described as a “path to an allelectric future”.
Milk & More
Meanwhile, the UK’s largest doorstep delivery service, Milk & More, is adding 159 more EVs to its 500-strong electric fleet, claimed 12 MotorTransport
to be the largest in the country. The LDV EV80 vehicles will be recharged by Alfen EVE Dual Smart chargers supplied by Elmtronics.
Noise reduction
With a range of 120 miles, Milk & More’s electric fleet will travel more than 1,000 miles a year, saving 3.4 million litres of diesel annually, the group says. One of the attractions of EVs is their quietness. “Noise reduction is a key customer benefit because many of the milk men and women deliver to customers’ homes before 7am,” Milk & More said. The latest round of orders is also a vote of confidence in the supporting charging technology. Elmtronic’s chargers will, for example, be connected to the Hubsta network linking more than 55,000 charge points worldwide. The latest dual unit is cheaper to install than two single units, Elmtronics said. These orders for EVs are part of a growing drive to cut carbon emissions, driven by legislation and because going green now makes business sense. Amazon’s Bezos said the EV order was part of a plan to beat the target set by the Paris Agreement 10 years ahead of schedule, while DHL Express has set itself a target of zero emissions in deliveries by 2050. 25.11.19
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The driver shortage isn’t just for Christmas L
Steve Hobson Editor Motor Transport
ike the poor it seems the driver shortage is always with us – yet the filling stations are not running out of fuel nor are supermarket shelves bare as we head into the festive binge-eating season. The shortage seems to be an intractable problem which operators are just having to live with – and making do with what they have is what the road transport industry does best. The ethos of customer service is so ingrained it goes against everyone’s nature to let the customer down – even if they are paying a rate that doesn’t reflect the true value of that service. The issues of rates, service and the driver shortage are inextricably linked – and that is why the latter is going to be a tough nut to crack.
Wages and conditions for many HGV drivers simply are not good enough to attract the best young people into the job, and that is because their employers are struggling on providing a Roll Royce service for a Ford Escort rate. Driving a truck is no longer an attractive job for the vast majority of school leavers, not helped by the fact that they are still expected to stump up the £1,500 to get their Category C+E licence. In addition the vast majority of operators say the Apprentice Levy isn’t working for them so the least the government can do is give our industry a break from paying what is in effect just another tax until a way is found to fund the training of drivers. You can only stretch a piece of elastic so far before it breaks.
Rest stops must be safe and secure T Moreton Cullimore MD The Cullimore Group
he UK suffers from a lack of adequately secure overnight parking. There is a woeful shortage of decent, clean and secure facilities that are affordable for those delivering the goods we use on a daily basis, putting them – the very lifeblood of our country – at risk. Research by the RHA shows that 89% of all goods and 98% of all UK food and consumer products are transported by road. Despite this, road haulage is an industry frequently under supported by government. Which is why I, along with other RHA board members, have written to our local MPs demanding this issue be addressed. In Gloucestershire, where my company is headquartered, the utilisation of lorries using lorry parks rose between 2011 and 2017 to 73%, but due to the lack of safe and secure facilities, the number of lorries having to use laybys or industrial estates has also increased. Not only does this make lorry drivers and their cargo vulnerable targets, it also means a huge burden on employers in the form of costly repairs, delays and loss of staff.
14 MotorTransport
Poor services and safety mean our industry is struggling to retain and diversify the workforce it employs. Currently, there is a shortage of around 52,000 drivers, undoubtedly influenced by inadequate safety at rest stops. As a member of the RHA, I support its active campaigning to improve the supply and quality of lorry parking and drivers’ facilities. I also support the efforts of the RHA to address the issue of overnight parking of lorries in roadside laybys which can often be unsafe and unhealthy locations. But these are not issues that individuals or the RHA can solve alone. We need government, local and national, to step up and support the industry on which so many aspects of their lives depend. I also extend an invitation to MPs to attend a local meeting of the RHA to hear our concerns first hand and take steps to protect people working in this vital industry.
The newspaper for transport operators
To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Head of content Tim Wallace 2158 Deputy head of content Hayley Pink 2165 Group production editor Clare Goldie 2174 Deputy production editor Jo Saunders 2173 Key account manager Andrew Smith 07771 885874 Display telesales Barnaby Goodman-Smith 2128 Event sales Tim George 0755 7677758 Classified and recruitment advertising rtmclassified@roadtransport.com Sales director Emma Tyrer 07900 691137 Divisional director Vic Bunby 2121 Head of marketing Jane Casling 2133 MT Awards Katy Matthews 2152 Managing director Andy Salter 2171 Editorial office Road Transport Media, First Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Tel 0330 333 9544 Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £135/year. Europe £163/year. RoW £163/year. Cheques made payable to Motor Transport. Apply online at mtssubs.com Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2019 DVV Media International Ltd ISSN 0027-206 X
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If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 25.11.19
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Routeing
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Leading the charge Can technology banish alternative fuel vehicle ‘range anxiety’? Laura Reeve examines how routeing software is adapting in readiness for a non-diesel world
T
he widespread availability of diesel fuel across the UK and Europe means conventional truck routeing and scheduling is relatively straightforward, but as fleets begin to adopt alternative fuels, routeing software must begin to consider how far these vehicles can go and where they can refuel. There are many barriers to adoption of greener vehicles and Darren Newman, LNG account manager for Volvo Trucks UK, cites “a fear of the unknown” as a particular challenge. This involves many complex factors but at the heart of the issue are two main issues: fear of disruption to customer service levels and “range anxiety”. Most of the work being done to address these concerns is by routeing, scheduling and planning companies, either by enhancing existing software to accommodate the more complex requirements of alternative fuel vehicles or by software companies that have developed routeoptimisation tools. While most are focusing efforts on electric vehicles (EVs), much of the software can, in theory at least, support other types of fuel as well.
Range finder
Chief revenue officer at transport management software (TMS) provider Mandata Steve Spark offers a parallel between vehicle range and drivers’ hours. He describes the built-in functionality within Mandata that allows planners to view tachograph data to establish driver availability to complete a job – in effect, alleviating a similar range challenge. He also likens Mandata’s ability to schedule drivers’ breaks to building in charging time for EVs. Spark adds that as soon as there is adequate customer demand, its software will be capable of managing alternative fuel vehicles into the load planning process. Steve Collins, director of Fargo Systems, warns that 16 MotorTransport
Fargo Systems’ TOPS software matches jobs with vehicles based on set criteria, including fuel type
to facilitate effective planning and routeing, fleet information for new fuel types needs capturing at a more granular level, an opinion backed by other software providers. As well as vehicle specification data, Collins notes that alternative fuel vehicles operate on different safety check intervals, which also affects scheduling. Fargo Systems’ Transport Order Planning System (TOPS) matches jobs with vehicles based on set criteria, for example, categorisation by fuel type. The company is developing logic within the software that will automatically identify the vehicles most suited to the required type of work. Collins adds that Fargo is currently focusing on minimising off-site fuelling and admits locating fuelling stations “is not so much on Fargo’s radar at the moment”. While the company is not involved in route planning, its transport planning software does integrate with maps, so Collins envisages utilising map overlays to identify different fuelling station types. William Salter, MD of routeing and scheduling company Paragon, explains that it can already plan alternative fuel vehicles alongside traditional fleets using its sustainable vehicle set up within the software. Like Fargo Systems, Paragon can set vehicle characteristics, such as maximum range, which are loaded upfront alongside the usual characteristics of weight and volume restrictions. The software will then consider the feasibility of the route based on vehicle characteristics and apply only the routes that are available for the type of vehicle. It will only schedule round trips that are shorter than the specified distance for those vehicles that have had a maximum range set. Importantly, if a planner makes any manual changes to the automated route, the software will display a warning if the route becomes infeasible for the alternative powered vehicle. Salter explains how Paragon was able to factor in a range of mapping constraints during the London Olympics to route vehicles around busy areas based on a calendar of events, and it has already built in the London LEZ zones using maps. Based on this, Salter believes that feeding alternative fuel station locations into Paragon would be relatively straightforward. ➜ 18 25.11.19
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Routeing In addition, any congestion zone could be ringfenced, and because Paragon integrates with around 40 leading in-cab telematics systems, it could, theoretically, ‘ping’ the driver to advise changing to alternative fuel mode upon zone entry, therefore allowing hybrid vehicles to run on conventional fuel on stem mileage but changing to zero emissions within clean air or low emission zones. This is the scenario envisaged by range extended truck builder Tevva, which uses a small internal combustion engine to charge a set of batteries, enabling the vehicle to arrive at an LEZ with a fully charged battery.
Matt Cowley, Trakm8’s director of big data, explains how Trakm8 has taken a unique approach to EV modelling by bringing electricity supply capacity into the equation. By combining Trakm8 telematics fitted to the EV, a Trakm8 EV charge post back office, Trakm8 Insight Optimisation software and a smart grid (an electricity network which automatically monitors the flow of energy and adjusts to changes in both supply and demand), all elements are connected “intelligently”. This maintains grid stability and ensures that all EVs are not required to be charging all at the same time.
Planning ahead
Fleet management software and hardware provider Trakm8 has introduced fleet optimisation tools, which work in conjunction with telematics and vehicle data. Its standard route optimisation solution, Route Monkey, considers tasks to be completed, factors in specific customer requirements, and matches them with the best assets available. The company claims that by planning the jobs in the most efficient order it can help fleets reduce total miles travelled by up to 20%. The company also has a specialised product for EV optimisation that can optimise both pure electric and a mixed fleet of conventional and EVs. Its EV algorithm uses imported historic and forecast fleet data to calculate which existing routes and vehicles could be switched to EVs. In conjunction with its free benchmarking service the company believes it eliminates the need for prolonged EV field trials and “de-risks the investment decision”. Once an EV is deployed, Trakm8’s algorithms optimise its performance, taking factors such as payload, average speed, route topography, weather conditions, and driver style into consideration.
