Motor Transport 6 July 2020 by Motor Transport

Sharp ■ Informed ■ Challenging

6.7.20

Currie Solutions Group expands with its third purchase in 18 months

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Currie confident with Laser Transport deal By Chris Tindall

Currie Solutions Group has made its third acquisition in 18 months with the purchase of Laser Transport International. The asset includes a prime location in Kent, as well as hubs in NEWS INSIDE x 64mm high.indd Coventry and Swindon to add to 0940_MTA advert_celebrate_43mm wide01/04/2020 16:56 1 the group’s expanding network, Hit by triple losses which also has sites in Holland Directors are confident for and France. the future of Saints Transport p3 Currie Solutions European MD Kevin Huskie said: “Transport Strike threat continues to be a tough place to Union Unite threatens action operate. The past few years for at Goldstar Transport p6 Currie have been about improving performance and moving back to Life during Covid-19 a healthier position. Part of delivHow operators are coping ering that is making relevant acquiduring coronavirus p8 sitions that underpin our overall plan as we look forward to 2021 and 2022, which we expect to be OPERATORS INSIDE an important period for the group. “Despite the challenges of Abbey Logistics ��p20 Covid-19 and the general condiARR Craib �� p3 tions in the sector, both Currie and Laser showed great resilience to Axis Fleet Management �� p3 deliver this transaction, supported CM Downton �� p3 by our advisory teams and our DFDS �� p4 funding partner, Bibby Financial DHL Supply Chain �� p3 Services.” DPD �� p10, 20 In an email to Currie and Laser DX Network Services �� p4 staff, and seen by MT, the directors Fowler Welch ��p20

of both firms said: “As Laser merges into the Currie Group, the enlarged business will focus on UK and European full load, UK and European groupage, pallet network, road, air and ocean forwarding services in a truly UK and Europe-wide customer proposition. “The directors and senior management from both companies will be working together to align the two companies as swiftly as possible and ensure we optimise our collective strengths to form a more potent business overall.”

In November 2019, Currie Solutions’ MD Stephen Turner said the haulage firm was going through a period of transition as it expanded and developed its services, following an MBO the previous January. At that time, its most recent annual results to 31 December 2018 showed that turnover had fallen by £500,000 to £39.4m, while pre-tax losses almost quadrupled to £522,928. Following the MBO, the group also acquired PS Ridgway and Move-It Express in Livingston.

Goldstar Transport �� p4 Highland Haulage �� p3 O’Donovan Waste Disposal ��p20 Palletline �� p3 Saints Transport �� p3 Wincanton �� p3

Naylor quits Palletways

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Pall-Ex has appointed former Palletways network development director Michelle Naylor as UK commercial director. She brings 25 years’ experience in logistics to the role, including 12 years at Palletways.

HERE’S TO YOU: Stafford-based haulier Stan Robinson is celebrating 50 years in business. To mark the milestone, the company has given four of its Scania tractor units a special livery featuring former owner and industry stalwart Stan Robinson, who died in 2012. The firm won the MT Haulier of the Year award in 1999, Robinson’s ultimate dream, and more recently developed its own 33.5m longer heavier vehicle. Still owned by the Robinson family, the company now has depots in Devon, Durham and Glasgow. Pictured, from left, are directors Pauline Wilson with Ian, Flo and Mark Robinson.

Focus: Apprenticeships p10 Viewpoint p12 Direct Vision Standard p14 Renewable energy p18 MT Awards shortlists p20, p22

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Company directors confident it has sufficient resources to see it through the Covid-19 pandemic

Losses triple at Saints By Carol Millett

Air freight haulier Saints Transport more than tripled its losses in the 18 months to 30 June last year. In its latest financial results the family firm, based at Heathrow, revealed that despite increasing turnover to £34.8m (2017: £24.3m), its losses ballooned to £1.5m (£497,837). Saints Transport’s gross profit margin fell from 22.7% in 2017 to 18.62% in 2019, which it said was the result of oil price rises. In its strategic report to the results, Saints Transport said that despite

Axis creditors and staff await payout The administrator for contract hire and rental firm Axis Fleet Management said it looked likely former staff and trade creditors will receive some money due. The reversal in fortune follows a report from FRP Advisory Trading, published last year, which warned that preferential and unsecured creditors probably would not be paid. But in its latest summary, administrator Miles Needham said preferential creditors’ claims, which relate to staff arrears of pay, unpaid pension contributions and holiday pay, totalling £29,000 should be settled in full. He said: “This outcome is in line with the proposals and an improvement on my previous progress report.” Axis entered administration in May 2019 after “challenging trading conditions resulted in cashflow difficulties”.

the impact of Brexit and the Covid19 pandemic, which “potentially threatens staff health and expected cashflows”, it is confident it has “sufficient resources available to meet the group and the company’s obligations and to enable it to operate in the foreseeable future”. However, the company directors also noted that “there exists a material uncertainty at this time” in relation to the ability of Saints Transport to continue as a going concern – a view echoed by the company’s auditor in her report on the firm’s results.

Operational efficiencies boost profit at Craib ARR Craib made a pre-tax profit of £2.5m in the 18 months before its acquisition of Highland Haulage, according to its latest accounts. The Aberdeen-headquartered company, which has sites in Cumbernauld, Stockton-on-Tees and Great Yarmouth, also reported revenues of £79.4m during the period ending 28 September 2019. The accounting period was extended by six months to align

the haulier’s year-end with that of parent company Gregory Distribution (Holdings). ARR Craib’s results stated that since the acquisition by Gregory in 2018, trading had been reviewed at customer and contract level, which led to “a number of operational efficiencies”. It said: “As a result, the business has shown an underlying improvement year on year in profit, margin and Ebitda (earnings before interest, tax,

depreciation and amortisation).” In November 2019, it acquired Glasgow and Inverness transport firm Highland Haulage, comprising assets with a value of £1.4m. ARR Craib said: “This acquisition will further increase the group’s presence in Scotland, particularly in the Palletline pallet network, as well as complementing the ARR Craib business in Aberdeen, north-east Scotland and Cumbernauld.”

