Motor Transport 11 December 2017

Sharp ■ Informed ■ Challenging

11.12.17

NEWS INSIDE Trouble brewing

THE NEW SCANIA

Vauxhall’s Ellesmere Port factory under threat p3

To the rescue

Kinaxia Logistics steps in to save BC Transport p6

Fighting talk

Creditors take action in insolvency cases

p8

Palmer Harvey & McLane employees given a lifeline following operator’s collapse

Hauliers to the rescue Concept

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Notes

OPERATORS IN THIS ISSUE ArrowXL ...............................................p6 BC Transport .........................................p6 Boughey Distribution ............................p6 CJ Express ...........................................p6 DPD ...................................................p38 Expect Distribution .............................p36 Global Shipping Services .......................p8 James Kemball ..................................p10

Merry Christmas to all our readers!

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By Carol Millett

into administration, Yearsley Group would like to reach out to those affected and see if we can find a job right for you.

We are recruiting both drivers and warehouse staff across our network of 11 depots. Let’s get Palmer & Harvey staff back into employment before Christmas,” it added.

Pollock (Scotrans) said: “We are recruiting drivers in the following areas; Fife, Bathgate, Tyneside and Blackburn. Class

1 and Class 2 for multidrop, shift work along with trampers. Please contact us at enquiries@pollock.co.uk for these and any other vacancies we have available.

“Our thoughts are with those affected by this announcement and we would urge our connections and others in the industry to help redeploy and lessen the effect of such a big employer in the logistics industry going into

administration,” it said.

The petition, set up by P&H operations inventory manager Claire Walton, reads: “As a former Palmer & Harvey employee, it would be good to understand how and why it was allowed to happen, and to have the people responsible held to account.”

It reveals the anger among former staff. “My and my colleagues’ worlds have been turned upside down due to our company P&H going into administration,” said one.

Another spoke of the devastation of seeing a company that had been around for a century destroyed and called for action to be taken, signing it: “Very angry ex-employee.”

Customers signed the petition too. “P&H supplied us and many surrounding area businesses. It’s left us facing a huge disruption to services,” said one.

Image: Alamy

Yearsley Logistics and Pollock (Scotrans) have given employees of collapsed own-account operator Palmer Harvey & McLane (P&H) a lifeline with a recruitment drive.

The move came as a petition on change.org demanding an investigation into the demise of the firm sailed past the 10,000 signatures mark in less than a week.

Last month’s collapse of P&H, which held O-licences for up to 600 vehicles, saw 2,500 staff laid off immediately, with approximately 450 retained in the group’s wholesale business to assist administrator PwC in winding the business down.

In response, Yearsley Logistics has launched a campaign to hire former P&H staff via its LinkedIn page.

It states: “Following the announcement of P&H going

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News Extra p8 Focus: Warehousing p10 Highwayman p12 Marketplace p20 Cost tables p32 MT Awards winners p36-39 Careers Hub p41

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News

motortransport.co.uk

High manufacturing costs and Brexit prompt Vauxhall owner to improve plant’s competitiveness to survive

Ellesmere Port in jeopardy

By Emma Shone

The future of Vauxhall’s Ellesmere Port factory is jeopardised by high manufacturing costs and Brexit, according to owner PSA Group CEO Carlos Tavares.

Tavares said Ellesmere Port’s manufacturing costs are double that of PSA’s Sochaux factory in France. “This is striking because the most cost-competitive place to make cars in Europe is not France because of labour costs.

When you reach this kind of situation, it creates a risk,” he told MT. For the factory to make viable business sense, especially with potential extra costs from new trade laws postBrexit, Tavares said it has to improve its performance by the Brexit deadline.

“We need to set up a plan to improve the manufacturing cost competitiveness of the plant, based on factors such as internal logistics, energy and making the plant as compact as possible.”

Tavares told MT he was working closely with unions in the UK to protect Ellesmere Port employees. He said: “If you reach a point that you can be double the operating cost of a French plant, it means the level of demand for that plant we set ourselves in the past 10 years was very low. That rings a bell on the management and union sides because if we want to protect employees, we need to understand that we need to be demanding on our people.

“It’s the best way to respect them – by asking them to work hard to reach a certain number of objectives.”

PSA Group acquired Vauxhall and European counterpart Opel on 1 August. In October, Ellesmere Port announced it would be cutting 400 of the 1,800 jobs at the facility by the end of 2017.

Ellesmere produces the Astra car and PSA also owns a Vauxhall plant in Luton, which makes the Vivaro van.

Tavares said the severity of the situation at Ellesmere rests on whether the UK embarks on a hard or a soft Brexit. “If it is a soft Brexit, we can still export cars from the UK to the continent, in which case competitors are all the continental plants. We need to catch up with those plants, so the UK needs to improve its quality and cost competitiveness to be able to continue to export in a profitable way. But that’s a soft Brexit, and that’s not going to happen.

“If it’s a hard Brexit, it’s worse. On top of having to be competitive against continental plants, you will have to overcome the penalty of a customs tax, which puts more pressure on competitiveness, and makes it more demanding. The conclusion is: let’s get back to work because we have two years to fix it.

“When Brexit happens, whatever Brexit it is, this situation needs to be fixed.”

Image: PA

Hard Brexit could put DAF in good competitive position, says MD DAF could fare better than other manufacturers in the event of a hard Brexit, according to MD Robin Easton.

Speaking at a press briefing last week, Easton said Brexit is not in the best economic interests of the UK but he hoped the government will do

a sensible deal with the EU, with a transitional arrangement in place of more than two years.

However, he added: “With our Leyland manufacturing plant there is an import duty of 4.5% on components we import but competitors would

pay up to 20% on built trucks they import. The Leyland plant is a great asset for DAF in the UK and the only plant in Europe to produce the full range of vehicles.”

Easton, who took over from Ray Ashworth earlier this year, said time will tell if the indus-

try is able to shoulder the additional cost of early replacement and a drop in the value of Euro-5 vehicles as a result of the introduction of clean air zones. “Once governments converge on a single clean air standard, demand for Euro-6 vehicles will be robust,” he said.

He also believes fully electric and range-extender commercial vehicles represent the future for the industry. “The industry is working hard to provide new suitable, proven, affordable products with a wide network of capable dealer support,” Easton said.

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News

motortransport.co.uk

Director Peter Fields anticipates further investments in the next 12 months after buying the haulier

Kinaxia rescues BC Transport

By Chris Druce

Kinaxia Logistics director Peter Fields (right) has described his latest purchase, BC Transport, as a “good solid business with great people” that ultimately stumbled as it was carrying too much debt.

Speaking after rescuing the Bollington-based haulier from administration in a move that saved 50 jobs, Fields said it was a profitable business but had been a victim of circumstance.

Fields said he had looked at BC Transport – a Palletforce founder member, established

in 1964 – around the time its owner, Christopher Goodwin, was looking to sell it last year.

Ultimately Goodwin sold the business to A2E Industries

and retired earlier this year.

“We knew the company and knew the fit – in regards the staff and operation – would be a good one [with Kinaxia]. We don’t do turnarounds normally, but this isn’t a lossmaking business,” Fields told MT. Kinaxia Logistics acquired the business, assets and some liabilities in the deal. It has also paid outstanding employee wages.

Fields said its proximity to William Kirk, which it also owns, may allow some of BC

Transport’s administrative and back-office functions to be carried out there.

According to the DVSA, BC Transport has an O-licence authorising up to 35 vehicles and 26 trailers It joins a rapidly expanding Kinaxia group comprising Bay Freight; William Kirk; NC Cammack and Sons; Foulger Transport; Lambert Brothers Haulage; Panic Transport; Maidens of Telford; and Mark Thompson Transport.

Fields said: “We anticipate making further investments

Research starts on asset sharing Work has started on FreightShare Lab (FSL), a collaborative research project focused on tackling transport inefficiencies associated with empty and partially laden truck running.

The project is co-funded by Innovate UK and aims to demonstrate how strategic data and asset sharing between multiple road/rail carriers and shippers can reduce empty running and under-utilisation of freight vehicles. It will run for 30 months and intends to provide real-world validation of a feasibility study conducted

by World Business Council for Sustainable Development (WBCSD) in 2016.

FSL partners Route Monkey, Transport Systems Catapult, Heriot Watt and MT publisher DVV Media will develop an open data software platform for the optimisation and co-ordination of shared assets to do this. The platform will act as a strategic planning tool, integrating job and vehicle data from shippers, fleets and carriers.

Against a backdrop of increasing freight volumes and pressure for countries to reduce CO2 emissions, the WBCSD study estimated that asset sharing could deliver a 20% reduction in fleet CO2 output from road freight. n To get involved, contact kate. armitage@routemonkey.com.

6 MotorTransport MTR_111217_006.indd 6

in the next 12 months, which will be in line with our aim to build a flexible and efficient, service-focused haulage and warehousing group covering the UK.” Palletforce CEO Michael Conroy said: “The addition of BC Transport to Kinaxia Logistics will enhance its business infrastructure and capabilities. It also safeguards the jobs and skill sets of a talented workforce at BC Transport, delivering the highest quality Palletforce services to our growing membership base.”

CJ Express creditors could lose up to £1m STREAK OF TIGERS: Boughey Distribution has updated its fleet with 50 new curtainsiders from Tiger Trailers, replacing older assets and increasing Tiger’s share of the fleet to more than 75%.

The delivery comprises 35 4.2m- and 15 4.5m-high clearspan tri-axle trailers, with the higher assets being used to support contracts requiring double-stacked loads. Boughey was one of Tiger’s launch customers and has bought curtainsiders from it since 2015.

Shiels gets stuck in as ArrowXL CEO Former DPD director Charlie Shiels has been appointed permanent CEO of ArrowXL after his predecessor Ian Howell stepped down in September.

Shiels took up the role on an interim basis, but has confirmed to MT he will remain in the post.

“I never thought I’d be CEO – it was never in my plans – but it’s happened. The shareholder representative approached me and asked if I’d like to be CEO, and I said I’d be honoured. It all happened very suddenly.

“This is a great business and I’ve got lots of plans for the future. I’m very excited to get stuck in,” he said.

Shiels also confirmed that building work had begun on

Arrow’s Worcester hub, which was destroyed in a fire in April.

The site accounted for 43% of the two-man delivery firm’s total capacity, and Shiels said the business is taking the opportunity to make the new facility in its place bigger and better than ever.

He said: “By summer 2019 we will have a new five-bay, two-man warehouse on the old site, but bigger, taller, and wider. The site was old, so we’re building a state-of-the-art facility. We’re going to build the best two-man facility in the country.”

Creditors of Hull-based CJ Express could be left close to £1m out of pocket, according to the collapsed company’s statement of affairs.

Liquidator Leonard Curtis has estimated a deficiency in regards to unsecured creditors of £978,570.

The statement reveals little in the way of assets at the haulier, which was placed into an insolvency procedure (MT 30 October), with the majority of its vehicles on finance lease deals with MercedesBenz.

The two largest unsecured creditors are CJ Express’s parent company Premier Logistics, which is owed £339,093, and CJ’s former sister company MWC Logistics.

