Motor Transport 2 September 2019

Sharp ■ Informed ■ Challenging

2.9.19

NEWS INSIDE Harsh words

JOIN THE PRIDE

TC lambasts Aspray owners over financial standing p3

Port delays

No-deal Brexit could bring delays at ports, warns DPD p4

Hydogen heavies

They may be the future, but they’re still a long way off p6

OPERATORS INSIDE Aspray Tranport ............................................ p3 Bibby Distribution ........................................p34 Boels Rental ................................................. p4 CM Downton ................................................p18 Certas Energy ..............................................p38 DPDgroup ..................................................... p4 Hermes Europe ............................................p42 Maritime Transport ......................................p16

Clients and 3PLs report disparity A fifth of UK companies have reported an unsuccessful start to contracts with their 3PLs, according to research from supply chain and logistics consultancy SCALA. The research looked at contract start-ups and found that 15% of customers have experienced a service that was below expectation in terms of cost, deliverables or timing issues. Meanwhile, 5% said the relationship was poor and they experienced major problems.

SCALA surveyed a selection of the UK’s best-known businesses and 3PLs (whose revenue runs into billions and whose number of clients run into thousands) to ascertain companies’ satisfaction rates and areas of concern regarding the performance of their 3PLs. 3PLs showed an overly optimistic view of their performance, with 54% rating their contract start-ups as highly successful – on time, to budget and no service disruption – compared with 35% of customers with the same opinion.

Operator warns first-half profit will be significantly lower than forecast

Investor unrest as debt rises at Eddie Stobart

By Tim Wallace

Eddie Stobart Logistics (ESL) may be forced to seek a new injection of capital to ease investor concerns over mounting debts, an equity analyst has told MT. The company shocked investors last month when it suspended trading in shares and announced CEO Alex Laffey was to step down.

It has since also been revealed that ESL made it difficult for auditor KPMG to obtain “sufficient audit evidence” as it compiled the company’s annual accounts. This led the accountancy firm to resign as its auditor last November, triggering an investigation by ESL chief financial officer Anoop King that exposed a £2m hole in the accounts.

Dario Carradori, an analyst at Edison Investment Research, said ESL’s woes could now see “some form of fund raising” become inevitable as it looks to reassure investors.

Investors will also be concerned with the financial structure of the company. The leverage [level of debt] of the company was higher than the target at the end of 2018.

Carradori said: “ESL said EBIT is going to be significantly lower than expected, but we don’t know by how much. Depending on how much lower it is, the leverage will change. Leverage is usually calculated as net debt divided by earnings. ESL said the earnings will be lower in the first half of the year so the debt ratio will be higher and a key focus for investors.”

Asked how the situation might play out, Carradori said ESL would have to give feedback to investors on its accounting revision and ensure they are happy with the review. “They have to ensure this is it and that there will be no more revisions,” he said. “And they have to understand whether the financial structure requires adjustments or if other actions are needed.

“There are various things a company can do when debt is excessive. They can either try to reduce it with cash-flow generation, or a company with an excessive leverage will require a capital increase. The implications for ESL will depend on the announcement in September.”

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Warehousing p12 Marketplace p16 Fleet optimisation p30 Camera technology p32 Lubricants p36 MT Awards winner profiles p40, 42

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GOOD CUT: The haulage industry gave a warm welcome last week to reports that prime minister Boris Johnson is planning to cut fuel duty for the first time in nine years. The cut, which could be as much as 2ppl, is part of an emergency budget planned for 4 September, according to the Sunday Times. Fuel duty has been frozen at 57.95ppl since 2010 and is estimated to bring the Treasury £9bn a year. FTA policy director Christopher Snelling said: “A cut would stimulate the UK economy while mostly paying for itself as the government would get more tax from other sources. Fuel duty is a blunt tax that does little for environmental purposes, as there is no alternative to diesel in the mass market.” Howard Cox, founder of campaign group FairFuelUK, said the cut would reduce inflation, prices in the shop, increase tax revenue and support hard-pressed hauliers during the Brexit upheaval.

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Not enough cash for Poundworld creditors Companies owed money following the collapse of own account operator Poundworld Retail may receive only a fraction of the estimated £204m owed to them after the administrator said there was just £600,000 available to distribute.

In a progress report from Deloitte marking a year since negotiations with potential buyer R Capital ground to a halt, the administrator said secured creditor Santander would not be paid in full either. In addition, second line secured creditor Titan Atlas Holdings would not be repaid any of the £19.8m it is owed in respect of capital introduced into the beleaguered business in February 2018.

The retailer had a fleet of 75 vehicles and 140 trailers and delivered to 335 stores, but it struggled with the falling value of sterling, weak consumer confidence and competition in the sector.

Due diligence on financial standing must have been clear to directors

PASS THE PARCEL: Whistl’s strategy of focusing on the parcels delivery sector appears to be paying off after the distribution firm said the 2019 peak period was stacking up to be its busiest on record.

In last year’s annual results, Whistl said the mail market was dwindling and that its ability to offer a range of services, from mail to parcels to fulfilment services, would protect it from stagnating letter volumes. It added that it had strong opportunities to boost its parcel market share because of the e-commerce boom. In 2018 it invested in new parcel sorting machinery, enabling it to handle greater numbers of parcels. Whistl, which has its headquarters in Marlow, also said that within its core downstream access business mail division, the company had renewed contracts with Barclays, Tesco, SAGA and E.ON, as well as Cell Signal and OTM. It also won retailer Next, store card provider NewDay Cards and financial services company Close Brothers.

2.9.19

TC rejects Aspray’s plea to surrender O-licences

By Carol Millett

An 11th hour plea by the new owners of Aspray Transport, days before it went into administration last month – that its O-licences be surrendered rather than revoked, to avoid negative connotations – was rejected by traffic commissioner (TC) James Astle.

The TC said due diligence “must have been abundantly clear” that the firm had insufficient funds to qualify for the licences.

Willenhall-based Aspray Transport, the delivery arm of Aspray Group, operated a fleet of approximately 190 trucks and 170 trailers from 13 depots across the UK. It went into a CVA in April, a month after being acquired by Bushell Investment Group, which also owns BIG Property Finance, a short-term loans specialist.

As a result, the company was requested to attend a public inquiry (PI) held by Astle on 5 August at which it was informed its eight O-licences were likely to be revoked on the basis of the company’s financial standing.

Following the PI, according to the TC’s final written decision, the company emailed the TC requesting it be allowed to surrender the licences on the grounds that it had inherited rather than created the company’s financial problems.

The company argued that it would be “unfair to tar the current directors with that brush”, which could create “negative connotations” in the press and among third parties. The TC rejected the request on the grounds that “it must have been abundantly clear” to the present directors and shareholders, during “any vestige” of due diligence enquiries ahead of the purchase that the operator “could no longer fulfil the requirements of financial standing or was unlikely (to) in the near future” and therefore the new owners “must or should have been aware of the inevitable consequences”.

However, the TC granted the company’s request that the revocation take effect on 31 August “to allow what (the company) calls ‘an orderly run-down’ of the business.”

Despite negotiating a deferred payment agreement with HMRC, to which it owed £1m, in November, lower than anticipated activity in January this year and a failed attempt to raise funds finally led the owners to sell the company to Bushell Investment Group on 5 March.

A spokeswoman for Bushell Investment Group said the new owners had made “huge efforts” to address the company’s financial problems. “Unfortunately, given the company’s debts and the broader economic challenges in the market, these efforts were unsuccessful,” she said, adding that these factors combined with the TC’s decision to revoke the O-licences “left us with no other option than to appoint administrators to Aspray Transport”.

“We are desperately sad for employees and customers of Aspray Transport,” she said, adding that the majority of the 449 staff had found employment within the past month, with 20 finding employment in the group.

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BOEL-ED OVER: Boels Rental has taken delivery of a further five Isuzu 7.5-tonne N75.190 (E) rigid trucks after an initial batch of six vehicles last year. Boels ordered the beavertail-bodied trucks after adding heavier products to its range recently. Boels Rental commercial director Jim Field said: “Changing our product portfolio meant we needed larger GVW trucks. After conducting a review of the market, we felt the Isuzu 7.5-tonne rigid had the best reputation for payload and reliability. The first six Isuzus went into service and we have been rewarded with excellent reliability, superb payload capacity and, as a bonus, we have found that fuel efficiency has been significantly better than expected.” The vehicles are expected to work for seven years and will cover approximately 35,000 miles a year. The company has also ordered two Isuzu 7.5-tonners for delivery later this year.

DPDgroup admits uncertainty has led to ‘signifcant’ decline in business

Port delays warning in no-deal Brexit scenario

By Steve Hobson

DPDgroup UK has warned that the uncertainty of a no-deal Brexit could cause delays and disruption to incoming freight.

“This has been a real problem for the past two years,” marketing director Tim Jones told MT. “A lot of customers have relocated in central Europe. That has lost us a significant amount of international business, and no doubt other international carriers have been affected by this trend. We’re seeing customers react to it, moving sheds and operations to the continent.”

International accounts for 20% of DPD’s revenue and is an important market for the group, he added.

He also warned that a no-deal Brexit could cause massive delays in parcels getting into the UK and planning for this situation has already cost the firm dear.

“Our biggest fear about Brexit is crashing out with no deal,” Jones said. “This will cause delays and disruption, which nobody wants.

We’ve invested £250,000 in a bonded warehouse, and it may never be used for its intended

purpose. That is a problem for us caused by Brexit. That has a finite amount of capacity and if huge numbers of parcels inbound from the EU have to be held there while taxes are collected it will quickly become full. This means we have had to invest in further contingency planning.”

But Culina Group CEO Thomas van Mourik took a much more sanguine view of a no-deal Brexit.

“There may be disruption at the ports – maybe a few days or weeks – but the UK logistics industry will cope,” he said. “It always does.”

Ford Trucks signs aftersales deal with TIP Ford Trucks has signed a deal with TIP Trailer Services for aftersales services in western Europe, but played down suggestions the move will bring the Ford name back to the UK, saying it is just an aftersales agreement to cover warranties and that a right-hand-drive F-Max is not being considered.

British investor I Squared Capital acquired TIP Trailer Services, formerly owned by US conglomerate GE, from China’s HNA Group in May 2018.

After establishing its presence in the Middle East, Africa, Russia and the Turkic Republic, Ford Trucks continues to expand with 4 MotorTransport

new dealers on the continent while accelerating efforts to increase the number of countries to 51 by 2020.

Following the international success of its F-Max tractor, which had its world premiere at the Hannover IAA show and won the International Truck of the Year award, Ford Trucks is looking to rapidly increase the number of service locations in western Europe Ford Trucks vice-president Serhan Turfan said the co-operation with TIP Trailer Services would “contribute significantly to our goal of continuous customer support” and “bring fruitful results for both parties”.

