Motor Transport 8 February 2021 by Motor Transport

Sharp ■ Informed ■ Challenging

8.2.21

AVAILABLE NOW Ferry firm wants unaccompanied loads sent to Poole and Portsmouth

Go west, urges Brittany Ferries as traffic rises

ENTRIES ARE N OW O P E N

NEWS INSIDE Expanding at pace Caribou snaps up C&D

By Chris Tindall

Shaking things up

Fagan & Whalley restructure p4

New buzz in the market Volta gears up for first EVs

OPERATORS INSIDE Abbey Logistics ............................................. p7 Caribou ......................................................... p3 Fagan & Whalley ........................................... p4 Fred Sherwood & Sons ................................... p7 Hermes......................................................... p7 Howard Tenens.............................................. p4 JWT Commercial........................................... p3 Mark Thompson Transport ............................. p4 Owens Group................................................. p8 Palletways.................................................... p3 Pollock (Scotrans)......................................... p8

Brittany Ferries has urged firms to send unaccompanied trailers via ports on the western channel designed to receive driverless loads, as demand rises. The ferry company said the need for drivers to provide negative Covid-19 tests had driven the trend for unaccompanied loads travelling from the continent to UK ports such as Portsmouth and Poole. Ferry firms reported reduced freight volumes in January as a consequence of Brexit concerns and stockpiling. But Brittany Ferries said the proportion of unaccompanied units was already much higher than in previous years. Simon Wagstaff, Brittany Ferries freight director, said there were also financial benefits in going driverless. “We know of one large haulage

operation in Ireland, for example, that has organised reciprocal arrangements with another in Spain, dropping off and picking up trailers for each other,” he said. “That’s a cost-effective way of doing business.” Last year, Forth Ports launched an unaccompanied freight ferry terminal at Tilbury2, which it said would help reduce the spread of Covid-19. In December, the group

reported a 20% increase in unaccompanied freight volumes between Tilbury and Zeebrugge.

UK imports from France plummet over extra costs

Record numbers of hauliers declined to move goods from France to Britain in the second week of January, while those that did raised their prices significantly. Experts predict the fall could take three months to resolve. According to data from German software firm Transporeon, prices to move goods from France to the UK rose by over 50% that week compared with Q3 2020, while rejection rates jumped by 168%. Meanwhile, figures from smart payment system provider SNAP showed the number of European drivers parking in the UK fell by 26% in January compared with the end of 2020.

STEP UP: Britain’s youngest female transport manager and CPC holder has slammed the logistics sector for not doing enough to attract new recruits. Twenty-year-old Molly Watson, project manager with Osborne Motor Transport in South Shields (pictured with MD Richard Preston), said efforts to plug the skills gap face an uphill battle unless the industry addresses issues such as lack of investment in truckstops and secure parking. She said the sector’s unattractive reputation for long hours and poor staff services meant vacancies were unlikely to be filled, adding that many women who pass their test do not progress to jobs behind the wheel because of poor investment in truckstops’ and service areas’ facilities – an issue that also affects management and operational roles. “The industry needs to step up,” Watson said. “Too many truckstops have closed and the sector needs to improve its reputation and facilities to attract men and women. I wouldn’t want to be a driver in the current climate.”

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Parcel, haulage and freight firm says acquisition will help extend its UK and overseas network

Caribou snaps up C&D By Carol Millett

Parcel, haulage and freight firm Caribou has acquired Prestwichbased C&D Transport Solutions to extend its network in the UK and overseas. The purchase allows Caribou to offer same-day deliveries to its customers and take on the haulage expertise of the C&D Transport Solutions team.

Caribou MD Daryl Dylan said: “This was a natural move for both organisations as we’re both able to learn and expand from each other. “C&D Transport Solutions has been running for more than 20 years reliably. It has a small team with big ambitions, and it has chosen to move into our group to fulfil the vision of a much larger network.

“At the same time, Caribou can learn from C&D’s talented and experienced team. C&D Transport Solutions benefits from forwardthinking leader Darren Sankey, and in his new role as Caribou’s same-day development manager, we are confident of strong leadership and growth.” The acquisition of C&D Transport closely follows Caribou’s

purchase of Lincolnshire County Couriers in Grantham last year, creating 30 jobs in the area. The firm also has plans to open a new depot in Colchester, creating an additional 20 jobs.

Hydrogen fuel cells on the horizon Truck manufacturers are investing in hydrogen fuel cell technology to develop zero-emissions trucks in order to avoid paying hefty penalties for non-compliance with carbon emission reduction targets from 2025, according to a report by Fitch Ratings. The strategy is being driven by the EU’s recent adoption of emission standards and targets for HGVs that include a 15% average reduction in emissions from 2025 and a 30% reduction from 2030,

compared with current rates. The report said the high cost of manufacturing and operating fuel cell trucks was among the main obstacles, and that costs would have to fall significantly before production could be ramped up, but added: “If development of fuel cell trucks continues as planned, mass production could become achievable in the next decade, while more than 40% of heavy-duty trucks could be produced using this technology in 2050.”

Merseyside container specialist JWT Commercial has shut down with the loss of 82 jobs. The company, which traded out of Hornby dock in Bootle, appointed administrator Duff & Phelps on 6 January before making its entire workforce redundant. A spokesman for Duff & Phelps said: “As you will be all too aware, 2020 was a very challenging year for the majority of businesses.” Problems at JWT began with the loss of a major customer last June, which had a significant effect on its turnover and trading performance, he added. “Additionally, the company saw reductions to customer credit limits by the insurer market as a result of the ongoing challenges in the business environment. An increase in creditor pressure also heightened the company’s financial difficulties. “The administrator sought a

Photo: Shutterstock

JWT Commercial shuts its doors with loss of 82 jobs

buyer for the business and assets of the company as a going concern. “Unfortunately, given that the company had ceased trading and all employees made redundant, this did not prove possible. The administrator is now working with its agents to sell the unencumbered assets of the company for the benefit of the company’s creditors. “We understand that a number of staff have now been employed by a competitor.”

Palletways admits deliveries to Europe were delayed by Brexit difficulties Palletways has revealed it did not resume deliveries to the continent until 25 January, following post-Brexit trading difficulties, although other pallet networks have said European deliveries continued from 1 January. Pall-Ex group chief executive officer Kevin Buchanan commented: “We have not had to suspend services, but it has been tough, especially with deliveries to southern Ireland, as customers were just not prepared.” He added that this was “not surprising since the deal was not 8.2.21

signed off until Christmas time”. Buchanan expressed surprise at how unprepared some large customers were. “Some substantially large businesses were completely oblivious to the fact that Brexit would mean you have to go through customs clearance and pay a charge,” he stated. “The way the Tory government has handled this has been an unmitigated disaster. It has cost us time and money to prepare for a hard Brexit. But who will compensate us?”