MWC Logistics, which is owed £370,259, continues to trade and has not been affected

by CJ Express’s demise.

HMRC is owed £11,786, other non-secured trade creditors £186,011, and there are £37,057 of employee unsecured claims shown on the statement of affairs.

Family firm CJ Express, which also traded as CJE Logistics, was bought by Premier Logistics in July 2015 for an undisclosed sum.

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News extra

motortransport.co.uk

Fighting back can pay off What can creditors unhappy with the way administrators are handling an insolvency do?

Chris Tindall reports When a company fails, consideration is often given to those who lose their jobs, but creditors often have to face losing a lot of money too. This can be a double blow when the business and assets of the failed company are sold in a pre-pack deal to a connected party, and it continues to trade as though nothing ever happened.

But what can you do if you are unhappy about the way in which the administration is being handled, and think the best result possible for unsecured creditors is not being achieved?

Images: Shutterstock

Use your vote

One way is to vote out the insolvency practitioner (IP), which is what happened at Grimsby-based Global Shipping Services Logistics (GSSL).

Unhappy after administrators at Leonard Curtis announced that their dividend prospects were anticipated to be nil, around 100 GSSL subcontractors and suppliers voted to appoint Charles Ranby-Gorwood as liquidator instead.

Ranby-Gorwood proceeded to recover £411,590 in a VAT refund, enabling HMRC to be paid back in full and significantly swelling the eventual dividend to creditors.

In his progress report in September 2017, Ranby-Gorwood said: “It is not known why this VAT was not reported in any of the reports previously provided by the former administrators,

8 MotorTransport MTR_111217_008.indd 8

or indeed why a claim was not made for the funds.”

Second opinion

Ranby-Gorwood later agreed a settlement with GSSL’s owners, together with associated company Global Shipping Services Estates, of £1.35m.

It means that the creditors will receive at least 60% of the amount they were owed, and possibly more as the liquidator’s work is not yet complete.

Ranby-Gorwood said the liquidation would remain open for at least another year while he investigated various matters, and also dealt with a claim relating to the high-profile truck cartel.

He added: “I hope that creditors can see that sometimes a second opinion can help them get a better explanation of why things have gone wrong.

“In this case, we were lucky because it also brought funds back with the consent of the owners of the company.

I hope it shows the benefit of creditors getting together to support further investigation when they are not satisfied with the explanations they get.

They might not get more money, but they may get due respect.”

Leonard Curtis did not respond to questions put to it about the case, but creditor Paul Brewster said he had written to the Institute of Chartered Accountants of England and Wales (ICAEW) about the way in which the administration was handled.

Brewster, who was GSSL’s former operations manager, said: “I wrote to it six weeks ago asking it to look into the matter. Why was it that Leonard Curtis said there was no money for creditors and then Charles gets a £400,000 VAT rebate? I knew GSSL was a profitable company. It was listed as one of the top 50 fastest-growing companies in Humberside.”

In response, a case manager at the ICAEW said the former administrator’s investigations were ongoing at the time that the liquidator had taken over the case. It was also pointed out that a liquidator has “wider-ranging investigative powers than an administrator” and that on the basis of the administrator’s reports and separate correspondence, there was nothing to suggest the IP had failed in its obligations and that there was no evidence of misconduct.

How to complain

Getting together enough creditors to form a majority and vote in a new liquidator has been hailed as a victory for “creditor power”, but it is not the only solution.

The Insolvency Service (IS) has over-

all responsibility for monitoring the activities of the bodies that authorise insolvency practitioners, which includes the aforementioned ICAEW, as well as the Insolvency Practitioners Association and the Association of Chartered Certified Accountants.

Complaints to the IS are administered by an insolvency enquiry line team and these are then submitted via a complaints gateway where they are assessed and passed to the appropriate licensing body for further investigation.

In its latest annual review of insolvency practitioner regulation, the IS said that in 2016 the Gateway received 847 complaints. Of these, 456 were referred to the relevant professional body and 247 were rejected; 144 complaints remained on hold while the Gateway seeks further information from the complainant.

Sanctions against IPs include having licences revoked, suspended or withdrawn, as well as reprimands and fines.

An IS spokesman said: “No two complaints are the same, and the time taken to investigate and report will depend on the depth of investigation needed.”

PRE-PACKS UNDER ATTACK Moves to make pre-pack administrations more open and transparent have largely been ignored by company directors, with few making use of a panel of experts who can scrutinise business sales, MT has learnt.

Pre-packs have attracted a bad press due a lack of clarity about the sale of a business and its assets, often to a director who has an existing relationship with the company in administration.

Following the Theresa Graham review of pre-pack administration procedures in 2014, one recommendation was for a pre-pack pool of experts to be established, who could provide their opinion on a proposed sale and purchase of a business by a connected party. The idea was to provide reassurance to creditors that the sale had been reviewed by an independent person and could consider “the reasonableness of the proposed transaction”.

The pool was created in 2015 but, according to the Insolvency Service, out of 371 pre-pack administrations between 1 November 2015 and 31 December 2016, just 53 were referred to the pool – about 14%.

David Kerr, chief executive of the Insolvency Practitioners Association, said: “A key question might be to what extent creditors pay attention to the SIP 16 [insolvency practitioners’ compliance standards] statements and pool opinions where they are provided, and to what extent are creditors’ decisions on future trading with the new company influenced by a pool member’s report. If there is no discernible difference in creditors’ approach, then what will drive purchasers to pay for an opinion that is little read or considered?”

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Focus: Warehousing

motortransport.co.uk

Speculative development will shrink in size Scotland

Like many parts of the UK, Scotland has seen its supply of good quality warehousing diminish over the past few years. Very little speculative development has taken place, particularly at the larger end of the market, and very little is predicted.

Bryce Stewart, a partner with agents Montagu Evans, said the perceived risk profile among investors and the limited size of the market means there will be a maximum size of 30,000ft2 to 50,000ft2 for speculative development.

“I would think that anything above that in Scotland is going to be buildto-suit,” he said.

JLL director Andrew McCracken believes that occupiers needing larger warehousing will have to plan ahead – or compromise on quality or location.

“There can be a lead time of two years with a new building, so it is no good if your lease is expiring in nine months or if you need to upsize or downsize now,” he said.

Those taking such space include Lidl, which is currently constructing a 625,000ft2 warehouse at Eurocentral

in Glasgow, and DPD, which has signed up for an 80,000ft2 building nearby.

Despite the overall shortages, there are still a handful of large warehouses available, many of them also in the Eurocentral area. These include two buildings, called Colossus 1 and 2, each of which is 94,000ft2, and a 67,000ft2 former Eddie Stobart building called Pinnacle 1.

Space is also available at an 81,000ft2 building at Axis Park in Cumbernauld, although a 250,000ft2 former Asda warehouse in Grangemouth was sold to WH Malcolm earlier this year.

The lack of supply is pushing up rents which, according to JLL’s McCracken, are now £7.50-£8 per ft2 for prime buildings, up from £6.50£6.75 per ft2 two years ago.

Ports

The development of new container berths at ports around the UK is stimulating the creation of handling and storage facilities nearby.

Ports such as DP World London Gateway, where a third deep-water berth opened in April, and Liverpool 2,

which opened in November 2016, have enhanced container capacity as have improvements at long-established container ports such as Felixstowe and Southampton.

These have been accompanied by some container-related property activity. At London Gateway, ATL Haulage Contractors will move into a 2.64-acre facility in June 2018 and work is under way on a 40% expansion of Pentalver’s container facility at the port.

Wincanton has also signed up for a truck park and offices which will open early in 2018.

In addition, individual operators are undertaking their own projects.

Container haulage firm James Kemball opened a 50-acre container storage depot, capable of storing 1,600 loaded containers, in Felixstowe in November.

Other ports are keen to provide handling facilities and warehousing.

In November, the UK’s largest port operator ABP announced it was forming a £3.5bn property development and investment business with 2,372 acres available at its 21 ports around the country, which include Southampton.

Despite such activity, property experts said many occupiers continue to use ports solely for customs clearance, before moving containers to inland facilities for processing.

Cushman & Wakefield director Simon Lloyd commented: “In many cases ports act as a conduit for central locations, from which distribution takes place.”

The role of ‘inland ports’ which provide fast rail and road links to the coastal ports, could become more significant in future. Current examples include iPort in Doncaster which could accommodate 6 million ft2 – of which 2.7 million ft2 has already been taken – and East Midlands Gateway, being developed near Castle Donington by Roxhill and Segro, which could also accommodate 6 million ft2.

Knight Frank partner Charles Binks said such developments currently act mainly as well-located logistics parks – but that could change.

“They could play a more important role post-Brexit if companies are looking to avoid congestion at the ports and need to bring large volumes inland relatively easily,” he said.

TAKE-UP OF BUILDINGS ABOVE 100,000FT2 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1

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The first nine months of 2017 have seen a marked decline in the take-up of large warehouses compared to last year.

According to figures from Savills 16.3 million ft2 was taken in buildings above 100,000ft2 between January and September. This was a fall of 41.6% on the same period in 2016.

However, 2016 was an exceptional year and Kevin Mofid, a director in Savills’ research team, said a number of deals that are currently under offer will bring take-up for the year close to the long-term average of 23.9 million ft2.

The biggest fall has been in build-to-suit deals which last year totalled 18 million ft2 but so far this year have come to only 6 million ft2. “That is related to Brexit uncertainty, the general election and companies not wanting to commit to capital expenditure,” Mofid said.

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06/12/2017 13:33:14

Highwayman

motortransport.co.uk

Thanks for the memories

Bye bye

There comes a time when we all must say goodbye and, sadly, Highwayman is hanging up his gun, parking his hat and putting his horse out to the knackers’ yard. Yes, dear reader, this is the final edition of Highwayman.

We’ve had some fun over the years: we’ve mocked our perennial muse – the Tory buffoon John Hayes; we’ve enjoyed a missive or two from HazChem

boss Ali Karim (big shout-out to the main man – particularly as he outed Highwayman’s secret identity on Twitter) and ran many a picture issued by PR agencies that are paid enough to know better.

Highwayman’s job has always been to bite from the hand that feeds. This is an industry that can refer to a longer semi or a greased fifth

Things we’re unlikely to see in 2018 ■ Prince Harry arrives in a Scammell army truck to marry Meghan Markle sparking road freight mania that sees National Lorry Week become a public holiday.

■ Earned recognition scheme is so oversubscribed at launch that it breaks the internet and DVSA is forced to introduce an OCRS-inspired colourcoded waiting list to join.

■ Elon Musk realises Semi has an altogether different

wheel without raising so much as a smirk. We all need a laugh every now and then, and with any luck this column has delivered. And if we’ve learnt just one thing in all our time together, it’s what a bull’s pizzle is. I’ll never forget that [insert retching sound here].

So thank you to all for your correspondence and good wishes and goodbye! meaning in British slang and renames his truck to avoid embarrassment. He opts for an inoffensive beach dance from Carolina called the Shag.

