Motor Transport 14 August 2017

Sharp ■ Informed ■ Challenging

14.8.17

the NEXT GENERATION SCANIA

PREMIUM REDEFINED WELL DONE TO OUR 2017 WINNERS DATE FOR THE DI ARY 4 JULY 2018

New warehouse and DC in Droitwich Spa to service the West Midlands in interim

Two-year wait for Arrow

By Emma Shone

MTAWARDS.CO.UK #MTAwards2017

NEWS INSIDE Weighting game

HSE pallet weight plans facing serious delays p3

At the helm

Peter Fuller promoted to UK Mail chief executive p4

Arrow XL faces a two-year wait before its Worcester hub, which was destroyed by fire earlier this year, is operational again.

The 200,000ft² hub, one of Arrow’s four key sites, was consumed by the blaze on 20 April. The fire was declared a major incident by West Mercia Police, and surrounding roads were closed as firefighters tackled the flames.

Between 150 and 200 employees were on-site at the time and all were evacuated safely.

Arrow XL’s Midlands and South West operation was running again eight days later from a site in Chepstow.

The two-man delivery firm said plans are in place to reopen the Worcester hub in 2019, and it has signed a lease on a new warehouse and DC in Droitwich Spa to service the

Into the North

Pallet-Track boosts presence with new hub

West Midlands in the meantime. The company will also continue to use the Chepstow facility. Combined, the two sites offer 310,000ft² of warehousing space.

Arrow said it will begin operations in Droitwich Spa early next month; the facility is currently being fitted with racking and telephone lines.

Arrow XL CEO Ian Howell said: “I am proud of how

Arrow XL has reacted and responded to the fire. The team has spent considerable time sourcing and preparing the Droitwich site, which will enable our business to continue providing exceptional levels of service to the UK retail industry. We are excited to confirm that plans are in place to rebuild our Worcester facility, which we anticipate will reopen in 2019.”

DOWNTON MAULS: CM Downton has renewed its long-term sponsorship of Aviva Premiership side Gloucester in a deal that will see the Downton name appear on the players’ shirts and shorts. Gloucester finished ninth in the 12-team Premiership last year and came close to beating French giants Stade Francais in the European Challenge Cup final in Edinburgh, so they will be hoping for big things in the coming campaign under new head coach Johan Ackermann. Andy Downton, MD at CM Downton, said: “Gloucester Rugby is a major part of the local community and culture, and we are proud to continue our support for the biggest rugby club in our region.” As well as the Downton name appearing on the kit, branding will appear pitchside and on the Gloucester website.

p6

OPERATORS IN THIS ISSUE AKW Global Logistics ............................p8 Aldi................................................. p8, 12 Amazon Logistics ................................p29 Clipper Logistics..................................p10 DSV ....................................................p29 Elddis Transport ....................................p6 Goldstar Heathrow ................................p6 Hargreaves Services..............................p6 Kuehne + Nagel.....................................p3 Longs of Leeds ......................................p4 NFT Distribution ..................................p10 Tuffnells Parcels Express ......................p4 UK Mail .................................................p4 Wincanton ..........................................p12 Woodside Distribution ...........................p6 XPO Logistics ......................................p10

Palletforce hub targets sector consolidation Palletforce is looking to take advantage of inevitable consolidation in the pallet sector with its new £50m hub, according to chief executive Michael Conroy.

The Burton-on-Trent site, which opened on 10 August, has the capacity to handle 30,000 pallets a night, with 450 HGV parking spaces across the 38-acre site. The 620,000ft2 facility, next to its existing

380,000ft2 hub, accounts for most of the £65m parent company EmergeVest has spent on Palletforce since it bought it for £30m in 2015.

Conroy said the hub gave Palletforce an edge on the competition. “No other UK pallet or distribution network has taken such a step to create capacity, facilitate growth and ensure the future success of its membership and network,”

he said. “It also positions us perfectly to take advantage of market consolidation, which is inevitable in our sector.”

Earlier this year, Conroy told MT the sector was ripe for consolidation and Palletforce may play its part (MT 23 January).

Palletforce said the site will create 70 jobs in the business, and an estimated 700 across its network.