BUSY TIMES: Wincanton has won a five-year contract to operate an online fulfilment centre for Waitrose.com in Greenford, West London. The move is part of wider plans by the retailer to ramp up its online operations in London and across the UK ahead of its September split with Ocado and following demand for online deliveries fuelled by Covid-19. The centre, which is due to open in December, will create 800 jobs and offer Waitrose.com customers an additional 25,000 orders per week – a four-fold increase since January. n Wincanton has taken on two senior executives from DHL Supply Chain and a senior manager from Yodel to strengthen its business development team as part of a plan to drive growth. Former vice-president of business development at DHL Supply Chain Martin Dougherty has been appointed business development director, and former DHL Supply Chain head of network sales UK and Ireland Kate Jones has been appointed consumer head of development.

CM Downton wins four contract extensions CM Downton has secured four contract extensions with Saica Pack, Stora Enso, SCA and Mattel. Its extension with Saica Pack involves additional deliveries of paper reels to the Newport manufacturing plant and distributing finished corrugated packaging to 6.7.20

Saica Pack’s FMCG customer base. The company will manage up to 15 loads per day, using CM Downton’s on-site planner to oversee a small core fleet. CM Downton will transport paper reels from Tilbury port to customers in the newsprint, maga-

zine and packaging sectors for Stora Enso. The contract extension with SCA involves delivering paper reels from Sheerness port to packaging manufacturers nationwide. And its contract with Mattel will see it delivering products from the toy manufacturer’s Leicester DC. MotorTransport 3

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Unite organises member ballot following depot closure announcement

Goldstar strike threat By Carol Millett

Goldstar Transport is being threatened with industrial action after being accused of using Covid-19 as a “smokescreen” to close its Woolpit depot in Suffolk and change more than 100 drivers’ terms and conditions. However, MD Matthew Ashworth condemned the action, insisting it was not supported by the majority of workers at the site. Union Unite is warning that the company, a subsidiary of Turners (Soham), could face strike action over the Christmas period after it organised a ballot for almost 60 members who work for the container haulier at the depot. The ballot closes on Tuesday 14 July. Unite claimed that the decision to close the Woolpit depot and make 107 drivers redundant came days after drivers requested trade union recognition at the depot. The union said that 12 drivers will DELIVERING SUCCESS: Gary Bellamy (below) from Forterra Building Products has been named the Lifetime Achievement winner in this year’s Microlise Driver Of The Year Awards. Bellamy was 15 when he joined the transport department of London Brick Company (now part of Forterra Building Products) as an apprentice mechanical engineer. He passed his HGV driving test and became part of a team responsible for going out to vehicles needing repair or recovery. In 1981, he became a full-time delivery driver and has remained one ever since. The independent judging panel included Dougie Rankine, editor Truck & Driver, MT sister title, and RHA chief executive Richard Burnett.

4 MotorTransport

be made redundant with 10 remaining on site. The other 85 drivers are being offered transfers to Goldstar Transport’s Felixstowe headquarters 33 miles away. Ashworth refuted the union’s allegations, telling MT that the closure of the Woolpit depot was part of a long-term plan to extend the site into a container storage facility, in response to demand for the service.

“As a result we are looking to move the transport operation to Felixstowe and 107 drivers are on notice of redundancy. However, there are 95 vacancies at Felixstowe so potentially there will be 12 redundancies.” He also accused the union of “stirring up a hornets’ nest” at the depot, involving a minority of workers, adding that he was confident the ballot would fail.

Consultation begins on DFDS job cuts Transport giant DFDS is set to cull around 86 UK warehousing and logistics jobs as part of major cutbacks following the Covid-19 pandemic. MD Andrew Byrne said the company was not expecting freight to bounce back as the economy emerges out of the pandemic, warning current levels could become the “new normal”. The cuts come after the company was forced to lay up 12 of its 50 freight vessels and a large

part of its road fleet at the peak of the pandemic; 62 roles will be lost from the Immingham ferries and terminals business, with 24 jobs in logistics set to go. Byrne added that staff and trade union consultations have begun, with all employees advised of the circumstances. DFDS, which employs around 1,000 staff in Lincolnshire, is warning it will take a £200m hit to its bottom line in 2020, even after making the cuts.

DX Network Services fined for safety breaches DX Network Services has been fined £200,000 after safety failures led to a worker losing a leg. Warehouse employee Les More, 58, was trapped under a forklift truck for an hour at the parcels and secure delivery firm’s Eurocentral facility in Lanarkshire, Scotland. Hamilton Sheriff Court heard that surgeons couldn’t save More’s left leg, which had to be amputated above the knee. DX Network Services was slammed by Sheriff Douglas Brown over the “clearly foreseeable” incident.

Sheriff Brown added that he would have fined the firm £300,000 had it not pleaded guilty. The court heard that DX Network Services initially blamed More and the forklift driver. However, the Sheriff said there had been a “systemic failure” to separate forklifts and pedestrians at the Eurocentral depot. DX Group, which employs 3,500 staff across the UK, admitted breaching workplace safety laws. The court heard that the company has since taken measures to improve its safety procedures.

June 5th, 1920

Motor Transport was launched in 1905 as Motor Traction. We look at a story published 100 years ago: Freight Exchange In the course of enquiries among a considerable number of motor owners who have recently called at the offices of the Motor Traction Freight Exchange, one thing has impressed us more than anything else. This touches a very important matter, and, as the generality of those who know the motor transport business will admit the truth of it, they will perhaps at the same time absolve us from any wish to teach men in the trade their business. The fact is that a great many of those who have entered the motor haulage business show a considerable lack of knowledge on really vital points. They do not know what their working costs really are, are ignorant of matters important for the efficient running of their vehicles, or are disheartened by competition which they never expected. Thus to keep vehicles going, they are tempted to underestimate their running costs, or to cut in, regardless of the injury they may be doing, not only to others, but to themselves. Now to keep a vehicle on the move at a rate that fails to ensure a profit is detrimental to everyone, but the tendency exists, and, with trade slacking off, possibly under the present unsettled labour conditions, things will become more difficult, and the temptation to work at a questionable profit may become greater. It is at such a juncture that the Motor Traction Freight Exchange may help by assisting the owner to make unprofitable mileage profitable; in other words, to secure loads for journeys that would otherwise have to be run light. 6.7.20