Network Rail urged to develop ‘coherent’ policy after near-miss A high-speed passenger train narrowly missed crashing into a 60-tonne HGV at a level crossing in Flintshire, prompting concerns about Network Rail’s management processes.

An investigation into the incident, which occurred in Bagillt in August 2018, found that the abnormal vehicle involved was given clearance to use the crossing without signal protection.

The Rail Accident Investigation Branch (RAIB) said a person assisting the driver of the articulated lorry, which was hauling a semi-trailer equipped with a large ram and loading crane and had a combined weight of 60.5 tonnes, was alarmed to see a train approaching and had to run off the crossing.

The train, a Manchester Piccadilly to Holyhead service, was travelling at 75mph and missed a collision with the HGV by approximately one minute.

The RAIB’s investigation concluded that Network Rail did not have a coherent or consistent level crossing risk management process for deciding whether a vehicle should be treated as large, low or slow-moving.

The RAIB’s investigation recommended that Network Rail should carry out a review of the way it managed the risk of large vehicle movements across userworked crossings equipped with telephones.

2.9.19

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Hanging fire on hydrogen heavies?

Nikola Motors; Hyundai; ULEMco

Hydrogen fuelcell trucks are undoubtedly the future, but they are still a long way off, it seems

By Selwyn Parker

The first of Hyundai’s hydrogen fuel cell-powered, heavy duty trucks will be put to work shortly on the roads of Switzerland in what promises to be a landmark date for the haulage industry in Europe.

Part of an order for 1,600 trucks that will be delivered between now and 2025, the vehicles will be leased out through H2 Mobility Switzerland, a consortium of refuelling stations, logistics and transport companies, in the opening wave of a bold vision for a Europe-wide, fuel cell-driven logistics sector.

Aided by increasingly stiff taxes and other financial penalties on diesel trucks, Hyundai’s grand plan is to build a base for the technology in Europe, followed by the US and other countries.

The giant South Korean manufacturer, which has been turning out fuel cell-powered cars for nearly six years, is a pioneer of the technology. In fact, Hyundai is practically betting its future on fuel-cell electric vehicles (FCEVs). By 2030, it expects to be rolling out around 500,000 passenger and commercial FCEVs a year. And Switzerland is where it starts.

“Hyundai expects to gain a foothold in Switzerland where the demand for fuel-cell trucks is expected to grow from a stiff nationwide road tax on diesel trucks,” H2 Mobility states. “This incentivises fleet operators to switch to zero-emission vehicles.”

Rolf Huber, chairman of leasing group H2 Energy, is extremely bullish, describing it as “an unstoppable momentum towards eco-friendly mobility for heavy duty trucks in Europe and beyond”.

In this, he echoes the views of Nikola Motors, the start-up American manufacturer known as ‘the Tesla of trucks’. The Arizona-based company is bold enough to predict diesel-free roads in Europe within a few years as combustion-engined trucks are progressively withdrawn.

In the meantime, other truck makers including Toyota (one of the first off the mark), Mercedes-Benz and Ford are exploring hydrogen propulsion while simultaneously

working on pure electric trucks.

But the next manufacturer to roll out fuel cell-powered trucks will be Nikola, which is within two years of putting trucks in showrooms. Initially, the trucks will be manufactured by Fitzgerald while Nikola builds its own plant.

So far it has an order book of 14,000 for its three models, including one designed for Europe, the Nikola Tre, which president Mark Russell said will have a range of 500 to 700 miles, depending on the load, and can be refuelled in under 15min.

“We’ll have 100 or so trucks in test production before 2022 when full production begins,” a spokeswoman said.

It costs nothing to put your name down for a Nikola truck, however, so the 14,000-strong order book may prove somewhat illusory.

More promisingly, brewer Anheuser Busch of Budweiser fame has made a firm booking for 800 Class 8 trucks, weighing at least 33,000 pounds (15,000kg), as part of its sustainability policy. And there’s undeniably a huge market in America where most goods are transported by heavy duty trucks.

Why hydrogen?

Hydrogen power is widely accepted as one of the cleanest forms of propulsion. The only tailpipe emission is water vapour, albeit heated. There is a significant climaterelated problem though: currently nearly all hydrogen is produced from fossil fuels. Although that’s changing, it will be some time before all hydrogen is derived from renewables, mainly because there’s not enough renewable energy to go around. Until there is, companies like Nikola, which will use solar power at its refuelling stations, will supplement supplies from the grid.

However that’s just the case for now. There’s a ferment of science going on in the labs as alternative technologies are developed for hydrogen storage. Just one promising development is ‘surface storage’ in which a kind of metal dust made of various compounds can be converted to hydrogen by adding water. ➜8 6 MotorTransport

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In July, another interesting development emerged when a research team from Lancaster University identified a method of making smaller, cheaper and more energy-dense fuel cell storage systems. Leading researcher Professor David Antonelli said: “We could see hydrogen fuel cell systems that cost five times less than lithium-ion batteries.”

Even more impressive, he foresees “much longer range – potential journeys up to four or five times longer”.

The technology of hydrogen fuel cells isn’t new, however.

They were used in the original space shuttles in the early 1960s and helped get the first men to the moon. However they were so expensive that it was years before the technology was applied to transport on terra firma.

Proving viability

Hyundai’s line-up shows that fuel cell trucks are viable.

Building on its experience with hydrogen-powered cars, Hyundai has equipped its trucks with two hydrogen fuelcell stacks driving electric motors. It’s a 190kW system with a range of around 400km, depending on the load.

There are eight large hydrogen tanks, mainly between the cabin and the rigid body.

The big question now is how hydrogen-powered trucks perform relative to diesels. Essentially, as long as there’s hydrogen in the tank, the truck will go. The electric motors are the same as those installed in electric vehicles. The difference is that the energy doesn’t come from a battery but from a fuel cell powered by hydrogen.

Hydrogen fuel cells are lighter than batteries but, because the motor is still electric, the trucks have more

horsepower and accelerate faster than diesel trucks – roughly twice as fast, in fact.

The virtues of fuel-cell trucks come at a high price for the moment, though. In the US, hydrogen fuel is currently subsidised; otherwise it would probably be priced out of the market. In Britain, hydrogen refuelling stations are indirectly subsidised by the government, which helps keep down costs. However the price of hydrogen is falling just about everywhere and will continue to. “Costs will change massively over the next few years,” predicts H2Powergroup’s head of consulting, Mike Dixon.

Overall maintenance costs are much cheaper, as they are for electric trucks, because there are fewer moving parts. Even brake wear is down because stopping power is boosted by the energy storage system, as in F1 cars.

High price

As for the cost of the trucks, the full price of Hyundai’s FCEVs is unclear because they will be leased. However in the US, Nikola Motors’ Class 8 rig is expected to retail for $375,000 (£308,000) when it goes into production in 2022, compared with $180,000 for the all-electric Tesla Semi with a 500-mile range. A comparable diesel truck sells for about $120,000.

The essential technology – the fuel cell – is steadily coming down in price. US-based Ballard’s latest module – FCmove, introduced in June – is a third cheaper than its predecessor. There’s no clear timeline in which fuel cell-powered trucks will achieve price parity with diesel, but, predicts Guy McAree, director of investor relations at Ballard: “Cost-of-ownership comparisons show fuel cell-powered buses coming down to comparable cost levels with battery-powered alternatives by 2020.”

Refuelling is similar to topping up with diesel or natural gas, and both simpler and faster than recharging a battery. Nikola claims a 15-minute refuel will take one of its trucks up to 750 miles, more than twice as far as current all-electric trucks.

But, as Ballard’s McAree pointed out, a lot of trucks work from base. “If the truck is part of a fleet that returns to a depot at the end of the day, then a single hydrogen fuelling station may be all that’s required,” he said. “Of course the challenge of deploying hydrogen infrastructure across a wide geographic area is still an issue to be fully addressed” (see panel, page 9).

FUEL CELLS NOT THE ONLY ROUTE Hydrogen vehicle convertor ULEMCo and its R&D partner Revolve Technologies say they have achieved “record breaking energy efficiency results” for a 100% hydrogen fuelled zero emission engine, with thermal efficiencies of 45% demonstrated for the Mega Low Emissions (MLE) Volvo FH16 truck demonstrator unveiled last year. This points to the realistic prospect of zero emission trucks running on 100% hydrogen using ULEMCo’s approach of adapting existing diesel engines to run on hydrogendiesel dual fuel, providing routes to quicker adoption of zero emissions hydrogen vehicles in heavy duty applications.

Unlike other hydrogen-fuelled vehicles, the MLE truck will use hydrogen to power the vehicle with a combustion engine rather than fuel cells and an electric motor. But there are none of the usual emissions from internal combustion engines such as unburnt fuel, particulates and carbon monoxide, and the NOx levels are immeasurably low.

ULEMCo believes that using conventional engines and existing truck designs, rather than the full transformation needed for electrification, the timeframe to the target of zero carbon emissions can 8 MotorTransport

be shortened significantly, at the same time dramatically reducing the cost for customers.

As a hydrogen vehicle can be refuelled quickly, fleet operators can also plan for similar numbers of vehicles to their current operation, rather than needing to increase fleet size to cover lengthy charging times for EVs. “These excellent results represent engine efficiency levels very similar to those seen with some fuel cell technologies,” said Amanda Lyne, MD of ULEMCo. “Combining these results with our knowledge of how to ensure the engine can operate over a wide performance curve – and with industrial grade hydrogen – gives us confidence in this approach.

Operators, particularly in heavy-duty applications, will have a truly cost effective option for very low-carbon and zero-emission driving in the future.”

ULEMCo has converted many vehicles from diesel to hydrogen dual-fuel, and these are in current service in the UK. The FH16 will be the first all-hydrogen example and with 300hp and 17kg of hydrogen on board, it will have a range of almost 300km.

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The arguments about scarcity of supply are pretty much exactly the same as for electric charging stations a few years ago. Not only has electric recharging technology improved rapidly, but coverage is widening in the UK and elsewhere in Europe. And Nikola is already working with an industry consortium on a worldwide fuelling network that aims to have 700 stations up and running in the US by 2028 that will produce their own hydrogen by electrolysis and store the fuel on-site.

History suggests the number of refuelling points catches up rapidly to satisfy emerging demand once the practicalities of a new form of transport start to sink in. If there’s money to be made, the transport industry rapidly responds.

FCEVs v BEVs

The relative merits of hydrogen-powered trucks and battery-electric ones are hotly debated, but the main issue comes down to range. “The [battery-electric] equipment we’ve tested has a range of 100 miles and that just won’t work for trucking,” Chris Cannon, chief sustainability officer for the Port of Los Angeles, the US’s biggest port complex, told the California Hydrogen Business Council earlier this year.

Working with Toyota, Kenworth, UPS and Shell, the port is part of a hydrogen pilot programme that is putting 10 fuel-cell trucks through their paces. They are fuelled by two Shell stations.