PREMIUM REDEFINED

News Extra p11 Focus: Warehousing p12 Highwayman p13 Gas power p16 Technology: Tachographs p20 MT Awards winner profiles p24 Careers p29

MTR_140817_001.indd 1

10/08/2017 15:10:40

7UDFNLQJ 32' :DONDURXQG &KHFNV

³7UXFNFRP UHDOO\ KHOSV XV WR VWDQG RXW IURP RXU FRPSHWLWRUV´ 7RE\ *UHHQ +DPEXUJ 6XG &RQWUDFW 0DQDJHU 6HYHQ /LQFV

6HYHQ /LQFV LV XVLQJ 7UXFNFRP WR FRQQHFW WKHLU GULYHUV DQG FXVWRPHUV IRU YHKLFOH WUDFNLQJ DQG OLYH XSGDWHV ZLWK 32'V DYDLODEOH ZLWKLQ PLQXWHV

7UXFNFRP LV D QHZ ZD\ RI PDQDJLQJ \RXU IOHHW XVLQJ WKH 7UXFNFRP GULYHU $SS WRJHWKHU ZLWK RXU SRZHUIXO ZHE EDVHG RIILFH V\VWHP 1R WUDFNLQJ ER[HV WR ILQDQFH RU LQVWDOODWLRQV WR SODQ \RX MXVW XVH WKH GULYHU¶V SKRQH

,QWHUHVWHG" ,W¶V HDV\ WR JHW VWDUWHG

6LJQ XS IRU \RXU IUHH GD\ WULDO DW WUXFNFRP FR XN 1R FUHGLW FDUG RU EDQN GHWDLOV DUH UHTXLUHG

<RXU GULYHUV GRZQORDG WKH $SS \RX JLYH WKHP WKHLU SDVVZRUGV DQG \RX¶UH XS DQG UXQQLQJ

$Q\ TXHVWLRQV" -XVW JLYH XV D FDOO 7KHUH¶V ORWV RI KHOS DQG JXLGDQFH RQOLQH DV ZHOO

WUXFNFRP FR XN

AD_140817__P2.indd 2

09/08/2017 11:11:02

News

motortransport.co.uk

Faulty measuring equipment meant previous test results were no longer useable

Register now for this year’s Freight in the City Expo Registrations are now open for this year’s Freight in the City Expo on 7 November at Alexandra Palace, London.

The exhibition hall will be packed with the latest urban delivery vehicles, technology and services to help city fleet operators keep compliant with air quality, noise and safety requirements.

Up to 1,000 visitors are expected to head to north London this autumn, to hear from a top line-up of speakers and network with industry peers from cities across the UK and overseas.

A full seminar line-up – featuring top industry speakers and practical examples of sustainable city logistics operations from around the world – will be published on the event’s website, freightinthecity.com, later this month.

The third Freight in the City Expo, supported by MercedesBenz and Fuso Canter, will also host the annual LoCity conference, which will highlight work taking place in the TfL-supported programme to help freight operators switch to alternative fuels.

■ For exhibition details and to register for the free event, go to freightinthecity.com/ expo-2017.

HSE pallet weight guidance on hold

By Carol Millett

The Health and Safety Executive’s plans to update guidance on pallet weights are facing serious delays after test results on the manoeuvrability of various pallet weights, carried out last March, were found to be inaccurate due to faulty measuring equipment.

Although the faulty test results were discovered six to eight weeks after the tests were carried out, the HSE has yet to announce a new test date.

The tests were carried out at an RHA member’s depot in Birmingham and aimed to measure the manoeuvrability of different pallet weights using push and pull tests.

The HSE measured the physical effort required for an individual to move pallets of pre-determined weights using a standard pallet truck on level ground. It involved 18-tonne and 7.5-tonne trucks with taillifts.

RHA technical director Ray Engley has been closely involved with the tests as the chairman of the pallet weights industry working group, which was set up one month after

driver Petru Soimu Pop was crushed to death by a 1,100kg pallet of tiles at a residential address.

Engley told MT: “We are still waiting for the HSE to rerun the push and pull exercise. It will have to be repeated because some of the HSE equipment used to measure the push exercises was faulty.

“It is frustrating that we do not have a date yet from the HSE as we desperately need that information from the test to move on to the next stage.”

An HSE statement neither confirmed nor denied the measuring equipment had been faulty, but it said further testing was needed.

“To be effective, the testing needs to cover a range of scenarios and needs to be done in a scientific environment rather than on a site. Our facility at Buxton is therefore the most suitable venue,” it said.