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LowCVP conference to focus on ‘seizing the moment’ for greener road transport

LowCVP targets green recovery By Steve Hobson

The Low Carbon Vehicle Partnership (LowCVP) online annual conference will focus on how the UK can seize the opportunity for an investment-led green recovery in road transport as the world emerges from the pandemic. The event will provide a forum for policy ideas and proposals to help inform the government’s 2020 Transport Decarbonisation Plan. The LowCVP’s annual conference has been a leading event in the environmental transport calendar for more than 15 years, attracting government ministers, key civil servants and senior representatives from industry, academia, government and non-government organisations and others. ‘RESET 2020: Driving the green recovery’ will take place on Wednesday 15 July and aims to answer the question: ‘How can we seize the opportunity for an investment-led green recovery in road transport?’ It will showcase positive, actionable proposals to inform the development of the UK’s Transport Decarbonisation Plan (TDP). Speakers will cover the implications for low emissions road transport of the pandemic and the opportunities and challenges the dramatic

recent changes have created. There will be votable proposals to be endorsed or challenged by the experts attending the event. Conference themes will include: n what does the experience of the spring/ summer 2020 lockdown mean for the green transport agenda and what positive learning can we take from it? n what are the implications for the TDP and UK progress on the Road to Zero? n how can the UK set the standard for road transport decarbonisation to the world as we approach CoP26 in Glasgow 2021?

The conference will also feature interactive debates, polls and surveys. A pre-event survey of LowCVP stakeholder opinions on the conference themes will be presented on the day and will help to inform the discussions. There will be opportunities for facilitated digital networking during the conference within an exhibition format with themed ‘stalls’ and one-to-one discussion capability. Afternoon, parallel, facilitated break-out sessions will provide the opportunity for a deeper dive into the conference themes as they affect specific sectors of road transport such as freight and how each can contribute to positive effect as we emerge from lockdown and to the TDP and progress on the Road to Zero. LowCVP head of communications Neil Wallis said: “We intend to make the most of the latest digital technology to enable this event to stand out: there will be short, punchy talks, debates, voting on policy propositions and a variety of opportunities for interacting with speakers and other delegates... we may even try to sort out a digital drink or two for the networking.” n The conference is free to all delegates. To book, go to lowcvp.org.uk/events/conference/2020.

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As lockdown eases in the UK, MT catches up with its panel of operators to see how business has been affected

Weathering the storm To measure the impact of the Covid-19 lockdown on the transport and distribution industry, MT has put together a panel of UK operators to give regular feedback on their volume of work and vehicles laid up. We will check in regularly with the panel as the lockdown eases to assess how the industry is fighting back as the UK economy recovers from the expected recession.

Cullimore Group Moreton Cullimore, MD

Coverage: UK, but predominantly the Midlands and south-west. Main business sectors: transport and general haulage, aggregate supply and ready mixed concrete. 1 June 29 June Trucks on fleet 60 60 Laid up (%) 90 85 Drivers employed 50 50 Furloughed (%) 88 85 No redundancies in June. In March, before Covid-19, how many new trucks were you planning to bring in to the fleet during the whole of 2020? Around 10 as replacements and a small increase in fleet. Has that now changed? We now plan to buy five or six this year (three have arrived as orders were already placed). Has Covid-19 made you change your approach to acquiring new trucks? We don’t hire trucks.

Owens Group Doug Jeffery, group general manager

Coverage: UK mainland. Main business sectors: FMCG, steel, retail, express and home delivery, construction and automotive. Volumes have returned back to pretty much 100% in June, although this is slightly misleading – some customers remain below their normal volumes while others are above, resulting in our volumes being at around 100%. 1 June 29 June Trucks on fleet 340 360 Laid up (%) 6 0 Drivers employed 656 656 Furloughed (%) 10 0 No redundancies in June. In March, before Covid-19, how many new trucks were you planning to bring in to the fleet during the whole of 2020? Around 25 to replace end of life/contract vehicles How many do you now expect to bring in this year? We have no plans to bring any additional vehicles in to increase the fleet. There is potential for replacements to be brought in but dependent on how volumes settle over the next two to three months. Has Covid-19 made you change your approach to acquiring new trucks? No, we already have a mixed approach that works for our business/customer base. 8 MotorTransport

Clipper Logistics Mick Doe, transport operations director

Coverage: UK from 13 transport operations with a higher presence in the ‘golden triangle’ and south-east. Main business sectors: retail fashion and high-value goods including pre-retail, e-commerce, storage, store replenishment transport solutions and returns management; technical services for brown goods. 1 June 29 June Trucks on fleet 450 450 Laid up (%) 22 22 Drivers employed 450 450 Furloughed (%) 20 20 There has been no change to our fleet or staff requirement as we are awaiting the fashion retailers to understand what the shoppers’ behaviours are going to be. We have managed to retain all of our staff and we don’t envisage making anybody redundant. In March, before Covid-19, how many new trucks were you planning to bring in to the fleet during the whole of 2020? 20. We have continued with our fleet renewal programme and we aim to renew approximately 120 vehicles during 2020. This is our renewal programme in line with our standard lease periods. We will need additional vehicles, but until we understand our customers’ requirements fully we are holding fire on placing any further orders. Has Covid-19 made you change your approach to acquiring new trucks? No, we have continued with our programme as planned, it is important to keep the fleet circulating and we wanted to support our suppliers during these difficult times.

Roger Warnes Transport Ian Barclay, operations director

Coverage: UK mainland. Main business sectors: bulk agricultural and construction sectors. 1 June 29 June Trucks on fleet 108 108 Laid up (%) 18.5 12 Drivers employed 111 107 Furloughed (%) 18 13 No redundancies in June. In March, before Covid-19, how many new trucks were you planning to bring in to the fleet during the whole of 2020? 20. These would be replacements with an option to retain for growth. The used market isn’t yielding satisfactory returns at this time, so likely to retain until the market improves. 6.7.20

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These are to increase the fleet to cover work already planned and booked in. We may bring in a couple at the end of this year to expand the fleet. Has Covid-19 made you change your approach to acquiring new trucks? As we do very low mileage, buying is the way forward for us, always has been, and I cannot see that changing.