Paul Sanders, chairman of the Pallet Network Association, said: “Everyone is getting major problems with the government’s computer systems and it hasn’t got any better. “The problem lies with the HMRC system, which generates a release note, that has not been tested correctly.” “HMRC has given a workaround with a generic code, but that has not always been publicised,” he continued. “It is hard to believe the system was not tested before launch.” MotorTransport 3

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West London woes hit Howard Tenens Howard Tenens Logistics’ profit took a hit last year as a result of losses made by its subsidiary, Howard Tenens (West London). Results to 30 September 2020 showed Howard Tenens Logistics’ diverse customer base and loyal clients helped it weather the pandemic through the first lockdown period, with turnover up by 13% to £74.8m (2019: £66.6m). However, pre-tax profit plunged to £268,000 (2019: £4.7m) after it was forced to make a £3m

impairment following deepening losses at the West London operation. Separate annual results from Howard Tenens (West London) for the same period show pre-tax losses increased to £651,000 (2019: £121,000) after volumes from two major customers dropped by between 80% and 90%. Howard Tenens Logistics made the £3m impairment against the investment value held for its West London outfit to bring it closer to the net asset value of the company.

Lancashire firm set for expansion with new-look corporate structure

Fagan & Whalley in board shake-up By Chris Tindall

Fagan & Whalley has announced a company restructure, boosting its board of directors from two to six people. The Lancashire-based logistics specialist said it had outgrown its previous structure and extending the board would facilitate its growth plans beyond its current four operational sites. Joining the board are business strategy director Sam Fagan; transport operations director Daniel Fagan; operations strategy director Daniel Wood; and Graham Clare as business development director.

The new board members have all been with the company for several years and Stephen and Graham Fagan remain on the board as chief executives.

The announcement came as latest financial results for the company showed revenue fell £278,000 to £26m in the year ending 30 April 2020. However, Sam Fagan said that for the first eight months of the trading period, the company was performing much better than it had been in recent years. “Since our industry bounced back in June, we have performed exceptionally, to the point where turnover is slightly down on last year, but profit is in excess of 7.5% – and that’s up to the end of December,” he said.

TfL eases process as DVS deadline looms TfL has created an ‘allow list’ of vehicles for operators who have applied for its Direct Vision Standard safety permits before 1 March, or are in the process of having the Safe System equipment fitted to qualify for a permit. It has also streamlined the application process as it warned thousands of HGV operators have yet to apply. The allow list will prevent operators incurring Penalty Charge Notices for up to 90 days from the enforcement date. 4 MotorTransport

Great new events for show’s return Tip-Ex/Tank-Ex will burst back onto the scene in the bustling market town of Harrogate this summer, following its postponement last year due to the pandemic. From four halls packed with the latest fleet equipment, to a brandnew Transport Manager conference and a dedicated driver day, we can’t wait to throw open the doors from 3-5 June 2021. Keep an eye on www.tip-ex.co.uk as more details get added. The Transport Manager Conference will take place on Thursday 3 June. This three-hour free event will be packed with the latest need-to-know guidance for managing fleets. The morning session will include talks from government officials, top transport lawyers and leading operators. You’ll also hear from technology leaders about emerging compliance tools.

‘Hop Topic’ reveals operator feeling

IN THE NAVY: Mark Thompson Transport has marked its first foray into warehousing by taking on a 110,000sq ft office and shed facility on the site of a former Royal Navy station. The Kinaxia-owned haulage firm is creating 20 warehouse jobs following its move to new headquarters at the Stretton DC in Appleton, Warrington. MD Mark Thompson (pictured) said: “This investment will enable us to meet demand from an expanding client base and represents a step-change for the business. The new warehouse creates opportunities for significant growth by enabling us to develop our services.”

Inside today’s MT you’ll find a free copy of the latest ‘Hot Topic’ reader research, focusing on how operators have fared during a pandemichit 2020 and their confidence for the next 12 months. Carried out in partnership with MT sister title Commercial Motor, it includes responses from fleets of all sizes across the country and covers a range of topical issues, from Covid-19 and Brexit anxiety, through to investment in new fleet vehicles and latest technology opportunities. The report is available to download on commercialmotor.com. 8.2.21

The Low Emission Zone standards are getting tougher across most of Greater London for heavy goods vehicles, vans and specialist vehicles over 3.5 tonnes and buses, coaches and minibuses over 5 tonnes. The new Euro VI standards are now changing on 1 March 2021. After this, you may have to pay a daily charge of up to ÂŁ300 if youâ&#x20AC;&#x2122;re still using an older polluting vehicle. This is part of the commitment by the Mayor, Sadiq Khan, and TfL to help Londoners breathe cleaner air.

Check your vehicle and see if you need to pay the daily charge, search LEZ.

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ADVERTORIAL

What will the future look like?

Tim Campbell is a leading commercial vehicle/ electric fuel cell consultant

By Tim Campbell At first glance, going green looks an expensive option; it is well known that the initial upfront cost of an electric van or truck is higher than its diesel equivalent. However, this is like only seeing the tip of the iceberg and ignoring the majority of it under the waterline. If you turn the iceberg upside down, you’ll see the operating costs of an electric van or truck will be a fraction of its diesel equivalent. As a consultant to transitioning businesses, I hear many quote 2030 as the date they need to be ready for electric vans. But, crucially, this is the end date, not the start. Change will happen sooner than many think, and by 2027/28 the balance will have already tipped towards electric commercial vehicles. At the moment, road transport companies have a simple and established solution regarding their access to energy (diesel) via fuel bunkering or public fuelling. This supply model will still be the ‘norm’ in the future when energy is supplied either via electricity or fuel cell, although I believe more transport companies will work together to create resource sharing partnerships that build ‘private/public’ infrastructure hubs, sharing capital investment costs and economies of scale. These will also provide access for businesses that cannot fully satisfy their electricity demand on their own site. Shared electric hubs will help companies looking to extend the range of a battery truck; by opening up to third parties with suitable separation, an additional revenue stream is created. Operators will also have to look at charging suppliers’ trucks on site as well as their own, enabling greater distances to be covered as a guaranteed energy input at the end of the journey will be a must for a resilient supply chain. Just as transport operators will adapt to the changing environment, so must van and truck manufacturers, that will start to offer a complete solution, packaging the vehicle and access to energy just as we see now with contract hire/leasing. So, coming back to the iceberg analogy, evaluating an electric truck or van is much more than the vehicle specification alone. It is about working in partnership with a manufacturer that considers (and understands) the whole iceberg, takes a consultative approach and liaises with expert partners to deliver an all-encompassing solution that includes the supply of the infrastructure such as groundworks, chargers, software, telematics and energy supply. Infrastructure has already been flagged as a weak link in that chain, but I’ll talk in a little more detail about that next month.