Basemap’s software evaluates the comparative costs of route by vehicle type and time of day
ALTERNATIVE FUEL ADOPTION There are two main drivers of alternative fuel vehicle adoption: rising fuel costs and concerns over environmental impact and air quality. According to 2018 Motor Transport operating costs tables, total operating costs for a 44-tonne articulated truck rose by 8% in 2018, as a result of an increase in most input costs, including fuel, which rose by 20% during the year. Since fuel currently represents 80% of running costs for a 44-tonne truck, there is a huge incentive to minimise fuel usage. In its ‘Road to Zero’ strategy document, the DfT outlined plans to enable adoption of alternative fuel vehicles and set out targets for emission reductions. The target for heavy goods vehicles, although a ‘voluntary industry-supported commitment’ is to cut greenhouse gas emissions by 15% from 2015 level by 2025. Add to this the increase in low emissions, clean air and now even ultra low or zero emissions zones, and there is a very real need to speed up adoption of greener fleets. However, statistics from the DfT demonstrate that uptake of alternative fuel adoption in HGVs is slow – less than 0.2% of the current total of 530,000 registered HGVs is fuelled by anything other than petrol or diesel, with electricity and gas being the greatest numbers. More positively, though, there is a willingness to change. The 2019 Logistics Report from the FTA, which represents operators with a combined fleet of almost 150,000 commercial vehicles (including 35,683 trucks – around 7% of the total HGV parc), showed that 30% of members were considering alternative fuel sources for their fleets, with the majority (71%) opting for electricity for vans and natural gas and biodiesel HGV fleets (47%). 18 MotorTransport
Basemap has also produced route optimisation software, designed primarily to provide evidence of EV cost effectiveness but which also demonstrates emissions reductions and factors in congestion charge savings, therefore determining the true comparative cost of a route, EV versus combustion engine. Basemap has its roots in transport accessibility planning – planning of bus routes and access to new build homes, for example, but its product manager Dan Saunders explains how the company was intrigued with how it could use its own research, coupled with client data and development requests, to optimise routes and to determine the best order to carry out deliveries. Drawing on its background in research, Basemap’s EV route optimisation includes external factors such as average speed and congestion on the roads to calculate the best routes at different times of the day. By working in collaboration with leading battery efficiency experts from the University of Surrey and using artificial intelligence (AI), Basemap can determine more accurate EV range by modelling scenarios based on road topography, outside temperature, vehicle weight, weather conditions and battery efficiency. This combines to produce optimised routes for multidrop pure electric, hybrid or combustion engines and a mix of these; as well as detailed fleet cost comparisons and emissions savings reports. Saunders emphasises that Basemap provides clients with the detailed management information required to “enable informed decisions about making the switch to electric power”. In its next routeing software release, Basemap claims it will be able to facilitate mid-route fueling by effectively treating 25.11.19
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charging points as drop off locations in the routeing process. While Trakm8 uses real-world EV range data, Basemap currently models using data simulation but plans to move to real-world data soon to further train its algorithm. The Algorithm People, founded in 2018 by Colin Ferguson, former MD of fleet and optimisation at Trakm8, is planning to introduce a new transport planning solution called My Transport Planner, which will be focused particularly on EV planning and will be offered on a pay-as-you-go basis. Ferguson claims that the software will cost less than the savings generated and will deliver “a near-instantaneous return on investment”.
Powering up
TomTom’s head of developer and enterprise product marketing, Louis Debatte-Monroy, adds the role that TomTom can play in alternative fuel adoption. The global navigation company has introduced an EV Suite which offers a series of online services providing information to drivers about EV charging stations, such as location, connector types and real-time availability. TomTom Routeing will also plan the most optimal EV route to minimise battery consumption based on road topography, and using TomTom’s Geofencing API, virtual fences representing zero emissions zones can be created and actions defined for when the vehicle crosses these fences. Whilst the possibility of overlaying maps with fuel station locations was cited by all software companies interviewed, the availability of infrastructure data is somewhat lacking. Mandata’s Spark, Paragon’s Salter and commercial vehicle alternative fuels consultant Martin Flach all highlight this as a real challenge for operators and software companies. Each refer to the fact that there is no single, reliable source of data and that there is a real need for what Spark calls “one de facto data source”. Flach adds that part of the problem is the secrecy around new gas stations being built. “No one will put a future station out in the public domain because of commercial sensitivity,” he says. The Natural and Bio Gas Vehicle Association (NGVA Europe) has a gas station map on its website but currently only three sites in the UK are marked. IVECO – Flach’s former employer - appears to have done a better job with its Truck Gas Station Locator which shows 18 gas stations across the UK, covering LNG, CNG and biomethane. According to Flach, IVECO’s efforts are “not perfect but better than nothing”. Volvo’s telematics package Dynafleet keeps a list of active fuelling sites as points of interest in its software and TomTom also maintains a database of fuel stations, including petrol, diesel, LNG, CNG and even additives like AdBlue. EV charging station data seems to be more accessible but with new stations being added all the time, it is an ever-moving target. It is apparent that there is no shortage of software options on the market that aim to give operators the confidence needed to adopt greener vehicles, both by demonstrating the relative longer-term cost-effectiveness and, more importantly, to overcome range anxiety. ■
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MotorTransport 19
Profile: Downton
Downton but n W
hen the Downton family sold the haulage firm that bears their name to EmergeVest for £75m in 2018, it was a sad day for all those who believe in the ethos of strong family-owned hauliers. But like many other second- and third-generation family firms with no succeeding generation to pass the baton on to, the Downtons decided it was better to exit at the top of their game. CM Downton was founded in 1955 by Gloucestershire farmer Conrad Michael Downton, and his sons Andy Downton (MD) and his twin brothers Richard (finance director) and John (operations director) stepped in to take control when Downton senior died suddenly in 1985. They went on to grow the company to an annual turnover of £120m and a fleet of 600 tractor units and 1,800 trailers, picking up the 2012 MT Haulier of the Year award along the way. Andy told MT at the time: “A lot of people do not believe in family businesses, which saddens me immensely. Families think and react faster. My brothers and I intuitively know the way each other thinks and we don’t have any corporate politics. We have made decisions on massive deals in minutes. We have surrounded ourselves with clever people but they all have to understand the way we think. If one of us isn’t happy with a deal we will walk away, but when we do come together we are a solid force and we go for it.”
A way of life
And go for it they did, devoting their lives to a business that must be one of the most stressful ways to make a living. Talking to them in 2019, the brothers look happy, healthy and relaxed, and reflecting on the past 34 years they have no regrets. Andy says: “We are comfortable we found the right owners. It’s taken a while to adjust transition to a new life. But that is part of selling your business. None of us thought at any stage it was the wrong decision.” Looking back to the beginning of the brothers’ involvement in the firm, he says: “When dad died in 1985 at the age of 52 it was sudden, shocking and life-changing for the three of us. At that time it was a tiny haulier with 10 trucks and three skip lorries. It was actually on the twins’ 21st birthday.
20 MotorTransport
The Downton family sold their company to EmergeVest in 2018 and are confident it will go from strength to strength. Steve Hobson pays them a visit “The first six months were all about survival. We were three young lads with scant knowledge of the industry. Dick and I had small roles in the business but Johnny was outside the company. The three of us came together and realised that we had to work together. It was tough – during dad’s funeral the house was full of people but we were sat outside in the car figuring out how we were going to pay the wages the following week.” “In the early days we knew that we were fighting for our survival and we had to make it easy for the customer. All three of us grew up with a service culture as our father was a very humble and personable guy. People liked dealing with three brothers – we were hard working, nothing was too much trouble and were the proverbial 24/7 business. All three of us worked, ate and slept the business.”
Drinks all round
Downton got its break into the drinks sector when Unigate’s warehousing contractor went under. “We chased every opportunity, slowly started winning new business and started adding to the fleet,” Andy goes on. “We quickly realised that running a skip business wasn’t for us and disposed of that to Grundon early on and that gave us a bit of capital. One of our first big breaks was when John Dee went into administration in the mid-1980s and they had a warehousing contract in Gloucester with a customer of ours, Unigate Soft Drinks. The client rang us and said we need to find a warehouse solution. “We didn’t have a clue about warehousing but we said yes and took over the lease from the administrators. That was the first time we controlled a contract in its entirety instead of just being a commodity haulier. That was a lightbulb moment when we realised that the way of the future was to become integrated with clients. “We started to win business – while in the late 1980s there was a change in the way more companies were 25.11.19
t not out
motortransport.co.uk
We started leasing vehicles because that gave us so much more flexibility and freed up working capital. Suddenly we could grow our business quite quickly.” The start of Downton’s expansion into a national firm began when they were introduced to the magazine publishing giant IPC by Macfarlane Transport in Leeds. “IPC had a contract with Exel Logistics and it had gone wrong,” says Andy. “So they wanted three regional hauliers working together with strength in each region. Ian Macfarlane recommended us to IPC which was a big break for us. We became part of a national network and were trunking products between three hubs around the UK. The third haulier was R&R Transport at Dunstable. “It opened our eyes and we started to think as a national network. Off the back of that we started to win contracts with paper manufacturers. We also started saying if we are delivering beer from a brewery why don’t we deliver the cans and the packaging into the brewery?”
Expanding by acquisition
outsourcing their business there were still a lot of smaller clients that wanted a family feel and a strong regional haulier,” Andy says. “They liked the accessibility to the decision makers and we were a bit quirky. At the time we only had 30 lorries but would tell people we had 50!” In the 1990s Downton continued to grow, picking up more clients in the drinks industry in its south west of England patch. Andy’s early role models were firms like Stobart and the Irlams, which he says “really showed us a different way”. “The industry needed to raise its game and we knew we needed to be smarter, have good equipment and uniformed drivers and be more professional,” he says. “The word ‘logistics’ started to appear and we started to win business left, right and centre. We realised we had to be quick on our feet as there was growth everywhere.