Freightlink Europe Freight Train/ Freight People, Lesley O’Brien, partner

Has that now changed? We’ll continue to replace, although at a slower rate due to the manufacturer slowing or stopping production during the worst period of the pandemic. Has Covid-19 made you change your approach to acquiring new trucks? No, that would be short-termism that would increase the average fleet age and ultimately cause additional maintenance costs.

Caledonian Logistics Derek Mitchell, MD

Coverage: Four DCs cover half of Scotland, including islands. Distance division covers mainland UK. Main business sectors: pallet distribution, general goods, food products and storage services. Pallet network distribution is our main element of core business, and early June was approximately 20% down, but by the end of the month it was only down by about 10%. 1 June 29 June Trucks on fleet 74 74 Laid up (%) 8 8 Drivers employed 90 90 20 16 Furloughed (%) No redundancies in June. In March, before Covid-19, how many new trucks were you planning to bring in to the fleet during the whole of 2020? 11, to replace existing vehicles. How many do you now expect to bring in this year? Nil – we might have to look at hires or extending leases. Has Covid-19 made you change your approach to acquiring new trucks? We lease approximately 80% of our trucks, all higher mileage.

Stagefreight, Ian Uttley, director

Coverage: UK mainland. Main business sectors: live events, theatre and music tours, conferences and exhibitions, and general haulage. Our main industry sector in events remains at zero, but we are looking forward to 2021 with eager anticipation. We have seen a significant growth in work, and new clients gained, which comes as a relief. 1 June 29 June Trucks on fleet 30 30 Laid up (%) 45 10 Drivers employed 26 26 Furloughed (%) 45 5 No staff made redundant, and we have no plans to. In March, before Covid-19, how many new trucks were you planning to bring in to the fleet during the whole of 2020? We were planning to bring in 12 trucks and 15 trailers this year, more will be ordered at the start of 2021. 6.7.20

Coverage: UK national. Main business sectors: general haulage operator predominantly serving the import and export community. 1 June 29 June Trucks on fleet 24 24 Laid up (%) 20 12.5 (0 at 1 July) Drivers employed 22 22 Furloughed (%) 20 13.6 (due to requirement to shield) No redundancies in June. In March, before Covid-19, how many new trucks were you planning to bring in to the fleet during the whole of 2020? An additional one and replace five. These are now delayed until 2021 (extended contact hire). We are testing the market and may still add one vehicle. Has Covid-19 made you change your approach to acquiring new trucks? We always have a mixed fleet – owned/ contract hire and hire purchase. We will maintain this mix. We have extended the contract hire on eight vehicles partly to continue to test the market and partly because suppliers could not deliver new vehicles on time.

Turners Group, Paul Day, MD

Coverage: UK national. Main business sectors: temperature-controlled, containers, tankers and general haulage for transport and temperature-controlled warehousing and packing services. In June, bar the aviation industry that remains severely affected, and the food sector that remains buoyant, all other work is still below pre-Covid levels, but has continued to recover throughout the month. 1 June 29 June Trucks on fleet 1,925 1,973 Laid up (%) 12 10 Drivers employed 2,271 2,312 12 10 Furloughed (%) We made 12 drivers redundant in June. In March, before Covid-19, how many new trucks were you planning to bring in to the fleet during 2020? Approximately 325 new trucks were planned pre-Covid-19 – the majority were replacements as we add extra new trucks if we acquire extra work, or reduce if work is lost. Has Covid-19 made you change your approach to acquiring new trucks? No change.

AE Gough & Sons, Michael Gough, partner

Coverage: UK national. Main business sectors: aggregate and agriculture. The aggregate volumes have slightly increased but the agricultural volumes have reduced dramatically. The agricultural sector is always quieter this time of year, in advance of the harvest, but animal feed is much quieter than we have experienced previously. 1 June 29 June Trucks on fleet 32 32 0 0 Laid up (%) Drivers employed 32 32 Furloughed (%) 0 0 We haven’t made anyone redundant. In March, before Covid-19, how many new trucks were you planning to bring in to the fleet during the whole of 2020? We were planning to replace five lorries. Has that now changed? We are now planning on bringing in four as replacements. We have stuck to purchasing the trucks as we would normally. MotorTransport 9

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Focus: apprenticeships The industry needs apprenticeships for each driving category

The case for the urban LGV driver It now looks very likely that the current Cat C LGV driver apprenticeship will be switched off in the next couple of months and will be replaced by a dual Cat C and C+E licence, leaving two thirds of commercial operators without a suitable apprenticeship standard. While I recognise that this change will be positive for many artic operators, we cannot leave rigid operators – by far the majority – without a suitable standard. The latest DfT statistics for April show there are 274,700 rigid vehicles and 130,800 artic vehicles on UK roads, a 68% to 32% ratio. In terms of road miles, DfT road traffic estimates for May 2019 show the HGV vehicle fleet amassed 17.1 billion miles, of which 8 billion (47%) were on motorways and 9.1 billion (53%)

were on other roads. There is a correlation between road type and mileages, with rigid vehicles travelling slower, so in effect the manning of rigid vehicles requires as many, if not more, Cat C drivers than the C+E category. Before Covid-19, LGV driving apprenticeships were increasing – figures from the Institute for Apprenticeships and Technical Education (IFATE) indicate that since the introduction of the Apprenticeship Levy and Standards in 2016/17 there has been an eight-fold increase, and an almost 50% increase in starts in the previous full year. It is an outdated statement to suggest the work horse of the sector is the articulated vehicle. We have seen online sales increase to 30% of all retail sales and that translates to a dramatic increase in urban and last-mile deliveries. This change is here to stay. Being a professional HGV driver today has never been more challenging, but equally more dynamic and important to the sector than ever before, and we have to applaud how well our industry adapted to the virus challenge, continuing to keep the shops stocked and allowing everyone to stay safe while we made thousands of home deliveries every day. So, we need to understand the role of the urban professional driver and the sector needs to work together to ensure there is an effective apprenticeship programme for both Cat C1/C as well as category C+E. Some urgency is required to get this over the line. n What’s your view on this? Contact david.coombes@skills forlogistics.co.uk. David Coombes is CEO of Skills for Logistics.