Ballard is one of the partners involved in the Port of Los Angeles trial. “In terms of trucks, our technology is embedded in 500 delivery vans in Shanghai that have been licensed. Over 300 of them are deployed and operating,” McAree said. “We are also powering several UPS delivery vans in trials in California. And we are powering the Kenworth drayage truck in the Port of Los Angeles.”

While batteries are admittedly becoming more ➜ 10

BUT WHERE’S THE PUMP? Almost by themselves, Shell and clean-fuel group ITM Power are developing a refuelling network in Britain for hydrogen trucks as well as buses, trains and ships – but there’s a long way to go, especially compared with other countries.

Currently there are six ITM Power-operated refuelling stations in the UK, with two more due to open soon at Gatwick and Birmingham. The price of hydrogen, which is sold in kgs rather than litres, is £10 to £15/kg, making it more expensive than all-electric and diesel. For comparison, a fuel cell-powered family car refuels for about £60.

The price of hydrogen at the pump is certain to fall in time. Most experts predict it will plummet by 70% in the next decade as more electrolysers – effectively on-site hydrogen-making plants – are installed and economies of scale work their way through the industry. And that can’t be fast enough for the International Energy Agency, a backer of hydrogen.

Earlier this year the IEA’s executive director Fatih Birol cited the absence of adequate refuelling infrastructure as a problem. “Hydrogen prices for consumers are highly dependent on how many refuelling stations there are, how often they are used and how much hydrogen is delivered per day,” he said.

However, like Hyundai’s arrangements in Switzerland, trucks will probably be leased in the UK with fuel included in the cost of the lease. Maintenance is much cheaper than for diesel trucks because of fewer moving parts. A bonus is that FCEVs of all types are exempted from the London Congestion Charge.

Germany is one of several countries, including Japan and China, that are way ahead of the UK in refuelling infrastructure. Germany had 70 stations in operation in mid-2019 and has another 30 planned in 2020. By 2025, according to the Federal Ministry of Transport, Germany will be covered by a 400-strong network. And Japan, which plans to run a hydrogen Olympics next year with fuel cell-powered buses, is aiming for 900 stations by 2030.

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powerful thanks to intense development in Asia and America, BEV trucks are nowhere near competing on range.

“Hauliers don’t want to have to stop every 190 miles for one or two hours to recharge,” said Dixon of H2powergroup. He believes that eventually, BEV trucks will be mainly used for shorter runs, for instance in cities, while fuel cell trucks do the long-haul work.

Hydrogen hybrids

In the meantime, the economies of scale are looking better for hydrogen. In Berlin, DHL Express has gone for an interim hybrid arrangement in the form of a fleet of electric delivery vehicles boosted with a fuel cell. Known as the H2 Panel Van 9 (right), the 4.5-tonne vehicle, with a cargo capacity of more than 10cu m and a maximum payload of over 800kg, will have a range of up to 500km, according to its manufacturer, Street Scooter. DHL expects to build up to a 100-strong fleet of the vans between 2020 and 2021. “With the H2 Panel Van, DHL Express becomes the first express provider to use a large number of electric vehicles with fuel cells for last-mile logistics,” said chief executive Markus Reckling.

In the next few years, most experts say that pressure will be brought to bear on diesel trucks and some of that will come from the world’s ports. That’s because they’re in the climate-change firing line.

According to the United Nations Intergovernmental Panel on Climate Change, coastlines (and thus ports) face a rise of up to 30in (76cm) in sea level, causing “catastrophic effects”.

That’s why, as the Port of Los Angeles’ Cannon points out, ports around the world will start charging hauliers and cargo owners that don’t use the cleanest technologies available. “We need to transition drayage trucks to near

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zero in the short term and ultimately to zero emission by 2035,” he said.

Clearly, this kind of talk puts an eventual deadline on diesel trucks. Under California’s clean-air action plan, for example, politicians are considering an accelerating phase out of diesel trucks, a measure that other states will be watching closely.

Closer to home, there’s a belated government push in the UK for the adoption of hydrogen that will include transport. “For heavy goods vehicles hydrogen fuel cells are the only viable option for the future,” predicted H2powergroup’s Dixon. “They are the only zero-emission option.”

So how long will it take? Dixon estimates up to 24 months before hydrogen fuel cell-powered HGVs will be on the roads in Britain. But the infrastructure, clearly, still has a long way to go.

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Drivers face new challenges in era of change

Why urban driving standard cannot come soon enough

By David Coombes MD, Skills for Logistics

We’re now two years into the Large Goods Vehicle Driver apprenticeship, and while we are seeing increasing uptake month on month it is still only scratching the surface in addressing the continuing driver shortage.

The UK is experiencing change at a rapid pace with growing legislation to help make cities cleaner, quieter and safer for the millions who live and work in them. Vehicle operators are under increasing pressure to ensure that their businesses are well prepared for the future to deal with clean air and low emission zones, restricted access and ultimately sustainable transport solutions.

With the dramatic growth of online shopping and the use of mobile IT equipment, the occupation has evolved into express delivery services. With the use of world-class equipment and software, drivers can now provide timed deliveries and collections to all. They must provide a high level of customer service and carry a lot of responsibility for their working day and delivery routes. They may be on foot using trolleys or required

to use a vehicle such as a pushbike, motorbike, van or lorry, which are all factors to consider. They must maintain excellent communication throughout the delivery chain from collection to delivery point and deal correctly with failed deliveries and returns.

In this city-centric environment we know that the professional driver will have to adapt faster than ever to diesel alternatives, understanding electric power train driving techniques, and finding the increased awareness needed to cope with ever more urban congestion.

An urban commercial apprenticeship standard with a category C licence attached, developing the knowledge skills and behaviours to deal with the demands of driving in the 2020s and beyond, seems like a very much needed and attractive proposition.

All apprentices will be required to gain and maintain all of the knowledge set out in this new standard, irrespective of their current or initial job role and duties, and that is particularly appealing.

From my regular dialogue with express delivery operators there is a high degree of interest in a specific ‘urban’ driving standard, so the potential numbers are there.

PhD opening in motion A PhD vacancy has opened at the University of Lincoln School of Engineering (UK) under the supervision of Prof Tim Gordon in collaboration with Volvo Trucks in Sweden. The project will conduct research in the areas of motion planning and motion control of road vehicles.

“This is a unique and exciting opportunity to further a career in modern vehicle control engineering,” said Leon Henderson, lead engineer with Volvo Group Trucks Technology. “The project team includes academics and industrial experts, and team-working is an important part of this project.

“The research will assist the development of future generations of computer-controlled trucks, which will demand the highest 2.9.19

possible levels of performance, safety and energy efficiency.”

The ideal candidate will have an interest and experience in vehicle dynamics and control, and a background in optimisation and optimal control methods will be an advantage. The basic research will take place at the University of Lincoln’s City Centre campus.

The PhD also includes time in Gothenburg, Sweden, where the Volvo team is based, working in a team of experienced professional engineers, with the opportunity to implement research results directly in test vehicles. The research also includes periods of track testing, both in the UK and Sweden.

■ For more information go to jobs. ac.uk/job/BUJ721/phd-in-motioncontrol-for-future-trucks.

MotorTransport 11

Focus: warehousing

motortransport.co.uk

Long-term efficiencies of supply chains are focus for occupiers with take-up higher than average

Brexit fails to dampen upgrades Warehouse occupiers, led by retailers and 3PLs, are pushing ahead with plans to upgrade their networks, despite the political and economic uncertainty.

Property experts say that, while operators may have contingency plans in place for Brexit, they are focusing more on the long-term efficiency of their supply chains.

Knight Frank head of national logistics and industrial Charles Binks said: “Many companies have reached a point where they can’t continue keeping their plans in abeyance.”

Despite caution among manufacturers and foreign-owned businesses, others are continuing to take space. This has not been down to the need to stockpile which, he said, has largely been catered for by space within retailers’ and manufacturers’ warehouse networks and those of their 3PLs. According to Savills’ ‘Big Box Briefing’ report, take-up of buildings over 100,000sq ft reached 16.1 million sq ft in H1, 28% higher than the long-term average. The figure for Q2 of 9.6 million sq ft was the highest Q2 take-up since 2014.

Richard Sullivan, national head of industrial and logistics at Savills, said that while Brexit preparations including stockpiling have hit the headlines, most companies are motivated by other factors. “We believe Brexit has had little effect thus far on occupier demand and activity and there are instead more important factors driving the market, such as structural change in the retail sector,” he said.

Emile Naus, a partner of management consultancy BearingPoint, said that there is some stockpiling going on but that

the opportunities are becoming limited because of the time of year.

“It is much harder to do now than it was in March because October and November are the peak months for storage,” he said.

According to Savills’ research there are signs of increased activity among high street retailers, whose share of overall take-up has increased from 7% to 11%, in contrast to e-commerce, which has fallen from 27% to 17%. The 3PL sector was responsible for 31% of take-up – a higher proportion than any other sector.

PERFECT AXIS: Albion Land is to start construction of Axis J9, a 500,000sq ft distribution and manufacturing park in Bicester. The first two phases of the scheme, to be built speculatively, will be made up of units ranging in size from 3,400sq ft to 64,000sq ft, with completion scheduled for mid-2020. The third phase will consist of units from 100,000sq ft to 250,000sq ft, which will be built to occupiers’ requirements. Albion Land director Simon Parsons said the company is in negotiations with local, national and international companies.

“Bicester offers a strong, well-connected location, a ready-made workforce and significant combined rent and rates savings compared with similar south-east buildings,” he said.

Mixed bag for the Midlands as demand pick ups... slowly The Midlands – traditionally the powerhouse of the UK warehousing market – is seeing mixed levels of demand across different sectors, geographic areas and types of building.

Cushman & Wakefield partner Simon Lloyd said there was a slow start to the year but demand has picked up. “The market is a little quieter but there is still a lot going on. Enquiries are down approximately 20% year-on-year but that is mainly affecting the manufacturing sector,” he said.

The company’s ‘UK Logistics & Industrial Regional Outlook’ report for H1, which covers buildings over 50,000sq ft, found that in the West Midlands, take-up was 2 million sq ft, an increase of 22% on the year before but 11% below the 10-year average.

The two largest deals in the West Midlands were in Coventry, where Neovia Logistics took 172,000sq ft and Menzies Distribution took 169,000sq ft. In the East Midlands 12 MotorTransport

take-up of 3 million sq ft in H1 was down 17% compared with a record level last year. This was, however, 32% ahead of the 10-year average.

The largest deals involved US fashion firm VF Corporation, which signed up for a 579,000sq ft build-to-suit unit at Mountpark Bardon in Leicestershire, while Eddie Stobart took three units totalling 625,000sq ft being built speculatively by Panattoni in Northampton.