Highwaymany’s 2017 This year’s arbitrary awards because everyone likes recognition, of a sort!

■ Even-harder-to-followthan-Interstellar-award: AM Widdowson and Son/ Widdowson Logistics/ Birds Leicester opus which was only really missing a bookcase.

■ The-will-they-won’tthey-how-many-yearsare-they-stringing-it-outfor-Gold-Blend-couplegong: Earned recognition.

Yes, you’ll really need to earn it. Going live in 2018.

Probably. Possibly. Hell, why don’t we just extend the pilot again.

■ Most-unexpectedinterview–quote-of-theyear: “My candelabras are filthy” – Hilary Devey, Pall-Ex founder.

■ Most-unexpected-lineof-questioning-in-aninterview-of-the-year: “How did you chip your MT award? They’re so pointy!

I wouldn’t trust myself carrying one.”

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06/12/2017 13:40:02

Viewpoint

motortransport.co.uk

Same-day delivery: the only way A s consumers, we all want to receive our online purchase as quickly as possible.

Next-day delivery is no longer seen as fast enough and retailers offering a same-day service are winning the competitive advantage.

Retailers such as Amazon, Currys, PC World, and Tesco are leading the way in offering a same-day service for online orders. By holding stock closer to the customer, anyone ordering at lunchtime can receive their goods by early evening.

For omnichannel retailers with high street stores, holding stock locally presents further opportunities. Replenishing stores more rapidly allows each shop to carry less stock, freeing retail space for sales displays. Inventory holdings within the chain can be reduced too, releasing cash to the business.

But what does this mean for retail organisations looking to compete on service? How can they offer the immediacy of a local presence at a reasonable cost?

The traditional model of retail distribution in the UK, run from a national DC in the Midlands, is well suited to replenishing high street stores and, in combination with express carriers, can provide efficient next-day delivery across the

Steve Purvis Operations director Bis Henderson Space

country. However, for a same-day service, stock needs to be held much closer to the customer.

Finding adequate warehouse space of the right size in the right location is difficult and normally requires a business to commit to a five- to 10-year lease. This is a significant and unnecessary risk for any business trying out an unproven strategy.

The holding points need not be vast, just providing for a limited stock keeping unit range of fast movers or items on special promotion, and other simpler options are available, where reward need not be outweighed by risk.

Businesses across the country have under-used warehouse capacity and a great many are searching for ways to put those resources to work. Many warehouses have excellent facilities, cutting-edge IT and a highly motivated workforce.

Using a warehousing “broker” with a wide portfolio of own-account and 3PL properties with spare capacity can enable a flexible deal – perhaps just for six to 12 months – at a well-suited location.

Retail businesses now have the opportunity to drive supply chain performance through being physically closer to customers, creating competitive advantage, and critically, offering the customer the speed and quality of service they desire.

THE NEW SCANIA

2018: ready for the next load of challenges?

A Concept

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Notes

Steve Hobson Editor Motor Transport

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s this is our last issue of 2017 it is the right time to take stock of the past year and look ahead to 2018. This was the year of Brexit and as the clock ticks down to March 2019 we are no clearer to knowing how hard or soft our exit will be. One thing is for sure – Brexit is worsening the driver shortage and operators will have to work hard making the most of the available driver pool and attracting more young Brits into the industry.

It was also a notable year as it might just have seen the start of a natural gas revolution. Yes we’ve been here before, but now there are some serious players developing gas refuelling stations and three of the truck OEMs have ex-factory gas trucks available to buy off the shelf.

DAF remains wedded to diesel, believing that hybrids that run on diesel on highways and electric for the last 30 miles or so is the way ahead

16 MotorTransport MTR_111217_016.indd 16

^ŝŐŶ Kī

Adapt

rather than gas, and that is a very practical solution to the problem of long-haul freight transport.

Pure electric vans and light trucks will have a role in cities where local air quality is so poor that zero tail pipe emissions justifies the many remaining drawbacks of electric vehicles.

Despite the token orders placed by a few 3PLs for the Tesla Semi we do not expect to see many of those on UK roads any time soon.

And so, from everyone at MT, we wish you a successful conclusion to 2017 and a prosperous 2018, whatever challenges it brings. MT is back on 8 January.

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Editor-in-chief Christopher Walton 2163 Group news editor Chris Druce 2158 Group technical editor Colin Barnett 2141 Aftermarket editor Roger Brown 2168 Vans editor George Barrow 2156 Urban editor Hayley Pink 2165 Senior legal reporter Ashleigh Wight 2167 Reporter Emma Shone 2164 Group production editor Clare Goldie 2174 Chief sub-editor Rufus Thompson 2143 Key account managers Andrew Smith 07771 885874 Richard Bennett 07889 823060 Display telesales Barnaby Goodman-Smith 2128 Group sales manager Julie McInally 2122 rtmclassified@roadtransport.com Sales director Vic Bunby 2121 Head of marketing Jane Casling 2133 Head of events/MT Awards Stephen Pobjoy 2135 Managing director Andy Salter 2171 Editorial office Road Transport Media, Sixth Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Tel 0330 333 9544 Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £132/year. Europe £160 (€235)/year. RoW £160 ($329)/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 © 2017 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 11.12.17

07/12/2017 11:30:12

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06/12/2017 13:49:49 29/11/2017 12:34

Marketplace

motortransport.co.uk

Mercedes Evolution launch

By Roger Brown

Mercedes-Benz has launched its Evolution programme of built-to-order approved used trucks that include higher specifications and driver aids.

The manufacturer has run similar programmes for high-spec vehicles in the past and this one sees pre-owned vehicles typically fitted with: enhanced paintwork; leatherupholstered seats and door trims; flatscreen TVs; fridges and microwaves; Lane Assist systems; dashcams; alloy wheels; grilles with chrome

highlights; roof-mounted spotlights; and LED light bars beneath the bumpers.

Technicians from the Mercedes-Benz workshop in Wentworth Park, near Barnsley, refurbish and repaint approved used vehicles, turning them into flagship trucks.

Stephen Holbrook, sales executive at Approved Used Mercedes-Benz, said: “It often costs approximately £20,000 to do one of these conversions, and we are hopeful of selling about 12 next year. The main demand from customers is

Dealer drop in: Stockport Truck Centre

Top used truck: DAF XF 105

MT visited Stockport Truck Centre (STC) in Old Moor Road, Bredbury, Cheshire where there was a good selection of quality used, refurbished and new trailers for sale or lease on its forecourt.

There was a 2009 SDC 4.4m curtain-sided 3-axle trailer (right) with ROR drum brakes, wooden floor, flush doors and a 12-month MoT. It can be fully refurbished in any colour and price is on application. STC has a choice of similar trailers available.

Another trailer to catch our eye was this 2005 SDC flatbed (below right) with ROR drum brakes and an MoT that runs until March next year. The price is £3,750.

There was also a 2005 Lawrence David 4.65m curtainsider (below) with ROR disc brakes, MoT and optional new curtains, priced at £2,750.

STC can carry out modifications, repairs and refurbishments at its in-house body repair centre in Bredbury and provide digital tachograph services as well as 24-hour breakdown and recovery.

STC’s Hyde depot is a next generation testing station with purpose-built drive through ATF lane, 97% first time MoT pass rate and the ability to provide short notice and flexible appointments.

Used truck of the week is a 2016 DAF XF 6x2 tractor unit with Super Space Cab. This 65-plate vehicle, which produces 510hp, comes with 12-speed manual gearbox, full air deflector kit, alloy fuel tank, air conditioning, fridge and full service history.

The truck, which has clocked up 186,000km, comes with an R&M package. Vendor DG Taylor Commercial Vehicles, based in Driffield, East Yorkshire, said the vehicle has had one previous owner.

■ To find out more, go to dgtaylor.co.uk.

20 MotorTransport MTR_111217_020-022.indd 20

likely to be for Actros tractor units, but it is possible for us to carry out conversions for other vehicles.”

Dale Slee, Mercedes head of used truck sales, said: “The Actros Evolution is the pinnacle of our pre-owned offering.

For owner-drivers or companies seeking a highly-specified flagship, it adds up to a great deal of truck for the money.”

JJP Holdings SW Group is the first operator to take delivery of a truck from the new programme.

The 2014 Actros 2545 tractor

unit (pictured), which dealer City West Commercials supplied to the Weston-superMare operator, had reached the end of its two-year lease deal with 265,000km on the clock.

The front wings of the JJP Holdings SW Group truck bear the name of owner Jonathan Jones-Pratt’s fouryear-old daughter Elena May along with the words ‘2017 Evolution 1’.

The vehicle will mainly be used to transport locomotives and buses to and from steam rallies, shows and other events.

Parts provider deal reducing costs – Warnes Roger Warnes Transport has said employing Ford & Slater as its only parts provider has dramatically reduced its administration costs.

The Norfolk-based bulk haulage specialist, a longstanding customer of the dealer, was approached by the parts team with an offer guaranteeing access at any time to a supply of genuine DAF parts and TRP all-make parts, for its mixed fleet of 95 trucks and 101 trailers.

Ian Barclay, transport operations director at Roger Warnes Transport, said: “One of the main ways Ford & Slater helped to minimise downtime was to organise and streamline our existing parts stock before adding impress stock, to ensure we have access to the parts we need night or day.

“We no longer sift through multiple invoices for each purchase, but instead receive one invoice at the end of each month. This has made us a massive administration saving.”

Ford & Slater recently also signed an agreement to become sole parts supplier for existing customer Foulger Transport, based in Norwich.

Matt Archer, general manager – group parts at Ford & Slater, said: “We can give companies such as Roger Warnes access to an extensive supply of parts for any make or model and at any time.”

11.12.17

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Marketplace

motortransport.co.uk

60 second interview: Jonathan Dolby, marketing director, Microlise My favourite holiday destination is...

New Zealand. I spent eight weeks there a few years ago and it has everything.

I drive a...

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My hobbies are...

Golf and following Nottingham Forest FC. My favourite TV programme is...

Game of Thrones but you can’t beat Deep Space Nine.

The celebrity I would most like to meet is...

The Dalai Lama. A man who has faced extreme adversity yet never lost sight of what is important.

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In 2014 when I joined Microlise to head up marketing and communications, and develop the annual Microlise Transport Conference which has grown to become the

largest event of its kind in Europe.

To encourage more young people into the industry we should...

Have a co-ordinated programme to change the perception of the industry. It’s a fast paced, dynamic, ever changing industry and that is rarely communicated to young people who are considering a career path.

Our plan for the next 12 months is...

To continue focusing on supporting our customers, and delivering a bigger and better Microlise Transport Conference.

Microlise is different from the competition because...

Of the breadth and depth of our solution, and our focus on research and development. We’re owned by directors who run the business with passion and we run one of the industry’s biggest conferences.

Steadplan partners Kraker Trailers

By Roger Brown

Steadplan has sold 10 movingfloor trailers from Dutch manufacturer Kraker Trailers after ending an 11-year sales partnership with its Belgiumbased rival STAS in July.

The Leeds dealer became official UK partner for Kraker after STAS split to set up its own UK sales operation.