“We recognise the frustration felt at the delay, however the seriousness of this issue means we want to give the industry the most effective, accurate analysis and this clearly takes time.”

Kuehne + Nagel extends terms to 90 days Kuehne + Nagel has extended its payment terms for new and existing suppliers from 30 days to up to 90 days, citing the need to share the pressure of longer credit terms from its clients with its suppliers.

In a letter to suppliers setting out the terms, K+N said the move would help align its payment terms to those of its customers, help it to remain competitive and maintain growth in the financial climate.

Two payment terms are 14.8.17 MTR_140817_003.indd 3

available to suppliers under the new terms. The first offers a 60-day option, while the second offers a 90-day option, which uses a bank supplier finance programme.

Bank supplier finance programmes allow suppliers to sell or trade their receivables to a funder in return for advance payment. If traded before maturity, 100% of the invoice, minus a financing fee or discount, is transferred electronically to the

supplier’s bank account.

A Kuehne + Nagel spokeswoman said: “The financial crisis in 2009 resulted in a different macro-economic reality and longer credit terms have become the new normal.

“As an intermediary in the logistics market, K+N cannot absorb these changes and needs to share these pressures with its partners.

“K+N has invested in innovative solutions to give access to supply trade financing solu-

tions via our partner Citibank.

These allow our suppliers to finance the working capital requirements of extended payment terms on the back of the credit rating of K+N. “We have recently received the Adam Smith award for this solution and we consider this a benchmark for the industry.”

One K+N subcontractor said: “It is very unwelcome but what can we do? This is something the industry is seeing all too often.”

Next issue: 4 September ■ MT award winners: Samworth Brothers and DPD ■ ETS Distribution on building a family legacy

MotorTransport 3 10/08/2017 15:40:14

News

motortransport.co.uk

Ex-Parcelforce man to oversee remaining Deutsche Post DHL integration

Fuller promoted to top role at UK Mail

By Emma Shone

UK Mail has appointed Peter Fuller chief executive officer (CEO), almost two years after his predecessor stepped down.

Guy Buswell left UK Mail in November 2015, during a tumultuous period when the company saw pre-tax profit plummet after the wrong sorting technology was installed in a new hub.

UK Mail founder and former chairman Peter Kane has been acting CEO since Buswell’s departure, but handed the reins to Fuller on 1 August.

Fuller will oversee the remaining integration with Deutsche Post DHL, which bought the company for £243m last December. He has been chief operating officer

for parcels at UK Mail since April 2016, and previously worked at Royal Mail’s Parcelforce for more than 19

years. Fuller said: “Following the acquisition by Deutsche Post DHL the business is in a strong position.

“The integration and co-branding activity is progressing to plan, and we have put in place ambitious growth plans for our import and export channels that are being supported by key areas of investment, including an extension to our central hub in Ryton that will increase parcel-processing capacity.”

Achim Dünnwald, CEO at DHL Parcel Europe, said: “Peter has been instrumental in building UK Mail into one of the country’s largest parcel and mail service providers.

“He played a key role ensuring a smooth acquisition of UK Mail by our group and has led business integration activities as well as driving growth in the competitive UK marketplace.”

Interested in gas-powered vehicles? Go to LoCity event Operators considering using gas-powered vans or HGVs will be able to find out all they need to know at the next LoCity road show taking place on 21 Sept emb er at Twickenham Stoop Stadium.

The free road show is the second in a series of four

events created for the freight industry to help operators understand how alternative fuels could be a viable choice for fleets. It follows a successful event last month on electric commercial vehicles.

The road show will bring together operators of gas CVs,

infrastructure providers and technology experts to provide practical advice on gas as an alternative to diesel. Delegates can inspect a line-up of the latest gas-powered vehicles on the market and interact with manufacturers.

LoCity is an industry-led

programme, supported by TfL, to help the freight sector switch to alternative fuels ahead of the capital’s pending ultra-low emission zone rollout in 2020.

■ Demand for the shows has been high. To secure a place, go to locityroadshows.co.uk.

Tuffnells MD to leave in Connect Group reshuffle Tuffnells Parcels Express MD Chris Ward is leaving the business following its integration in parent company Connect Group. The group, which also owns Smiths News, bought Tuffnells in November 2014.

A Connect Group spokeswoman said Ward, who joined the business in May 2015, will be leaving the business as it moves towards a single leadership team across the whole group.