There have been sharp rises in availability in both parts of the

Midlands, partly due to an increase in speculative development.

According to Cushman & Wakefield, the West Midlands recorded a rise of 62% to 11.6 million sq ft in the 12 months to June, while the East Midlands saw a rise of 26% to 8.9 million sq ft.

Lloyd said that some of the development has been for smaller warehouses being built to meet demand. “That is reflective of the needs of urban logistics, just-intime and same-day delivery occupiers,” he said.

There are a number of largescale developments planned or under way across the region.

IM Properties, for example, has secured planning consent for 2.7 million sq ft of logistics and manufacturing space at Peddimore in Birmingham (left). The company is also working with Jaguar Land Rover to create a 2.94 million sq ft global parts distribution facility at J11 of the M42.

Meanwhile, at East Midlands Gateway near Castle Donington, online retailer Shop Direct (below) has completed external works at its Skygate development, which will accommodate 850,000sq ft of storage space.

2.9.19

Viewpoint

motortransport.co.uk

Stick to what you know best T Steve Hobson Editor Motor Transport

he big news this week – if like us at MT Towers you are bored of Brexit and the associated parliamentary shenanigans – is the suspension of Eddie Stobart Logistics’ (ESL) shares and the demise of Aspray Transport.

While the two companies have very different ownership models – ESL was listed on the Alternative Investment Market and Aspray had just gone from family to private equity ownership – their problems are symptomatic of the intense pressure the logistics industry is under.

As the MT Awards demonstrates year after year, there are many excellent examples of well-run, highly successful firms in transport and logistics, such as Haulier of the Year Culina and Home Delivery Operator of the Year DPD. They succeed by maintaining a clear focus and total determination to be the best at what

they do – sticking to the knitting, if you like – and operating at the highest efficiency to turn a reasonable profit from the rates available in the market.

Costs are on the increase, from driver wages to new trucks, but rate increases are hard to come by as customers face their own competitive pressures and economic uncertainty due to the B word.

One former Aspray manager sums it up very well: “The sector is littered with companies that are experiencing difficult trading conditions because rates have been driven down to unsustainable levels and customers have cherry-picked carriers for different freight types. The transport industry is a tough one; if you’re getting into it, make sure you know what you’re buying and have the right people around you who have the desire to make it work.”

Predictive telematics – are you ready?

A Andrew Overton CEO Connexas Group

dvances in connected vehicle technologies and the use of artificial intelligence (AI) are helping fleet managers use predictive telematics to improve driver behaviour and prevent at-fault collisions. But how far could they go and are fleet managers ready to take full advantage of them?

Telematics providers are demonstrating their ability to collect and report on vast amounts of data from vehicles in real time, including GPS speed and location, driving behaviour information and fuel usage. Armed with this data, managers can deliver efficiencies by changing driver behaviour and improving safety standards.

The latest in advanced driverassistance systems camera technology is a perfect example of where machine learning is being used to prevent road incidents. Using AI, these cameras can detect potential safety hazards, such as lane departure, mobile phone usage or the driver falling asleep, and alert the driver and fleet manager in real time.

Taking this a stage further, Turners of Soham, which runs a fleet of more than 1,850 trucks, is piloting an driver coaching solution developed by the

14 MotorTransport

Connexas Group, named HD CAN (high-definition CANbus). This technology can deliver essential, realtime, road-specific feedback to the driver to assist in improving driving behaviour.

This experimental telematics solution gathers data more frequently than standard telematics technology. Using custom-developed algorithms it can define the optimum driving standards for each road segment across the UK. This can be used to predict driver behaviour and coach the driver.

For fleet managers, there is an opportunity to use advanced telematics to drive continuous improvement and deliver value. Instead of relying on data-based insights to inform weekly de-briefing sessions with individual drivers, they could be using it to coach drivers whilst they are on the move – realising efficiency gains more quickly.

The key to success lies in looking forward and working with a telematics solutions provider that is willing to push the boundaries.

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 Richard Bennett 07889 823060 Tim George 0755 7677758 Classified and recruitment advertising rtmclassified@roadtransport.com Head of sales Emma Tyrer 07900 691137 Divisional director Vic Bunby 2121 Head of marketing Jane Casling 2133 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.

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Marktplace news

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Renault Trucks’ £3.5m investment in RH Commercial Vehicles boosts group’s presence in area

RHCV Notts reaches customers Bruno Blin, president of Renault Trucks, said the new £3.5m RH Commercial Vehicles (RHCV) centre in Nottingham will be important in helping customers reach success in their business.

Blin’s statement came after visiting the branch with Carlos Rodrigues, MD of Renault Trucks UK and Ireland, following it becoming operational in June.

“RHCV’s site opening marks a successful year for the team and it was great to see the site and the significant investment they have made,” said Rodrigues.

The site will be pivotal in helping RHCV support current and new customers, he added.

Located 3 miles from junction 26 of the M1, the site was developed over 12 months as part of RHCV’s strategy to boost accessibility and to enhance the group’s presence along the motorway. It operates alongside branches in Northampton, Alfreton and Leicester.

RHCV MD Nigel Baxter led the tour, alongside commercial director Paul Pearson. As well as talking to team members, they met customers Justin and Ashley Sherwood, directors of Sherwood

Group, and John Matthews, MD of Allegro Transport.

Baxter said: “It was a privilege to welcome Carlos, Bruno and some customers to the site. Not only did they get to view the new

and enhanced facilities, such as the workshop, an ATF lane, paint booth and tacho-rolling bay, they chatted with employees who were instrumental in the success of our operation over the past few years.”

STC adds new stock to fleet

MONEY TALKS: Maritime Transport’s new Maritime Intermodal rail freight business, created in April, is set to benefit from the purchase of five new empty container handlers and five new reach stackers from Sany. Supplied

by Cooper Specialised Handling, the equipment will be based at a number of Maritime sites including its terminal under construction at East Midlands Gateway. The site, which is due for completion in November, will get three second-rail reach stackers, while its Tilbury site will get two H9 reach stackers. The five single and double-empty container handlers will be spread across Maritime’s other terminals, replacing older machines.

Container Transport MD Tom Williams said: “This investment in equipment will enable us to continue to provide the most advanced logistics solution and reflects our commitment to upgrading our terminals and plant to support our growth and ambitions, and to meet customers requirements. We look forward to working closely with Cooper SH to achieve this.”

16 MotorTransport

Stockport Truck Centre (STC) is to stock new trailers to cut manufacturers’ lead times.

MD Gareth Hardy said: “We’ve never done new stock before but we’re going to put new stock into the trailer fleet because of lead times from manufacturers.

Customers are waiting 26 weeks, so have to order well in advance.”

STC will add fridges, curtainsiders and flat-bed trailers to its range of existing used trailers. The fridges will be from SOR, while the curtainsiders and boxes will come from SDC and Cartwright.

A stock of flat trailers are already available, following a trial that was prompted by a deal following a contract loss for a customer.

Hardy said there is a shortage of newer equipment, which means that even four- to five-year-old trailers are highly sought after.

“When you get something that’s four to five years old they don’t hang around long. I’m also hoping to be out of all the new 2019 stock by the end of the year. We’ll see how the sales go and will plan to have new orders coming in again for March.”

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Marketplace news

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Downton takes it easy with Tiger CM Downton is taking delivery of 100 new tri-axle curtainsided trailers from Tiger Trailers, bringing its Tiger fleet to 425 units. The EN12642-XL-rated trailers have been designed to meet Downton’s 7,250kg unladen weight requirement thanks to a revised neck design and circular cut-outs in the low-stress areas of the chassis beam.

Downton has been ordering trailers from Tiger since 2014 and was the company’s first customer.

The new trailers are the first to be built at Tiger’s new purpose-built production site in Winsford.

Zac Brown, operations director at Downton, said: “We are happy to continue our long-standing relationship with Tiger Trailers as one of the main suppliers of trailers. It

has a respected product and we’re expanding our fleet to meet demand from new business over the past few months. The partnership works well, with Tiger delivering bespoke solutions to ensure we have a fleet tailored to our national operational requirements.”

Downton’s new curtainsiders feature a front-mounted aerodynamic dome to boost fuel economy.

■ Tiger Trailers has partnered with Tata Steel to produce a lightweight trailer design using steel components twice the strength of the high-strength steel typically used in trailer chassis construction but without adding weight.

The manufacturer said the result is one of the lightest tri-axle clearspan curtainsiders available in the UK.

Premier Truck Hire gets into body-building Premier Truck Hire has opened a body-building facility at its Blaydon site, near Gateshead.

The new division to the business, which includes leasing, used truck sales, truck maintenance, short blasting and paintwork, started in June and has built four bodies on new DAF trucks.

18 MotorTransport

“We’ll build anything you want building,” said director Martyn Tailford.

“We expect to do mainly curtainsiders, box vans and dropsides, but we have a lot of experience in bin wagons, so really we can do anything. I think we will look to build this new part of the business

up slowly and maybe get to approximately 10 bodies a month.”

Previously a showroom for an Isuzu pick-up truck franchise, the Premier Truck Bodies workshop has undergone extensive renovations to accommodate the vehicles, including digging out more than 1m of concrete across the onceraised floor.

“We had a spare building and the choice was to either rent it out or do something to keep it in-house. We didn’t want to give away any more yard space – and we already get a good amount of business from manufacturers, doing a lot of paintwork for them – so it seemed obvious to start doing bodies for them.

“Now a truck can be bodied and can go straight in to get its paint work.

“Also, if an operator comes to us needing to hire something while its truck is in the shop, we can arrange that too while it’s in for its works.”

SO EFFICIENT: Keltruck has opened a 17,500sq m service facility in Lutterworth, which will double capacity and provide around the clock support for customer Asda. The site on the Magna Park industrial estate includes four workshop bays, parking for 26 trucks, a tachograph bay, brake roller testing and a wash bay. The site will operate 24 hours a day Sunday to Thursday with restricted opening on Friday and Saturday. While 90% of the 10 on-site technicians’ work is expected to be for Asda, Keltruck Lutterworth will also be servicing other operators’ vehicles and non-Scania marques. Keltruck regional general manager Graham Page “The Lutterworth site is important for customers as it will enable us to be more efficient.”

2.9.19

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Marketplace

standfirst here

Rolling out the red c Motus Commercials has invested heavily in expanding its network of DAF locations – not least at a new supersite in Gloucester – to ensure its customers are treated like VIPs. George Barrow reports

20 MotorTransport

T

he overnight rebranding of Imperial Commercials may have come as a surprise to most but Motus Commercials has already taken huge steps forward since its name change in July this year.

The Imperial name vanished, along with that of F&G Commercials, which although not struck from the record was acquired and absorbed into the group at the same time as the Motus name arrived.