North Wales MAN dealer AN Richards has already purchased two Kraker movingfloor trailers from Steadplan to hire out.

Dave Cross, sales executive at Steadplan, said: “We have already sold 10 Kraker trailers since the summer when we took on the franchise, and aim to sell about 100 a year. “Lead times for Kraker moving-floor trailers are about eight to 10 weeks, whereas for STAS it was more like four months.”

He added: “The five-year warranty for Kraker movingfloor trailers is also a big selling point, and we have a demo available.”

Steadplan, with other

branches in Nelson and Rochdale, also retails MAN and Kassbohrer products, provides Isuzu parts and servicing, and maintenance for existing STAS operators.

Cross said Kraker’s modular trailers are designed so parts can be replaced quickly and simply. “Our technicians are experts in the mechanics of moving-floor trailers and we are confident of selling more Kraker trailers to operators that previously bought STAS,” he said.

Volvo’s Economy is one in a million Volvo’s Economy used programme is offering its first Version 4 FH tractor unit to have clocked up one million kilometres.

The manufacturer created the Economy trucks brand five years ago to sell trucks that are more than five years old, or have a mileage of more than 500,000km.

This 14-plate 6x2 Globetrotter, available from Volvo’s pre-owned truck centre in Coventry, was previously in service with a national fleet customer and has been fully maintained by the manufacturer since new.

It also includes a six-month 22 MotorTransport MTR_111217_020-022.indd 22

unlimited mileage driveline warranty, which Volvo has introduced for all Version 4 FH Economy used vehicles.

Trucks from the Economy programme include safety inspections and MoTs. They are aimed at newly qualified drivers and ownerdrivers as well as company owners who want a vehicle to complement their existing fleet.

Stock consists mainly of end-of-contract trucks or part exchanges that have been generated from within the Volvo Network and most have been fully maintained by the manufacturer.

BODY BUILDING: Dorset-based commercial vehicle bodybuilder Horton Commercials now has a £2m production centre. The 1.1-acre former Marben Engineering site on the Ferndown Industrial Estate will produce bespoke vehicle bodies, as well as Horton’s Easy Mover range for the 3.5-tonne van market. Horton’s other site on the estate will carry out vehicle refurbishment. MD Dave Wolfenden said: “A full gantry lifting system to aid production and improve health and safety has been introduced. We have started to expand the team of coachbuilders and expect to provide in-house training to welder/fabricators and sheet metal workers.” Pictured, from left, Chris Chaffey, sales and production manager, Dave Wolfenden, MD, and Richard Hall, sales manager.

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06/12/2017 13:57:32

Marketplace

Looking back Jonathan Bownes

Frank Woodhead

Mark Griffiths

What sort of year has 2017 proved to be for commercial vehicle dealers in the UK? Roger Brown spoke to our panel of experts to find out how their businesses got on

John Keogh

Nigel Baxter

Jonathan Bownes, business development manager, Thomas Hardie Used Trucks (Volvo), Middlewich, Cheshire

Bownes reports that the used truck market remained buoyant for Thomas Hardie in 2017, helped by its decision to offer a used 63-plate FH tractor unit demonstrator with Dynafleet telematics system that monitors driving style to woo potential customers in the North West and North Wales.

“The landscape of used trucks is changing every year with the onset of new legislation and changes in the political world,” he says. “However, these have been distractions as opposed to barriers preventing trade.”

Business in new trucks has remained brisk and Thomas Hardie has worked hard to grow market share. Customers have taken full advantage of borrowing remaining at record lows.

“Hire purchase remains the most common way of funding a used truck, most of this is placed with Volvo Financial Services,” he says.

All Volvos have sold well, but says Bownes: “It’s the rarer trucks you find the real demand for, tippers, cranes, anything a bit specialist attracts a lot of attention.”

Frank Woodhead, MD, F&G Commercials (DAF), Trafford Park, Manchester

Steve Howard

26 MotorTransport MTR_111217_026-027.indd 26

Woodhead says the used truck market started slowly this year gradually picking up through July, August and September.

“This was unusual as July and August tend to be quiet months due to holidays,” he says. “October was quiet for many, just when you thought it should be getting busier.”

Woodhead says the used market still struggles from a shortage of good low-mileage trucks less than four years old. “Euro-6

vehicles are still selling on the back of higher-priced new ones and we’ve seen a few small hauliers in the market for good Euro-5 models up to six years old. In all, the market still struggles from poor retail availability and low values on high-mileage older trucks.”

In new truck sales the year began quite strongly for F&G but Woodhead thinks the market might have been dented by the Brexit negotiations and the strength of the euro against the pound.

On the whole though it has been a very good year, he says.

“We are more than happy with the quantity of sales in the current climate. The biggest demand has been for rigids, making up more than 65% of truck sales.”

Mark Griffiths, MD, JDS Truck and Van (Renault), Blackburn

This year has seen an over-supply of new range late Euro-5 and early Euro-6 tractor units, says Griffiths. This is due to trucks on two-year lease deals from all the manufacturers coming back with reduced values. He adds: “Some deals by manufacturers and some of the large rental companies on new tractor units have also had an impact, with new trucks being supplied to operators who would have previously purchased used.”

Griffiths says Euro-6 rigids are in high demand, but there is a lack of supply: “Values of Euro-5 rigids have also been hit hard this year as operators are concerned about purchasing a vehicle that may be virtually obsolete in a couple of years dependent upon low emission zone and direct vision legislation.”

Griffiths says a weaker pound has helped used exports. He explains that new truck sales were strong in the first six months of 2017 particularly in the construction and rigid markets, but 11.12.17

05/12/2017 14:15:06

motortransport.co.uk

says Brexit is an issue: “I feel many people are definitely holding back as we are entering truly uncharted waters,” he adds.

Griffiths has also witnessed a higher proportion of outright purchases this year, with companies conserving cash.

John Keogh, sales director and truck dealer principal, Rygor (Mercedes-Benz), Westbury, Wiltshire

Keogh says 2017 has been a tough year for the used trucks market, with an oversupply of pre-owned tractors driving down prices. “On the positive side, more specialist vehicles are still holding value and selling well.”

According to Rygor, 2017 has been one of the best years yet for registrations of new trucks. The dealer had a large order book entering the year, but saw a tailing off in orders during September and October.

“The financing market has become a lot more competitive over the past 12 months, but people seem to still be following a traditional path of contract hiring tractor units and hire purchasing rigids, regardless of the supplier they choose,” says Keogh.

“We’ve had a good year with all the range and the construction vehicles, such as the Arocs, remain strong.

“The general rule of maximum uptime remains at the forefront and more and more customers are moving toward a one-stop-shop with the vehicle supplier and want added value, such as fleet management.”

Nigel Baxter, MD, RH Commercial Vehicles (Renault), Nottingham

Baxter says RH Commercial Vehicles enjoyed success selling four- or five-year-old used trucks through the Renault Trucks Legacy Premium range. “With the first of the T Range coming back into the market, we have had to look carefully at our proposal to buyers, but have enjoyed some good business with both existing and new customers.”

This will be a record year in terms of registrations of new 11.12.17

MTR_111217_026-027.indd 27

trucks for the dealer and the market overall is moving along at about the same pace as the past few years. “There are still one or two cash buyers but predominantly, it [finance] is through hire purchase,” says Baxter. “Contract hire and other rental solutions are part of our offer and we have seen good growth in this area of the business.”

Tractor units have made up a large proportion of sales at RHCV, but it has done considerably more deals on 26-tonne and 18-tonne models than previously, both in the distribution and specialist haulage sectors. “In terms of construction, again we have made progress but demand feels more muted – a reflection perhaps of sluggish growth in that sector generally,” Baxter concludes.

Steve Howard, MD, West Pennine Trucks (Scania), Manchester

The used truck market has been more competitive than ever in 2017, says Howard. “The buying trends of three or four years ago are being replaced by customers who are not only looking for a quality used truck but also the guarantee of excellent aftersales support protecting residual value later down the line.”

Howard says customers have concentrated on three key areas: quality, reliability and efficiency. “This isn’t necessarily a change in the market, but it shows the market is more focused on getting trucks and aftersales packages tailored to their exact operations,” he says.

In 2017 customers have been looking for variety and flexibility in the way they finance their vehicles, whether that is using hire purchase, contract hire or something that gives them the opportunity to pay back more at certain points, such as with the Scania flexi-buy finance package.

“This year has seen us adapt our service contract and R&M offering and launch tailored packages that cover inspections and downloads up to comprehensive, bumper-to-bumper support,” says Howard. ■ MotorTransport 27

05/12/2017 14:15:50

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Lot 3: 2012 (62 PLATE) MAN TGS 18.400 4X2 TRACTOR UNIT SLEEPER CAB EURO 5 MOT: JULY 2018. MILEAGE: 502190 KM. EURO 5 ADR SPEC TRACTOR UNIT, AUTO GEARBOX, SLIDING 5TH WHEEL, PTO HYDRAULICALLY DRIVEN GARDINER DENVER DISCHARGE UNIT, ALCOA ALLOY WHEELS, AIR CON, DIFF LOCK, SPARE KEYS, MATCHING TYRES. NO KNOWN PROBLEMS. YEAR: 01-092012, ENGINE: 10518 CC, BHP: 400, FUEL TYPE: DIESEL, VEHICLE TYPE APPROVAL: N3, WHEELPLAN: 2-AXLE + ARTIC, REVENUE WEIGHT: 40000KG.

DIRECT

Lot 47: 2009 MERCEDES ECONIC 2629 RCV 6X2 REFUSE DISPOSAL MOT: 31ST MARCH 2018. MILEAGE: 97347 KM. AUTOMATIC GEARBOX, FAUN BODY, REVERSING CAMERA, ZOELLER SPLIT LIFT BIN GEAR, NO KNOWN MECHANICAL FAULTS, NO LIGHTS SHOWING, TYRES GOOD, DATE OF FIRST REGISTRATION: JUNE 2009, YEAR OF MANUFACTURE: 2009, CYLINDER CAPACITY (CC): 6370 CC, FUEL TYPE: DIESEL, VEHICLE TYPE APPROVAL: N3, WHEELPLAN: 3 AXLE RIGID BODY, REVENUE WEIGHT: 26000KG.

DIRECT

DIRECT

Lot 5: 2013 (63 PLATE) PEUGEOT EXPERT SEATED AMBULANCE MOT: 25TH SEPTEMBER 2018 MILEAGE: 93268 MILES. VEHICLE MUST HAVE LOGOS REMOVED BEFORE USE, WE CAN DO THIS FOR A FEE. MANUAL GEARBOX, WHEELCHAIR RAMP, NO KNOWN MECHANICAL FAULTS, NO LIGHTS SHOWING, TYRES GOOD, AIR CON, DOUBLE SIDE LOADING DOOR. DATE OF FIRST REGISTRATION: OCTOBER 2013, YEAR OF MANUFACTURE: 2013, CYLINDER CAPACITY (CC): 1997 CC, FUEL TYPE: DIESEL, VEHICLE TYPE APPROVAL: M1, WHEELPLAN: 2-AXLE-RIGID BODY. Large selection, CHOICE

DIRECT

Lot 48: 2015 KRONE CITY LINER URBAN 11 METRE WITH STEERING AXLE, CURTAINSIDE TRAILER MOT: IN TEST. TWIN AXLE, CURTAINSIDE TRAILER, BARN DOORS, GOOD FLOOR, GOOD CURTAINS, AIR SUSPENSION, MOFFITT APPLICATION, STEERING AXLE, DRUM BRAKES, BPW RUNNING GEAR, NO KNOWN MECHANICAL FAULTS.