However, Smiths News MD Jonathan Bunting will remain as chief operations officer for both divisions.

The spokeswoman said there were no plans to integrate physical networks, despite Tuffnells using Smiths News vehicles in some of its operations after a trial in Bristol.

She added: “Integration refers to the group’s core businesses working together to offer a seamless combination of services for customers, headed by a single leadership team with responsibility for their combined commercial performance.

“We don’t plan to integrate the physical networks at this stage; any opportunities that may develop over time will be driven by the requirements of serving our customers.”

The spokeswoman added that Connect Group chief executive officer Mark Cashmore will be heading up the integrated business.

FRESH-FACED FLEET: Longs of Leeds has refreshed its fleet with a 90-unit delivery from Ryder, complete with a new livery. The order includes 50 Daf XF tractor units, which are fitted with Super Space cabs and AS Tronic gearboxes. They are Longs of Leeds’ first Euro-6 vehicles. Director Andrew Long said: “We invested heavily in the latter stages of Euro-5 so we weren’t into Euro-6 early, allowing the technology to bed in. We are carrying out comprehensive driver and technician training in conjunction with Daf.” He added that they had opted for "a cleaner, fresher look" with the new livery. The order, which replaced older models on the operator's 100-strong vehicle fleet, also included 40 SDC curtainsider trailers. The vehicles, based at its depots in Leeds and Hull, carry bulk freight in the drinks, food and paper products sectors.

4 MotorTransport MTR_140817_004.indd 4

14.8.17 10/08/2017 14:12:12

VOLVO FH

Fleet Truck of the Year 2017

With its winning combination of driveability, reliability, durability, driver-acceptability plus the best automated transmission on the market, it is no surprise that Volvo FH was voted Motor Transport Fleet Truck of the Year.

www.volvotrucks.co.uk

Search: VolvoTrucksUK

Volvo Trucks. Driving Progress 55738

AD_140817__P5.indd 5 55738 Motor Transport FH TRUCK OF THE YEAR_FP.indd 1

09/08/2017 11:12:52 01/08/2017 09:44

News

motortransport.co.uk

Network looks to improve efficiency for North and Scotland loads through £10m Greater Manchester hub

Pallet-Track expands in North

By Chris Druce

Pallet-Track has opened a £10m northern hub at Ashtonin-Makerfield, Greater Manchester.

The 70,000ft² regional hub, which opened on 7 August, created 20 jo bs, although the network said more are expected as volumes build. It will improve efficiency in the network involving loads for the North and Scotland, taking some of the pressure off its 276,000ft² central hub in Wolverhampton.

Pallet-Track said the move would benefit approximately

30 of its 80-plus members, reducing long hauls and empty running.

Pallet-Track MD Nigel Parkes said: “This is our first stand-alone hub development in the north, which is important as it secures our development in this important region and allows us to manage volumes and flow in a more cost-effective and environmentally friendly way.”

David Molyneux, deputy leader of Wigan Council, said: “Inward investment is always welcome in Wigan Borough and we are delighted that

Pallet-Track has selected our region for its northern hub.

“It’s also great to see the company is thinking long term; not only for greater employment opportunities, but also in terms of reducing the environmental effect of its operations and the sustainability of the hub-and-spoke model serving the north.”

As well as its central hub, Pallet-Track has two regional hubs in Belshill in Scotland and Welwyn Garden City. In January the network bought Redhill, Surrey-based Horley Road Services.

NORTHERN TRACK: Ballynure, Co Antrim-based Woodside Group joined Pallet-Track last month – with its Woodside Distribution division covering all postcodes in Northern Ireland.

Woodside MD Simon Woodside said: “We needed to simplify our pallet distribution services to and from the UK and Pallet-Track represented the kind of network we wanted to be part of.”

Lower fuel prices hit Elddis as turnover falls

Competition takes toll on Hargreaves

County Durham operator Elddis Transport reported a 1.6% drop in turnover last year after passing on lower fuel prices to customers. The operator recorded a turnover of £25.6m for the year ended 31 December 2016, down from 2015’s £26.1m.

MD Nigel Cook told MT that the decrease was entirely down to last year’s low fuel prices.

“We spent less money on fuel, and that was passed on to customers, which affected turnover.

Hargreaves Services is to ration expenditure in its logistics division after it suffered a 91% fall in operating profit last year due to competitive pressure.