The changes arose due to parent company Imperial Holding’s listing on the Johannesburg Stock Exchange (JSE) being changed, with Motus Commercials now becoming a division of Motus Group (UK), a subsidiary of Motus Holdings which will be listed on the JSE. A total of 29 DAF dealer sites now sit within the Motus Group, with three MAN dealers and franchises for LCV brands including Ford, VW, Isuzu, Fiat and LDV. Combined they sold more than 7,500 new and used vehicles in 2018.

Despite a change in name, there has been no change in ambition and investment within Motus continues.

“We’ve pumped a lot of money in to DAF dealerships in the UK,” Motus Commercials MD Matt Lawrenson explains.

“It [F&G] becomes our eighth operating region. It’s based neatly in and around our Stoke area and our Hull area.”

As well as the acquisition of F&G, Motus also opened a new Gloucester service centre during the summer, investing £4.75m in the 3-acre site. Construction took one year to complete adding nine HGV bays, with a drive-through inspection bay planned to be an ATF lane in the future, as well as an ADR bay, tachograph bay and

four LCV bays. There’s also an MOT bay for class 4, 5 and 7 vehicles as well as new offices.

The new DAF supersite will hold 6,000 parts lines – equivalent to £900,000 in stock – in its warehouse, and employ 30 staff with 16 technicians and two apprentices in the servicing department.

The sales team, with a salesman and sales manager, will sell into the Gloucestershire and Herefordshire areas as well as parts of Worcester.

“Gloucester is already a sales point for us,” explains Lawrenson. “That sales team will continue as it is an area where we are looking to expand, especially as we have a great reputation as a service provider.”

Taking charge

The increase in servicing capacity is part of Motus’ plan to play a greater role in their customers’ operating cycle.

Lawrenson says he wants to be in charge of his customers, not just sell them something and send them elsewhere for support.

That is why Gloucester will operate 24 hours a day from Monday to Fridays with a half-day shift on Saturday between 6am and 1pm.

Speaking at the opening of the new Motus Gloucester site, DAF Trucks president Harry Wolters said: “It is very important in the UK market to be a really reliable strategic partner embodying all aspects of the business.

They [Motus] truly understand what it takes to serve our customer and if you’re the strongest dealer in the strongest market, you must be doing something well.”

Clearly impressed not only by the site itself but by the continued investment by Motus in its DAF dealer network, Wolters went on to say that the new site will become the 2.9.19

motortransport.co.uk

Motus Commercials MD Matt Lawrenson (top) says the new Gloucester supersite will help the firm expand its sales activities

d carpet

benchmark for all other sites in the UK to aspire to, although he did point out that drive-through bays would have been “the icing on the cake”.

Unfortunately for Motus, the size of the site meant that this simply wasn’t an option. Lawrenson says that drive-through bays would have meant sacrificing customer parking, something that the company really didn’t want to do.

“We don’t just build new service centres and leave them,” Lawrenson comments. “We invest and refurbish them, we invest in apprentices, we build for the future, investing and looking for growth. We’ve got the same service excellence ethos running through the business which is that our customers come first.”

With more than 3,500 service hours per month expected to be carried out there, Gloucester will be a busy site for local operators and will also play an important role in new vehicle sales, holding demonstrator models of LF and XF trucks.

While used trucks won’t be housed at the site, Lawrenson says the team at Gloucester will still be able to cater for demand and already enjoys a high number of retained customers on both the new and used sides.

VIP focus

The investment in Gloucester, as well as across the Motus network, has customers at its heart so it’s fitting that Wolters’ final word eloquently sums up the new Gloucester site.

“The DAF badge on the grille should be a VIP card for every dealer he [the customer] encounters,” he says.

“If you look at the materials they chose here, it will stay like this for 25 years. It’s a VIP site for our VIPs.” ■ 2.9.19

TRAINING4TAILLIFTS “Tail-lifts are the largest single reason for vehicle downtime among most of the biggest fleets,” says Peter Glover, MD of Motus Vehicle Solutions, who has recently launched a business venture training technicians on tail-lift maintenance.

With a shortage of technicians in the industry, Glover says that tail-lifts across the sector are beginning to suffer, which prompted him and registered tail-lift consultant with the IRTE, Grant Williamson, to launch training4taillifts. The result is an accredited qualification in Vehicle Tail Lift Maintenance and Inspection from awarding body EAL, which is approved as a Level 3 qualification – the equivalent to an A-level.

The course involves 80 hours of learning time over three months, covering all aspects of tail-lift maintenance and examination. It includes weight testing, as well as knowledge assessments on each subject, with practical and theory sessions as well as a day of product training at the tail-lift manufacturers. In addition to training them on the products, the course is supported by a number of manufacturers that have provided equipment to the centre. There are seven rigs at the training centre in Burton Upon Trent, with tail-lifts from Palfinger, Dhollandia, BÄR Cargolift and DEL. There are eight candidates on each course, which training4taillifts hopes to put 150 candidates through in the next year. All of Motus Group’s tail-lift engineers should have completed the course by the end of the year.

Having taken the idea and created a course fit for the industry, it is clear that Glover and Williamson are passionate about tail-lifts, training and safety. They have three years to develop the course, its training and the standards it sets before other bodies can provide the qualification, by which time the pair hope it will have become a necessary and invaluable attribute for anyone working in the industry.

DID YOU KNOW? The parent company for Motus Commercials, Motus Group (UK), also has interests in &B Commercials, Orwell Truck & Van and Pentagon Motor Group with 119 vehicle franchise outlets at 73 locations under its control. Motus Holdings is the UK’s largest independent commercial vehicle dealer group and combined with its passenger car business it is one of the top 15 automotive dealer groups in the UK, with annual revenues of more than £1bn and nearly 3,000 employees.

MotorTransport 21

Fleet optimisation

Optimising optimisation How can you make your operation as efficient as possible? One answer could be smart algorithms to optimise fleet management

D

river training, cleaner vehicles, and sophisticated fleet management systems – as an MT reader, you are no doubt using all of these methods to make your transport operation as efficient and green as possible.

You probably invested in routeing and scheduling software and fleet management systems more than a decade ago and have enjoyed updates ever since. But truly, how well optimised is your fleet? And do you even talk about optimisation?

Professor David Corne thinks you should. As director of enterprise, impact and innovation at Heriot-Watt University and leader of its Intelligent Systems Lab, he develops “new ideas for solving difficult problems in optimisation and machine learning”. Perhaps most pertinently for MT readers, Corne works extensively with Trakm8 and Route Monkey on logistics optimisation.

Corne explains his definition of basic optimisation: “If you’re a fleet operator with 20 vehicles and 100 jobs in your depot that have to be delivered that day, there is an optimal way to decide which jobs go together in which vehicle and in which order – optimisation is the business of identifying this ideal overall plan.

“In the world of mathematics, this is technically referred to as a ‘hard problem’ – in mathematics and computer science, ‘hard’ has a technical meaning: a hard problem is one for which there is no algorithm that can solve it quickly. The algorithms that try to solve these problems do so through trial and error, making changes with each iteration and keeping the changes that provide a better outcome, effectively learning as they go.

“Unlike simple road routeing (the fastest way from A to B, that technically is an easy problem), scheduling (if you’ve got 20 things to do, in what order do you do them?) is hard. For a typical fleet, the number of potential answers that you’ve got to sift through is more than the number of atoms in the universe.”

Smart connection

Such algorithms are what Corne is an expert in. And using that expertise, along with his connection with Route Monkey, Corne co-authored a World Business Council for Sustainable Development report in 2016 that focused on the green house gas reduction that road transport could achieve via asset sharing and asset optimisation. The report noted that the benefits of alternative fuels and eco-driver training were well known, but that those of “optimisation… and asset sharing are either not known or the market does not yet offer ready commercial solutions to fleets”.

So far, so academic, you may say. But Corne realises this: “There’s been a lot of academic research, but I made sure I was looking at realistic data with realistic assumptions about vehicle capacities.”

Indeed, he reviewed real world data supplied by Route 30 MotorTransport

Monkey. The data encompassed 35 fleets ranging from five to 52 vehicles, drawn from a variety of sectors including recycling, furniture, foods, removals, waste collection, fuels, parcels, pharmaceutical supplies, healthcare and commercial cleaning.

Data for each fleet included a benchmark plan – reflecting what would have been achieved without highquality optimisation – and an optimised plan.

The percentage reduction in total mileage from benchmark plan to optimised plan ranged from 1.5% to 40.8% across the 35 fleets. The mean improvement was a noteworthy 12.5%.

Great improvements

Noting that, after “consideration of available evidence on take-up, the adoption of fleet management software does not necessarily correspond to its frequent use” and extrapolating DfT figures on the annual uptake in fleet management software since 2009, the report tentatively concluded that an alarming 85% of fleet operators had yet to adopt high-quality optimisation and benefit from that 12.5% improvement in mileage (and the significant resulting cut in fuel costs that drops straight through to the bottom line). Suffice to say, the more sophisticated your approach to optimisation, the greater the improvements can be achieved.

The World Business Council for Sustainable Development report establishes three tiers of more sophisticated optimisation – ‘asset sharing’ – starting with backhauling. Corne refers back to the report’s findings: “A modest asset-sharing model like backhauling can save 15% of cost, and is only being used by 20% of operators.”

Don’t mistake backhaul for simple return loads, however; Corne defines backhaul as “vehicle sharing via ‘matching’ of coincident light and heavy loads for selected

NEW IDEAS: Professor David Corne, director of enterprise, impact and innovation at Heriot-Watt University

EMPTY RUNNING: MISSING THE POINT? Surely reducing empty running is key to optimisation?

Corne’s answer is intriguing: “When I started on the World Business Council project, empty running was something a lot of the parties involved went on about – in order to reduce carbon footprint, a lot of people seem to have latched on to the idea of empty running as a bad thing that needs to be reduced,” he explains.

“I’m not saying they’re wrong, but’s it’s just one KPI. If you concentrate too much on reducing empty running, you might miss other opportunities to address the real KPI, ie carbon footprint.”

He reinforces his point: “Reducing empty running is not everything, just as reducing mileage or reducing the number of vehicles doesn’t mean you’ve optimised your carbon footprint. The best solutions to an overall fleet planning problem depend on how you define what is best. If it’s carbon footprint, for example, the solution will generally have a high level of utilisation, but it will have the lowest level of fuel usage. A vehicle carrying 100kg uses more fuel than a vehicle carrying 50kg. A little bit of empty running is acceptable,” Corne states.

2.9.19

long journeys”. The report sets out this more detailed definition: “When a truck has delivered a full load from A to B, ‘backhaul’ refers to the return trip, where the same truck would normally be travelling empty from B to A. Correspondingly, another loaded truck – perhaps from the same fleet, or owned by a different company – may be travelling from B to A. “The concept of matching backhaul with coincident loaded trips refers to replacing these two trucks with one. In the simplest case, our original truck would travel loaded from A to B, deliver the load, then reload with the contents of the matched truck, and then return to A. This may involve two empty trips between depots in the environs of each of A and B, however the overall reduction in empty miles will usually be extensive.”