DIRECT

Lot 8: 2012 (62 PLATE) DAF LF45.160 RIGID BOX MOT: 30-11-2018. MILEAGE: 112241 KM. MANUAL, DAYCAB, 20FT BODY LIGHTWEIGHT, ROLLER SHUTTER DOOR, TUCK UNDER TAIL LIFT, TYRES GOOD, NO KNOWN MECHANICAL FAULTS. YEAR: 01-12-2012, ENGINE: 4462 CC, BHP: 16O, CO2 EMISSIONS: 0 G/KM, FUEL TYPE: DIESEL, WHEELPLAN: 2-AXLE-RIGID BODY, REVENUE WEIGHT: 7500KG. Large selection, CHOICE

Lot 4: 2012 ( PLATE) PEUGEOT EXPERT AMBULANCE MOT: 17TH FEBRUARY 2018. MILEAGE: 198319 MILES. VEHILCE MUST HAVE LOGOS REMOVED BEFORE USE, WE CAN DO THIS FOR A FEE. MANUAL GEARBOX, AIR CON, WHEELCHAIR RAMP, NO KNOWN MECHANICAL FAULTS, NO LIGHTS SHOWING, TYRES GOOD, DOUBLE SIDE LOADING DOORS. DATE OF FIRST REGISTRATION: JANUARY 2013, YEAR OF MANUFACTURE: 2013, CYLINDER CAPACITY (CC): 1997 CC, FUEL TYPE: DIESEL, VEHICLE TYPE APPROVAL: M1, WHEELPLAN: 2-AXLE-RIGID BODY. Large selection, CHOICE

DIRECT

Lot 51: 2010 (60 PLATE) RENAULT 460 DXI 6X2 TRACTOR UNIT, AUTOMATIC MOT: 31 OCTOBER 2017. MILEAGE: 582640 KM - AT TIME OF INSPECTION VEHICLE STILL BEING USED. TRANSMISSION - AUTOMATIC, SLEEPER CAB, NO MECHANICAL FAULTS, NO LIGHTS SHOWING, TYRES RUNNERS. DATE OF FIRST REGISTRATION - DECEMBER 2010, YEAR OF MANUFACTURE - 2010, CYLINDER CAPACITY (CC) - 10837 CC, FUEL TYPE - DIESEL,VEHICLE COLOUR - WHITE, VEHICLE TYPE APPROVAL - N3, WHEELPLAN - 3 AXLE + 3 AXLE, ARTIC REVENUE WEIGHT - 44000KG.

DIRECT

Lot 9: 2012 (62 PLATE) DAF 45.160 BOX MOT: 31-08-2018. MILEAGE: 223247 KM. MANUAL, DAYCAB, 20FT BODY LIGHTWEIGHT, ROLLER SHUTTER DOOR, TUCK UNDER TAIL LIFT, TYRES GOOD, NO KNOWN MECHANICAL FAULTS. BOX O/S DAMAGED. YEAR: 01-09-2012, ENGINE: 4461 CC, BHP: 160, CO2 EMISSIONS: 0 G/KM, FUEL TYPE: DIESEL, WHEELPLAN: 2-AXLE-RIGID BODY, REVENUE WEIGHT: 7500KG. Large selection, CHOICE

Lot 53: 2005 MERCEDES ATEGO 815, TELEHOIST CH10 7.5 SKIP LOADER MOT: EXPIRED. MILEAGE: 571906 KM. USED CONDITION, DRIVER PLUS 2, SOME AREAS OF RUST, ANALOGUE TACHO, TAPE PLAYER, DATE OF FIRST REGISTRATION: JUNE 2005, YEAR OF MANUFACTURE: 2005, CYLINDER CAPACITY (CC): 4250 CC, FUEL TYPE: DIESEL, WHEELPLAN: 2 AXLE RIGID BODY, REVENUE WEIGHT: 7490KG.

DIRECT

Lot 12: 2008 (58 PLATE) RENAULT PREMIUM 240 DXI, INSULATED MOT: 28/02/18. MILEAGE - 476848 KM - AT TIME OF INSPECTION - VEHICLE STILL BEING USED. TRANSMISSION - MANUAL GEARBOX, NO KNOWN MECHANICAL FAULTS, TYRES RUNNERS, NO LIGHTS SHOWING, SLEEPER CAB. DATE OF FIRST REGISTRATION - SEPTEMBER 2008, YEAR OF MANUFACTURE 2008, CYLINDER CAPACITY (CC) - 7146 CC, FUEL TYPE - DIESEL, VEHICLE COLOUR - WHITE, WHEELPLAN - 2 AXLE RIGID BODY, REVENUE WEIGHT 18000KG. Large selection, CHOICE

Lot 19: 2006 (56 PLATE) MERCEDES ECONIC 2633 RCV REFUSE VEHICLE 6X4 26 T MOT: 30/04/18. MILEAGE: 191532 KM. 6X4, 26 T, ROS ROCA BODY, TERBERG BIN GEAR, REVERSING CAMERA, 6370 CC, DIESEL, VEHICLE TYPE APPROVAL: N1, 3 AXLE RIGID BODY, REVENUE WEIGHT: 26000 KG, NO LIGHTS SHOWING, NO KNOWN MECHANICAL FAULTS. Large selection, CHOICE

Lot 59: 2011 (61 PLATE) MITSUBISHI L200 BARBARIAN PICK UP MOT: 2ND DECEMBER 2017. MILEAGE: 48691 MILES VEHICLE STILL IN USE FAULTS / DAMAGES: 3RD GEAR SYNCHRO PLAYING UP NOW AND AGAIN. FULL SERVICE HISTORY, USUAL EXTRAS, DATE OF FIRST REGISTRATION DECEMBER 2011, YEAR OF MANUFACTURE 2011, CYLINDER CAPACITY (CC) 2477 CC, FUEL TYPE DIESEL, VEHICLE TYPE APPROVAL N1, WHEELPLAN 2-AXLE-RIGID BODY.

Lot 64: 2004 LAND ROVER DEFENDER 110 TD5 9 SEATER MOT: EXPIRED. MILEAGE: 148016 MILES. 2.5 LTR DIESEL, TOW BAR, TYRES GOOD, NO KNOWN MECHANICAL FAULTS. ENGINE: 2495 CC, FUEL TYPE: DIESEL, WHEELPLAN: 2-AXLE-RIGID.

DIRECT

Lot 55: 2007 MERCEDES ATEGO 1823AK TANKER MOT: EXPIRED. MILEAGE: 116424 KM. OFF ROAD SET OF TYRES AND RIMS INCLUDED, DATE OF FIRST REGISTRATION: JULY 2007, YEAR OF MANUFACTURE: 2007, CYLINDER CAPACITY (CC): 6370 CC, FUEL TYPE: DIESEL, VEHICLE TYPE APPROVAL: N1, WHEELPLAN: 2 AXLE RIGID BODY, REVENUE WEIGHT: 18000KG.

Lot 58: 2007 SDC TIPPING TRAILER LENGTH: 11250, WIDTH: 2500.

We are an online auction specialising in commercial vehicles, trailers and plant/machinery!! We also run a vehicle movement service at competitive prices.

Keep the vehicles at your premises until you receive cleared funds, as there is no need to transport vehicles off your premises unless you need the space. If this is the case then we will be more than happy to store them for you (also free) at one of our secure storage locations.

Check out our testimonial page which includes councils, major companies. http://www.truckandplantassets.co.uk/Client_Testimonials 100% free to sellers, there is no commission fee for selling your assets, and no hidden charges. We offer buyers & sellers the most cost efficient, reliable and hassle free service.

AD_111217__P28.indd 28

06/12/2017 13:59:42

www.truckandplantassets.com 01792 448080 / 0844 441 0081 admin@truckandplantassets.com Buy with confidence – Truck And Plant Asset Management Why Sell with Truck And Plant Asset Management?

Stock added daily – BID NOW!

Lot 21: 2007 (57 PLATE) DAF LF FA 45.140 TIPPER MOT: JULY 2018. MILEAGE: 172482 MILES. NO KNOWN FAULTS, INSULATED TIPPER BODY, EX WATER AUTHORITY FROM NEW MAIN DEALER MAINTAINED, DATE OF FIRST REGISTRATION: SEPTEMBER 2007, YEAR OF MANUFACTURE: 2007, CYLINDER CAPACITY (CC): 4500 CC, FUEL TYPE: DIESEL, WHEELPLAN: 2-AXLE-RIGID BODY, REVENUE WEIGHT: 7500KG.

DIRECT

DIRECT

Lot 26: 2010 SCANIA P440 6X2 TRACTOR UNIT, SLEEPER CAB MOT: 30TH APRIL 2018. MILEAGE: 682891 KM - AT TIME OF INSPECTION VEHICLE STILL BEING USED. AUTO 3 PEDALS, DIESEL, SLEEPER CAB, TYRES RUNNERS, NO KNOWN MECHANICAL FAULTS. YEAR: 24-04-2010, ENGINE: 12740 CC, BHP: 440, CO2 EMISSIONS: 0 G/KM, EXPORT MARKER: NO, WHEELPLAN: 3 AXLE + 3 AXLE ARTIC, REVENUE WEIGHT: 44000KG.

Lot 28: 2010 RENAULT TRUCKS PREMIUM ROUTE 460.25 6X2 LD TML MOT: EXPIRED. MILEAGE - 828650 KM - AT TIME OF INSPECTION - VEHICLE STILL BEING USED. TRANSMISSION - AUTOMATIC, SLEEPER CAB, NO MECHANICAL FAULTS, NO LIGHTS SHOWING, TYRES RUNNERS. ENGINE 10837 CC, BODY - TRACTOR UNIT, BHP - 460, COLOUR - WHITE, YEAR 02-06-2010, FUEL - HEAVEY OIL.

DIRECT

Lot 67: 2000 IRIS COACH EURORIDER, AUTOMATIC GEARBOX MOT: 02/12/2017. MILEAGE: 850000 KM. YEAR: 01-12-2000, AUTOMATIC, DRIVES WELL, 50 SEATS INCLUDING THE DRIVER ALL HAVE SEATBELTS FITTED, INSIDE TOILET. ENGINE: 9500 CC, FUEL TYPE: DIESEL, WHEELPLAN: 2-AXLERIGID BODY, REVENUE WEIGHT: 18000KG. FAULTS: CHASSIS AND REAR AXLE CORRODING, REQUIRES NEW FRONT BRAKE DISCS AND PADS.