6 MotorTransport

Manufacturer gears up as orders hit $260m

Volta Trucks ready for first electric vehicle Volta Trucks said it hopes to roll out its first electric vehicle later this year after the value of its order books hit $260m (£190m). T he manufacturer also confirmed that a “significant number of additional vehicle orders are expected to be announced in the coming weeks”, after signing up several new customers. The first Volta Zero trucks are expected to be with customers in late 2021 following a round of funding in which $20m was secured from Luxor Capital Group. The company now plans to scale

and grow the business by expanding its team of engineers and commercial experts. Sharp McGivaren of New Yorkbased Luxor Capital, who will now sit on the Volta board, said: “Luxor Capital seeks to back transformative companies and management teams who can generate growth and value over the long term. “Volta Trucks started from first principles designing the Volta Zero and, as a result, has created an innovative vehicle that takes full advantage of electrification.”

Don’t miss out! Sign up now for our new Freight in the City webinars Urban freight innovation is the focus of the first of our new, monthly Freight in the City webinars taking place at 10.30am on 11 February. Free to attend, these informative online events will allow you to hear from the industry’s top figures on a range of topics related to safe and sustainable city goods movements. Supported by Renault Trucks, the webinar will look at some of the exciting trials taking place in London through TfL’s FreightLab project. This will be presented by Rikesh Shah, head of commercial innovation at TfL. Also presenting will be Carlos

Rodrigues, MD at Renault Trucks UK and Ireland, who will take viewers through the latest electric vehicle technology aimed at the urban freight market. To attend, simply register via the webinars tab on our website motortransport.co.uk. There will be an interactive Q&A session at the end of the event, so get your questions ready. We’re also excited to confirm that the popular Freight in the City Expo will be back as a live event this year at London’s Alexandra Palace on 28 September, bringing the latest fleet vehicles and technology for city operations all under one roof. 8.2.21

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Fash Sawyerr arrives with a track record in organising growth strategies

Hermes recruits chief transformation officer Hermes has appointed a chief transformation officer to support the business in the next stage of its development. Fash Sawyerr will join the Hermes UK main board, reporting directly to chief executive Martijn de Lange. He brings a proven track record in helping companies organise themselves for future growth, Hermes said. He joins from Anchorage Capital, where he was an MD in its portfolio group, driving transformation programmes. Sawyerr’s remit involves developing a transformation portfolio to focus on business-wide initiatives that will include driving process improvements, spearheading a new ESG strategy, entering new markets and creating new

products designed to support Hermes’ growing numbers of retail and SME clients. n Hermes has also announced plans to open a new, purpose-built depot in Bolton this autumn. The move is part of a wider

£100m investment strategy that will see it open another 10 depots and recruit 10,500 new employees in response to the online shopping surge, which last year saw Hermes deliveries soar by 200 million to 600 million.

Covid slows Fred Sherwood profit

Leicestershire bulk haulage firm Fred Sherwood & Sons (Transport) reported a 2% rise in revenue to £34.6m last year, but said Covid-19 had since adversely affected the business. Latest accounts for the family firm, for the year to 31 March 2020, showed that pre-tax profit rose 22.4% to £762,000 after an unrealised gain of £150,000 on revaluation of investment property. The company said its property portfolio continued to provide a steady income return. “The company has continued to invest heavily in revitalising the fleet with investment in lorries and trailers of more than £2.9m. During the year, properties valued at £4.7m were transferred to the parent company, Fred Sherwood Group, by way of a dividend in specie,” it said.

Police warn drivers over recent Abbey Logistics wins polymer and materials recycling deal from Viridor upsurge in cargo thefts

Photo: Shutterstock

More than 60 cargo thefts from trucks have been reported since the beginning of 2021, amounting to more than £1m-worth of goods stolen, according to the latest figures from the freight division of the National Vehicle Crime Intelligence Service (NAVCIS). Thefts include a high-value cargo of fine wines stolen on 4 January from an HGV in Basildon, Essex; the theft of three HGVs and their trailers at Totton in Hampshire on 9 January; the theft of a trailer and high-value exercise equipment at Wakefield in Yorkshire on 11 January; and an incident at the Hartshead Moor services on the M62, where a consignment of high-value shoes was stolen on 13 January.

8.2.21

In total, 62 cargo thefts from trucks have been reported so far this year, valuing £1.1m with the average cost price value loss per incident estimated at £17,741. NAVCIS Freight is also warning that jump-up thefts, in which thieves break into trucks that are stationary at traffic lights or in traffic jams, are on the rise. It is advising hauliers to fit E-locks, which can alert drivers and transport managers that the doors at the back of the vehicle are being tampered with. The organisation warned hauliers carrying cigarettes to be particularly cautious, asking them to ensure high-value goods are not loaded near doors.

Abbey Logistics has been awarded a recycled polymer and materials handling contract from Viridor, a leading UK recycling company. Abbey is handling recycled polymers from Viridor’s polymer reprocessing facility in Skelmersdale, Lancashire, which processes plastic bottles, segregating and processing the material further to produce deodorised HDPE compounds and Clear PET flakes. Abbey Logistics is partnering through its bag-to-bulk facility on the Wirral, where it takes delivery and provides storage of the recycled flakes in 1 tonne bags. These are then decanted into bag-in-box shipping containers for onward distribution to Viridor’s customers throughout the UK and Europe.

The high quality of these recycled polymer grades can be directly substituted for virgin material in the manufacturing of many new plastic products and packaging. This significantly reduces waste to landfill and the environmental impact of waste processing and manufacturing from virgin plastic. Mike Ellis, Abbey Logistics’ business development director, said: “Since opening in 2018, our bagto-bulk facility has attracted customers from across the polymers sector thanks to being close to Liverpool Port, our storage space and our UK wide bulk tanker transport network. Customers are using us as a one-stop shop for reformatting and transport to reduce costs and complexity in their supply chains.” MotorTransport 7

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Pollock (Scotrans) sees profit rise

Employment champion Owen awarded MBE Thomas Huw Owen (pictured), founder and MD of Llanelli-based Owens Group, has been awarded an MBE in the Queen’s New Year Honours for services to employment and to the community. Owen, who started the transport and warehousing company in 1972, said: “I am very humbled and proud to receive this honour. It is a very special day for all the family, especially after the year that we have all come through.

“This wouldn’t have been possible without the dedication, commitment and hard work from everyone at Team Owens. “Looking after and investing in our people is key to me and something I have tried to do from day one.”

Pollock (Scotrans) raised pre-tax profit last year despite a fall in revenues brought about by “challenging” conditions. The Scottish operator attributed the growth to a “healthy mix” of contract work, its cost-cutting strategies and a focus on reducing empty running miles. Revenues totalled £26.9m in the year ending 31 August 2020, down slightly from £27.8m in the previous year. Despite the fall, the business saw pre-tax profit rise to £418,716 (2019: £256,136) aided by a £2.2m cut in sales costs – although this was tempered by a £1.1m rise

in administrative expenses. The company also benefitted from a Job Retention Scheme government grant of £123,967.