Brothers in arms: The Downton brotheirs in 1987, above, and with sister and fellow former director Kate, above left
The firm then began to grow by acquisition as the 1990s recession took its toll on the transport industry. “In the magazine network some of the other hauliers started to get into financial difficulties and because we were traditional farmers and always went into winter with wool on our backs we had a strong balance sheet,” says Andy. “Within a few years we had taken over R&R and Macfarlanes so we had a ready-made network on the back of the magazines work. We then opened a depot in the north west, so we had depots in the south west, Runcorn, Leeds and Dunstable and we became a national business by default. “More and more clients were becoming disillusioned with the 3PLs and because we could give them the scale and the infrastructure while still being the charming Downton brothers our business just took off.” The next step was to set up Jigsaw, when two consultants together with a consortium of regional hauliers worked together to provide a one stop shop national solution to compete against the majors. “The formation of Jigsaw was a great move because we met hauliers across the country from Scotland to Kent and Norwich,” says Andy. “The ability to sit in front of any of the large FMCG businesses and present them with a national solution through a partnership of hauliers again gave us greater confidence and was another massive step for us. “On the back of our can-do culture wherever warehousing opportunities presented themselves we grabbed them. If you are in a large scale, volume business you need the client locked in. You need to provide the IT solutions and the warehousing and have as many links into the client as possible. Clients really warmed ➜ 22
IT’S ALL ABOUT THE PEOPLE Many often say logistics is a people business – and Andy Downton is no different. He has made many friends among clients and suppliers over the last 30 years. “We have had a lot of fun and we did some crazy things. We have loved the business and we have met some fantastic people, great suppliers and customers,” he says. “DAF Trucks have been amazing and Tiger Trailers have been fantastic. “A lot of clients became friends because at no point did we try to take advantage of them. It was always about long term relationships and a lot have been with us 20 or 30 years. “People have stuck with us and believed in us, and trusted us when we were a very small company. Hopefully we have repaid them over the length of our contracts and one thing we do want from the new owners is to build on and maintain those relationships.” 25.11.19
MotorTransport 21
Profile: Downton
THREE DECADES OF CHANGE Looking back on the many changes that have happened in the past 34 years, Andy Downton highlights two as “game changing”. “Compared with when we started in the mid1980s it is chalk and cheese,” he says. “Two of the biggest things that changed our business were the arrival of mobile phones in the mid-1980s and the Boalloy Tautliner, which transformed ambient transport in this country.”
to that – we were different in the way we were flexible and how we entered relationships. We didn’t tie people up contractually or put barriers in front of them.” John continues: “We always tried to offer everything to the client. It was never about just trucks. With magazines would pick and pack and put them in the back of the lorry. For 20 years now we have had our own internal IT services. Whenever a client wanted assistance with IT we would send in our people to do everything for them. So we were ahead of the game against any of our competitors.”
Driven by fear
Andy admits that much of Downton’s phenomenal early growth was driven as much by fear as ambition. “Clients would say ‘we are going to open a factory in Manchester and we want you to look after it and if you don’t want it, someone else will and that could endanger you’. So our business was growing often because the fear of losing other parts of the business. “We were always looking over our shoulders – to be successful you have to be a little bit paranoid and eat it, sleep it and live it. The day you rest on your laurels is the day when businesses fall. Right up to the day we sold the business all three of us had our hands on it every single moment of every day.” Despite the close control the family has kept over the firm, the brothers are quick to pay tribute to their 1,350 colleagues. “We couldn’t have built our business without employing good people around us,” says Andy. “A lot of people bought into the Downton culture and a lot joined us from corporate environments where it was quite structured. We have always given people a lot of freedom and not micro-managed them. “We brought people in with the skills that we didn’t have and gave them freedom. We had a great finance team because we knew from the early days that cash is king. We had to know every week, every month how our business was doing. We had fantastic operational people who had come into the industry and lorry drivers who had that depth of experience.” Unlike a lot of 3PLs who like to ‘partner’ with clients to share risk and reward, Downton has always preferred to protect its margin. “We did a small amount of open book contracts but we always preferred closed book because we were happy 22 MotorTransport
to take the risk on the efficiency of our network and the way we knew how to run trucks,” says Andy. “A lot of 3PLs were good at open book where the client would pay for the inefficiencies but we were happy with a pay as you go basis because we had confidence in the way our traffic planners plan trucks and have loads matching back loads. A lot of people don’t understand how to run trucks well.” While rates are hardening slightly at the moment partly due to the driver shortage, the Downtons know clients never want to pay more than they have to. “Our margins are better than the industry average because our good service meant clients would pay a little more and because we were more efficient than average,” says Andy. “We always kept a tight rein on overheads. We were always working directors and while a lot of people spend their time on the golf course but we didn’t. Johnny was always heavily involved in the operation, Dick was involved in finance and I was involved in sales. We did everything.”
The cycle of life
While the three brothers are clearly going to miss the firm that continues to bear their name, there is also a tangible sense of relief that the burden of running a major contract logistics operation has been lifted. “The last thing we wanted to be was a family haulier that withers on the vine,” says Andy. “Any business has a life cycle from conception to growth and when it gets to the top it either dies or gets taken over. Third generation businesses are by their nature fraught with risk because the reason we were successful was the unique circumstances of the early death of our father. “We jumped into the business because we had to and it was us three against the world. The best thing about having three brothers is you have two other guys watching your back who you trust completely. That in itself was part of our strength. “We’ve had a few health issues among the three of us – we have given our lives to this business and now is as good a time as any to sell. We are in our mid-50s and we genuinely thought it was right for the business as we don’t have that third generation. Our business is allconsuming.” And despite Downton’s incredible track record of profitable growth – in 2017 it made £5.1m pre-tax profit on turnover of £116m – the brothers also knew that to keep growing more investment than they could provide is needed. Now part of EV Cargo, EmergeVest’s UK logistics group, Downton has a secure future. “The EmergeVest offer was the right financial decision for the Downton shareholders and [CEO] Heath Zarin is a very intelligent man with a clear strategy,” Andy says. “He knows what he is trying to do and they are building a truly international business. In the UK he has arguably the best pallet network [Palletforce] under Michael Conroy, he has extremely good IT businesses [Adjuno] headed by Craig Sears-Black with his Isotrak background, Allports Cargo which is a fantastic business and a truly international freight forwarder that deals with virtually every retailer in the UK, a chilled network with NFT and they have an ambient business with Downton. “They also have Jigsaw which sits as a 4PL between all these businesses. So there is a lot of science in what they are trying to create. We were probably at the top of our game and we didn’t want to trip at the final hurdle. It would have been tragic for our lifetimes’ work if one of us had died on the job and thankfully the three of us have a good few years enjoying life in a less stressful environment. We have protected everyone’s jobs and it has an exciting future. The world is changing and you either embrace change or become a dinosaur. We have our health and we have handed over a fantastic business which is joining an exciting group of companies with a bright future.” ■ 25.11.19