Operating profit plunged from £1.2m to £100,000 in the year to 31 May 2017, as turnover dropped 11% to £48m (2016: £54.4m). The operator said this reflected its transition from a focus on coal movements to more diverse volumes in the waste, construction and biomass sectors, as well as pressure on subcontractor margins.

Hargreaves said the division’s management team had been bolstered to adapt to demands and had put in place a series of steps to reduce costs, improve efficiency and update commercial terms.

“The market for the logistics business has been difficult, reflecting increased competition and soft volumes, which created significant challenges towards the end of the year,” the company said.

“A programme is under way to reshape the operation and reduce overheads.”

Hargreaves Services said it was also rationing expenditure in its UK coal distribution arm.

It added the two divisions offered limited growth opportunities and it would run both operations to “maximise longterm cash generation”.

UP, UP AND AWAY: Goldstar Heathrow has taken delivery of the first six of 14 Mercedes-Benz Actros 2545s. The units, ordered through Rygor Commercials, are plated at 44 tonnes and will be based at the operator’s headquarters in Heathrow, predominately moving airfreight across the UK. Director Charlie Faulk told MT the trucks had fitted in well with the fleet.

6 MotorTransport MTR_140817_006.indd 6

“When you look at, it was a like-for-like year. We spend so much on fuel that it makes a big difference.”

Elddis reported a 15.9% drop in pre-tax profit, which Cook attributed to spending on business growth.

He added: “We spent a lot of money investing in the business, so depreciation was higher. We bought 24 new vehicles and 31 trailers.

“It was a consistent year, and it’s not an easy industry that we’re working in. EBITDA was

up again this year, it’s been improving year-on-year, but we’ve invested in a lot in vehicles and trailers.

“We’re trying to expand the business, in a controlled manner, ensuring we’re profitable, which is most important, and we manage the cash flow to make sure the business is successful.”

Elddis continues to face the issue of a shortage of suitable HGV drivers. Cook said: “We can’t see where the next generation of drivers are.

“We’re holding our own at the moment; in some depots there’s no problem and in others it’s an issue. We’re looking at ways to make sure we can hire and retain the right drivers.”

Having taken on new business, Cook said turnover is likely to have increased in 2017, and Elddis is continuing to invest in the latest vehicles.

“We have 20 new trailers coming this month, and seven rigids and five artics arriving on 1 September.”

14.8.17 10/08/2017 11:45:27

We’re Talking...

Big Time Savings!

All our tachographs used to be sent away to be analysed and it was very time-consuming – in fact we got the reports back about a week later. Now, using TruControl from TruTac, our drivers can download their tachograph card via the telematics system in the truck and it comes through to me. I then enter it into the system and have the report within minutes. That’s fast.

Will Porter. Transport Manager, Cranleigh Freight Services.

TruTac delivers compliance control and cost savings for your fleet. For a free demo contact us today – 024 7669 0000

sales@trutac.co.uk www.trutac.co.uk AD_140817__P7.indd 7

Complete Compliance Control

09/08/2017 12:43:36

News

motortransport.co.uk

Former senior TC said a lack of funds from the DfT was a reason for her resignation

Bell quit due to lack of support from DfT

By Ashleigh Wight

Traffic commissioner (TC) Beverley Bell stepped down because she felt the TCs did not receive sufficient support from the government.

The former senior TC and TC for the North West sent her letter of resignation to transport secretary Chris Grayling last year. In it she said it was vital the DfT “gives its full support to the traffic commissioners” and to fail to do so would “irreparably undermine the jurisdiction which has survived and thrived for 85 years”.

“Over the years,” she added, “we have not always had that support and I regret to inform you that this has been a key factor in my decision to step down before I reach retirement age”.

Bell said she hoped the DfT would continue to work collaboratively with the TCs and “[support] them so they can truly carry out that work with-

out fear or favour, affection or ill will”.

The letter, which has been released following a Freedom of Information request, echoed comments made in her 2015/16 report, which called for more funding to tackle non-compliant operators.

She reiterated her call for the legislation that underpins the O-licensing regime to be reviewed, suggesting the TCs “struggle to keep up” with new technology and the demands placed on operators.

“Traffic commissioners increasingly find themselves under attack from operators who have no intention of running in a compliant manner and who will resort to any lengths to bring about the downfall of public regulators carrying out a difficult job in extremely difficult circumstances,” the letter added.