Focus: apprenticeships TBG set to challenge funding level after disappointing IFATE review

Six months on and still no change Negotiations to convince the Institute for Apprenticeships and Technical Education (IFATE) to split the LGV Driver Apprenticeship into two to create Category C and Category C+E schemes are continuing, but the bureaucracy and slow pace of the process are frustrating. At a meeting in December with Robert Nitsch CBE, chief operating officer at IFATE, the logistics sector Trailblazer Group (TBG) explained why apprenticeships do not have a very positive image in our sector. While efforts are being made to progress matters, the processes remain slow and cumbersome. All this is taking place while the sector continues to pay over £10m per month into the Apprenticeship Levy – yet these delays and deferments prevent it from recovering much of this money. The LGV Driver Category C+E Apprenticeship was approved in June 2020 but the recommended funding amount was £6,000, only £1,000 more than the existing Category C LGV Apprenticeship. The TBG voted in favour of seeking a procedural review in order to increase the recommended amount of funding. This was submitted on 2 September last year and on 13 November the IFATE advised that the review should be granted. The TBG voted unanimously for the funding process to be rerun despite the threat that the new recommendation could go down or stay the same, as well as increasing. The IFATE held a workshop for the TBG and the training providers who had quoted for delivery of the apprenticeship

8 MotorTransport

training on 1 December, attended by Richard Burnett, chief executive of the RHA, and Philip Martin, head of freight policy at the DfT, along with four training providers from the group. The IFATE explained the revisions, adjustments and dispensations process for apprenticeship funding bands and the Education and Skills Funding Agency (ESFA) rules for funding bands. We were expecting to hear which costs the ESFA may have considered ineligible from the quotations provided, but the IFATE was not willing to disclose that information. It transpired that to progress a review of the funding band we had to prepare a revised training plan and revised quotations for the delivery of the apprenticeship training and end point assessment within 10 days. If acceptable, this would still need to be ratified by the secretary of state for education before the apprenticeship could be introduced in April 2021, two years after the TBG had made the decision to replace the existing Category C LGV Driver Apprenticeship with the Category C+E one. Richard Burnett and David Wells, chief executive of Logistics UK, had made representations to secretary of state for transport Grant Schapps requesting the funding level be increased to £7,000, and Schapps wrote along these lines to Gavin Williamson, secretary of state for education. During the week commencing 14 December 2020 we received some queries regarding the revised quotations submitted and these were resolved by the training providers. On 20 January the IFATE informed us that they had completed the funding review and the recommendation was that the amount should still be £6,000. It is unbelievable that after six months we are still in the same position. The argument put forward by the IFATE is that the training providers’ quotations are again reduced by ineligible costs as per the ESFA funding rules. However, they will not disclose by what amounts the quotes have been discounted. The TBG is meeting again to discuss a challenge to the IFATE’s level of funding although we do not want to go through another six-month procedural review. Jim French MBE, MD, Road to Logistics and co-chair, Trailblazer Group, Transport and Logistics 8.2.21

Focus: legal

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Entering the maze that is the paperwork for moving goods between Great Britain and Ireland

Ensure papers are in order Northern Ireland left the EU at the end of the transition period last year, along with the rest of the UK, while its neighbour â&#x20AC;&#x201C; the Republic of Ireland â&#x20AC;&#x201C; remains an EU member state. The Northern Ireland Protocol was implemented as a means of preventing the need for checks at the border between the two separate nations. It does, however, mean that some additional checks are now needed for transporting goods between Britain and Northern Ireland. To move goods between Northern Ireland and Britain, traders need an Economic Operator Registration and Identification (EORI) number that starts with XI. However, to apply for an XI EORI number, operators must already have an EORI number that starts with GB. Both of these can be applied for through the gov.uk website. Hauliers should ensure they are signed up to the Goods Vehicle Movement Service (GVMS). This service links declarations together, hopefully making it easier for drivers, who then, in theory, have fewer references to present at the port. Before arriving at the port, a singleuse Goods Movement Reference (GMR) will need to be generated using this GVMS and to do so provisional details of the vehicle and crossing details need to be submitted. Customers need to provide a 8.2.21

Movement Reference Number (MRN), acquired by completing customs obligations, for the consignment; this number also needs to be updated on the GMR. Although there appears to be no requirement for an export safety and security declaration (EXS) to transport goods from Britain to Northern Ireland, entry summary safety and security import declarations (ENS) look to be required. The carrier has the legal responsibility to ensure the ENS is completed correctly. On ro-ro movements, this means the haulier will probably be responsible for submitting the ENS to the customs authority in Northern Ireland. The Trader Support Service (TSS) has been set up to provide assistance to those involved in the movements between Britain and Northern Ireland, or bringing goods into Northern Ireland from outside the UK. This is a free government service that can assist in completing safety and security declarations. Using the TSS, operators can submit the ENS to the Import Control System, which will generate a Safety and Security MRN for the haulier (not the same as an MRN for customs obligations). This can be submitted by the declarant, but hauliers must ensure they have the Safety and Security

MRN. On arrival at the port, the GMR must be updated with the Safety and Security MRNs. The GVMS should then provide instructions as to whether the truck can proceed on the journey or if the driver is required to report for further checks on arrival in Northern Ireland.

Transporting goods from Britain to Northern Ireland via Ireland

It is important to note that the above relates only to movements from Britain going directly to Northern Ireland. Where goods are being transported to Northern Ireland via the Republic, a haulier or trader will likely be required to complete further steps, as the goods will be travelling through the EU. One option is to export goods to the Republic using the standard processes for transporting goods into the EU. Once goods have entered the Republic, they can then move freely into Northern Ireland. The second option is to use Transit to move qualifying goods through Ireland and only complying with customs obligations when reaching Northern Ireland. The first requirement for Transit is that the haulier must obtain a transit guarantee to cover the value of the suspended duty owed on t h e g o o d s . T h e Ne w l y Computerised Transit System

(NCTS) will be used to complete a transit declaration. This will generate an MRN and a Transit Accompanying Document (TAD) that drivers must carry throughout the journey. As is also required with direct movements to Northern Ireland/Ireland, safety and security declarations should be submitted. Hauliers must also use the Irish Revenue Customs RoRo Service to create a pre-boarding notification, which is similar to the GVMS in that it links details of security and customs declarations in one place. Before arrival into Ireland, the RoRo service then provides information on whether the driver can exit the port or if he must proceed to further customs checks. On arrival in Northern Ireland, the haulier must then present the goods along with the necessary documentation to either a customs office or an authorised consignee. Guidance on the movement of goods between Britain and Northern Ireland is still being updated and it is therefore important that hauliers remain vigilant with regards to any further developments. The above are simply some of the obstacles that hauliers will have to monitor and remain aware of if they wish to carry out these movements. n Patrick Boyers, solicitor, Backhouse Jones