motortransport.co.uk
MT lifts the lid on logistics players, showing how operators are dealing with challenging conditions
Logistics shows resilience
E
ddie Stobart up for sale, and profit almost wiped out at the mighty DHL Supply Chain – it sounds like an extraordinary year for the logistics industry. It would be easy to assume that it was a particularly bad year for operators, but our figures tend to contradict this. In fact, the story is one of resilience in the face of challenging market conditions. Average turnover is up for the companies that made it into this year’s Top 100, with 3.8% growth on the year before. Average pre-tax profit has also risen – 4.8% up on the year before, in fact. This suggests that companies have been focusing on maintaining profit. The previous Top 100 survey found a 10.3% increase in turnover, but a 17.7% drop in pre-tax profit. There has also been an increase in employment in the industry: on average companies are now employing 4.4% more people than they did a year ago. There has been a lot of talk about the effect of Brexit on the industry, and there is no doubt
that there is potential for significant disruption, but the Top 100 demonstrates that road transport has proved remarkably resilient in the face of the challenges so far. The Top 100 also highlights the ups and downs of the online shopping boom. Parcel
KEY AVERAGES Turnover latest year Turnover previous year Pre-tax profit latest year Pre-tax profit previous year Number of employees latest year Number of employees previous year Sales per employee latest year Changes in sales per employee Profit per employee latest year Change in profit per employee Return on sales latest year
£318,766,000 £307,080,216 £7,071,122 £6,750,022 3,654 3,501 £87,248 -0.01% £1,935 0% 2.22%
carriers such as DPD and Hermes have continued their strong performance, both in terms of sales growth and profit margins, on the back of the UK’s love affair with internet retailing. But another giant of this market, Yodel, is still struggling to turn heavy losses into profit. The past few years have seen significant consolidation in the industry, with Kinaxia continuing to acquire businesses. The latest figures show its turnover is 40% up on the year before. Eddie Stobart has also made significant acquisitions, although there is a question mark over whether the name will survive. Regardless of whether there is a takeover, it still needs to decide if it will retain the Stobart branding when its licence to use it expires next year. However, even if that happens there will still be a Stobart in the MT Top 100. WS Transportation, which was formed in April 2014 by William Stobart and his son Edward, makes its first appearance this year – coming in at number 87. There could be no better symbol of the resilience of this industry. ■
KMAX GEN-2. Superb mileage and traction. 25.11.19
MotorTransport 23
LARGEST 100 COMPANIES (BY TURNOVER) Latest rank
Previous rank
Company or trading name
Financial year end
Latest year turnover (£000s)
Latest year pre-tax profit (£000s)
Latest year employees
Previous year turnover (£000s)
Previous year pre-tax profit (£000s)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50
1 2 3 5 6 7 8 4 11 9 10 13 12 14 15 18 16 17 23 20 19 22 21 24 26 25 31 27 30 29 28 32 33 36 34 38 41 35 37 39 43 63 55 52 42 44 47 45 58 48
Royal Mail (UKPIL) DHL XPO Logistics DPD Wincanton UPS Menzies Distribution FedEx Corporation Eddie Stobart Logistics Kuehne + Nagel Hermes Parcelnet Culina Group Whistl UK Yodel Gist Turners (Soham) Holdings Clipper Logistics Group Ceva Logistics NFT Distribution Holdings Maritime Transport DX Group Harry Yearsley Yusen Logistics (UK) W H Malcolm DSV Road Bibby Supply Chain Services Europa Worldwide Logistics Tuffnells Parcels Express Gregory Distribution (Holdings) Fowler Welch Gefco Langdon Group Hoyer Petrolog UK CM Downton (Haulage Contractors) Movianto UK BCA Automotive Kinaxia Pentalver Transport ECM (Vehicle Delivery Service) McBurney Transport Group Howard Tenens FreshLinc Group Moran Logistics Owens (Road Services) Suttons Tankers PCL Transport 24/7 Maxi Haulage Redhead Freight R Swain & Sons Woodside Logistics Group
25/03/2019 31/12/2018 31/12/2018 31/12/2018 31/03/2019 31/12/2017 31/12/2018 31/05/2018 30/11/2018 31/12/2017 28/02/2019 31/12/2018 31/12/2018 30/06/2018 31/12/2017 31/12/2018 30/04/2018 31/12/2018 29/09/2018 27/12/2018 30/06/2018 31/03/2018 31/03/2019 31/01/2018 31/12/2018 31/12/2018 31/12/2018 31/08/2018 30/09/2018 31/03/2018 31/12/2018 31/12/2018 31/12/2018 30/06/2018 31/12/2018 01/04/2018 31/12/2018 31/12/2018 31/12/2018 31/12/2018 30/09/2018 28/01/2018 31/12/2018 30/06/2018 30/04/2018 30/06/2018 30/09/2018 31/12/2018 31/12/2018 31/03/2018
7,732,000 5,010,560 1,551,765 1,315,305 1,141,500 1,084,441 937,300 913,104 843,141 749,525 749,457 584,671 563,663 481,505 437,331 414,553 400,115 399,589 333,972 304,877 299,500 220,797 215,946 200,149 196,283 192,416 175,907 175,195 173,971 168,560 165,875 150,235 132,879 127,319 124,253 121,933 114,907 114,387 100,544 100,536 94,193 87,770 74,694 70,496 70,042 66,818 66,293 66,086 65,392 64,407
160,000 -36,024 50,229 189,586 48,600 82,491 -22,700 53,083 23,624 35,170 36,092 26,775 4,795 -110,986 8,832 33,041 17,966 2,297 -30,826 8,124 -19,900 -3,105 823 7,550 10,357 -3,725 5,244 -5,343 5,703 4,252 6,156 6,905 1,409 2,835 -4,300 2,023 -756 2,892 1,824 3,929 30,766 1,280 334 1,628 1,463 -7,138 1,915 -332 1,917 3,000
143,000 47,900 21,680 8,471 17,460 8,145 2,966 10,842 6,100 11,580 3,345 5,826 1,734 5,059 4,661 3,476 4,531 3,984 2,488 2,457 3,264 1,498 1,414 2,110 730 1,918 675 2,794 1,881 1,477 530 1,467 1,244 1,229 653 1,085 1,539 418 795 790 700 359 392 782 594 894 348 360 601 483
7,615,000 4,736,180 1,386,929 1,207,333 1,171,900 944,927 1,049,000 1,271,461 623,924 809,640 665,585 497,497 544,582 492,791 416,678 396,283 340,127 395,703 202,164 253,730 291,900 203,064 237,739 207,231 193,895 198,438 144,353 183,812 159,884 163,468 162,374 139,138 132,046 116,838 123,850 109,981 81,840 118,426 102,163 92,971 75,623 45,380 54,641 55,648 81,691 69,064 62,335 64,594 49,747 61,803
39,000 142,822 45,454 184,478 37,900 62,321 24,000 -12,027 9,915 31,386 37,308 28,091 4,891 -85,700 17,707 31,696 16,052 14,213 -14,098 6,687 -82,300 4,906 2,513 17,153 9,757 833 3,224 12,165 5,516 4,520 11,843 5,638 2,162 5,138 -4,992 938 567 8,392 1,659 3,469 5,924 331 2,049 2,239 204 -9,872 1,350 -939 1,102 3,987
FUELMAX GEN-2. Drive further on less fuel. 24 MotorTransport
25.11.19
motortransport.co.uk
Latest rank 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100
Previous rank 53 54 50 49 46 51 56 62 60 59 74 61 64 67 71 65 73 68 40 69 70 66 72 76 57 78 75 84 79 82 new new 93 96 87 81 new new 85 88 91 99 86 new 90 89 new 92 97 new
Company or trading name
Financial year end
Abbey Logistics Group Panther Warehousing Reed Boardall Group John G Russell Pickfords Move Management Knights of Old Solstor UK Jack Richards & Son ARR Craib Transport Geodis UK GBA Services Currie International Lenham Storage Group Advanced Supply Chain Group Warrens Warehousing and Distribution RT Keedwell Montgomery Transport Boughey Distribution Lloyd Fraser Holdings Hargreaves Services – Transport Rhys Davies and Sons Agro Merchants (Grocontinental) S J Bargh Countrywide Freight Group Lomas Distribution Freightroute Fred Sherwood & Sons (Transport) Brit European McPherson T J Transport Knowles Transport Buffaload Logistics Meachers Global Logistics JW Suckling Transport ET Holdings (Evans and Seymour Transport) Bartrums Group WS Transportation Circle Express H Sivyer (Transport) WM Armstrong (Longtown) Associated Cold Stores and Transport Expect Distribution James Kemball Neill & Brown Global Logistics Group Elddis Transport (Consett) STVA UK Acumen Logistics Group Pollock (Scotrans) Alan Firmin Fagan & Whalley
30/06/2018 31/12/2018 31/03/2018 31/03/2018 30/09/2018 31/05/2018 30/09/2018 31/05/2018 31/03/2018 30/12/2017 31/12/2018 31/12/2017 31/08/2018 30/11/2018 31/12/2018 31/10/2018 30/09/2018 31/05/2018 28/02/2018 31/05/2018 31/08/2017 31/12/2018 30/04/2018 31/03/2018 30/07/2018 31/12/2018 31/03/2018 31/12/2018 31/07/2018 31/12/2018 31/12/2018 31/12/2018 31/05/2019 31/12/2018 31/03/2018 31/12/2018 31/05/2018 31/03/2018 31/03/2018 31/03/2018 29/12/2018 30/11/2018 31/03/2018 30/04/2018 31/12/2018 31/12/2017 31/12/2018 26/08/2018 30/04/2018 30/04/2018
Latest year turnover (£000s) 63,144 62,576 61,641 61,075 59,464 56,340 53,884 53,674 50,808 50,107 48,595 48,111 47,267 42,899 42,697 42,249 41,764 41,003 40,862 39,200 38,753 37,211 37,058 35,928 34,364 33,722 33,375 33,128 33,057 32,904 32,142 31,043 30,624 30,427 30,181 30,125 29,295 29,210 28,967 28,616 28,589 28,353 27,780 27,592 27,400 27,020 27,007 26,769 26,488 25,955