Stay informed with free webinars from industry movers and shakers While Covid-19 is preventing most face-to-face meetings, MT and sister title Commercial Motor are stepping up their programme of webinars to keep operators up to date with the latest developments. On 15 July MAN Truck & Bus will introduce its MAN truck generation, which offers everything that customers and drivers have always valued and expected from their MAN vehicles – only better. During this webinar, MAN Truck & Bus UK will introduce its new truck range and launch MAN

TopUsed – its official quality approved used vehicles programme. And on 22 July, Aquarius IT will explore the benefits of electronic versus paper when it comes to managing and reporting on road worthiness and compliance. The keynote speaker will be former senior traffic commissioner Beverley Bell CBE, now director of Beverley Bell Consulting, who will be offering her expert insight. To register for these free sessions, go to the webinar page on the MT website.

DPD on track with 2.5-tonne electric van trial DPD is to trial a specially adapted 2.5-tonne electric van as it pushes forwards with its ambition of having “the greenest fleet in the UK”. The courier firm has partnered with the London EV Company (LEVC) for road trials of the VN5, which will be available in the UK later this year. The van offers a fully electric powertrain with a pure EV range of 63 miles and a total flexible range of more than 300 miles. 10 MotorTransport

DPD said it was on track to have more than 600 electric vehicles (10% of its fleet) by the end of 2020. The company has also created a new model for sustainable urban parcel deliveries with a network of all-electric micro depots, the first of which opened in Westminster in 2018. Joerg Hofmann, LEVC chief executive, said the VN5 will revolutionise green logistics. 6.7.20

From 26th October 2020, ALL goods vehicles over 12 tonnes will require a permit to enter London.

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Not out of the woods yet… B

y the time you read this Super Saturday will have been and gone and you will either have been enjoying a pint in the pub and a haircut or – if like me you have an underlying medical condition (diabetes) – you may have seen Steve Hobson the scenes on Bournemouth beach and Editor decided to stay well away. Motor Whatever your views on the balance Transport between saving lives and destroying livelihoods, the government is now taking the huge risk of easing the lockdown in England – except in poor old Leicester – to try to head off the worst recession in living memory. The financial crash in 2008 will look like a picnic compared with the damage that three months in lockdown will do to the UK economy. But the upsurge in the virus in Leicester and other parts of the UK shows that we are not out of the woods yet.

It could well be that we are now in the eye of the storm, with the furlough scheme so far delaying mass redundancies and so keeping up consumer spending on the things we are allowed to buy. But the hospitality and tourism sectors are going to be slow to recover and will take years to get back to where they were before the pandemic, if they ever do. Another long-lasting effect of the virus could well be more home working and fewer face-to-face meetings – Teams and Zoom may be imperfect substitutes for physical get-togethers but given the choice of an imperfect interaction or three hours sat in traffic on the M25 many more people will prefer the former. The economic landscape has moved so far and so fast it has been hard for road transport to adapt and survive – but that is what it is very good at doing and survive it will.

Going beyond with human interactions T Jaap Willem Bruining Head of Europe, Coyote Logistics

he global freight market is large, complex and fragmented. The job of a 3PL provider is to support businesses by simplifying the shipping process and offering shippers and carriers efficiency, speed and ease of access to loads and capacity – all things that often require the use of technology. To understand how 3PLs can do this most effectively, we have to understand the unique needs of shippers and carriers. If you ask the average fleet manager “What do shippers want?” the results are much what you’d expect: cost and service. Unsurprisingly, high service levels and competitive price were the top two responses when we surveyed 150 hauliers in our research study, ‘Tech and humanity’. But what else do shippers want? While cost and service are crucial elements when evaluating a provider, when asked what they’d like to focus on more, shippers’ top two choices were more collaboration with carriers and investment in technology. To go beyond providing reliable service and relatively competitive pricing to your customers, provide more strategic human interaction combined with better technology tools. Our research study found that the ideal balance of the two is 60% technology:40% human interaction. That number held true for shipper and haulier businesses of all sizes. Every company in the supply chain needs

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a foundation of technology – but where are most hauliers investing? The top three business functions where hauliers have a technology solution in place are: despatching (75% of respondents); tracking (72%); truck maintenance (70%). If you are relying on antiquated (or no) systems, consider investing in these areas first. When asked where they most value human interaction over technology or a combination, communicating with customers and communicating with 3PL and carrier partners were the top two choices. In these times of unprecedented supply chain disruption, human element is even more important to help businesses navigate the volatility. At the same time, in recent weeks we’ve seen shippers and carriers being pushed to accelerate digitisation, with a need for shorter response times, efficiency and visibility. Transportation and logistics is a relationship-driven industry. Therefore, it’s important to remember that, even with the influx of new technology, there is still demand for supply chain experts when hauliers look to meet and exceed customers’ expectations.

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 Events and projects editor Hayley Pink 2165 Group production editor Clare Goldie 2174 Supplements production editor Joanne Betts 2173 Key account manager Andrew Smith 07771 885874 Display telesales Barnaby Goodman-Smith 2128 Event sales Tim George 0755 7677758 Classified and recruitment advertising rtmclassified@roadtransport.com Sales director Emma Tyrer 07900 691137 Divisional director Vic Bunby 2121 Head of marketing Jane Casling 2133 MT Awards Katy Matthews 2152 Managing director Andy Salter 2171 Editorial office Road Transport Media, First Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Email:customercare@dvvsubs.com Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £135/year. Europe £163/year. RoW £163/year. Cheques made payable to Motor Transport. Apply online at mtssubs.com Registered at the Post Office as a newspaper Published by DVV Media International Ltd © 2020 DVV Media International Ltd ISSN 0027-206 X

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If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 6.7.20