MotorTransport 9

Viewpoint

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There could be trouble ahead T he UK’s lack of preparedness for the Covid-19 pandemic is sort of excusable as it is fair to say that few people predicted the scale of it. Only “sort of” though, because an international exercise to test the world’s readiness for Steve Hobson such a pandemic was carried out in 2016 Editor and the UK failed to take the steps Motor recommended to cope with such an Transport eventuality – such as stockpiling PPE. Some other countries, notably in the Far East, did take notice and so were much better prepared to react. However, the same cannot be said for Brexit. The UK has also had four years to get ready for the eventual end of the transitional arrangements and the last-minute nature of the trade deal, the lack of information for businesses and hauliers in particular, the shoddy state of the customs IT infrastructure, and the breathtaking political naivety over the effect of Brexit on the island of Ireland is completely inexcusable. Our feature on p12 is a snapshot of the chaos on the Irish Sea one month into Brexit proper and things are still unravelling. At the risk of offending some readers, I have to agree with one

contributor to that article, who described the situation as a “total s**t show”. How have we sleep-walked into a situation where port workers are being sent home and checks on goods suspended due to paramilitary threats? Did no one in government foresee the impact of Brexit on the Good Friday Agreement that brought peace to Northern Ireland? How on earth could a deal that guaranteed no border between the Republic (still in the EU Single Market and Customs Union) and Northern Ireland (still part of the UK) be squared with a Brexit agreement that saw the UK leave these treaties that are so fundamental to the workings of the EU? The problems with trade across the Channel – while still large – pale into insignificance compared with the dangers facing the UK and Ireland. No one wants to see a return to The Troubles, but the shambolic handling of where the border will be between the UK and the EU, and the resulting ramping up of tensions, is deeply worrying. Will Northern Ireland end up within the EU Customs Union? Maybe – but let’s hope it isn’t over a lot of dead bodies.

Still delivering after a turbulent year W David Ashwell MD, AO Logistics

e have had a year like no other at AO Logistics. As lockdown turned our homes into offices and schools, AO.com saw a huge increase in demand across not only essential appliances, such as chest freezers and cookers, but technology and home entertainment. Despite the surge in sales, we couldn’t deliver as normal. We had to strike the right balance between keeping our customers, employees and delivery teams safe and still providing the service everyone has come to expect. Following government guidance without disappointing customers has been our biggest challenge. But being in control of our own logistics has meant we haven’t had to compromise our operation during the pandemic, only pausing some services for a limited time. Although no company could be fully prepared for the crisis, we have 30 years’ experience delivering to the public. We’ve invested in our infrastructure and our people, nearly doubling our logistics capacity in a matter of months and adding over 800 new roles across the business. We now have

10 MotorTransport

24 delivery depots nationwide, and over 1.3 million sq ft of new warehousing space in the north-west, so we can manage demand and safely social-distance. We’ve also focused on making our fulfilment and delivery as sustainable as possible. When we deliver to our customers, we can take away their old appliances to be handled responsibly at our state-of-the-art recycling plant in Telford, where we’ve recycled over 1.7 million fridges. We’re working hard to reduce our carbon footprint too, building on the fantastic foundations of the recycling plant and other green initiatives like our carbon fibre delivery vans. We carefully plan all the journeys using clever tech to avoid taking wrong turns and clocking up more miles than we need to. It’s now up to us to keep up our high standards in 2021 and continue impressing new customers with the ‘AO’ way.

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 manager Isabel Burton Layout & copy editor Nick Shepherd Senior display sales executive 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 £146/year. Europe £176/year. RoW £176/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 © 2021 DVV Media International Ltd ISSN 0027-206 X

Got something to say?

If you would like to contribute to MT’s Viewpoint, email steve.hobson@roadtransport.com 8.2.21

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Brexit

Bordering on b

Four years after the referendum, the UK has finally left the EU Single Market and Customs Union. But how has haulage traffic between Britain and Ireland been affected since the split? Carol Millett reports

W CAUTIOUS APPROACH: Seamus Leheny

hile prime minister Boris Johnson dismisses custom delays between Britain and Ireland as “teething problems”, hauliers are telling a very different story. At a recent session of the Northern Ireland Infrastructure Committee, operators spelt out the reality of the new trading rules in stark detail. Ballymena haulier McBurney Transport employs 800 staff and operates 350 trucks and 1,100 trailers. The company ships approximately 114,000 trailers across the Irish Sea every year. Director Paul Jackson told the committee his firm had incurred between £67,000 and £73,000 of additional costs in the first week of January alone, with movements down 24% compared with the previous fortnight. “We’ve shipped 63 empty trailers back in – and we’re going to have to ship more empty trailers in this week – we can’t afford to ship any more empty trailers into Northern Ireland; it’s extremely urgent that we plug this,” he says.

Complex regulations

Northern Ireland hauliers say much of the problem lies with British shippers that were not prepared for the complexity of new customs regulations (see News Focus page 9). As a result, many hauliers’ customers have suspended deliveries while they scramble to figure out what the new regulations require, with others pulling out of the Irish market altogether. 12 MotorTransport

Paul Abbott, group director of Knights of Old, estimates approximately 40% of the firm’s customers were not prepared for the Brexit transition despite the firm’s attempts to prepare clients. He tells MT: “Some of the bigger players have got their act together and their clearances sorted out for Northern Ireland and the Republic. However, some of the smaller businesses have found it difficult as they’ve not got the infrastructure in place or done much homework, which can put the onus on freight carriers.”

Which group?

Sending groupage is particularly difficult under the new system, especially for products such as meat, milk and fish, which now need to be certified by vets when moving from Britain to Northern Ireland and the Republic. This certification has yet to be introduced for supermarkets in Northern Ireland, but already applies in full for food service and catering firms. When the certificates are issued, the lorry trailer has to be sealed. However, groupage involves pick-ups from multiple warehouses and loads sometimes moved from one lorry to another en route. This means trailer seals need to be broken, goods recertified and seals reapplied multiple times, creating a complex and time-consuming process. As a result, firms are suspending certain groupage deliveries or avoiding certain products. Palletforce spent months preparing members and customers for the end of the Brexit transition. After initial teething problems in the first week, its trade with Northern Ireland has resumed to near normal levels – except for groupage, says commercial and international director David Breeze. “The system’s not designed for groupage. So we’re restricting our product set now,” he says. “We’re not carrying certain commodities that would require vet or plant inspector checks to avoid the problem of sitting 8.2.21