Latest year pre-tax profit (£000s) -3,559 381 1,385 4,661 2,068 -2,880 413 988 1,251 -4,468 1,287 38 1,579 2,535 2,928 381 -90 -754 606 500 319 35,854 647 593 814 1,038 2,626 1,350 2,678 340 1,506 1,036 2,208 604 838 1,601 454 -751 481 286 2,210 1,435 -7,747 2,083 658 156 -343 58 3,796 1,258
Latest year employees 623 591 773 598 333 525 111 701 417 301 236 336 569 755 360 441 326 484 512 404 379 461 330 251 413 44 268 358 238 273 222 158 282 261 294 202 248 61 264 230 262 253 143 322 30 212 241 220 312
Previous year turnover (£000s) 55,009 54,757 60,231 60,593 64,048 59,836 53,510 45,864 49,170 49,330 36,120 47,870 44,552 39,783 38,276 42,619 37,256 39,557 83,012 43,700 37,570 41,992 37,405 33,767 52,081 31,763 34,662 28,416 30,861 29,407 30,392 32,220 26,138 25,175 27,468 29,418 23,780 28,559 28,367 27,178 26,631 24,239 28,199 24,112 26,942 30,190 25,514 26,529 24,649 23,934
Previous year pre-tax profit (£000s) -554 2,645 841 3,914 978 -3,391 470 1,239 1,209 -4,248 1,157 -102 2,064 1,811 1,745 160 5 1,282 3,745 0 405 6,065 1,964 64 109 847 672 598 2,903 352 -4,430 -1,656 1,895 627 1,199 1,175 197 -268 660 403 2,236 1,250 -1,733 2,044 479 -110 144 115 -1,136 1,390
TreadMax. The cost effective alternative to new. 25.11.19
MotorTransport 25
GROWTH IN TURNOVER Turnover Overall Company or growth rank trading name rank 1 42 FreshLinc Group
Latest year turnover (£000s) 87,770
Previous year turnover (£000s) 45,380
Growth in turnover (%) 93.41
2 3
19 37
NFT Distribution Holdings Kinaxia
333,972 114,907
202,164 81,840
65.20 40.40
4 5
43 9
Moran Logistics Eddie Stobart Logistics
74,694 843,141
54,641 623,924
36.70 35.14
6 7
61 49
GBA Services R Swain & Sons
48,595 65,392
36,120 49,747
34.54 31.45
8 9
44 41
Owens (Road Services) Howard Tenens
70,496 94,193
55,648 75,623
26.68 24.56
10 11
87 27
WS Transportation Europa Worldwide Logistics
29,295 175,907
23,780 144,353
23.19 21.86
12 13
84 20
JW Suckling Transport Maritime Transport
30,427 304,877
25,175 253,730
20.86 20.16
14 15
17 12
Clipper Logistics Group Culina Group
400,115 584,671
340,127 497,497
17.64 17.52
16 17
83 58
Meachers Global Logistics Jack Richards & Son
30,624 53,674
26,138 45,864
17.16 17.03
18 19
92 78
Expect Distribution Brit European
28,353 33,128
24,239 28,416
16.97 16.59
20 21
51 6
Abbey Logistics Group UPS
63,144 1,084,441
55,009 944,927
14.79 14.76
22 23
94 52
Neill & Brown Global Logistics Panther Warehousing
27,592 62,576
24,112 54,757
14.43 14.28
24 25
11 67
Hermes Parcelnet Montgomery Transport
749,457 41,764
665,585 37,256
12.60 12.10
26 27
80 3
T J Transport XPO Logistics
32,904 1,551,765
29,407 1,386,929
11.89 11.88
28 29
65 36
Warrens Warehousing & Distrib BCA Automotive
42,697 121,933
38,276 109,981
11.55 10.87
30 31
85 34
ET Holdings (Evans and Seymour) 30,181 CM Downton (Haulage Contractors) 127,319
27,468 116,838
9.88 8.97
32 33
4 29
DPD Gregory Distribution (Holdings)
1,315,305 173,971
1,207,333 159,884
8.94 8.81
34 35
22 100
Harry Yearsley Fagan & Whalley
220,797 25,955
203,064 23,934
8.73 8.45
36 37
40 32
McBurney Transport Group Langdon Group
100,536 150,235
92,971 139,138
8.14 7.98
38 39
64 99
Advanced Supply Chain Group Alan Firmin
42,899 26,488
39,783 24,649
7.83 7.46
40 41
91 79
Associated Cold Stores and T’port 28,589 McPherson 33,057
26,631 30,861
7.35 7.12
42 43
74 47
Countrywide Freight Group Maxi Haulage
35,928 66,293
33,767 62,335
6.40 6.35
44 45
76 63
Freightroute Lenham Storage Group
33,722 47,267
31,763 44,552
6.17 6.09
46 47
97 2
Acumen Logistics Group DHL
27,007 5,010,560
25,514 4,736,180
5.85 5.79
48 49
81 90
Knowles Transport WM Armstrong (Longtown)
32,142 28,616
30,392 27,178
5.76 5.29
50
15
Gist
437,331
416,678
4.96
Turnover Overall Company or growth rank trading name rank 51 16 Turners (Soham) Holdings
Latest year turnover (£000s) 414,553
Previous year turnover (£000s) 396,283
Growth in turnover (%) 4.61
52 53
50 68
Woodside Logistics Group Boughey Distribution
64,407 41,003
61,803 39,557
4.21 3.66
54 55
13 59
Whistl UK ARR Craib Transport
563,663 50,808
544,582 49,170
3.50 3.33
56 57
71 30
Rhys Davies and Sons Fowler Welch
38,753 168,560
37,570 163,468
3.15 3.11
58 59
21 86
DX Group Bartrums Group
299,500 30,125
291,900 29,418
2.60 2.40
60 61
53 48
Reed Boardall Group Redhead Freight
61,641 66,086
60,231 64,594
2.34 2.31
62 63
88 31
Circle Express Gefco
29,210 165,875
28,559 162,374
2.28 2.16
64 65
89 95
H Sivyer (Transport) Elddis Transport (Consett)
28,967 27,400
28,367 26,942
2.12 1.70
66 67
60 1
Geodis UK Royal Mail (UKPIL)
50,107 7,732,000
49,330 7,615,000
1.57 1.54
68 69
25 18
DSV Road Ceva Logistics
196,283 399,589
193,895 395,703
1.23 0.98
70 71
98 54
Pollock (Scotrans) John G Russell
26,769 61,075
26,529 60,593
0.90 0.79
72 73
57 33
Solstor UK Hoyer Petrolog UK
53,884 132,879
53,510 132,046
0.70 0.63
74 75
62 35
Currie International Movianto UK
48,111 124,253
47,870 123,850
0.50 0.33
76 77
66 73
RT Keedwell S J Bargh
42,249 37,058
42,619 37,405
-0.87 -0.93
78 79
93 39
James Kemball ECM (Vehicle Delivery Service)
27,780 100,544
28,199 102,163
-1.49 -1.58
80 81
14 5
Yodel Wincanton
481,505 1,141,500
492,791 1,171,900
-2.29 -2.59
82 83
26 46
Bibby Supply Chain Services PCL Transport 24/7
192,416 66,818
198,438 69,064
-3.03 -3.25
84 85
38 24
Pentalver Transport W H Malcolm
114,387 200,149
118,426 207,231
-3.41 -3.42
86 87
82 77
Buffaload Logistics Fred Sherwood & Sons (Transport)
31,043 33,375
32,220 34,662
-3.65 -3.71
88 89
28 56
Tuffnells Parcels Express Knights of Old
175,195 56,340
183,812 59,836
-4.69 -5.84
90 91
55 10
Pickfords Move Management Kuehne + Nagel
59,464 749,525
64,048 809,640
-7.16 -7.42
92 93
23 70
Yusen Logistics (UK) Hargreaves Services - Transport
215,946 39,200
237,739 43,700
-9.17 -10.30
94 95
96 7
STVA UK Menzies Distribution
27,020 937,300
30,190 1,049,000
-10.50 -10.65
96 97
72 45
Agro Merchants Whitchurch Suttons Tankers
37,211 70,042
41,992 81,691
-11.39 -14.26
98 99
8 75
FedEx Corporation Lomas Distribution
913,104 34,364
1,271,461 52,081
-28.18 -34.02
100
69
Lloyd Fraser Holdings
40,862
83,012
-50.78
TruckForce. Dedicated support, 365 days a year. 26 MotorTransport
25.11.19
motortransport.co.uk
GROWTH IN PROFIT Latest rank
Company or trading name
£500m-plus turnover 8 1 9 6 5 10 3 4 13 11 12 2 7
Latest year pre-tax profit (£000s)
FedEx Corporation Royal Mail (UKPIL) Eddie Stobart Logistics UPS Wincanton Kuehne + Nagel XPO Logistics DPD Whistl UK Hermes Parcelnet Culina Group DHL Menzies Distribution
Previous year pre-tax profit (£000s)
Growth in profit (%)
53,083 160,000 23,624 82,491 48,600 35,170 50,229 189,586 4,795 36,092 26,775 -36,024 -22,700
-12,027 39,000 9,915 62,321 37,900 31,386 45,454 184,478 4,891 37,308 28,091 142,822 24,000
541.37 310.26 138.27 32.36 28.23 12.06 10.51 2.77 -1.96 -3.26 -4.68 -125.22 -194.58
2,023 -19,900 5,244 6,905 8,124 -4,300 3,929 17,966 1,824 10,357 33,041 5,703 4,252 -110,986 1,409 2,835 6,156 8,832 7,550 2,892 823 2,297 -30,826 -5,343 -3,105 -756 -3,725
938 -82,300 3,224 5,638 6,687 -4,992 3,469 16,052 1,659 9,757 31,696 5,516 4,520 -85,700 2,162 5,138 11,843 17,707 17,153 8,392 2,513 14,213 -14,098 12,165 4,906 567 833
115.67 75.82 62.67 22.47 21.49 13.86 13.25 11.92 10.00 6.15 4.24 3.39 -5.93 -29.51 -34.85 -44.81 -48.02 -50.12 -55.98 -65.54 -67.25 -83.84 -118.66 -143.92 -163.28 -233.17 -547.18
1,463 -3,559 30,766 1,280 2,068 1,917 1,385 -332 1,915
204 -554 5,924 331 978 1,102 841 -939 1,350
617.39 542.65 419.35 286.28 111.48 73.93 64.74 64.70 41.84
£100m-£500m turnover 36 21 27 32 20 35 40 17 39 25 16 29 30 14 33 34 31 15 24 38 23 18 19 28 22 37 26
BCA Automotive DX Group Europa Worldwide Logistics Langdon Group Maritime Transport Movianto UK McBurney Transport Group Clipper Logistics Group ECM (Vehicle Delivery Service) DSV Road Turners (Soham) Holdings Gregory Distribution (Holdings) Fowler Welch Yodel Hoyer Petrolog UK CM Downton (Haulage Contractors) Gefco Gist W H Malcolm Pentalver Transport Yusen Logistics (UK) Ceva Logistics NFT Distribution Holdings Tuffnells Parcels Express Harry Yearsley Kinaxia Bibby Supply Chain Services
£50m-£100m turnover 45 51 41 42 55 49 53 48 47
Suttons Tankers Abbey Logistics Group Howard Tenens FreshLinc Group Pickfords Move Management R Swain & Sons Reed Boardall Group Redhead Freight Maxi Haulage
Latest rank
Company or trading name
46 54 56 59 60 57 58 50 44 43 52
PCL Transport 24/7 John G Russell Knights of Old ARR Craib Transport Geodis UK Solstor UK Jack Richards & Son Woodside Logistics Group Owens (Road Services) Moran Logistics Panther Warehousing
Latest year pre-tax profit (£000s) -7,138 4,661 -2,880 1,251 -4,468 413 988 3,000 1,628 334 381
Previous year pre-tax profit (£000s) -9,872 3,914 -3,391 1,209 -4,248 470 1,239 3,987 2,239 2,049 2,645
Growth in profit (%) 27.69 19.08 15.07 3.47 -5.20 -11.98 -20.27 -24.75 -27.31 -83.68 -85.60
0 64 109 6,065 672 160 -102 -4,430 598 1,745 1,811 1,175 847 1,895 1,157 352 627 2,903 405 2,064 1,199 1,964 3,745 1,282 -1,656 5
∞ 829.58 643.93 491.14 290.79 138.13 137.37 134.00 125.77 67.80 39.95 36.27 22.54 16.52 11.22 -3.43 -3.73 -7.74 -21.41 -23.47 -30.15 -67.04 -83.81 -158.81 -162.56 -2,050.46
-1,136 -110 -268 197 479 1,250 2,044 2,236 1,390 660 403 115 144 -1,733