Consolidation centres

2.9.19

What are the misconceptions about routeing and optimisation?

Professor Corne says: “Working with Route Monkey, we often find that when fleet managers start working with the software, they expect the planning tool to plan all the jobs – a problem that arises from that is once 150 jobs have been planned but two are unplanned, they ask why those two aren’t planned as if they expect there to be a specific reason. There may be a reason, such as there isn’t enough time in the day within the limits of resource and working time. But it could be that those two unplanned jobs could have been planned and therefore another two would not. An optimisation solution doesn’t give the very best answer (back to the technically hard problem), but it can supply good answers in reasonable time – it’ll be pretty close to the best. Optimisation software can’t apply the flexibility that manual planners can.”

Corne notes another misconception: that a slight change in input will lead to a slight change in output – this is not the case. A small change to the ‘rules’ encompassing the optimisation algorithm can lead to a big change in the optimisation result, he stresses.

and consolidation centres]. Instead, the notion is that we treat the combined resources as if they were those of a single operator, so that any vehicle in the combined fleet can serve any of the required deliveries, while the goods associated with both fleets are present at each of the depots. Essentially, this means that each fleet’s depots serve as a consolidation centre for the combined fleet’s goods, while the schedule optimisation task is able to ignore the ‘original’ affiliation of each resource.”

MT readers with long memories will recall a prime example of this in the noughties: United Biscuits Logistics’ and Nestle Group Logistics’ MT Award-winning project saw them continue to compete on the shelf but collaborate on the road and take nearly 300,000km off their total combined mileage in just 18 months.

The World Business Council report states asset sharing can deliver greenhouse gas emission reductions of between 7% and 30%, “depending on the degree to which operations are jointly optimised, and the number of independent operators involved in the alliance”. ■ Want to find out more? Don’t miss the next issue of MT, in which we’ll look into the challenges and the benefits of asset sharing in more detail.

Shutterstock

The second tier of more sophisticated optimisation is consolidation centres. The benefits of consolidation centres are well known and well documented but their take-up has been disappointing to date.

A DfT report published last year found three key reasons for the low uptake of consolidation centres: ■ the inevitable addition of an extra leg in the supply chain, which increases cost, and the unsustainable nature in the long term of public sector subsidies to offset such cost increases; ■ a lack of suitable locations; and ■ a lack of clean air zones to build the business case.

The current and future introduction of clean air zones and the government’s Road to Zero strategy will surely see consolidation centres gaining greater traction with major transport customers and operators. However, as the adoption of consolidation centres is subject to so many outside influences, Corne and the World Business Council report consider them no further.

The third and final tier of sophisticated optimisation is the holy grail, but it requires a leap of imagination.

“Joint optimisation of vehicles and depots, involving two or more fleets working closely together, sharing a large portion of their joint resources to optimise the service of their current delivery tasks,” says Corne.

Again, the report offers a more detailed definition: “Joint optimisation of vehicles and depots does not simply refer to combining the first two approaches [backhauling

SCHEDULING MISCONCEPTIONS

MotorTransport 31

Camera technology

motortransport.co.uk

Too close an eye?

The days when managers had no means of assessing a driver’s on-road performance are long gone. But does some employee monitoring overstep the mark? Louise Cole reports

32 MotorTransport

O

perators have more options for driver management than ever. Yet the comprehensive and sophisticated nature of the technological solutions available requires considerable thought. Not only must operators navigate a line between responsible management and compromising workers’ rights, but they also need to be able to act on the information their systems deliver.

The Office of the Traffic Commissioner says that operators should be aware of their responsibilities to road safety above and beyond the letter of the legislation: “Every employer is required to make a suitable and sufficient assessment of the risks to the health and safety of employees to which they are exposed while they are at work. Few operators appear to have performed a risk assessment in relation to fatigue, or indeed other road risks. Operators and their transport managers need to make management of road risk a priority.”

Guy Reynolds, commercial director of tachograph analysis company Aquarius, says the prevalence and power of new technologies raise the compliance bar for operators. “There is no excuse for operators not to be aware of issues or a lack of compliance,” he says.

Jemma James, commercial and marketing director at TruTac, says: “Driver performance should always be monitored and compared against legal compliance requirements. A poorly performing and badly behaved driver can easily become a liability and a serious risk to your O-licence and entire operation.”

But this isn’t straightforward. “Often, the more information you have, the worse a situation you can find yourself in,” says Mark Davies, director of road transport lawyers Backhouse Jones. “If you have the systems and the information, you have to deal with it.”

Operators must therefore tread a fine line between ensuring they do everything reasonable to safeguard road safety and making sure that whatever technology they put in place is properly introduced and utilised.

“Keeping on top of driver performance and education through live data gives an instant view of compliance,

infringements and potential risk,” says James. “Systems such as TruTac’s TruAnalysis provide instant analysis on key data and enable managers to quickly de-brief drivers and alert them to areas of concern.”

Davies says operators will not be held accountable for a lack of sophisticated telematics or cameras because they are not a statutory requirement. But many operators have access to data they never use. “I’ve seen traffic commissioners (TCs) criticise operators for not analysing speed data that they’ve had available,” he says. “If there is a collision, TCs and the DVSA will look at everything retrospectively. If your driver took a call, they will ask whether that call came from his employer. They are very alive to these issues.”

Contentious issue

One of the most contentious issues for fleet managers is how best to monitor driver performance on the road.

Telematics has proven itself as a way of measuring driving style, and lowering vehicle costs and collision risks with subsequent coaching. But the maturation of camera technology and the ability to store video in or rapidly upload it to the cloud have brought a powerful new capability to monitoring driver behaviour.

There are few issues around reactive dashcams and real-time driver aids, provided third parties’ images are not stored or used without their consent. And the arguments for driver-facing cameras are compelling, although their use is still contentious among unions.

Like all driver management technology, cameras achieve very little by themselves, but if their data is properly collected, analysed and acted upon, it’s very powerful. For many operators, surveying and analysing the footage themselves will be time-consuming and risk assessment takes training and objectivity.

However, with the correct resource, or third-party analysis providers such as SmartDrive Systems or Lytx, driver-facing camera footage can add context to the data provided by telematics or forward-facing cameras. It can show whether harsh braking, for instance, was ➜ 34 2.9.19

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Camera technology

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the result of distraction or simply excellent reflexes.

Many of the camera providers on the market offer a live-streaming function. This doesn’t mean, however, that all operators will choose to use this. David Morley, driver training and telematics manager at Bibby Distribution, says that although the fleet has had forwardand driver-facing Microlise cameras in its 500-strong fleet for eight months, “we have a very strong set of rules around their use. They do not live-stream and never will.”

Driver buy-in

MT has struggled to get a coherent union response on this issue, despite the fact that employee rights and driver buy-in are important and hotly contested in some cases.

From the background information we were provided with, however, it would appear that direct filming of drivers is their key concern – specifically real-time video streaming, which they deem to be intrusive surveillance.

Backhouse Jones director Steven Meyerhoff says: “There’s no absolute right to privacy, but the question becomes one of balance. The employer must be able to justify the use of CCTV.” SmartDrive Systems marketing director Penny Brooks says: “The issue is education. Video feels intimate and that makes people uncomfortable. And GDPR has given drivers a legitimate framework on which to base their concerns. Our challenge is to assure drivers this isn’t what we’re about. If camera footage isn’t highly selective, it’s inappropriate and not useful. Every piece of footage should be of use in educating or exonerating the driver.”

SmartDrive’s solutions only capture trigger-based events and do not live-stream. Some operators opt for continuous recording so they can later defend against historical claims, but Brooks insists this must have rules around its use. “A lot of companies do not want continuous recording but if they do choose it, it must have a rigorous framework. It cannot be watched randomly, but only with a legitimate business purpose.” She says drivers should be involved at every stage when cameras are used. They should be briefed on the technology, purpose and methodology before the cameras go live, be informed if a piece of their footage is reviewed, and told why.

Operators also need to have specific, named personnel authorised to watch such footage. Morley says: “We have a strict list of what reasons we’d pull footage for and those who are allowed to see it.”

Reasons for viewing include collisions, enforcement requests, subject access requests under GDPR, driverreported issues and specific high-risk events. “It’s very useful for harsh braking,” says Morley, “and that’s the most common reason to review. Generally harsh braking footage shows that drivers were following too closely or have poor observation.”

Driver concerns dissipate with understanding and familiarity, he suggests. “We pay for up to 72 HD 30-second clips a month per driver. That’s 36 minutes of footage out of 200 hours of driving,” says Morley. “We require all drivers to be A or B grade and after using telematics since 2016, almost 70% of our drivers are A. The truth is if you are an A or B driver, we’re probably never going to be looking at any of your footage. If you are a C or D driver, we certainly will be.”

PAY UP: Bibby Distribution typically pays for 36 minutes of footage per driver per month

FORWARD THINKING: David Morley of Bibby Distribution: no livestreaming of drivers

TOP TIPS FOR DRIVER RELATIONS ■ Always explain the function, limits and purpose of any technology to be deployed and the data captured

■ Make the justification clear to drivers, including the exact uses of the data, who will have access to it and how long it will be stored

■ Don’t change your mind about its purpose. Although some firms ask for

employee consent for specific additional uses, it’s a weak and problematic justification under GDPR ■ Have a plan for extracting the maximum road safety benefit. It is essential that management acts on what it can learn from such systems 34 MotorTransport

Exoneration also wins drivers’ approval. “The footage has exonerated a number of our drivers. Recently a motorcyclist came off his bike on a corner and although our vehicle stopped, the bike slid into the truck,” says Morley. “A bystander posted a photo on social media of our truck with the motorbike in front. The footage was essential to prove our driver was not responsible.”

Background discussions with a union representative who did not wish to be named highlighted the issue of whether operators had the right to monitor or reprimand drivers over behaviour that was not technically illegal, such as eating or drinking at the wheel. The union spokesperson indicated that operators’ greatest task in getting driver and union buy-in will be to demonstrate how coaching on non-optimal behaviours can lower collision risk and keep drivers and those around them safer.

SmartDrive data shows strong correlations between undesirable driver behaviours – even legal ones – and collision risk. It also shows that poor or riskier behaviours are clustered, with those who speed exhibiting other fundamental driving errors at a much higher rate than non-speeding drivers.

Equally, distracted drivers are unlikely to be distracted by just one item or activity – typically they show high distraction levels across the board, whether from smoking, eating or using the phone.

So is it acceptable to monitor drivers directly for evidence of behaviours that may not be illegal?

“Ultimately as long as the employer can justify it for road safety purposes, it’s absolutely fine,” says Meyerhoff.