DIRECT

Lot 31: 1997 LEYLAND DAF 85 8 WHEELER MOT: 12/17. MILEAGE: 401442 KM. ADR DRIVER MUST COLLECT 5 POTS TOTAL CAPACITY 25,000 LTRS, TANK VAPOUR TIGHTNESS TEST RUN OUT ON 19/8/17, INTERMEDIATE TANK TEST DUE 7/9/18. YEAR: 01-12-1997, ENGINE 11600 CC, BHP: 329, FUEL TYPE: DIESEL, WHEELPLAN: MULTI AXLE RIGID, REVENUE WEIGHT: 32000KG.

DIRECT

Lot 68: 2010 DENNIS ELITE 2 REFUSE VEHICLE, AUTOMATIC GEARBOX MOT: 01/04/17. MILEAGE: 265700 KMS. NO KNOWN MECHANICAL FAULTS, TYRES GOOD. YEAR OF REGISTRATION - 31/10/17, BHP - 300, ENGINE 7146CC, DATE OF FIRST REGISTRATION - APRIL 2010, YEAR OF MANUFACTURE 2010, CYLINDER CAPACITY (CC) - 7146 CC, FUEL TYPE - DIESEL, VEHICLE COLOUR - WHITE, VEHICLE TYPE APPROVAL - N3, WHEELPLAN - 3 AXLE RIGID BODY, REVENUE WEIGHT - 25000KG.

Lot 70: 2010 MERCEDES SPRINTER 313 CDI VAN 3.5 TONNE, MANUAL GEARBOX MOT: 4TH NOVEMBER 2017. MILEAGE: 228414 MILES - AT TIME OF INSPECTION- VEHICLE STILL BEING USED. MANUAL, SIDE LOADING DOOR, FULLY LINED, TYRES RUNNERS, NO KNOWN MECHANICAL FAULTS. YEAR: 25-06-2010, DIESEL, ENGINE: 2143 CC, BHP: 129, CO2 EMISSIONS: 0 G/KM, VEHICLE TYPE APPROVAL: N1, WHEELPLAN: 2 AXLE RIGID BODY, REVENUE WEIGHT: 3500KG.

DIRECT

Lot 72: 2012 (62 PLATE) MERCEDES-BENZ VITO 113 CDI PANEL VAN >>VIEWING AVAILABLE<< MOT: 21ST JULY 2018. MILEAGE: 212496 MILES. DATE OF FIRST REGISTRATION: SEPTEMBER 2012, YEAR OF MANUFACTURE: 2012, CYLINDER CAPACITY (CC): 2143 CC, FUEL TYPE: DIESEL, VEHICLE TYPE APPROVAL: N1, WHEELPLAN: 2-AXLE-RIGID BODY, REVENUE WEIGHT: 2800KG.

DIRECT

Lot 32: 2012 BENDI FORKLIFT HOURS: 3145.

Lot 37: 2011 FORD TRANSIT CONNECT 75 T220 PANEL VAN MOT: 5TH FEBRUARY 2018. MILEAGE - 90562 MILES. POWER WINDOWS, REVERSE SENSORS, LED LIGHTING, HEATED WINDSCREEN, DEAD LOCKS FITTED, 2 KEYS. DATE OF FIRST REGISTRATION: MARCH 2011, YEAR OF MANUFACTURE: 2011, CYLINDER CAPACITY (CC): 1753 CC, FUEL TYPE: DIESEL, VEHICLE TYPE APPROVAL: N1, WHEELPLAN: 2 AXLE RIGID BODY, REVENUE WEIGHT: 2240KG.

DIRECT

Lot 74: 2010 SCANIA P440 6X2 TRACTOR UNIT, SLEEPER CAB MOT: EXPIRED 30TH APRIL 2017. MILEAGE: 606534 KM - AT TIME OF INSPECTION- VEHICLE STILL BEING USED. DIESEL, AUTO 3 PEDALS, SLEEPER CAB, TYRES RUNNERS, NO KNOWN MECHANICAL FAULTS. ENGINE: 12740 CC, BHP: 440, CO2 EMISSIONS: 0 G/KM, VEHICLE TYPE APPROVAL: 16, WHEELPLAN: 3 AXLE + 3 AXLE ARTIC, REVENUE WEIGHT: 44000KG.

Lot 29: 2007 MERCEDES ACTROS 2546 6x2 TRACTOR UNIT MOT: 30/11/16. MILEAGE: 256535 KM. AUTOMATIC, YEAR: 01-11-2007, ENGINE: 11946 CC, BHP: 460, CO2 EMISSIONS: 0 G/KM, FUEL TYPE: DIESEL, VEHICLE TYPE APPROVAL: N1, WHEELPLAN: 3 AXLE + 3 AXLE ARTIC, REVENUE WEIGHT: 44000KG.

Lot 38: 2007 (56 PLATE) MERCEDES ATEGO 1823K SKIP LOADER MOT: 28TH FEBRUARY 2018. MILEAGE - 162772 KM. NO KNOWN MECHANICAL FAULTS, DATE OF FIRST REGISTRATION: JANUARY 2007, YEAR OF MANUFACTURE: 2007, CYLINDER CAPACITY (CC): 6370 CC, FUEL TYPE: DIESEL, VEHICLE TYPE APPROVAL: N1, WHEELPLAN: 2 AXLE RIGID BODY, REVENUE WEIGHT: 18000KG.

DIRECT

Lot 79: 1992 LEYLAND DOUBLE DECKER BUS, AUTOMATIC GEARBOX MOT: EXPIRED. FAULTS/DAMAGES: NEEDS WELDING. GARDINER ENGINE, Z.F. GEARBOX, TYRES GOOD, DATE OF FIRST REGISTRATION: SEPTEMBER 1992, YEAR OF MANUFACTURE: 1992, FUEL TYPE: DIESEL, WHEELPLAN: 2-AXLE-RIGID BODY.

Lot 83: 2005 DONBUR CURTAINSIDE TRAILER BARN DOORS MISSING, BPW RUNNING GEAR, AIR SUSPENSION, DISC BRAKES, TYRES GOOD.

Lot 85: 2007 MERCEDES ATEGO REFUSE VEHICLE 1524 4X2 - NON RUNNER MOT: EXPIRED. MILEAGE - 132800 KM. AUTOMATIC, HEIL BIN GEAR, COMPLETE VEHICLE. TAKEN OUT OF SERVICE FOR FAULTS ON THE BIN LIFT. DATE OF FIRST REGISTRATION - MARCH 2007, YEAR OF MANUFACTURE - 2007, CYLINDER CAPACITY (CC) - 6370 CC, FUEL TYPE - DIESEL, VEHICLE STATUS SORN IN PLACE, VEHICLE COLOUR - WHITE, VEHICLE TYPE APPROVAL - N1, WHEELPLAN - 2 AXLE RIGID BODY, REVENUE WEIGHT - 16000KG.

Thinking of disposing of your fleet or perhaps you are downgrading or even have a vehicle that is surplus to requirements?

Then why not let us take all the stress of selling your assets. We will market your assets here in the UK and overseas. We sell for many top plc companies and others and our success rate is second to none. One of our nationwide inspectors will visit your premises by appointment only to view and take photographs of the assets for sale and then do an inspection report. (This is a completely free process for you as the seller!)

We then load them onto our worldwide online auction which runs weekly. If you are interested in what we have to offer you then don’t hesitate to give us a call - our staff will be happy to deal with any queries you may have.

There is no fee whatsoever to sell with us!

AD_111217__P28.indd 29

06/12/2017 14:00:05

Cost tables While 44-tonne tractor prices have come down, uncertainty surrounding Brexit means other bills have risen, reports David Batty

Costs on the rise

T

ruck and van operators have seen another rise in operating costs this year, the main culprits being increases in fuel, wages, insurance premium tax, tyres and repair and maintenance.

Unsurprisingly, given the post-Brexit referendum slump in the value of the pound, many operating costs have risen. One exception however is the cost of 44-tonne 6x2 tractors.

Their fall in price is possibly due to the arrival of a number of new generation and facelifted versions and, because that segment of the market is a huge part of OEMs’ production and sales, they are more competitively priced than last year. This is despite rises in raw materials costs that account for a large proportion of truck components: steel has risen by 11%, zinc 21% and aluminium 9%.

Currency exchange rates continue to play a

big part in the rise in prices facing UK operators, with the cost of road fuel seeing a 7% and tyres a 6% year-on-year increase.

These price movements have pushed up the standing and running costs in all sectors of the industry – vans, rigids and artics. The recent Bank of England announcement of a quarter point interest rate rise to 0.5%, coupled with the lack of confidence in the industry surrounding Brexit, may well mean that a lot of operators will replace fleet less often. Seven years is typically the norm – this may well push up residual values in due course.

Since April we also have had the Apprenticeship Levy on employers with an annual payroll in excess of £3m. Smarter operators should see this as a benefit and not a cost, and look to maximise the opportunities to bring into the industry some much-needed young talent and get them trained up. ■

ARTICS

32-tonne unit 4x2

38-tonne unit 4x2

44-tonne unit 6x2

Tandem-axle trailer (curtainsider)

Tri-axle trailer (curtainsider)

Vehicle cost (£) Fuel cost: (ppl) ex VAT MPG AdBlue cost: (ppl) Depreciation period: (years) Residual value: (£)

68,108 96.9 10.4 34 7 10,216

70,323 96.9 9.2 34 7 10,548

80,988 96.9 8.5 34 7 12,148

18,500

19,750

12 1,850

12 1,975

35,304 2,954 21,566 1,200 8,270 3,444

35,304 3,452 21,860 1,200 8,539 3,556

35,304 3,819 23,787 1,850 9,834 4,095

1,388 1661

1,481 1798

72,737 3,637 76,374

73,911 3,696 77,607

78,688 3,934 82,623

3,048 152 3,201

3,279 164 3,443

1,660 332 30.19

1,687 337 30.67

1,796 359 32.66

70 14 1.27

75 15 1.36

42 0.59 1.96 7.91 52.82 2.6 55.46

48 0.67 2.24 8.01 58.80 2.9 61.74

52 0.73 2.79 8.42 63.76 3.2 66.95

1.67 2.75 4.43 0.2 4.65

2.58 3.08 5.66 0.3 5.94

183 151 132

191 159 139

205 170 150

10 9 8

12 10 9

ANNUAL STANDING COSTS (£)

Driver wages and NI Vehicle insurance Establishment/overheads Vehicle tax (VED), no RPC, with levy Depreciation Finance cost Fixed maintenance costs of 2nd trailer Subtotal Profit allowance (5%) Total annual standing costs (£)

STANDING COSTS ALLOCATION

Per week (£) based on 46 weeks Per day (£) based on a 5 day week Per hour (£) based on an 11 hour day

RUNNING COSTS (P/MILE, 80,000 M/YR)

Fuel AdBlue (at 4% of fuel consumption) Tyres Maintenance and repairs Subtotal Profit allowance (5%) Total (p/mile)

CHARGE PER MILE (P)