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Standards

Regulating safety As the introduction of TfL’s Direct Vision Standard draws closer, an expert panel took the opportunity to clarify the implications for operators at Motor Transport’s recent webinar, held in association with Brigade Electronics

nder TfL’s Direct Vision Standard (DVS), up to 250,000 trucks over 12 tonnes GVW running into Greater London must have a Direct Vision permit stating that they have either a one-star Direct Vision rating or a compliant “safe system”, relying on cameras and sensors. The permits are free, but failure to comply could result in fines of £550 per day per vehicle for the operator and £130 for the driver (reduced to half if paid within 14 days). From October 2024, vehicles rated below three stars will be banned unless they have a “progressive” safe system fitted. The standard will become a requirement on 26 October 2020, although TfL has delayed enforcement of the regulations for at least four months due to Covid19. The DVS will be policed using TfL’s existing ANPR camera system, which will capture the number plates of vehicles and check the details against a database of vehicles that have been issued a permit. It will apply at all times and will cover the same area as the existing Low Emission Zone, which is a wide ring extending as far as the M25 in places. Around 25,000 vehicles had been issued with permits by mid-May, but many operators remain uncertain about how to comply. They are also unclear about what will happen if an HGV is involved in a collision between October 2020 and March 2021 and does not have a permit. So Motor Transport, in association with Brigade Electronics, held a webinar on 19 May to discuss the DVS. Several topics were covered, including: which

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vehicles will have a one-star rating, what a safe system entails and whether the standard is the best way to reduce death and serious injuries on London’s roads. TfL is introducing the DVS because HGVs are involved in a disproportionately large amount of collisions with vulnerable road users (VRUs) in London, especially cyclists. Research has indicated that poor visibility from conventional truck cabs is a commonly cited factor.

Avoiding collisions

Research has also shown that indirect vision via a mirror or camera is less effective than direct vision when it comes to avoiding collisions with VRUs. One study found that indirect vision resulted in an increased incidence of simulated pedestrian collisions of 23%. Brigade Electronics estimates that around 188,000 HGVs will be covered by the DVS. Of those, 35,000 will not meet the one-star rating and 94,000 will be rated below three stars. Andrew Lawrence, UK product support specialist at Brigade, said that even if a vehicle was rated one star or above by the manufacturer, the operator would still need to apply for a permit. “If it is not, you can apply once the vehicle complies with the safe system specification,” he said. “The specification covers the installation of equipment to improve driver visibility, including camera and sensor systems, left turn audible alarms and Class 5 and 6 mirrors.” Vehicles are rated between zero and five stars and it is the responsibility of the operator to ascertain the rating before applying for a permit. 6.7.20

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“There is no published list of star rating by vehicle type,” said Lawrence. “One approach is to contact your vehicle manufacturer and provide them with the registration and vehicle identification numbers. Alternatively, you can visit the TfL website where there is a DVSA checker or you can contact Brigade and use our free service.” For vehicles rated zero stars, the safe system includes cameras and proximity sensors on the nearside and audible warning devices fitted inside and outside the vehicle, as well as extra mirrors.

Star rating

Lawrence explained that contrary to some companies’ claims, a vehicles’ rating cannot be changed once it has left the manufacturer. The Direct Vision star rating is based solely on how much a driver can see from the cab through the windows. The safe system will allow an operator to enter London without being fined, but it will not alter the star rating. Another misconception is that TfL is approving or recommending particular safe system installations. “TfL does not endorse or approve any brand,” Lawrence said. “You may see products in the industry that say ‘TFL

CF and XF models all require the fitting of a safe system and these can also be fitted at the DAF factory in Leyland before delivery to the customer. “This comes with vehicle type approval and the factory two-year warranty, which is a real advantage when it comes to registering the vehicle,” said Turner. “We can also offer rear-view, forward-facing and driver-side cameras, data recorders and rear-facing ultrasonic sensors, which are not part of the DVS but give those who want to operate to a gold standard extra reassurance.”

Wider change

approved’. This is misleading and the regulations clearly state ‘no specific make or brand of equipment or technology will be mandated as part of the safe system’.” James Turner, product marketing manager at DAF Trucks, went to explain that TfL is planning to hold a consultation in 2022 on what the “progressive” safe system, required from 2024 for trucks with fewer than three stars, will look like. “Exactly what will be included in that progressive safe system is uncertain, but it is worth noting that any new equipment or technology that is proposed must be retrofittable, industry recognised and readily available on the market at the time,” he said. “So we expect it will be something similar to what is available today for those vehicles which don’t meet the one-star requirement.” An application for a safe system permit must include two clear photographs of the vehicle showing that the mandatory equipment has been fitted, including the mirrors, side guards, camera, ultrasonic sensors, audible warning system and signage on the rear of the vehicle. Looking at the DAF line up, most LF 16-tonne chassis are rated two stars, but some are one. Most LF 18-tonne chassis are rated one star, with two stars only available with 70 series tyres and a kerb window fitted in the nearside door. “We have a factory-fit option for a passenger door window in the LF,” said Turner. “This offers much more direct vision to the driver in that blind spot area. The other advantage is that the passenger door window will still open, which is great when manoeuvring or demisting the interior glass.” 6.7.20

Turner explained that DVS was only a part of wider changes to safety-related legislation coming over the horizon from Europe, including driver distraction and drowsiness recognition and new standards for direct vision. “London is leading the way on direct vision, but it is being recognised on a much larger stage and being taken into account for new type approvals from 2026,” he said. Natalie Chapman, head of urban policy at the FTA, said that while HGV and VRU collisions were a national issue, London has a particularly big problem because of the rising number of cyclists, ageing infrastructure and high levels of construction freight traffic. “As yet we don’t see any other UK cities introducing this, but of course cycling will be on the increase nationally as people are encouraged to avoid public transport,” Chapman went on. “We will be keeping a close eye on the situation.” DVS is part of London mayor Sadiq Khan’s Vision Zero commitment to eliminate death and serious injuries on London’s road by 2041. “FTA absolutely supports this ambition for zero vehicular harm but the question is ‘what is the best way to achieve this?’” she said. ➜ 16 ANDREW LAWRENCE: ascertaining a vehicle’s rating is the responsibility of the operator

JAMES TURNER: DVS is only a part of wider changes to safety-related legislation coming from Europe

NATALIE CHAPMAN: vehicle design should ideally be set by UN- or European-level bodies

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Standards

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“FTA is opposed in principle to vehicle design being set at a local level, as this role is for a minimum of national government and ideally should be set by UN- or Europeanlevel bodies. Creation of niche markets has the potential to increase the price of trucks in London.” Chapman argued that new vehicle design standards and autonomous safety features, designed to minimise the effects of human error, would be the most effective way of reducing collisions.