In response to Bell’s letter, senior TC Richard Turfitt, who replaced Bell in June, said

receiving support from the DfT was vital to providing an effective, modern service to the industry. “There is always work to do in building and maintaining relationships.

“The department is facing

FIGHTING FIT: Bevan Group has supplied curtain-sided bodies to windows and doors company Senior Architectural Systems (SAS) for its distribution fleet. The Doncaster-based firm has replaced its previous vehicles with seven Mercedes-Benz Actros 18-tonners supplied by Northside Truck and Van, two of which pull drawbar trailers at gross train weights of up to 36 tonnes. The curtainsiders are in three lengths: 9.2m for the trucks that work solo, 7.7m for the two drawbar prime movers, and 7.4m for their twin centre-axled trailers. Five of the new trucks are Actros 1827 models with 272hp engines while the two drawbar units are 1835s with more powerful 354hp versions of the same 7.7-litre straight-six engine. They all have StreamSpace sleeper cabs and are under a Mercedes-Benz Financial Services contract hire agreement. The trucks deliver aluminium extrusions at various lengths, but typically 6.1m, along with palletised accessories, to fabricators nationwide, while the drawbar rigs also trunk product twice a week to the company’s bases in Livingston and Newport. Supertrucks – manufacturer of bodies and racking systems for the glass and glazing sector, which was acquired by the Bevan Group in 2014 – built the bodywork at its St Helens factory.

8 MotorTransport MTR_140817_008.indd 8

an increasing workload but knows that without its support, TCs cannot make the required progress to reduce burdens on compliant operators and to take action against unsafe operations.”

AKW upgrades Trafford Park AKW Global Logistics has spent £250,000 upgrading its Trafford Park warehouses.

Additional racking and a fleet of 16 Mitsubishi gas-powered forklifts featuring warning and impact sensors have been added following a spend of £2m to add capacity for the group in 2010.

“The market is constantly changing for users of warehousing and value-added services, we must evolve with it; customising our approach to stay modern is at the front of everything we do.

“Gone are the days of dirty old dusty spaces where companies store a few overflow pallets; we strive to emulate and further exceed the blue chip industries in-house supply chain solutions, which has won us the loyalty of giants such as L’Oréal,” said AKW Global Logistics operations director Paul Welsh.

The operator employs more than 400 people and has 795,000ft2 of operational capacity for storage and packing.

Aldi fined £1m after driver suffers severe foot injury Aldi Stores has been fined £1m plus costs after a driver had to have two toes amputated following an incident with a powered pallet truck.

A driver sustained severe foot injuries, including fractures to all toes on his left foot, while using the forklift at the supermarket’s Nottingham Road, Somercotes, Derbyshire store in November 2013.

The driver had only been delivering in to stores for two weeks and had to have his foot reconstructed using wires. He was off work for almost six months, but has since returned to work at Aldi.

On 14 July, Derby Crown Court was told Aldi relied on new drivers shadowing other

drivers before they started working alone. It did not have a standardised training programme in place for all drivers to undertake before they use the equipment.

The supermarket admitted it should have provided structured and formal training.

Aldi pleaded guilty to two breaches to the Health and Safety at Work Act 1974, following an investigation by Amber Valley Borough Council. It was ordered to pay £70,000 in costs in addition to its £1m fine.

Councillor David Taylor said: “This investigation will hopefully result in a renewed focus by Aldi to ensure standards are maintained.”

14.8.17 10/08/2017 10:44:21

RE G

IST ER

NO

W

promoting sustainable urban deliveries

Cities are becoming smarter, with rapid technology advancement creating both opportunities and challenges to the traditional freight sector.

What will the ultimate urban delivery vehicle look like?

How will the harnessing of big data impact operators?

How do logistics firms transition to a zero-emission model?

Our seminar programme will address these and other topical issues. Alongside this, the exhibition is moving into the Great Hall as more vehicles, equipment and technology emerge onto the market to make urban deliveries cleaner, safer and quieter.

FREIGHT IN THE CITY EXPO 7 November 2017

Alexandra Palace, London

Register for your free place today freightinthecity.com/expo-2017 In association with:

and supported by:

@freightincity

FitC 2017 Expo register now AD_140817__P9.indd 9 print V3 MT Size.indd 1

13/06/2017 09/08/2017 16:28:57 11:16:46

News

motortransport.co.uk

Operator confident as turnover up 22% with retailers leading organic growth

E-fulfilment drives Clipper

By Chris Druce

Clipper Logistics has delivered another strong performance, and predicted it will continue as its evolving model of serving retailers’ growing e-fulfilment and product return needs bears fruit.