“If a driver refuses to accept a camera in the cab despite this, then it can be seen as a refusal to follow reasonable work instruction and the employer can take disciplinary steps up to and including termination of employment.”

Fighting fatigue

The next wave of driver-facing cameras will monitor fatigue and distraction, with facial recognition software capturing prolonged blinking, direction of gaze and objects near or in front of the face. There are still some technical issues with such systems, as developers balance minimising false positives against the time a person’s eyes should be shut before they issue an alarm.

Any system that catches a driver on the point of microsleeping is clearly a last resort measure – ideally drivers should be working well within their physical and cognitive abilities.

Operators will potentially have two issues to solve then.

One is immediate, involving relieving the driver of his duty to finish the shift. If he is allowed to drive on, the operator would almost certainly be found culpable in the event of a collision. Secondly, they will have to investigate why the driver’s fatigue occurred, whether there is a risk of reoccurrence, how that may be prevented and any reasonable adjustments that may be needed.

One thing is certain: the cost of being a responsible operator and employer is rising, in terms of the technology now considered best practice and the resource it will take to manage the comprehensive and granular information it can provide. ■ 2.9.19

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Lubricants

Money down the drain?

With margins getting ever tighter, should operators invest in expensive modern synthetic oils or cut costs by using cheaper oils and shortening oil drain intervals? Carol Millett investigates

36 MotorTransport

2.9.19

motortransport.co.uk

O

ver the past few years, oil drain intervals (ODIs) have lengthened significantly, thanks in the main to the development of modern synthetic oils. OEMs in Europe recommend a maximum ODI of 100,000km to 150,000km, but given the additional cost of these engine oils, could operators save money and get the same results by using cheaper oils and draining more frequently? Or is this a false economy?

Giuliano Giovannini, IVECO’s medium and heavy truck product management director, believes synthetics are the way to go. “Although synthetic oil is a little more expensive than mineral oil, it is well proven that synthetic oil is better in resistance power and performance than mineral oil. Synthetic oil has a heat-resistant property and can withstand higher temperatures than mineral oil. To preserve engine functionality and avoid downtime costs, synthetic oil is definitely the right choice, specifically for long-haul,” he says.

John Comer, Volvo truck product manager, says operators who ignore new developments in modern synthetic engine oils do so at their peril. “Volvo Truck engines are built around the oil specification, quality, and longevity.

Huge investments and field trials are undertaken when developing an oil with our supplier. To comply with emissions legislation, maintain engine longevity and reliability, ensure acceptable service costs and protect the environment, it is imperative the correct oil specification and quality are used at all times,” he warns.

Adrian Hill, automotive product manager at Morris Lubricants, argues that shouldering a greater upfront cost means less outlay on expensive repairs and downtime further down the line.“Save a few pennies on the oil and be prepared to replace a £9,000 diesel particulate filter more often,” he warns. “If changing the oil more regularly means getting the vehicle onto the ramp more often because it doesn’t coincide with servicing, then it’s time and money being wasted.”

There are other hidden costs to cutting corners on oil, says Scania UK technical manager Aaron McGrath.

“Using a cheaper oil could require more regular monitoring of an engine’s performance via regular oil sampling, which adds extra cost,” he says.

Constant development

Rod Pesch, United Kingdom Lubricants Association (UKLA) technical director, points out that it is important for operators to recognise that lubricants are developing constantly to match increasingly sophisticated engine technology. “Modern synthetic oils are designed for extended drain intervals compared with the oils of yesteryear, but they also provide enhanced protection against wear for today’s modern engines that run on smaller sumps and at higher temperatures and pressures than previous models. Using an engine oil that has not been designed to match a vehicle risks accelerated wear to gears and bearings and, in the extreme, can lead to engine failure. Operators risk their investment in their fleets through using a sub-standard oil that has not been designed for the engine and may inhibit the effective operation of an exhaust after-treatment device like a catalytic converter or diesel particulate filter (DPF),” he says.

Russell Eaton-Palmer, business development manager at Certas Energy, has first-hand experience of the havoc cheaper oils can wreak on a fleet’s performance. He recalls: “One customer was getting the odd turbo problem that he thought was the norm, when in fact the problem was down to a carbon build-up caused by the cheaper lubricant he was using. By switching to a Shell Rimula product we saved the customer more than £40,000 across the fleet.

“The fleets we deal with are often 90 vehicles or more, so the cost of problems with DPF or turbochargers as a result of using a cheaper oil can soon add up, wiping out any upfront saving,” he adds.

2.9.19

Operators should also consider the fuel savings modern synthetic oils provide, says McGrath of Scania. “Newer high-performance lubricants like Scania LDF-4 not only improve component life through reduction in friction, heat and wear-and-tear, but also help improve fuel consumption.”

With EC legislation for HGV CO2 emission limits looming, OEMs are increasingly focusing on fuel economy to cut emissions, which in turn is influencing the development of the latest engine oils, says Richard Tucker, general manager of Shell B2B Lubricants. “The focus now is not only on using a high-quality lubricant but one that gives a fuel economy benefit as well, resulting in thinner oils. So whereas an oil specification of 10W40 might have been the choice in the past, a 5W30 will give a greater fuel economy benefit without compromising the oil drain interval,” he explains.

For a fleet operator this can cut fuel bills, calculates Martin Flach, commercial vehicles and alternative fuels consultant. “These oils are very low viscosity and ➜ 38

WAY TO GO: Giuliano Giovannini, medium and heavy truck product management director at IVECO, recommends synthetic oils for long-haul work

READING THE OIL RUNES Oil drain intervals can vary within a manufacturer’s recommendations, depending on the composition and operation of a fleet. One way to refine a fleet’s ODIs is to use oil sampling services such as Shell LubeAnalyst, which provides a detailed analysis of a fleet’s engines including test results, a diagnosis explaining the different values, tailored advice and graphs showing the trend for each test element.

Richard Tucker of Shell B2B Lubricants says the service is particularly useful for gauging the performance of mixed fleets and refining the ODI period by analysing the condition of the oil.

The global service also has access to data from thousands of fleets, which can be used to refine the results. “Shell’s lube analysis database is massive, so we can use a ‘big data’ approach to say what the typical conditions are for a customer’s specific vehicle,” he explains.

Oil sampling can also play a useful role in niche markets, says Rod Pesch of the UKLA. “For instance, in vehicles where long periods of idling might be required, with the engine running but no mileage recorded, oil analysis can help optimise oil drain intervals,” he explains. “Another instance might be where mileage is unusually low, where oil analysis can help optimise oil drain on a time period, rather than miles served.”

Russell Eaton-Palmer at Certas Energy believes oil sampling is invaluable when detecting the source of a problem. “It is not a common requirement from our haulage customers. However it can add value and provide a lot of information, particularly if a vehicle has an ongoing problem. We can monitor that with oil analysis and so we see it as a good diagnostic tool,” he explains.

Aaron McGrath of Scania UK argues that oil sampling is rarely necessary as long as operators stick to the OEM’s recommended guidelines, unless the operator wishes to monitor major component wear over time or is using a cheaper lubricant.“In these cases regular sampling may help identify problems early but will add more cost to the maintenance of the vehicle,” he advises.

MotorTransport 37

Lubricants

WITH 63 MT LOADS OUR TESTING IS TOUGHER

will give a reduction in fuel consumption of typically 0.5% on a long-haul operation. With 150,000km and 9mpg this would be a circa £250 saving on fuel.

“Add to that the labour and filters that you won’t need and synthetics make economic sense, at least for long distance,” he adds.

So if synthetic oils offer so many benefits, why are some operators continuing to ignore the evidence?

Eaton-Palmer of Certas Energy blames a lack of knowledge among operators, pointing to a recent Shell survey GOOD SAVE: that revealed only one in three fleet managers understood Russell how lubricants can help improve fuel efficiency, while Eatononly 50% of operators realised that different brands of Palmer of lubricants deliver different levels of performance.

Certas “We often find operators are not adhering strictly to Energy says the grades and specs that they should be using, mostly one customer from a lack of understanding about how quality lubricants saved can reduce the overall cost of ownership,” he says. “There £40,000 by is a vast bit of education to be done. The way we approach moving to a that is by getting to know the customer’s business so we Shell Rimula can offer changes that will make a difference, as no one synthetic oil is going to change what they do for change’s sake.” ■

TM

Owned or used under license.

38 MotorTransport

2.9.19

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DURON™ are the most durable heavy-duty diesel engine oils we’ve ever made. ACEA E6, E7 and E9 YLHK` ¶ [V WYV[LJ[ `V\Y Å LL[ OV^L]LY much you’re hauling, however tough it gets. Because tough is just the way we like it.

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PUSHING BACK THE ODI FRONTIER The maximum recommended oil drainage interval for trucks is between 100,000km and 150,000km in Europe, but a field trial involving Shell Oil, Daimler and ELKAWE, a subsidiary of German haulier BurSped, could see this limit significantly extended in the near future.

The trial, which began in September 2016, is delivering some remarkable results, achieving an extended ODI of more than 200,000km, which Shell Europe’s heavy duty engine oil specialist Frank Machatschek believes is a world first.

The trial involves four Mercedes-Benz Actros 2542 trucks, of which one is a reference vehicle. The four trucks all run two long-haul shifts a day.

The fleet’s oil drain interval is normally 120,000km. Fuel consumption is slightly above average, due to operating in conditions that are more demanding than the average long-haul operation.

The test trucks are using Shell Rimula’s latest API FA-4 5W-30 lubricant, which meets Daimler’s highest low-viscosity fuel saving spec, MB 228.61, while the reference truck is using the standard MB 228.51 engine oil. The trucks’ oil filters are changed at the same time as the oil drain intervals take place.

Following positive results from an intermediate engine inspection at the 200,000km point, the trial is continuing, with two of the trucks receiving oil drains after 230,000km and the third test truck booked in for its first change at 1 million km.

All four trucks also have regular oil analyses to evaluate the long-term performance of their engines.

Machatschek says: “We have yet to see the long-term effect on these engines but the results so far give us the confidence that our technology could help to significantly extend oil drain intervals.”

2.9.19

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MotorTransport 39

MT Awards 2019 winner profile Fleet Van of the Year

Sprinting ahead It’s both an old benchmark and a new one: the Mercedes-Benz Sprinter topped the rankings yet again in the fleet van category at this year’s MT Awards, with the latest version providing an unrivalled set of features

I LEADING THE PACK: the Mercedes-Benz Sprinter is the most advanced van on the market

40 MotorTransport

f there’s a sense of déjà vu as the Mercedes-Benz Sprinter takes the award for Fleet Van of the Year at the Motor Transport Awards, it’s because this is exceptionally familiar territory for the large German van. The Sprinter has now claimed the award for the 10th time, and continues to increase in popularity amongst our judging panel.