434.10 241.82 180.22 130.03 37.46 14.77 1.92 -1.15 -9.49 -27.23 -29.08 -49.73 -337.81 -347.11
£30m-£50m turnover 70 74 75 72 77 66 62 81 78 65 64 86 76 83 61 80 84 79 71 63 85 73 69 68 82 67
Hargreaves Services – Transport 500 Countrywide Freight Group 593 Lomas Distribution 814 Agro Merchants Whitchurch 35,854 Fred Sherwood & Sons (Transport) 2,626 RT Keedwell 381 Currie International 38 Knowles Transport 1,506 Brit European 1,350 Warrens Warehousing and Dist’ion 2,928 Advanced Supply Chain Group 2,535 Bartrums Group 1,601 Freightroute 1,038 Meachers Global Logistics 2,208 GBA Services 1,287 T J Transport 340 JW Suckling Transport 604 McPherson 2,678 Rhys Davies and Sons 319 Lenham Storage Group 1,579 ET Holdings (Evans and Seymour) 838 S J Bargh 647 Lloyd Fraser Holdings 606 Boughey Distribution -754 Buffaload Logistics 1,036 Montgomery Transport -90
£20m-£30m turnover 99 96 88 87 95 92 94 91 100 89 90 98 97 93
Alan Firmin STVA UK Circle Express WS Transportation Elddis Transport (Consett) Expect Distribution Neill & Brown Global Logistics Group Associated Cold Stores and T’port Fagan & Whalley H Sivyer (Transport) WM Armstrong (Longtown) Pollock (Scotrans) Acumen Logistics Group James Kemball
3,796 156 -751 454 658 1,435 2,083 2,210 1,258 481 286 58 -343 -7,747
Goodyear TPMS. Keep your vehicles on the road. 25.11.19
MotorTransport 27
motortransport.co.uk
The MT Top 100 explained The rankings were finalised on 24 October 2019. The data was compiled from audited accounts filed at Companies House during the 12 months since the last Top 100 was compiled in November 2018, unless otherwise stated. The table lists the company in regard to its official registered name at Companies House, which is not always the same at the company’s trading name. MT has compiled the tables using the turnover and pre-tax profit figures generated solely or primarily from UK road transport and warehousing activities of the businesses concerned, unless otherwise stated. Figures shown for employees are predominantly for those employed solely or primarily in the UK. Advanced Supply Chain’s figures reflect the performance of Advanced Supply Chain Group, excluding the results of its Advanced Forwarding international freight forwarding business. Aspray Transport has been excluded as it went into administration on 9 September 2019. BCA Automotive comprises Walon, Paragon Automotive Logistics and Sensible Automotive, which are all subsidiaries of BCA Marketplace. Brit European’s figures for the previous year are restated. CEVA Logistics’ figures for the previous year are restated. Culina Group comprises Culina Logistics, Great Bear Distribution, Integrated Packing Services, Morgan McLernon, CML F&L (Telford) and Robsons of Spalding. Currie International Holdings did not file 2018 accounts with Companies House in time for inclusion in the Top 100, so 2017 figures were used. DHL comprises DHL Supply Chain, DHL Parcel UK, Tradeteam, DHL International UK, and Exel UK. The company is consolidating logistics contracts into DHL Supply Chain as they are renewed from Exel and Tradeteam.
Employees in DHL Supply Chain, Tradeteam and Exel are employed through DHL Services. DHL’s freight forwarding business is excluded from our figures. DPD comprises DPDgroup UK and DPDLocal, formerly Interlink Express. FedEx comprises FedEx UK and TNT UK. The previous year figures for TNT cover a 17-month period. FreshLinc 2017 figures are for a sevenmonth period. Geodis UK did not file 2018 accounts with Companies House in time for inclusion in the Top 100, so 2017 figures were used. GIST did not file 2018 accounts with Companies House in time for inclusion in the Top 100, so 2017 figures were used. Gregory Distribution’s AAR Craib Transport subsidiary has been kept distinct, as last year, as it is accounted for separately. Grocontinental has been renamed Agro Merchants Whitchurch. Pre-tax profit includes a £34.8m exceptional item for sale of a property. Hargreaves Services – Transport did not supply employee numbers for the most recent financial year. Kuehne+Nagel did not file 2018 accounts with Companies House in time for inclusion,
KINAXIA Kinaxia’s main entry is for Kinaxia Ltd. This table shows the figures for the companies it has acquired to make up the group. It gives an indication the size of the group once the results for the latest acquisitions are fully taken into account. In October 2018, Kinaxia acquired AKW Group – its accounting period has been extended to cover the 18 months to 31 December 2018. In November 2018, Kinaxia acquired Fresh Freight Group – its accounting period has been shortened to cover the seven months to 31 December 2018. In May 2019, Kinaxia acquired David Hathaway Transport. In June 2019, BC Transport was merged with William Kirk.
Turnover(£) Pre-tax profit(£) Year to AJ Maiden and Son 11,295,249 323,182 31/12/2018 William Kirk 6,894,481 86,819 31/12/2018 Bay Freight 8,101,702 25,860 31/12/2018 Foulger Transport 15,278,457 -1,866,446 31/12/2018 Lambert Brothers Haulage 16,430,853 75,881 31/12/2018 Mark Thompson Transport 23,006,572 623,245 31/12/2018 Panic Transport (Contracts) 14,305,461 229,781 31/12 2018 NC Cammack & Son 7,331,809 80,436 31/12 2018 AKW Global Logistics 28,048,950 901,135 31/12/2018 AKW Global Logistics B’ham 8,479,910 98,955 31/12 2018 AKW Global Warehousing 16,007,887 1,424,50 31/12 2018 Fresh Freight 9,417,484 268,762 31/12/2018 David Hathaway Transport 14,030,138 451,167 31/05/2018 Total 178,628,953 2,723,281
so 2017 figures were used. K+N’s turnover is derived from its contract logistics business (as reported by Kuehne + Nagel Ltd) and K+N Drinks Logistics. Turnover from its freight forwarding business is excluded to best reflect the domestic road freight-related contributions to the business. However, as K+N does not split the two divisions into legal entities, we were unable to break down pre-tax profit and employee numbers in the same way. Therefore, profit and employee figures include the international freight forwarding business. Lenham Storage comprises Lenham Storage and Lenham Storage Southern. Lloyd Fraser 2017 figures are for an 18-month period. Lomas Distribution 2017 figures are for 18-month period and have been restated. McBurney Holdings comprises McBurney Transport and Bondelivery Northern Ireland. Moran Logistics’ accounting period has been extended to cover the 15 months to 31 December 2018. NFT Distribution’s accounting period extended to cover 18 months to 29 September 2018. Pentalver comprises Pentalver Transport and Pentalver Cannock. Rhys Davies & Sons did not file 2018 accounts with Companies House in time for inclusion in the Top 100 as it has extended its accounting period to 28 February 2019, therefore 2017 figures were used. RT Keedwell’s figures for 2017 have been restated in its latest accounts. S J Bargh’s figures for 2017 have been restated in its latest accounts. STVA UK did not file 2018 accounts with Companies House in time for inclusion in the Top 100, so 2017 figures were used. UPS did not file 2018 accounts with Companies House in time for inclusion in the Top 100, so 2017 figures were used. XPO Logistics comprises XPO Supply Chain, XPO Transport Solutions UK and XPO Bulk UK. We have excluded XPO Global Forwarding and XPO Maintenance UK to best reflect turnover and profit derived from domestic road freight. XPO Bulk UK did not file 2018 accounts in time for inclusion in the Top 100, so 2017 figures for the XPO business were used. Yodel comprises Yodel Delivery Network and Arrow XL.
Goodyear. Solutions that reduce your total cost of ownership. 28 MotorTransport
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MT Awards 2019 winner profile Home Delivery Operator of the Year
All for one Winner DPD has written the book on home delivery, in the form of an ‘inspirational’ manual for employees explaining its corporate culture
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PD UK’s winning entry for Home Delivery Operator of the Year focused on five key areas: how new processes improved performance; how its app gives recipients more in-flight choices than any other carrier; the launch of the first zero-emissions delivery depot in Westminster; its health and safety track record; and how an “inspirational” book by CEO Dwain McDonald ‘This is us and this is how we roll’ “reminds Team DPD of the culture needed to remain the UK’s home delivery operator of choice”. The judges said that while DPD was at “the top of its game” it was not afraid to critique itself, while another described the company as “one to watch”. The foundations of DPD’s current success were laid almost a decade ago when it developed the Predict system and invented the one-hour delivery window, and since then it has certainly not rested on its laurels. One of its latest innovations that sets it apart is its consumer app. The DPD app was launched in 2016, since when it has been downloaded by over 4m people. The rate of take-up shows no sign of slowing, with 25,000 people a week still downloading the app.