Driver training

While the FTA disagrees with the DVS, Chapman praised TfL for listening to the transport industry during the scheme’s development and taking on board many of the FTA’s recommendations. “One example of that is driver training, which was originally going to be included as part of the safe system,” she said. “We know a lot of good operators are training their drivers in VRU safety, but to include a driver element in what is essentially a vehicle standard would have overcomplicated things. TfL admitted it would have been unenforceable and that would have created an unlevel playing field between the good operators and those that won’t bother.” The FTA estimates that 250,000 trucks will be affected by the DVS and initially requested a delay of 12 months in the enforcement of the standard. It is still pressing TfL to extend the delay in the face of the Covid-19 crisis. “This has caused massive disruption to the industry,” Chapman said. “Some companies in the food retail sector have seen a huge increase in workload but others, such as those supplying the hospitality and events sectors, have seen an enormous downturn. “We are also concerned about the disruption to supplies of trucks and equipment. TfL will confirm the new start date in September, but it will be at least March 1 and could be later than that. “There is likely to have been a considerable change to

the economic impact assessment and the situation many businesses will find themselves in will be significantly different from when the scheme was originally drawn up. There could be issues with vehicle and equipment supply and access to credit, so we are asking the government to consider supporting surviving businesses with a credit guarantee scheme to help them rebuild the economy.” After October 2020, when the standard comes into force, Chapman warned that an operator running a vehicle in London without a DVS permit could be in legal trouble if it was involved in a collision. “It could be a potential area of negligence or breach, which the courts may take into account when considering the level of damages in a civil claim,” she said. “We have written to TfL seeking a delay to the start date of the entire scheme but they have confirmed there are no plans to do that. So we are asking for a clearer public statement that TfL does not expect the industry to comply in this non-enforcement period. “If operators have plans in place to fit a safe system or procure vehicles with at least a one-star rating, that is something they could use if they unfortunately do end up in court.”

Safe system

In response to questions from operators, Lawrence confirmed that DVS applied to all vehicles over 12 tonnes, including left-hand drive and foreign-registered trucks, so those would still need a permit to enter London. Turner added that the requirements for a safe system on left-hand drive trucks were effectively “a mirror” of those needed on a right-hand drive vehicle, with cameras and sensors on the offside and a right turn audible warning system. Answering queries about trailers in artic combinations, Turner said sensors were required to cover the front 6m of a vehicle, so would only be needed on a tractor unit and not on the trailer. The warning sticker should be put on the back of the trailer, as the specification states that tractors for articulated vehicles are exempt from warning signage. All trailers used with the tractor unit will be required to fit warning signage. While CLOCs and FORS already set out requirements for vehicles to make them safer around VRUs, Chapman said that being a member of CLOCS or FORS did not mean vehicles automatically qualified for a DVS permit. “If you have the equipment fitted to meet FORS Silver or Gold you are probably complying with the safe system but you will still need to apply for a permit,” she said. “We have been talking to TfL to see if they can link up with the FORS database so those operators have an easier route through.” n A recording of this webinar can be watched by going to the webinar section of the Motor Transport website: motortransport.co.uk/webinars 16 MotorTransport

6.7.20

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Renewable energy

Generation game Decarbonising transport will present some problems for the electricity sector – but it will solve some as well. Janet Wood reports

ny day now – maybe even by the time this is published – the government will present an energy White Paper that has to set the country firmly on the road to a net zero economy. Electricity’s route to decarbonisation looks relatively mature, as wind farms and solar photovoltaics (PV) have been installed at scale and become significantly less expensive. So the White Paper may focus on decarbonising heat and transport. The government has certainly made the right noises around wanting a whole system approach, and about using the exit from the coronavirus slowdown to lead a shift to a green and resilient future for energy. That will raise a lot of questions about electricity, as a good part of the solution in other sectors involves using more of it. Will enough be generated to satisfy those extra users? And, if the electricity sector fuels transport, whether directly via electric vehicles or indirectly by producing hydrogen, will the system be overwhelmed?

Shutterstock

Hitting targets

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When it comes to electricity supply in a net zero 2050, the numbers are large. In 2018 the UK had around 82GW of generating capacity in total on the national transmission network, according to government figures. The Climate Change Committee (CCC) and National Grid both agree that peak capacity will need to be three times that by 2050, at around 250GW, mainly to cope with electric heating and vehicles. Looking at the biggest players first leads us straight to offshore wind. At the moment, wind is the most active long-term generating option. Build is happening at a huge scale and not just in the UK. Replication has seen costs fall much faster than expected – an industry ambition, set in 2012, to produce power from offshore wind at less than £100/MWh was exceeded by 2017. Last year, new developers agreed to build at around £40/MWh. The aim is to generate over 100GW of power in this way by 2050. The offshore wind industry can expect to be augmented by a larger contribution from onshore turbines, since government lifted a de facto ban on them earlier this year. The CCC is looking at production of up to 30GW of electricity using onshore wind. Much of this will be generated at existing sites, where bigger and more efficient turbines will replace the current ones when they reach the end of their 25-year lifespan. This technology will enable much more power to be produced from a similar footprint.