Despite missing out in the past two years to the Fiat Ducato (in 2017) and Peugeot Partner (in 2018), the Sprinter has remained a perennial nominee and has always come close to claiming the title even when it has lost. It is always the first model mentioned in any discussion during the judging and has become the benchmark

by which all others invariably are measured. It’s far quicker to list the reasons why the Sprinter is not eligible to win Fleet Van of the Year than to discuss why it is. From the enormous breadth of the range down to the unwavering development and support provided by the manufacturer, the Sprinter and its back-up define what an operator needs from a van.

Order restored

Collecting the award this year, Mercedes-Benz Vans UK head of fleet Andy Eccles said: “Order is restored. We’ve missed it for a few years and with a new vehicle on the market last year we needed to get back where we belong.”

To understand why the Sprinter has won again, it’s necessary to look back at why it hadn’t won since 2016.

The reason, though, is simple. The Sprinter has been in transition with a new model working its way onto fleets. That isn’t to say this award merely recognises a simple facelift, however. The Sprinter has undergone some fundamental changes. While Mercedes has been stubbornly rear-wheel-drive in its approach to the model until this latest generation – both literally and metaphorically – front-wheel-drive has been introduced for the first time, along with existing rear-wheel-drive and all-wheel-drive, and despite the radical change fleets continue to back the marque. From its strong offerings of engines with a 2.1-litre and 3-litre option to its four body lengths, three roof heights and numerous body types including dropside and minibus, the Sprinter appeals to just about everyone.

Our judges spoke highly of it for its leading technology, its consistently strong residual values, good reliability and excellent maintenance costs.

One judge summed it up by saying: “It’s the combination of the van and the network,” and few would argue with this. While the panel acknowledged the strength of the competition the Sprinter now faces, the Mercedes wins time and time again for its driver acceptance, backup and innovation.

Not only are mechanical innovations constantly being introduced, including the latest 9G-Tronic automatic transmission, but the Sprinter is also a pioneer in safety and total cost of ownership. Newly introduced during the last update are Adaptive Cruise Control and Lane Keeping Assist. While the latter, in our eyes, isn’t without 2.9.19

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its limitations, the added safety it affords a fleet is invaluable, ensuring that the driver, vehicle and contents remain safe.

In addition, features such as voice commands and the option of a large built-in screen to mirror devices to ensure drivers are not distracted from the road but can interact seamlessly with the vehicle to bring up navigation or scheduling information, as well as infotainment and telephone functions.

Rival products

There are instances of rival products performing individual functions better, but the Sprinter really is the complete package in bringing all these important features together in a way few others can match.

Unchanged and also of vital importance is, of course, the Sprinter’s faultless productivity. Choices have always been plentiful but, with the addition of front-wheel-drive, Mercedes has really levelled the playing field between it and the competition. Sprinter vans can transport up to 2.9.19

17cu m and a total payload of 3,175kg because the maximum GVW extends as far as 5.5-tonnes, while payload for a more conventional front-wheel-drive 3.5-tonne van exceeds 1,200kg thanks to a 50kg saving compared with the equivalent rear-wheel-drive model.

For multi-drop uses, an area in which the Sprinter has already become an established (if not default) choice, front-wheel-drive also means the added benefit of an 80mm reduction in rear loading height. Has the best just got better? We think it has, and the panel agreed.

“The body is solid, there are loads of variations, they can do most things: parcels, civils, supermarkets. It’s high on reliability,” said the judges.

The Mercedes-Benz Sprinter is, without doubt, the most advanced van on the market, but it’s also the benchmark to which everyone aspires. If the world did not have the Sprinter van to look up to, fleets would be poorer as a result. Its phenomenal record as Fleet Van of the Year is rightly justified and no more so than now, when competition is tougher than ever before. ■

WE’RE BACK: Andy Eccles (holding trophy), head of fleet for Mercedes-Benz Vans UK, accepts the award from Richard Gosling, sales director of sponsor Close Brothers Vehicle Hire (second right), accompanied by comedian Omid Djalili (far left) and MT editor Steve Hobson

MotorTransport 41

MT Awards 2019 winner profile Service to Industry Award

A force for change This year’s MT Awards recognised former Hermes Europe CEO Carole Walker’s determination to redefine parcels delivery across three decades of hard work

WOMAN IN LOGISTICS: Carole Walker, former CEO of Hermes Europe

42 MotorTransport

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fter 32 years in the parcels delivery industry, Carole Walker took early retirement from her role as CEO of Hermes Europe earlier this year, days before she was announced as the winner of the Service to Industry Award. One judge summed her up as “the most outstanding CEO I have ever met”, a sentiment echoed by the rest of panel of senior industry figures and previous winners.

Walker started out as a graduate with mail order company Grattan in 1987, becoming operations director of Hermes UK (formerly Parcelnet) in 2001 after completing her MBA. Three years later she was made MD and in 2009 took the top job of CEO after Parcelnet was rebranded to Hermes UK. In 2017 her success in the UK led to her being promoted to CEO of Hermes Europe, taking on responsibility for all the European logistics activities of the Otto Group.

Like many senior figures in the industry, Walker got into logistics “by accident”.

“I did a science degree in botany and came back home to Bradford and went to a careers fair,” she says. “Grattan was the largest private employer so I applied for a marketing job even though I hadn’t done a marketing degree.

The person I spoke to asked if I would consider anything else and I said ‘yes, just give me a job’ so I started in customer services and did that for two or three years.”

Grattan had a large warehouse at Listerhills that was not operating to maximum efficiency and Walker’s boss asked if she would be interested in helping sort it out.

“They were looking for bright people to come in and use their leadership skills to make it work, so I just went for it,” says Walker. “That was one of my learnings – any opportunity that came my way, I have gone for. I haven’t over-thought it or worried if I had the right skills – if I had a chance it was always ‘let’s go for it’.”

Walker spent the next eight years in warehousing before deciding she didn’t want to do that forever.

“I wanted some variety,” she says. “That’s when I decided to do an MBA. Without the MBA I wouldn’t have had the career I have had. It is about confidence and breadth of knowledge, but my story is also one of right time, right place, working hard and being willing to take the next step.”

Walker was a fierce advocate of the sometimes controversial model of using self-employed ‘lifestyle’ couriers for final-mile deliveries. “The best thing about Hermes is the couriers who do our doorstep deliveries,” Walker told MT in 2010. “They set us apart from the other home delivery companies.”

The flexible working allowed by Hermes enables people with childcare and other commitments to fit the delivery work around their busy lives; 35% of its couriers are women.

But generally logistics has not done a great job of diversifying its workforce, with women still under-represented in most roles.

“I have tried to encourage women in our industry,” Walker says. “The perception of HGV driving is still that it is a man’s job. Hermes does have women drivers but they are still very rare.

“Driving a truck can be fun and exciting but the facilities are poor and women do not think of it as a pleasant environment. So we have to make changes if we are to encourage people in. Maybe we don’t start with HGVs, maybe we start with vans and couriers where there are already more women.”

Walker said Everywoman and Women in Logistics do a “brilliant job” of celebrating successful women in the industry but believes employers have to do more to make it an attractive place of work for women and ethnic minorities. “We have been talking about the driver shortage for 10 years but having spent the last two years in Germany I can see how acute the situation there is,” she says. “It is having an increasing effect in the UK as well and to shut off a huge section of the population is suicidal.”

Job satisfaction

Hermes has won five MT Awards under Walker’s stewardship, including the coveted Customer Care category in 2012, as she transformed Hermes UK into a multichannel delivery solution with customer experience at its heart.

Looking back on her career, two things have given Walker the most satisfaction. “One is seeing so many of my team grow and perform,” she says. “In my 32 years I have seen people take on responsibility they would never have imagined and deliver fantastic results and I am deeply proud of what the teams I have worked in have achieved. I am a big fan of awards ceremonies and in every part of the business I have been in we had at least annual and sometimes quarterly awards, which often the people in the business voted for. It is so rewarding to see what people can do.

“The other has to be the development of Hermes in the UK over the past decade or so. When I started with Parcelnet in 2001 its turnover was approximately £120m and last year we turned over £750m. It has seen growth 2.9.19

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rates of 15% for the past six years or more – that was not just a one-off, it was year after year.

“Hermes has been transformed. It is now a digital and technology business and it is getting into the customer experience side. It has been hard work and there is no magic formula – it takes total energy and total focus every day for a lifetime.”

Colleagues were quick to pay tribute to Walker’s management style and dedication, describing her as firm but fair, calm, forward-thinking, inspiring, dedicated and a meticulous planner.

Kay Schiebur, Otto Group executive board member for services, also spoke highly of Walker. “In her many years working for Hermes, Carole has achieved extraordinary success. Her tremendous specialist expertise, and not least her strong personality as a leader, have enabled her to play a major role in shaping it.”

Her replacement as UK CEO, Martijn de Lange, paid a glowing tribute to Walker. “I’d describe Carole as strategic, utterly fair and very organised,” he said. “She’s very action-oriented and has always been close to the business, for both the operation and clients. Carole can potentially come across as tough and demanding at work, but only because she wants the best. On a personal level, Carole is fantastic fun to hang out with – she lives by the ethos of ‘work hard, play hard, and has been a great friend and mentor. I’ll be forever grateful for her support.”

De Lange acknowledged her pivotal role in making Hermes the successful third party home delivery operator it is today. “Carole has transformed Hermes from what was traditionally the operations arm of a retailer into the second largest delivery company in the UK,” he

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said. “She’s achieved this firstly through acquisition, bringing in two leading courier networks, then by taking risks to drive Hermes to multi-channel, creating successful platforms such as ParcelShops, International and myHermes (now our Hermes Send C2C arm).

“Carole was also with us at the start of our CX journey and has pushed us to become more consumer-focused.

She’s also truly shaped the culture of Hermes UK, leading our down-to-earth approach, our very Yorkshire attitude to commercials – that is, spend money like it’s your own – always being fair and working hard. Carole has been an anchor for the business whilst shaping our future, and it’s also clear that she’s been an important figurehead for the industry as a whole.”

Delighted

Walker was surprised and happy to receive the Service to Industry Award. “I never expected it,” she said afterwards. “It is fabulous recognition and I was so delighted.”

While she is now officially retired and enjoying a wellearned break she says she might be willing to play some sort of ambassadorial role to help promote logistics as a career, especially for women. “I am just a few weeks into retirement and after 32 years it is all about me!” she laughs.

“Around 12 years ago I spoke at a Women in Logistics event and a number of people said how much inspiration and courage they took from that. It was my personal story of where I had struggled and learned and been terrified, and also where I had succeeded. Women tend to feel they need more skills and capability than a man before they even apply for a job and my message was that if you have the right spirit, then just go for it.” ■

HANDS UP: Guy Reynolds, commercial director of sponsor Aquarius (second right), presents the Service to Industry Award to Carole Walker, accompanied by comedian Omid Djalili (far left) and MT editor Steve Hobson

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29/07/2019

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