Announcing full-year results to 30 April, its third year listed on the London Stock Exchange, group turnover was 17.2% higher year-on-year at £340m (2016: £290m). Pre-tax profit increased 22% to £16m (2016: £13.1m).

Clipper Logistics executive chairman Steve Parkin said: “The group is proud of its record of consistently developing effective solutions to address the changing needs of retailers in today’s continually evolving consumer landscape.

“Our latest set of full-year results reflects the trust and confidence our customers have in our ability to enable them to achieve their service proposition to customers, through the provision of relevant and cost-effective services.

Clipper’s strategy of driving organic growth and seeking targeted, complementary acquisitions continues to enhance shareholder value.”

As the company moved into its new financial year, Parkin

WOOLLY WIN

said it had a strong pipeline of business opportunities.

“Clicklink, our click and collect solution owned jointly with John Lewis, provides a multiuser platform that is gaining traction with other retailers.

“In addition, the recent acquisitions of Tesam and RepairTech broaden our customer base and our services,” he added.

During the year the firm started contracts with Halfords, Inditex and Links of London. It saw organic growth with customers Asos, Morrisons, Wilko and Zara

among others. This offset the loss of fashion retailer Ted Baker, which XPO picked up.

Clipper was providing e-commerce fulfilment for Tesco at a property leased by the supermarket group in Daventry. However, due to space elsewhere, Tesco relocated to its Fenny Lock, Milton Keynes, site in August 2016.

Compensation for the termination of the contract meant the financial effect to Clipper was negligible, and the operator has taken on the Daventry lease, from where it is operating its Halfords contract.

Clipper Logistics has signed a five-year deal with Edinburgh Woollen Mill, providing services on “a predominately exclusive basis”.

Clipper executive chairman Steve Parkin said: “Clipper began its relationship with Edinburgh Woollen Mill Group last year. I am delighted that throughout a detailed tender process, we demonstrated our ability to act proactively as a team and to develop a logistics solution that will make a difference to its business. We are delighted to have finalised this long-term contract to enable us to support the operations and anticipated growth of the group throughout the UK.” Edinburgh Woollen Mill group logistics director Mark Hebditch said: “We are delighted to have concluded our negotiations and to be entering into a contract with Clipper. We hope it will be a long, successful and prosperous partnership for both parties.”

Fors signs up ‘affinity partner’ Licence Bureau Fors has signed up Licence Bureau, the driver licence checking service, to provide operators with a system to ensure drivers have the correct licences and qualifications.

Fors said Licence Bureau will become its first “affinity partner”. It hopes to recruit more firms that can provide member-only services.

Members will be offered a discount on the licence checking service, which will help them meet Fors’ D1 requirement to ensure all drivers’ licences and qualifications are checked using a system that accesses the DVLA database.

The system bypasses the need for drivers to provide a licence check code, provided by the DVLA, because each check is done automatically, saving time and effort.

Fors business services manager Paul Wilkes said: “Regular, appropriate and riskbased licence checking is an important part of the Fors standard and we are delighted to be launching this opportunity.”

Fors recently confirmed its 200th gold member – the top tier of the scheme – with safety equipment manufacturer Garic marking the milestone.

NFT Distribution appoints XPO Logistics signs three-year VWR deal new chief operating officer NFT Distribution has appointed Ross Eggleton to the new role of chief operating officer, with immediate effect.

He takes on responsibility for ensuring operational excellence across NFT’s transport and warehouse operations.

Eggleton joins NFT from WM Morrison Supermarkets, where he was logistics and supply chain director. Before that his roles included senior positions at Asda and 3PL Lloyd Fraser Group.

Earlier this year, NFT, which is owned by EmergeVest, strengthened its executive 10 MotorTransport MTR_140817_010.indd 10

team with the appointments of Nick Winder joining as transport director, Tim Stone as warehouse director, and Gerard Gaffney becoming chief operating officer at NR Evans Group (part of NFT).

NFT described Eggleton’s appointment as integral to its aim of cementing its place as the leading provider of logistics to the international chilled food industry.

Last month the operator won a “significant contract” to provide UK-wide temperature-controlled distribution to Southern Salads.