Gas is expected to be another future mainstay, in the form of combined cycle gas turbines (CCGTs). Gas is a less attractive option at the moment, having been switched off in favour of renewables. However, rising electricity demand, not least from electric vehicles, should open up a market for it again. Companies are ready to invest when the price is right – at least 15 new power stations have applied for, and been granted, development consent. But this familiar technology has a problem: once the last coal has departed from the grid – a milestone that is expected to be reached imminently – gas will be the worst offender for CO2 emissions. Eventually, carbon capture and storage (CCS) will become a requirement, in the same way that clean air legislation forced coal-fired power plants to install ‘scrubbers’ to remove nitrogen oxides and other pollutants that would previously have been sent up the chimney. CCS has proved a tough technology to crack, because it presents a number of different problems that do not add up to a single solution. The UK has witnessed a number of CCS initiatives from government, including the promise of a £1bn investment for the winner of a competition to design a demonstration plant, planned when Gordon Brown was Chancellor. That contest was cancelled, as was a subsequent one. But CCS does have the support of government, because there is little alternative if it wants to keep gas as an option. CCS is also seen as a potential industrial opportunity. Energy minister Kwasi Kwarteng recently said the CCC had described CCS as a necessity and he promised funding in the budget. “We have committed to it twice,” he said. “It’s not a promise we can easily climb down from and I expect to see progress.”

Mixed reaction

A less certain contribution is that from nuclear. Upwards of 3GW from Hinkley Point C in Somerset should be assured – the plant is under construction – but the jury is out on whether it will be the first of a series or will eventually become the UK’s only nuclear power station. An indicator will be the outcome of EDF Energy’s current application for development consent for a second plant, almost identical to Hinkley Point, at Sizewell in Suffolk. But the amount of energy that can be supplied by small-scale installations should not be discounted. Consider solar PV. The government included just 2.2GW of solar in its figures on UK capacity for 2018, but trade 6.7.20

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prices on to consumers in the rush hour and hope that will convince those with flexibility to travel at other times. Equally, no power station works at full power all the time; they are all sometimes out of action for maintenance. But thermal generation is price dependent, only operating when there is a favourable difference between fuel cost and electricity price. At the moment gas plant operating hours are often around the 20% level – too low to be viable, and plants have been permanently closed. Renewables are weather dependent, with power sold on government-backed long-term agreements. It was originally thought that offshore wind it might generate for around 35% of the time, but in practice that has been well over 50% at some sites and turbines far offshore are expected to do better. Industry and government has dealt with this by having a comfortable ‘margin’, so that even with power plants out of action for one reason or another there has been enough to go around. The power industry is beginning to manage both these issues using pricing. It will pass through high prices at peak – to flatten demand – and low prices when there is lots of cheap power to encourage users to make the most of it. In the future that will be on windy and sunny days, when we have already seen negative power prices as a rush of generation outstrips demand.

Flattening the peak body RenewableUK said recently that the total PV capacity had reached 13.4GW by January 2020. That figure includes some very small-scale installations.

Light fantastic

Just how big is the solar PV opportunity? It has been expanding because the cost of solar panels has been dropping dramatically. Architects are finding ways of using PV in buildings and, crucially, consumers are beginning to expect it. Small installations can add up quickly when consumers get involved. A 1sq m solar panel may seem insignificant – it produces just 150W at peak production, which is just enough to light a house. However, one London borough recently assessed the rooftop space in its patch and found 40,000 suitable sites for PV totalling 1.325 million sq m – potentially generating 0.5GW at peak times. A small dent in the 50GW total, but arising from a densely populated area of just 26 sq km. The CCC expects that solar power will reach 40GW by 2030. That looks like a minimum.

The time factor

Providing power at the moments of peak demand is important, and has up to now been the fundamental assumption of our power system. But that has changed in recent years – and in any case, it was only ever half the story. Equally important is the total energy provided – the mileage achieved, rather than the maximum speed. To an extent hardly seen in any other industry the power sector has operated on a ‘predict and provide’ basis. Whenever a user wants to flick on the ‘power’ switch, the generation sector has been ready to push more power into the system. But what is really happening is that at times of high demand – if consumers all want to switch on their kettles after the end of Eastenders, for example – older, dirtier and more expensive plant is brought into operation to meet the need. And the peak is often only around 15 minutes: at other times huge swathes of plant are running in neutral or completely idle. The costs ultimately fall on consumers. This is not, as a general rule, true of other sectors. Train operators do not fire up an old steam train when they expect a busy morning and send it down the track if they can see there are a couple of commuters who cannot get a seat on the 8.15. Instead, they pass higher 6.7.20

The electricity industry used to be fond of saying that electricity cannot be stored, and that is why it was sized for peak demand. It is true that it has to be precisely balanced between supply and demand from second to second, and if all the users need power at the same time, not only does it require every piece of generating capacity to be brought into operation, but it also requires electricity networks to be reinforced so they can carry that peak demand. Pricing signals and demand side management should flatten the peak but equally, a more efficient system would store all the power when it was produced cheaply to be used at times of shortage. What is required is a medium that will store the energy and allow it to be tapped off later – and a change of attitude. That is where the transport sector comes in. Batteries are an example: standalone batteries have been installed across the electricity network to manage the peak. But that is a capital cost – and a parc of electric vehicles (EVs) might be able to do the same job. Engineers who previously feared that charging EV batteries would drive up peak use have realised they might equally welcome them as a hefty slug of storage – if price signals can convince users to charge at the best time and place. Another example is hydrogen. ‘Seasonal’ storage is a holy grail for electricity grid operators who have to be ready for winter conditions that often include weeks of calm weather in January or February. At that point hydrogen produced during the windy and sunny months looks very attractive to supply power or heat. At the moment, hydrogen is one of the energy industry’s big unknowns. It is already produced at scale for industrial use but it is currently produced mostly by steam reformation of methane – which, if it is to be decarbonised, brings us straight back to CCS. However, an intriguing alternative is electrolysis, which requires just water and electricity. At the moment that is seen as high cost. But the technology has many of the characteristics – standardisation and replication – that saw the price of PV plummet. And it could be rolled out at scale, and taking advantage of low or negative power prices, years before CCS has even reached demonstration stage. Electric vehicles and hydrogen (for trucks, trains and other heavy-duty applications) make an excellent companion for the power sector. They will place new demands on electricity supply, but they could also solve some longstanding problems. n Janet Wood is editor of New Power magazine. MotorTransport 19

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