motortransport.co.uk

RESTRICTING PRODUCTS: David Breeze

n breakdown and waiting to be inspected and have paperwork checked at Northern Ireland checkpoints and we will review that.” UK trade officials have successfully tested a simpler groupage system on the Liverpool to Belfast route. This involves certifying and sealing pallets of shrink-wrapped goods rather than sealing the trailer. However, RHA CEO Richard Burnett says: “The new model has not been stress-tested and does not consider the impact on suppliers having to develop bespoke processes within their own businesses. “It also fails to address the complexity and overly bureaucratic requirements designed for external trade and not internal within the UK. It does not recognise the shortage of vets.” In addition, 12 customs workers at Belfast and Larne ports have been sent home after “an upsurge in sinister and menacing behaviour” – no doubt from Unionist paramilitaries – so hauliers can expect further delays at Lurgan as they have had to suspend checks on animal and food products coming into NI at that port. Getting groupage into Ireland, which offers no grace period, is a bigger nightmare, according to Chris Hutchinson, Northern Ireland and Ireland transport director at Agro Merchants Group. The firm’s shipments into Dublin, where it delivers approximately 60 loads a day, have plummeted by 60%, compared with a 15% fall into Northern Ireland. “The administrative and bureaucratic burden into Ireland is phenomenal, particularly for multi-origin goods, and loads consisting of multiple quality codes. It’s a disaster,” he says. “We have guys inputting five cases of asparagus, 25 cases of cooked ham. When you have 40 or 50 loads of that, the administrative burden is colossal.” Neil Rushworth, MD of Bradford 3PL Expect Distribution, has also seen a 50% drop in Ireland volumes compared with last January. “When the cost of shipping one pallet basically doubles, it quickly becomes uncom8.2.21

petitive,” he says. “We were shipping small pallet loads, so we’ve pretty much stopped our shipments into Europe as it is not worth it.” Seamus Leheny, policy manager for Logistics UK, says that problems at Dublin Port have been compounded by the lack of integration between the UK and Ireland’s IT customs systems and overly-keen Ireland customs authorities who insist on a 24-hour notification period for food products arriving into Dublin, when the legal minimum is just four hours. In addition, customs officers are applying checks to 30% of the loads coming in. This stringent approach is creating political reverberations in Ireland, with hauliers staging a protest at Dublin Port and sending an open letter to the EU Commission and the Taoiseach in Dublin, warning that Ireland trade will come to a “complete standstill” if customs controls are not eased.

Utter chaos

In mainland Britain, a dearth of trained and experienced customs agents only adds to hauliers’ woes. Chris Slowey, MD of Craigavon-based Manfreight, witnessed the problem first hand on visiting a UK customs agent to investigate delays of shipments into Ireland. He paints a picture of utter chaos. “It employs more than 50 people and has invested heavily in robotics to process the declarations. But the robotics didn’t work and still don’t work. So they are now trying to scale up staff numbers to 150,” he says. “The robotics aren’t working because nobody fully understood the complexities or demands of moving goods from Britain to Northern Ireland or Ireland.” Staff were also inexperienced and lacked training. The pandemic threw another spanner in the works, Slowey recounts. “Of 50 staff, 40 had to be tested for Covid, leaving three people to deal with all the declarations going through their office, which has 5,000 ➜ 14 MotorTransport 13

Brexit

STOPPED SHIPMENTS: Neil Rushworth

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operations per day,” he says. “This is causing hours of delays to the products and issues at the ports when we arrive as the papers are not correct.” John Martin, RHA Northern Ireland policy manager, warns that as volumes return to normal, customs problems could get worse. “The capacity of customs agents is insufficient to service the sector, even with reduced freight,” he says. “Right now, volumes are roughly 60% of normal volume and some customs agents are not competent because they’ve only just been recruited with insufficient time to train.”

Customs agents

Ensuring customers have the correct paperwork is falling onto the shoulders of hauliers. Daryl Morgan, a director of Morgan McLernon Refrigerated Transport, says Northern Ireland hauliers have become customs agents. “We have had to create customs teams,” he says. “We have seven staff on this and will need to double that at the very least. We need more time to train and recruit.” Kate Lester, founder of Diamond Logistics, attributes much of the problem to the government’s brinkmanship. “With just one week’s notice of the new trading conditions, it was inevitable the challenges would be numerous,” she argues. Lester says delivering to Northern Ireland is proving particularly challenging since operators need an Irishspecific Economic Operators Registration and Identification (EORI) number and attempts to get this have been constantly hampered by the HMRC site repeatedly crashing – sometimes 20 times in one week. She also criticises the government for failing to give clear guidance on complex customs processes, which she says led to problems processing the EORI. “Despite organising EORI numbers for our 1,000 clients early last year, we have found that carriers are processing them differently, which is leading to system errors.” Lester says the overall impact on clients and their customers has been catastrophic, adding that Diamond’s EU deliveries revenue has fallen from 9.9% in December to just 1.6%. She slams ministers for failing to prepare businesses for the transition, reserving particular criticism for Cabinet Office minister Michael Gove’s cheery prediction last December that hauliers would cope as successfully with Brexit as they have the Covid-19 pandemic. She says: “There has been a great washing of hands by ministers, with hauliers and logistics agents left to pick up the pieces and do the job of the government. And we have no choice. We have to help our clients, or we don’t get their business.” Operators also complain about grappling with the clunky IT system provided by the government-funded Trader Support Service (TSS), set up to help British businesses deal with Northern Ireland 14 MotorTransport

SAVING GRACE Northern Ireland remains in the EU single market for goods under the Northern Ireland Protocol. As of 1 January 2021, goods crossing the Irish Sea from other parts of the UK were subject to customs checks. Supermarkets and parcel delivery companies have been granted a grace period, making them exempt from these border checks until 1 April to give them time to prepare. This period extends to six months for chilled meat products. Similarly, online retailers in Britain will also not have to make customs declarations when sending parcels valued below £135 to Northern Ireland customers. It is unclear what will happen after 1 April. Goods exported from Northern Ireland have unfettered access to Britain, with no need to observe rules of origin or provide customs paperwork.

post-Brexit trading arrangements. “The IT systems provided through the TSS are very cumbersome and resource intensive,” says Martin. “A process taking 15 to 20 minutes to manage before 1 January can now take up to six or seven hours. Okay, there have been some teething difficulties, but even with those reduced or eliminated, it’s still expected that the process will take approximately two to three hours. Hauliers are having to recruit additional staff to service this, adding to their costs.”

Unsustainable model

Hauliers warn that transport into Northern Ireland will become as problematic as it is into Ireland, come 1 April when the Northern Ireland grace period for supermarkets and parcel firms ends. “There is an abyss coming in April, here in Northern Ireland, unless there’s an easement of some form,” Jackson warns. “As a haulage business, this is an unsustainable model; we have to have it sorted before 1 April.” Leheny echoes Jackson’s concerns, warning that the parcel sector is on a precipice. “Many of our members are involved in the parcels sector. Some carry upwards of 6,000 parcels on a trailer. I think it’s clear they would struggle with customs entries on that. We need a longterm solution to avoid the need for those declarations, especially on business to consumer parcels.” Logistics UK and the RHA are calling for an extension of the grace period for supermarkets and parcel deliveries and on health checks for certain food products. Leheny concludes: “We’ve got to introduce easements as soon as possible. The deadline is 1 April; we’ve got to be clear. We have to avoid another cliff edge.” n 8.2.21