Consumers using it have access to a range of extra delivery and in-flight options to improve the chances of a successful first-time delivery. “There are a number of benefits the app offers,” says director of marketing Tim Jones. “There are additional preferences you can tell us about; for example, you can tell us to avoid the school run period.” Another feature is DesignSpace, DPD’s online community where the company can generate and test ideas to improve its service. “That’s been a huge success story,” says Jones. “There are 40,000 people who have done that. We’ve already implemented lots of ideas that have come from DesignSpace.” One example is ‘Prove Yourself’, which means people picking up a parcel from a depot now only need to show a bank card, rather than a driving licence or passport. While it is unlikely that there will be another major breakthrough like Predict, DPD is always looking for incremental improvements to stay ahead. “We get to a point where we say, ‘we’ll come the next day, we’ll come within one hour, you can track our vehicle to your door, there are seven or eight in-flight options’. What else can you do?” says Jones. “It’s probably going to be little things
THIS IS HOW WE ROLL DPD’s award-winning service depends heavily on the commitment and motivation of its 13,000-strong workforce. “That’s massively important,” confirms director of marketing Tim Jones. “That’s one of the reasons why, for many years, we had a programme within DPD called DNA. That's all about culture. In DPD customer care is not just in the call centre, everybody’s part of it. We have tried to cascade this culture pretty successfully over the past 10 years.” To encapsulate this culture, CEO Dwain McDonald wrote a 142-page book ‘This is us and this is how we roll’, which is given to all staff and new starters. “It's not a textbook you have to sit down and read, but a highly engaging manual 30 MotorTransport
that talks about the core values, all the things that are important,” says Jones. “It is about making people understand it isn't just taking a box to a door. It's the whole delivery experience and the feel-good factor on the doorstep. “For new recruits, it says ‘this is what DPD is, this is what you’re getting into, this is what we expect, this is what we offer in return’. It gives them a clear idea what we want and how fast-moving it is. They understand that even before they join. “That's been a big shift for us and helps with the retention as well as recruitment. We offer a wide range of employment options from owner-driver to employee-driver to worker status,” says Jones. “We have our ‘light’ drivers as well. These people have smaller vehicles
with smaller daily volumes and the role is ideally suited to students, housewives and older people. They have the franchise to collect and deliver in their postcode area. It’s up to them how they do that. That's a great living for a lot of people.” One effect of Brexit has been a drop in the number of eastern Europeans working in the logistics industry and this has seen wages rise for some operators. “We pay everyone the same regardless of where they’re from, and we pay everybody at least the real living wage,” says Jones. “It’s not as if we had a pool of workers on minimum wage. We’ve never done that and we have yet to see Brexit significantly impact on pay. The frustrating thing is we still don’t know whether there will be free movement and whether the people who are already here will continue to have the right to work.” 25.11.19
Sponsored by
MD of sponsor The Cartwright Group Mark Cartwright (second right) presents the trophy to DPD UK CEO Dwain McDonald (holding trophy) and chief operations officer Justin Pegg
and lots of ways that we keep making things better. “We’ve always said we’ve got one thing to sell, and that’s service. To do that you’ve got to have operational excellence. People talk about innovation and the wow factor but you can’t do that without a sound operation. “You need the investment in the depots. We talk about the one-hour window quite rightly but we can’t deliver unless we’re continually investing in new depots. “When we launched Predict in 2009 we had 42 depots; now we have 65. At the time, we had two hubs with one under construction; now we’re looking at opening our fifth hub in the near future, plus building the network of all-electric micro depots in London.” When it comes to electric vehicles, DPD has made no secret of its impatience with the vehicle OEMs over the slow speed of their introduction. Alongside its largely Mercedes-Benz Actros trunking fleet, DPD’s workhorse remains the 3.5 tonne van, and it runs around 8,000 diesel Sprinters. When DPD opened what it claims was the UK’s first all-electric depot in Westminster in 2018, it had to rely on a variety of vehicle suppliers, including Mercedes-Benz Fuso (7.5-tonne eCanter), Nissan (eNV200s vans) and Paxster (200kg payload quads). It now has three allelectric sites, and plans a total of eight in central London, but is being held back by the shortage of suitable sites with adequate charging infrastructure as well as a lack of electric vans. “There’s a massive future for electric vehicles,” says Jones. “We’ve invested heavily and will have 140 electric vehicles by the end of this year. We’ll double that next year and double that again the year after. “We’d do a lot more with electric vehicles if the manufacturers were making more of them, if they were making more right-hand drive vehicles and if the charging infrastructure was invested in. “A lot of our retail customers and consumers want emission-free deliveries, especially in city centres.” Under DPD’s standard operating model most of its drivers are self-employed and run their own vans, but in London few homes have the infrastructure to charge electric vehicles so in Westminster they are all charged at the depot overnight. “The point of the microsite is that it has the charging facilities and that works because they have maybe only 15 vehicles in there,” says Jones. “Other depots have 200 diesel vans operating out of them every day, which results in a massive carbon footprint. 25.11.19
“We need more microsites but they are difficult and expensive to acquire. It’s compounded by the fact that vehicles are so expensive and in such short supply. “That’s why we’re calling for manufacturers to give us a more competitive price. Electric vehicles are typically three times the cost of a standard diesel and we’re buying as many as we can get. “We have created a new role, general manager of corporate social responsibility, filled by Rob Fowler, who has built a lot of expertise in this area. He and his team will continue to explore all the options.” Those options are unlikely to include driverless vehicles or drones any time soon. “Drone delivery has its place,” says Jones. “For me it would be in the Australian outback where somebody needs a repeat prescription every month and it’s flown in. “Other than that, if it’s raining, if there’s thunder and lightning, if it causes security panics when everyone sees drones near airports… a drone is never going to impact on UK deliveries. And the little robot that scoots along the pavement – same thing. A cyclist runs it over, a mobility scooter bumps into it, somebody gives it a good kick… “There’s security in knowing that a human being, hopefully a smart one in a liveried van and a uniform, is coming down your drive, getting your signature and handing it over to you. It’s part of the feel-good experience of ordering a parcel and it coming the next day.” ■
WINNING WAYS With 29 MT Award wins under its belt as DPD and its previous incarnations Parceline and Interlink, DPDgroup UK is hot on the heels of all-time record winner TNT. As a former TNT marketing manager, DPD marketing director Tim Jones is determined to surpass TNT’s 33 trophies. “Give us another couple more years,” he says. “[CEO] Dwain's [McDonald] strategic plan runs up until 2025, and written into it is that we want to retain our Queen’s Award [for Innovation, received in 2015 for developing Predict and the one-hour delivery window] and we’re committed to entering the Motor Transport Awards every year. “It’s all about recognition internally and externally. We see Motor Transport as the industry Oscars and as a way to benchmark ourselves against our competitors.” MotorTransport 31
MT Awards 2019 winner profile Partnership Award
Close to home When Leo Group decided to seek a 3PL to develop its logistics operation, one of its directors decided not just to oversee the process, but to link up with some colleagues and put forward his own tender. The result is Haulage Holdings, and the partnership is going from strength to strength
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eo Group’s search for a 3PL to upgrade its logistics operation ended on its own doorstep. Leo Group specialises in the collection and processing of animal by-products into meals, oils and pet food ingredients, which are distributed and exported worldwide. When it put out a tender for a 3PL to run its logistics supply chain, it asked director Jim Hutchinson to help oversee the process. The group was looking for a partner that could develop the firm’s logistics and supply chain in the key areas of route to factory, fallen stock returns, production, fulfilment and warehousing. Hutchinson decided the answer lay closer to home. He recalls: “I’d worked for a number of third-party logistics suppliers for around 40 years and had significant experience of open and closed book contracts. “After working with Leo Group for three years I had a good understanding of its business, so I decided to give it a go. I put a tender together with some colleagues and presented it to the board in November 2013.” The board was impressed, not only with Hutchinson’s experience in both sectors, but also the team’s plans to embed the logistics operations in the business in a way that would deliver significant efficiencies. As a result, the team was awarded a contract to set up as a separate entity, dubbed Haulage Holdings, which would take over ownership and control of Leo Group’s transport division. The deal presented a golden opportunity to Hutchinson. He explains: “I had been striving for best part of three years to try to change the haulage side of the business. “The Leo Group’s main focus is on production and sales. Coming from a transport and distribution back-
EARNED RECOGNITION Haulage Holdings is in the process of gaining Earned Recognition accreditation. Under the voluntary scheme operators have to demonstrate compliance with nine key performance indicators. In return, operators benefit from a greatly reduced number of roadside checks and visits from enforcement officers. “We have just finished trialling a couple of the telematics systems and are now fully digitalised with Check Pro’s defect reporting procedure and maintenance records, so we are hoping to put in our submission by early next year,” Hutchinson reports. 32 MotorTransport
ground, I could see that the transport side was just an add-on – just a net figure on the bottom line of the firm’s P&L. “I had been trying to change the perception of the transport division for some time and so this gave me the opportunity to do so – to make it more of an innovative operation and make it much more part of the business and improve service levels.” With just three months to implement the new system, the partnership set about reviewing the entire supply chain, focusing on collection and delivery schedules, product categorisation, sales profiling and production output.
Project teams
Project teams with members from both businesses were set up during January 2014 to work together to develop a logistics solution. Meanwhile, a new distribution hub was built in Halifax, which was to become the heart of the partnership, allowing effective liaison between the two organisations. As the April 2014 deadline loomed all teams attended regular project meetings, with operational teams kept abreast of key dates and performance and staff kept in the loop via regular communication bulletins. In addition, supervisors and trainers were appointed from various parts of the business to ensure a smooth transitional period and support the delivery of the new logistics strategy. This was supported by daily planning and operational conference calls between Leo Group and Haulage Holdings key stakeholders. One of the first tasks under the contract was to transfer over the drivers to Haulage Holdings under Tupe regulations and switch from a manual to a digitalised transport management system to better monitor and manage driver hours. With major changes planned to the collections and deliveries made to Leo Group production plants, customers and suppliers under the new strategy, Hutchinson knew it was paramount to involve the drivers in the process. “It was a substantial change – we had group briefings for all drivers explaining the fundamental changes to the business,” he explains. “Up until that point there had been no clarity in terms of the collecting process by category and no waving profiles for different types of 25.11.19
Sponsored by
Murray Ellis, director (second right) of sponsor the Commercial Vehicle Show, hands over the trophies to James Hutchison, business unit director (second left) at The Haulage (Holdings) Organisation and Ben Sowersby, MD of Leo Group member Bell Truck and Van
product. While the group understood the quality of the product coming in, they had been unsure of how to succeed in improving that in terms of logistics.” The solution was to introduce timed deliveries and the categorisation of products, which quickly saw a net improvement in the quality of the animal by-products being picked up from the abattoir and delivered to Leo Group’s processing plants to be processed into pet food, tallow oil, poultry oil, cosmetics and renewable fuel for power stations. “Obviously animal by-products are a very volatile product and can be affected by the weather, for example. Before the partnership there had never been any timed collections from the abattoirs – they could be made anytime between when the abattoirs shut at 10pm and when they opened at 6am and that delay had affected the quality of the product and how it is processed,” says Hutchinson. After speaking to all of the operators of the abattoir collection sites to explain the benefits of the new collection profile, the partnership narrowed down the collection time down to a one-hour window. “We also had to bring on board the production teams at the processing plants who had been used to vehicles arriving at the plant and being told to just park the trailers up. We explained the benefits of this new concept to them in terms of how the product would arrive in a smoother flow, how they wouldn’t have to park as many vehicles up and how they could man the plant more efficiently,” Hutchinson recalls.