60,000 miles/yr 80,000 miles/yr 100,000 miles/yr

32 MotorTransport MTR_111217_032-033.indd 32

11.12.17

06/12/2017 12:01:19

motortransport.co.uk

VANS

1.6-tonne GVW (550kg payload)

2.1-tonne GVW (750kg payload)

2.8-tonne GVW (1-tonne payload)

3.5-tonne GVW (1.4-tonne payload)

15,319 96.9 43 5 1,769

15,540 96.9 40 5 2,084

21,601 96.9 33 5 2,458

22,666 96.9 28 5 4,043

24,433 1,113 5,233 140 2,710 360 33,989 1,699 35,688

24,433 1,186 5,233 140 2,691 424 34,107 1,705 35,813

24,433 1,408 5,233 140 3,829 526 35,568 1,778 37,347

24,433 1,565 5,233 140 3,725 653 35,748 1,787 37,536

776 155 14.11

779 156 14.16

812 162 14.76

816 163 14.84

10.2 0.57 3.39 14.20 0.7 14.9

11.0 0.69 4.00 15.70 0.8 16.5

13.3 1.04 4.41 18.80 0.9 19.7

15.7 1.38 4.83 21.94 1.1 23.0

193 134 104

196 136 106

206 144 113

211 148 117

Vehicle cost (£) Fuel cost: (ppl) ex VAT MPG Depreciation period: (years) Residual value: (£)

ANNUAL STANDING COSTS (£)

Driver wages and NI Vehicle insurance Establishment/overheads Vehicle tax, based on E5 Depreciation Finance cost (five-year term) Subtotal Profit allowance (5%) Total annual standing costs (£)

STANDING COSTS ALLOCATION

Per week (£) based on 46 weeks Per day (£) based on a five-day week Per hour (£) based on an 11-hour day

RUNNING COSTS (P/MILE, 30,000 M/YR)

Fuel Tyres Maintenance and repairs Subtotal Profit allowance (5%) Total (p/mile)

CHARGE PER MILE (P)

20,000 miles/yr 30,000 miles/yr 40,000 miles/yr

RIGIDS Vehicle cost (£) Fuel cost: (ppl) ex VAT MPG AdBlue cost: (ppl) Depreciation period: years) Residual value: (£)

ANNUAL STANDING COSTS (£)

Driver wages and NI Vehicle insurance Establishment /overheads Vehicle tax (VED), no RPC, E6 and levy Depreciation Finance cost Subtotal Profit allowance (5%) Total annual standing costs (£)

STANDING COSTS ALLOCATION

Per week (£) based on 46 weeks Per day (£) based on a five-day week Per hour (£) based on an 11-hour day

RUNNING COSTS (P/MILE, 60,000 M/YR)

Fuel AdBlue (at 4% of fuel consumption) Tyres Maintenance and repairs Subtotal Profit allowance (5%) Total (p/mile)

CHARGE PER MILE (P)

40,000 miles/yr 60,000 miles/yr 80,000 miles/yr

11.12.17

MTR_111217_032-033.indd 33

7.5-tonne GVW (curtainsider)

13-tonne GVW (curtainsider)

18-tonne GVW (curtainsider)

26-tonne GVW 6x2 (curtainsider)

32-tonne GVW 8x4 (tipper)

43,274 96.9 17 34 5 7,017

50,204 96.9 15 34 5 8,141

64,960 96.9 13 34 5 10,485

84,147 96.9 10.5 34 5 13,641

108,594 96.9 7.5 34 7 22,012

28,876 1,746 7,299 165 7,251 1,190 46,528 2,326 48,854

30,283 1,996 10,700 200 8,413 1,380 52,971 2,649 55,620

31,366 2,216 14,229 650 10,895 1,778 61,134 3,057 64,191

32,524 2,710 14,945 650 14,101 2,313 67,243 3,362 70,605

32,524 2,710 19,280 1,200 12,369 2,985 71,068 3,553 74,621

1,062 212 19.31

1209 242 21.98

1395 279 25.37

1535 307 27.91

1622 324 29.49

26 0.36 2.24 7.19 35.71 1.79 37.5

29 0.41 2.53 8.11 40.42 2.02 42.4

34 0.48 2.65 7.71 44.72 2.24 47.0

42 0.59 3.35 8.42 54.31 2.72 57.0

59 0.82 7.74 14.28 81.57 4.08 85.7

160 119 99

181 135 112

207 154 127

234 175 145

272 210 179

MotorTransport 33

06/12/2017 12:07:11

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05/12/2017 16:35:50

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05/12/2017 16:36:13

MT Awards 2017 winner profile Business Excellence Award

Great Expectations Winner of the Business Excellence Award, Expect Distribution has a long-term approach to building its business that, along with its ambitious development, really impressed our judges

A

decade ago a plucky upstart was recognised for dreaming big, winning the Haulier of the Year Award in recognition of the bold transformation Pennine Parcels had undergone to become Expect Distribution.

Those newly-formed expectations have been more than fulfilled since, and in 2017 the Bradford-based firm, now run by MD Neil Rushworth, became the recipient of our Business Excellence Award.

“They’ve grown up from being a small Bradford operator with a good reputation to where they are now,” said one of our panel experts earlier this year, during the judging session.

The timing, so important in our sector after all, is perfect as Expect will turn 30 next year.

To add to this air of celebration for a job well done, Expect Distribution – at the time Halifaxbased Pennine Parcels run by Neil’s father Robert Rushworth (described as ‘semi-retired’) – was a founder member of Palletline, which celebrated its quarter century in 2016.

The pallet network is an inseparable part of the Expect Distribution story, a cornerstone of the business that has enabled it to develop and flourish since.

“For a while the business sold off the back of Palletline, which only really changed when we changed our branding and identity to Expect [in 2006],” explained Rushworth when MT caught up with him.

Despite this, the company remains the biggest inputter and outputter into the Birmingham-based pallet network, and the relationship has clearly been a mutually

beneficial one that has seen both businesses win plaudits in their respective fields of operation.

“The business is strong today because we are multi-faceted. If you go back in time we started off as a parcel carrier. Then we joined Palletline and the emphasis was on pallets,” Rushworth said.

Indeed, the successful Haulier of the Year submission was built around, in Rushworth’s words, “a fairly small business brave enough to rebrand ourselves, move up the weight range, and reap the benefits”.

“That’s what the branding did for us and one of our strengths today is that we have created a strong name in the marketplace backed by a family-owned approach to running things,” said Rushworth.

-Expect’s annual turnover for the year ended

CONTRACT GROWTH GOES ON Since its award success, Expect Distribution has won a three-year extension to its contract with cleaning products manufacturer Astonish.

Expect has handled all logistics and distribution for Astonish (with headquarters neighbouring Expect’s site in West Yorkshire) over the past six years, moving seven loads per day. Three Expect vehicles are now carrying liveries of the new Astonish logo to build brand awareness for the cleaning range.

Another recent win for the operator has taken the form of a three-year warehousing and distribution contract with Lansinoh Laboratories, a supplier of breastfeeding products.

Under the new deal, Expect is taking delivery of shipments, storing them at Premier Point, and picking and distributing them as required.

Expect will warehouse up to 1,000 pallets of Lansinoh products at any one time.

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30 November 2016 was £22m, with a pre-tax profit approaching £800,000. The business is approximately double the size it was a decade ago and this has been achieved through organic growth, although Rushworth would consider a purchase if something irresistible came along.

Good as its word

In its submission for the Business Excellence Award, Expect promised a continuing good news story and Rushworth said the firm has been as good as its word, having double-checked the figures before this interview.

“It’s been pretty much as we predicted,” said Rushworth. “This year we will turn over just over £24m. The net profit will be more than we stated, up 120% year on year.”

It’s not been entirely painless though. In 2015 it took the decision to close its two-man distribution business, a business venture that had not paid off and ultimately lacked scale. After this the business conducted a bit of corporate soul-searching as it worked out where it was and, more importantly, where it wanted to be.

The operator spent £1.75m expanding warehousing capacity at its Premier Point headquarters on Staithgate Lane last year. It still has its Halifax base, now surrounded by residential property. It has 85,000ft2 of warehousing there and freight runs from it to support a key customer.

“The Premier Point expansion, which as well as warehousing added two acres of additional lorry parking, means we now have space for about 11,000 pallet racks on the site. It’s now a 115,000ft2 building.

“That has allowed us to deliver the growth that we knew was coming this year from new contracts that were starting and also continued growth more generally,” said Rushworth.

Rushworth and the team said that with general distribution now a low-margin game, they revisited where they wanted to be as a business of some 235 staff, operating from three locations [the third, a second site in Bradford] and running more than 95 vehicles.

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pallet business, the network business you might call it, but the higher margins are in contract logistics and warehousing,” he said.

In its submission Expect showcased wins in contract logistics including a three-year warehousing and distribution deal with online retailer Stores Direct, which builds on an eight year relationship with the business. Expect has also begun a five-year deal with Card Factory that brings with it a £3m turnover boost.

“The Card Factory, the way we run that business sums up what we aim to be offering: a hybrid solution for high-volume business.

“Okay, there’s a portion of your business that suits pallet networks, but in fact there’s another part of your business that we can look at and find far better solutions with dedicated vehicles,” explained Rushworth, adding that previously the customer had been served via a rival pallet network and its member.

Andrew Taylor, a new director of transport, has joined the business, and Rushworth told MT a new head of contracts, Rob Cafferky from XPO Logistics, would join the business shortly as part of Expect’s target to attract two large contract clients a year.

“Success in contract logistics demands catering for the group of contract customers we have, which we structure by separating them out as individual cost centres. Each customer is then allocated a contract manager and then we have a head of contracts that reports to the operations sector, so it’s all recognised as a separate cost.

“Ultimately, a contracted relationship has to be proactive. Our aim is to get to renewal with the customer and they’ll retain Expect because of the value we’ve added,” Rushworth said.

Taking the temperature

The construction of a temperature-controlled area in 2016 to meet Medicines & Healthcare Regulatory Agency (MHRA) regulations at the cost of £95,000 has allowed Expect to serve a key customer in pharmaceuticals.

“It’s operating well. The regulations also cover how you transport the product. So we’ve just invested in a temperature-controlled fleet:

two artics, one 18-tonner and a panel van.”

It’s typical of a business not scared to speculate to accumulate and make decisions with an eye on the mid- to long-term in its bid to be the partner customers simply can’t do without.

Speaking of the changes that have put the business in a strong position for the future, Rushworth is unequivocal about what the Business Excellence Award nod means in this context. “The award serves as recognition that it has been the right choice to develop the business as we have.” ■

INVESTING IN THE TEAM Expect Distribution has recently given its drivers an 11% annual pay increase. “Drivers have been under served for so long and it’ll be interesting in the coming years to see what happens in general distribution as customers within it grow and demand ever more of their transport suppliers. You need to pay above average to attract good drivers, it’s simple,” said MD Neil Rushworth.

Since last year, drivers also receive one-to-one meetings, there is an in-house driver trainer and a forum where four representatives meet monthly with Expect’s management team (something mirrored for other team members at the business).