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Profile: Darren Hall

Problem solver On numerous occasions, companies suffering hard times financially have brought in Darren Hall to fight the fire. He’s currently working his magic at French-owned Fraikin, writes Steve Hobson

hile Fraikin doesn’t replace its MDs quite as often as West Brom replaces its managers – seven in the past five years – Darren Hall is the third person to take charge of the French-owned contract hire firm since 2016. In the intervening four years, Fraikin was subject to an unsuccessful takeover bid from Petit Forestier, which was blocked because of the large share of the French market the merged businesses would have had. Instead, it was acquired by a private equity consortium comprising Alcentra, Värde Partners and Canyon Partners in a deal that saw the group’s net debt cut by €350m (£312m). Hall was appointed MD in February 2020, replacing the genial former CEO Ed Cowell, who moved on to become CEO of serviced offices provider Landmark. Hall’s business career started in 1985 with 12 years at a small subsidiary of the engineering conglomerate Smiths Industries. “Then I was fast-tracked and when it bought a company I’d be part of the team doing the post-acquisition integration,” he says. “I worked my way up from a buying assistant to operations director for its medical business.” After leaving Smiths, Hall spent the next six years acquiring, turning around and running various UK manufacturing operations until, in 2003, he was offered the opportunity to go to Singapore. “We started a manufacturing business there, built it up and sold it in 2007,” Hall recalls. “I had a fantastic time in Singapore, it was wonderful. “In 2011, I joined a company called Safetykleen Europe as its group operations director, and had a fantastic three years in that business. I had the opportunity to travel around the world again and became MD of its UK business; that’s when I came across Fraikin.” Safetykleen Europe is a private equity-owned parts 16 MotorTransport

cleaning and environmental services business and its biggest cost, making up 35% of outgoings, was fleet. “I assembled the German, French, Spanish, English, Portuguese and eastern European operations directors and asked them ‘What are we going to do to derive value from this?’ “No one had any answers and so my UK operations director recommended I meet Fraikin in 2011. Within half an hour, they had drawn out on a piece of paper what I should do as a fleet strategy. Then they did a full fleet evaluation for me and put everything in a simple report showing me what my costs were, how they were trending, what they could do to change it, what the value levers were, and what they could change. “It was the first major project I took through the board and Safetykleen UK outsourced all of its fleets to Fraikin. It was a very successful project; I got to know the guys at Fraikin very well – Peter Backhouse [then CEO], David Fairbon [then commercial director] and those in Paris.”

Call for help

When Hall left Safetykleen in 2014 he got the call from Fraikin asking if he would set up an operation in the Middle East, based in Saudi Arabia. “Within two and a half years I got the business up to 25 people with 600 trucks on the road with customers, signed the biggest Saudi dairy company deal, and we brought in approximately €7m a year. But then things changed politically and the banks stopped lending to Saudi-related businesses. So the Fraikin board decided to sell the business, and in 2019 I helped sell to a local partner.” In late 2019, Cowell announced his departure from Fraikin UK and Hall was invited to take over. “I had very fond memories of that UK business,” says Hall. “Being a customer, I liked the culture, the way it works, 8.2.21

motortransport.co.uk

“If you look at my career, the common theme is there’s a problem, it needs sorting out, and I come in,” says Fraikin MD Darren Hall

and the friendliness and familiarity of it.” Fraikin’s worldwide turnover is now approaching €1bn, and its UK operation brings in approximately £90m. While it was profitable, given Hall’s background does his appointment mean the new owners and Fraikin Group CEO Philippe Mellier see Fraikin UK as a business in need of a turnaround? “If you look at my career, the common theme is there’s a problem, it needs sorting out, and I come in,” says Hall. “But I like a business where I’ve got my arms around it. The Fraikin business, I can do that very easily, I understand it, I can reach all the people, and I enjoy what I’m doing. “I wouldn’t classify it as a turnaround in the classic sense. Certainly, the business has not fulfilled its potential. When you look at the numbers, they are not exciting, that’s clear. The conversation with the shareholders was that we need someone to give us a roadmap for this business and show us what the potential is, what is its role in the UK market, and how to get there. It doesn’t have that. “Maybe the previous management were giving some confusing messages. But it boils down to numbers – and they’re not impressive – so there’s definitely room for improvement. “It has loyal customers and it’s got good top-line growth. But when you look at the bottom line, it’s just gone down and down. When I looked at what had been happening in the UK business, there was a series of decisions that weren’t the smartest and were backfiring.” One of Fraikin’s USPs is that, contrary to some other players that are relying more and more on dealers for repair and maintenance, it has retained its internal workshop capacity. “We’ve got five workshops and a small mobile tech team, so let’s expand that,” argues Hall. “To me, having 8.2.21

a mobile technician network is incredibly important. When you think about the market strategically and you think about the vehicle OEMs, they are bringing out vehicles on leasing plans that compete with Fraikin. “So Fraikin has to have something that’s much more value-add. Having the mobile tech network and our workshops means we are able to be there very quickly and manage the whole vehicle, including the fridge unit and tail-lift. Doing all those things is important. “We had to muscle ourselves back into the market by being relevant. So we’re reopening our Bristol location, we’ve reopened our breakdown centre and we’re expanding the mobile tech team from 22 to 55.”

Ringing the changes

When Hall joined the business, just 8% of repair and maintenance was in-house. By the end of this year, he wants to see that rise to 40%, a change he says will also be “a significant advantage to us financially”. Hall describes Fraikin’s DNA as “the rigorous management of vehicle operating costs”. “We have to be absolutely brilliant at it. If we’re not, we let the customer down and we lose money,” he says. “Because we have fixed-price contracts, we say to the customer, ‘There’s your vehicle, it’s £1,000 a month for the next five years. If the engine blows, I pick up the risk. If that vehicle’s off the road, I have to give you another’.” Hall has agreed with the shareholders a three-year roadmap and he plans to stick around to implement it. “We understand our commercial sweet-spot and we’re clear that long-term contract hire of 60 to 72 months is the backbone of our business,” he says. “We’ve got excellent relationships, which we’ll maintain, and we’ve got new opportunities that we’re signing up right now. “We’re also investing in the short-term rental business to support that, and then we’ve got a growing fleet MotorTransport 17

Profile: Darren Hall

motortransport.co.uk

management business around Sainsbury’s and AO and we’ve just signed Waitrose. “I would say, in many respects, the whole Covid crisis is one of the best things that happened to Fraikin with the expansion of last-mile delivery. Sainsbury’s went from 2,700 vehicles to 3,700, double shift to triple shift, and we’ve been right behind them all the way. I believe that Sainsbury’s home delivery slots have gone from 200,000 a week to 800,000 a week. Typically at Christmas, it would peak at 350,000.”