Product quality
In addition, staff from both businesses also visited customers and abattoir sites to help gain a greater knowledge of product quality, so they could better understand the need for time constraints in relation to collections, route to factory and the need to optimise driver hours. 25.11.19
The revised collection schedules have made a marked difference, with lead times reduced in some cases by up to 24 hours and most produce from abattoirs collected by the end of the production cycles to ensure the quality and freshness of the product.
Fleet investment
Since 2015 the partnership has also made major investments in its fleet, which consists of around 85 trucks and 300 trailers. A £5m refreshment programme has funded the development of new trailer designs to tackle the issues of leaks, spillages and odour. “Our technical experts in the transport team worked with our trailer supplier to develop a new style of trailer. It took almost 18 months to come up with the new design, which has made a massive difference to collections. “The trailer has a sealed unit, which deals with the issue of spills and leaks and odour – a common problem in our industry because of the volatility of the product. And it is much more user friendly and hygienic for our drivers as it works on automated closure,” Hutchinson explains. Leo Group’s purchase of Mercedes-Benz franchise dealership Bell Truck and Van in June 2017, which runs six sites in the north-east of England and Scotland has also enabled the partnership to open a dealership branch on the Halifax site, giving Haulage Holdings access to an in-house repair and maintenance facility. The group has also installed a new MoT lane at Halifax and an automatic vehicle wash that incorporates a wash water recycling plant to ensure the fleet is kept to a high standard of cleanliness. So what’s next for the partnership? “We have no plans to stand still,” says Hutchinson. “We are looking at extending our relationship with customers where we can expand into the haulage side and looking at a reverse logistics plan to reduce empty running.” ■ MotorTransport 33
MT Awards 2019 winner profile Safety in Operation Award
Safety in numbers UK fuel distributor Greenergy Flexigrid broke the mould when it brought its haulage operation in-house and established a new ownership model for drivers. It also drove the company’s award-winning approach to safety.
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aking the decision to bring your transport operation in-house is never an easy one and there are compelling reasons not to do it. But in 2012 wholesale fuels supplier Greenergy had a vision to in-source its haulage work in order to achieve greater visibility of its haulage operations, improve operational performance and better control its customers’ experience. The move has also led to it winning the MT award for Safety in Operation 2019. Adam Franklin, CEO of Greenergy’s transport division Flexigrid, says: “The start of our journey was Greenergy taking the strategic decision to take control of its own distribution. “It was clearly a big step change to choose to move into that space, but Greenergy is always prepared to make bold decisions.” Today, Greenergy Flexigrid runs a fleet of 133 tankers, but having this control was just one step in an overarching strategy to change the way employees thought about the company and make them invested in how it is run. An ownership model was established that gives drivers a 25% stake in the business, creating a collaborative partnership that Franklin says encourages everyone working in the business to be open and honest with the
senior management team. “Giving drivers a real stake in the business means they have a level of identity with it,” he explains. “The success of the business is their success too. We encourage an open dialogue between our drivers and the management team. We want drivers to feel they will be listened to and that the business will work with them proactively.” Franklin adds: “When people make mistakes, we accept that – we are all human beings after all. But with the right culture and support, people feel comfortable in bringing things out in the open, so we can all learn from that information and improve our performance.”
Improvements
The safety improvements detailed by the company in its awards submission certainly impressed the judges. Since 2016, its reportable incident rate (RIDDOR) fell from 1.5 to 0.6 per 100,000 hours worked, with time lost through injuries plummeting by 75%. Hazard observations are cited as a critical measure of its safety culture – Franklin says this could be reporting a ‘near miss’, or a driver seeing something while at a customer’s site or on a piece of equipment; something that isn’t yet broken or defective – but soon could be. “It’s at the bottom of the safety triangle,” he says. “It’s
EASY BEING GREEN Greenergy began as a bedroom start-up in 1992 and has grown into an international supplier and distributor of transportation fuels, with fuel supply businesses in the UK, Ireland, Canada, Brazil and the Middle East. In 2012 it established Greenergy Flexigrid after in-sourcing its haulage operations and it can now provide fuel with distribution, distribution alone, or a combination of both to its customers in retail and commercial sectors. Its fleet is branded partly in Flexigrid livery, partly in Greenergy livery and partly in customer livery, enabling it to separate service provision from fuel supply. This year it bought Barnstaple-based William C Hockin (Tankers), which it said was part of wider plans to grow its long-distance operations. 34 MotorTransport
25.11.19
Sponsored by simply asks whether a situation is getting better or worse and when it became apparent that the contamination frequency was not going in the right direction, the issue was discussed with drivers. The answer? Implementing a minimum 50-minute dwell time. “What was driving this was a combination of factors, but usually it’s people rushing a bit, taking their eye off the ball and not following a process that’s there to ensure they don’t make a mistake,” Franklin explains. “Now we have a minimum dwell time on each delivery, which we police, so drivers are not rushing off to beat their times. We encourage them to take their time, use their time on site wisely and not place themselves under pressure.”
Contaminations
not safety critical and wouldn’t stop a job, but it’s something that we do need to put right. For example, a safety ,marker on a diesel tank that has been damaged.” But it’s what happens next that’s key to improving safety. “The culture underpinning that is really important,” he continues. “If you have people reporting things and nothing happens, then they will just eventually give up.” “As a result, I ensure everyone has my mobile number, to show them they have my support if they believe safety is being compromised. “I get more emails than phone calls, but it’s about knowing it’s there. It’s an important message: we are placing our trust in you. If you think something isn’t right, get in touch with me and we will make it right. “It works the other way too, so I will call someone about accidents, incidents or issues, but also to recognise the positives, thanking people for great performance.” Greenergy’s culture of open and honest reporting is augmented through a host of meetings, briefings and bulletins. Every incident, no matter how small, is emailed across the entire Greenergy management team and safety performance data is compiled into reports, which are then discussed and shared during weekly senior management team meetings. “We will pick out events and near misses and discuss them, so they are not being dealt with in isolation,” says Franklin. “We try to make sure everyone in the chain is benefiting from those learnings, and that there’s no part of the system we haven’t thought about and haven’t worked it through. “For example, if there’s an injury or an accident we will be thinking, ‘how does this resonate across the business? Do we have parallels? Does anyone have a view on this? Have you tried doing x, y or z?’” ‘Lesson Learned’ briefs and monthly safety bulletins are provided to all staff too: “We explain simply what has happened and what we all need to do about it. “Anybody can digest safety information if it’s provided in a manageable way. We make it simple to digest and meaningful.” One example of safety improvements achieved through open communication between management and drivers is delivery contaminations – basically, delivering the wrong product into the received storage tank. Franklin insists Greenergy does not set targets; it 25.11.19
VisionTrack commercial director Richard Lane (far right) presents the trophy to Greenergy Flexigrid CEO Adam Franklin (third left) with host Omid Djalili (far left)
As a result of this simple strategy, the average rate of contaminations has fallen from one per 16,000 deliveries in 2016 to one in 45,000 by the end of 2018. Drivers are audited and assessed to ensure the minimum time is achieved and retraining and coaching is provided as necessary. Risk assessments are also an important part of Greenergy Flexigrid’s safety culture. The company says it has made a significant investment in its safety, health, environment and quality (SHEQ) team, which is beyond what might be expected of other companies its size. For example, no delivery is made to a customer’s site without it being risk assessed first. “With 2,000 live sites, that’s a big commitment,” he says. “We visit each site to make sure we have all the relevant information and then set it out clearly and succinctly so it’s easily accessible for both schedulers and drivers. Our aim is to ensure they have all the relevant information to make deliveries efficiently and safely. “And ultimately, customers benefit too; it means you’re less likely to have a frustrating delivery.” And it’s not just Greenergy’s staff that benefit from all these initiatives, meetings and briefings. Franklin says information is sent out to its subcontractor network too and he says there is “an ongoing dialogue” between the company and its contractors: “It’s a work in progress – it always is – but generally we get good, positive engagement, particularly with smaller contractors as it enables them to up their game and improve their capability. “If you are doing your job safely then you are probably also doing it efficiently and providing a good service at a good cost.” ■
A TIDY RESULT A truly innovative, but very simple, approach to driving down the number of accidents was the introduction of Greenergy’s ‘Park Scruffy’ campaign. In 2017, the company identified that more than 50% of slow-speed manoeuvring (SSM) accidents occurred while a fleet vehicle was reversing. Park Scruffy encourages tanker drivers not to correct any parking that’s perceived to be imperfect, for one simple reason: “You introduce risk!” explains Franklin. “Customer sites and retail sites are often busy with members of the public,” he says. “The level of traffic at these places is much higher than 10 years ago. “We know that 80% of our non on-road accidents are due to reversing, so anything that introduces reversing introduces risk.” Encouraging drivers to accept their vehicle may not be lined up flawlessly, as well as the fitment of tail-guard reversing sensor systems, resulted in an impressive 42% reduction in SSMs in 2018. The next step, Franklin says, is the introduction of 360-degree camera systems on the company’s fleet. MotorTransport 35
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