The firm is also making use of apprenticeships within the business, with four across operations at present in several roles [it has a target of bringing in four new recruits into the business a year via this route). Two more will start in the new year. Expect added in its submission that its assistant transport manager was recruited as an apprentice.

“More broadly we have always been willing to invest in the business with an eye on future growth,” said Rushworth.

Expect Distribution chairman Robert Rushworth, MD Neil Rushworth and the team collect the trophy from Hireco national account manager Tim Gibson (second left)

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MT Awards 2017 winner profile Home Delivery Operator of the Year

Leading the charge Winner of the Home Delivery Operator of the Year Award was DPD, which impressed our judges once again with its strong business performance and industry-leading innovations

I

f personalisation is the new battleground in home delivery, DPD has its opponents surrounded.

In the past 18 months, the 2017 Home Delivery Operator of the Year has continued its crusade against missed deliveries and unhappy customers, using technology and innovation to give consumers delivery options tailored to their needs.

Delivery rates

Since the launch of its consumer app Your DPD, first-time delivery rates have increased by 3%; for end customers using the app, 97% of deliveries are successful on first attempt.

The app has had more than two million downloads, and DPD has a host of add-ons and improvements in the pipeline with its ongoing Project Cherry. These include geotagging pictures to send drivers accurately to remote locations with unreliable GPS points.

“It’s all about choice and convenience. Those are the two words we use time and time again,” said director of sales and customer relationship manager Elaine Kerr.

The luxury of choice

Further personalisation of delivery options will be the main driver behind innovation at DPD, according to Kerr, as consumers become used to what is already available and start to demand more options and more convenience.

“People are really time-precious. Even having that one-hour window available for them using Predict, their plans might change and they maybe just want us to physically divert that parcel and put it into their hands.

“With our customers we’re often delivering higher-value goods, or quick, fast fashion.

People want things quickly, and they want to

know when it’s going to arrive in their hands, and they want to be in control of that delivery. I think the future will be all about on-demand delivery.”

The launch of its service Precise, which sees DPD deliver to end customers in the hour of their choice, is a huge step forwards in delivery personalisation, but Kerr said the service and its sister operation Predict were not an “overnight” achievement.

“It’s been a journey,” she told MT. “Predict goes all the way back to 2010. And if you look at our first SMS alert it was like, ‘Your parcel’s going to go out for delivery. Press 123 for a change of address’. But we were so proud of that, because that was recordbreaking and was entering into new grounds.

It was putting the customer in control. And from 2010, right through to 2017, we’ve just evolved and developed through that sort of process.”

Precise is used by DPD’s 10 largest customers, including ASOS and EE, and is offered to consumers for no extra charge.

Kerr said the carrier will roll out its premium service to new customers in time, but that it is unlikely that all its customers will get it.

“I don’t think you could have it available to all customers. It would totally change the whole operational flow. It does put more operational complexities into the mix because ultimately, it’s giving you less productivity sometimes because you’re having to route drivers into those set timings. So operationally, there is a huge amount of consideration needed.

“With our big customers, it’s all about our customer retention strategy. That’s really important for us.”

Building relationships

The secret to a good home delivery, said Kerr, is a strong relationship with customers. All of the business’s directors have assigned key customers to look after and work with closely.

“Everyone on the senior management team has between five and 10 customers. And that’s a key part of our success. Customers frequently ring us up just to ask for advice and to hear our opinion on things.”

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Customer retention and growth is a significant player in DPD’s ambitious growth plans.

In September this year, it was awarded additional business from existing customer EE. “EE has traded with us for the past two years now. And we weren’t awarded all of that business two years ago. But we never stop trying.

That’s us. We’re always asking, ‘What else can we do? What can we get? Where can we go?’

“New business is still the biggest growth area, but in terms of upsell opportunities and business growth from our existing customers, that is a key part of the overall strategy to achieve that regular growth.”

Kerr said there is a perception in the industry that customers are just knocking on DPD’s door to sign up. “I wish it were that easy!” she said. “It takes time to quote customers and to win them, and to grow our business with them.

We enter tenders and often we’re successful because people have had a personal experience with us. They use the delivery app themselves so they understand the benefits of using DPD.”

Customer satisfaction

But as a premium next-day carrier, Kerr said DPD does lose out on work because of its higher price label. “I think the reason we don’t have the whole market is because we’re never the cheapest.”

But, she added, it is possible to look at customers’ consumer satisfaction charts and pinpoint when the customer started using its Predict service. “As soon as they make the switch, there’s a huge jump in terms of customer satisfaction.

“And this is really important to us, because that’s how we know we’ve got it right.”

DPD is also looking to up its environmental game, particularly in the London area.

“There’s a lot going on in London and we need to be getting prepared for the Ultra Low Emission Zone. We’re doing a lot of work in the space, including an electric vehicle trial.”

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Belonging to DPDgroup gives the UK subsidiary a head start in sustainable urban transport. “We take a lot of our best practices from other key cities in Europe.

“In Germany we’re using cargo bike vehicles, for example. So it’s good to look to the other business units,” said Kerr.

DPD is also future-proofing its data-driven business by investing in IT security, after competitor TNT lost droves of information and money – and customers – to a cyber attack in June.

“It’s scary to think of a business like TNT losing what it did in such a short space of time.

Our business is driven by data and IT so we make sure that we have everything, so we’re investing heavily in that area.”

Brexit uncertainties

And even DPD is not immune to the uncertainty of Brexit, and Kerr said it is the business’s main concern for the coming years. Especially, she added, because DPD is banking on its international deliveries to get the carrier to its £2.3bn turnover target by 2025.

“It’s an uncertain time economically, and it’s playing on all of our customers’ minds. It’s unknown how we’re going to navigate our way through the situation over the next 12 to 18 months.

“And our customers are starting to question whether they should be setting up in Europe.

A lot of them are thinking about opening a DC in Europe to service European countries.”

But, she added, with DPD’s financial robustness and determination, the business will weather the storm.

“Whatever happens, we’ll be prepared for it.

We’ll be ready because we’re owned by La Poste.

And whatever happens, whatever changes we need to make, we do have good financial backing. So we will make those changes. It’s a big world out there. There are lots of other oppor-

tunities and we’re forging strong partnerships with other suppliers. And I see that as an exciting area we’ll continue to expand on.

“We’re used to doing customs. We do worldwide deliveries. But we just hope they’ll see sense and keep it as easy to trade across Europe as possible.”

Staying focused

In the meantime, DPD will keep its focus on doing what it does best: providing excellent home delivery services on behalf of its customers. “We are focusing on international growth, which is exciting. But it’s really about looking after customers and helping them grow as well.

People don’t typically leave us as a business.

They work with us and we have long-standing customers. The reason they do stay with us is our innovation. They want to know, ‘What’s next? What are you doing?’ And that’s what we’re renowned for. We will never stop doing what comes next.” ■

DPD director of marketing Tim Jones, with the trophy, and the team collect the award from, second right, Cartwright Group MD Mark Cartwright

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Samworth puts its bakery staff on wheels

By Emma Shone

As of 6 April this year, businesses with wage bills of more than £3m were hit with the Apprenticeship Levy. This means companies must contribute 0.5% of that figure to a national funding pot for apprenticeships, which they can only claim back as funding for training current or future employees.

Samworth Brothers Supply Chain is using the money it can access through the levy to fund its new Bakery to Wheels driver training apprenticeship, which went live last month.

The firm has selected 10 apprentices from bakeries and sites across the Samworth group and will put them through the class C and C+E tests over the next 12 months. It plans to take 10 more apprentices from across the group next spring, and a further 10 in the summer.

“The goal is to have 30 in the programme at any one time,” said national driver academy manager Mark Taylor (pictured below, middle).

From sandwich makers to warehouse managers joining the programme, Taylor told MT that what matters is that the new drivers are determined and motivated.

“I’ve been with the group for 15 years,” said 45-year-old Simon Holmes, production area manager at Saladworks and one of the first Bakery to Wheels apprentices.

“I felt I was getting to the point where I needed to freshen things up, but I didn’t want to leave the group. I’ve thought about truck driving before but not done anything about it, so I’m looking forward to learning a new skill.”

Tom Denoon told MT he would be looking to leave Samworth if it weren’t for the apprenticeship.

The warehouse operative said: “I’ve got to the point working in the warehouse where it’s become a bit stale and mundane. I’ve spent years watching our drivers backing into bays in the warehouse and they make it look effortless. I can’t wait.”

Samworth’s academy runs a warehouse-to-wheels programme

and does its own Driver CPC training in-house, as well as a training course for qualified drivers joining the business.

The group started its own driver training, Taylor said, because “we saw that if we didn’t, we’d suffer”.

“The sustainability of our business would be exposed if we didn’t have the right people to do the job, so we’ve brought in more than 70 drivers in the past year through the various programmes.”

T he Bakery to Wheels apprenticeship is set apart from Samworth’s other training programmes because Samworth has brought in a training provider, WTTL. “With the apprenticeship structure, it’s not just teaching people to drive a truck. They need GCSE level two maths and English, and we’re not teachers in those subjects. And there’s the engagement with Ofsted too, which we don’t want to do at this point.

“WTTL came up with a structured delivery plan, and it’s a natural fit with us. It works very well.”

Staffing Matters

By David Coombes

Survivors’ guide to road transport’s busiest time of the year I wonder how many people outside the industry think about the work that goes into delivering the Christmas season. The logistics sector is no longer in the background, no longer confined to major and arterial routes or the night: couriers deliver packages and parcels across every neighbourhood in the country and major retailers offer four-hour delivery times.

Our sector delivers this incredible service. But as we increase our service level, we have to look after our people and ensure they are safe and well. I love this time of year but not the darkness, cold or flu; all of them combine to make it a tough time to be making a living out on the road.

Here are my tips for drivers at this time of year.

1 Look after yourself. Eat and drink properly. If it comes in a shiny wrapper, it doesn’t count as proper food. Science shows that eating good food fends off colds and other viruses. Boost your immune system and take supplements.

2 Sleep matters. If you don’t sleep, you become unsafe and unhealthy: fact. It’s not easy to find a place to get good rest, but for everyone’s welfare, drivers have to get good-quality rest.

3 Remember that a night out affects your driving ability the morning after. Be careful and never take a chance on being fit to drive. At best you might lose your licence.

4. Be careful with caffeine: we possibly drink too much of it. But recognise that it is a short-term fix and know when you have an unhealthy relationship with it.

5 Don’t get angry. Stuff happens. Choose to not respond. Count to 10 and take a deep breath.

People make bad decisions when they are emotional. Stay cool and in control.

6 At some point you might wonder if driving is for you. Don’t make a hasty decision; wait until the New Year before making more considered plans.

May I take this opportunity to wish you and your loved ones all the joys of the Christmas season. I hope that among all the work and other commitments, you spend some quality time with your nearest and dearest.

Be safe, be healthy and here’s to a prosperous 2018!

Tel: 0117 9859 119 logisticsjobshop.co.uk admin@logistics jobshop.co.uk @LJSJobs 11.12.17

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