Expanding fleet

In fleet terms, Fraikin has 4,000 vehicles on contract hire, a rental fleet of around 800 that is being expanded to 1,000, and 4,500 customer vehicles under fleet management. That total of just over 9,000 will exceed 10,000 in 2021. Hall says that the three-year plan includes “a couple of big milestones”, one of which is to get turnover above £100m. “I’m confident we’ll hit that in 2022,” he says. “I’m very pleased to get the EBIT back up, and the 2020 numbers are going to look very strong. We’ve done a remarkable job this year in getting those numbers right. “My message to our shareholders is that there’s a window of opportunity in the next 18 months that we may well want to look at; some regional M&A, where we can take advantage of that situation, and bring in complementary businesses with contracted revenues. Clearly opportunities are there, and we are very alert to that at the moment.” n

COLLABORATE TO ACCELERATE ELECTRIC VEHICLE ROLL-OUT Hall is keen that Fraikin is not left behind in the impending switch from diesel to alternative fuelled vehicles as the UK phases out conventional internal combustion-engined vehicles. “I’ve done a lot of research on electric vehicles since I came back to the UK. My take on it is the manufacturers are not pushing the agenda very hard, so what you need are disruptors. I like Arrival – that vehicle is a game-changer in my opinion. I feel that we need non-automotive businesses that have energy and design backgrounds to come into the sector and disrupt it and shake up the manufacturers. “The second thing is that once you’re into electric vehicles, you’re not worried

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about Euro-6, so you will get the importation of Korean and Chinese technology. They never came into the European market because of Euro-6. “We also need to collaborate to accelerate. People have to form collaborative groups to get electric vehicles into the market quicker. We’ve partnered with NeoCharge so Fraikin can provide you with the vehicle, a charging station and the maintenance of the vehicle altogether as one package in a monthly rental. There’s a lot of work going into how to change our TCO model from cost per kilometre into cost per kilowatt. I’m very excited about electric vehicles.

“Everyone wants a quotation, but no one can get a vehicle at the moment. There’s just not a lot of volume out there. What I’ve said is that I want Fraikin to push this by seeing if we can accelerate the disruptors. We’ve budgeted for electric vehicles in our plan next year and the year after. We haven’t gone crazy and our plan isn’t relying on electric vehicles, but I certainly want Fraikin pushing the agenda very hard.” While light commercials will go electric in the next 10 years, the big question is will heavy trucks follow suit or go the hydrogen route? Providing enough green hydrogen made from low-carbon electricity remains a challenge and batteries are getting better all the time “My initial thoughts were hydrogen, but Mercedes’ roadmap for EVs has 26-tonne tractor units on a battery with a 1,000km range,” says Hall. “My understanding was that you had to have hydrogen to get the range, but now Mercedes is saying by 2024, it’ll have a product that is fully electric and can do 1,000km. To me, it’s swinging back towards battery again. “It always evolves and all of a sudden someone does something and the herd goes that way, then the herd goes this way. Certainly to me, practically speaking, I understand batteries better, so I feel more comfortable with them. I get the concept of a battery on wheels being a unit that can meet most applications, and from the supply chain point of view, a battery is a much simpler challenge.” 8.2.21

2021 Events Convoy Cymru 15/16 May Tip-ex Tank-ex, Harrogate TM Conference 3 June Northern Rewards 4 June Truck Driversâ&#x20AC;&#x2122; BBQ 5 June Convoy on the Plain 3/4 July Commercial Motor Golf Day 22 July Convoy in the Park 21/22 August Motor Transport Awards 2 September Freight in the City Expo 28 September Transport News Scottish Rewards 3 December Commercial Motor and Truck&Driver Awards 9 December

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MT Awards 2020 winner profile Business Excellence Award

Boxing clever Wren Kitchens’ unique triple-trunking strategy has cut costs and carbon emissions from an operation that lists driver training and customer service as key priorities

I GOING GREEN: Wren has invested in the latest mirrorless Mercedes-Benz Actros

t’s a measure of Wren Kitchens’ success that when MT catches up with head of transport operations Lee Holmes for a chat, he’s busy planning the company’s expansion into the US. After all, this is a retailer that only celebrated its 10th anniversary in 2019, but by then could boast a turnover of £643m and gross profit of just under £300m. Winner of the 2020 Business Excellence Award, Holmes says Wren’s success can be put down largely to owning its supply chain: “We make our own kitchens, sell them and deliver them,” he explains. “Not a lot of competitors do the delivery; it’s what makes us as good as we are – the final mile. And being a relatively new company we can define our own strategy and take the best pieces from the industry’s leading companies.”

One idea that Wren hasn’t borrowed from a rival has been triple-trunking. It might sound like a variety of chocolate chip cookie, but it’s actually involved ditching most of the company’s van fleet in favour of demountable box bodies pulled by one 18-tonne truck. Each box can hold as many as three large kitchens, helping the company reduce mileage, fuel usage and manpower. “We’ve always been an advocate of the demountable swap body system,” Holmes says. “It reduces double handling and cross-docking and the kitchen arrives to the customer straight off the production lines. We no longer had issues with weight capacity on the van fleet – we just couldn’t get a decent payload for our operation. So that led us to the 7.5-tonne options. We already knew the demountable benefits from our 18-tonne fleet.” What this means is that Wren can now move the right number of products and still be economically viable when compared with a traditional van operation. It’s also 22 MotorTransport

boosted its green credentials. “Road trains are the way forward for us,” Holmes says. “It’s a unique operation and probably isn’t suitable for all businesses, but for us and the customer it fits like a hand in a glove.” Triple-trunking has also provided some unforeseen benefits, such as a reduction in accidents. Unlike vans, HGVs require a trained driver and are more closely monitored by telematics to monitor performance. Training can therefore be quicker and more targeted. “We’ve also noticed safer driving styles,” Holmes says. “With a van you always have the temptation to speed a little more. The HGVs can be altered to change the user’s driving style.” Holmes applauds government consultation on the wider use of longer semi-trailers on Britain’s roads: “Other countries do it but it’s almost like we accept the traditional method,” he says. “If a longer trailer can reduce the traffic, has fewer emissions, less chance of accidents and is a cheaper solution, there’s no downside.” But like many firms, Wren finds it difficult to locate good drivers. So instead, it develops them itself. It’s even launched its own driver apprenticeship programme. “It’s very easy to get someone to steer a truck from A to B – but you will be very lucky if you manage to find one who doesn’t smash up the truck or cause issues,” he says. “A good driver is hard to find and even more so where the role involves a lot of manual handling. There comes a time in a driver’s career when they don’t want to be lifting heavy items all day. “We’re lucky our operation requires a driver and a driver’s mate. This presents a great opportunity to give those who really want to fit with our values a career. It’s much easier to spend a few thousand pounds training someone who is eager to learn and getting a good five years’ loyalty back than it is to get your fly-by-night guys who move from agency to agency, breaking the drivers’ rules and just trying to get by doing the minimum.”

National scandal

Holmes describes the industry driver shortage as “one of the biggest national scandals around”, suggesting people working in gyms, bars and the hospitality sector should be given a bursary to train in the industry, with a small tax on their earnings to cover it. He insists this would take the strain from the welfare system, pumping much-needed blood into a declining labour pool, while giving people the chance to develop and grow: “And it’s not only the driver shortage – there’s also a shortage in highly skilled and dedicated manage8.2.21