XPO Logistics has won a threeyear contract to manage the distribution of VWR International’s pharmaceutical, biotechnology, industrial and healthcare products across 9,000 UK facilities.

The operator will make next-day and timed deliveries, while handling hazardous goods and substances that require t emperaturecontrolled operations.

VWR chose XPO because of its strong safety record, ISO 9001 and ISO 14001 accreditations, and expertise in handling hazardous, timesensitive goods.

The operation will use 25 trucks running through six hubs, delivering 2,500 cases a

day. The two firms have also developed ADR training programmes for staff and a tailored tracking and reporting software programme.

XPO Logistics business unit director Simon Doran said: “VWR has complex logistics needs for the critical distribution of products that save lives.

We can provide storage in strategic locations closer to their customers, to reduce delivery costs and lead times.”

VWR UK operations director Martin Glover said: “XPO Logistics’ dedicated fleet and capacity gives us the resources to flex volumes when we need to.”

14.8.17 10/08/2017 11:51:53

News Extra

motortransport.co.uk

Industry leaders want logistics to be given a dispensation post-Brexit because of its reliance on EU workers

We like to move it

By Grace Wood

Road transport should be given special dispensation post-Brexit to avoid a skills crunch because of its reliance on EU workers, according to industry leaders. The call comes following home secretary Amber Rudd’s request last month for a study into EU migration and the UK labour market.

Occupations shortage

One way to ensure logistics gets the workers it needs, agreed the RHA and FTA, is for HGV drivers to be included on the shortage occupations list. FTA deputy chief executive James Hookham said: “I am disappointed drivers are not on the list. Driving is a very skilled job that is often overlooked.”

The list, which names those workers allowed into the UK on work visas because of a shortage of UK nationals to do the jobs, is compiled by the Home Office and usually

Images: Shutterstock

DRIVER SHORTAGE Recent data from the DfT puts the average number of EU drivers working in UK haulage last year at 38,000.

James Hookham said this problem would only get worse without the EU workforce. “We need the capacity of the Ricoh arena in Coventry to fill the driver shortage, and we will need it again if EU nationals are not able to work as drivers in this country.

“The sector has responded to the crisis we faced in 2014/2015 and it has improved. But the danger is the good work could get turned down overnight,” he said.

14.8.17 MTR_140817_011.indd 11

includes roles requiring NQF6 (degree level) or above. It has traditionally been aimed at workers from outside the EU; within the EU there is currently complete freedom of movement. Roles on the list include engineers, scientists, medical practi practitioners, artists, teachers, designers and chefs. At present no transport roles are included.

RHA deputy policy director Duncan Buchanan said: “Putting drivers on the shortage occupations list would appear to make sense. The economy needs labour with appropriate skills.

Immigration policy should be based on what UK sectors need.”

The Migration Advisory Committee will be conducting research for the Home Office, due to be released in September 2018 – six months before the UK’s scheduled date for leaving the EU. In a letter to its chairman, Rudd said she wanted only the “brightest and the best” workers.

Buchanan added: “We need surgeons but we also need bin men – without the bin man the surgeon can’t work.”

End of free movement

“Leaving the single market is not a credible situation,” said Buchanan, but the government seems to be giving mixed messages on the subject. According to the BBC, No 10 had said it would be wrong to suggest freedom of movement would continue as it is now, but suggested free movement may continue in all but name after the 2019 deadline.

Logistics Job Shop MD David Coombes said the end of free movement would be a disaster. “It is critical that EU nationals already here can stay and there needs to be an announcement that free movement will continue,” he said.

Hookham called for a sectorspecific deal if the UK ends the free movement of people following Brexit. “Logistics needs longer access to the EU workforce and if we have to we will discuss with government getting a longer period for EU drivers to work in the UK after Brexit,” he said.

But the RHA said a sectorspecific deal was not the answer. Buchanan said: “Making a piecemeal decision for which sector is flavour of the month is dangerous; the important thing is to have a well-thought-through policy.”

Will EU citizens be asked to leave the UK?

According to the FTA, 13% of HGV drivers are non-UKpassport-holding EU nationals. Hookham said these workers would be questioning

whether they will be entitled to stay in the UK, or if they should go home.

However, the RHA said it did not think EU nationals would be asked to leave the UK post-Brexit. Buchanan said: “Some of our members have highlighted that logistics workers are worried and they don’t want to be forced to leave. But I have not met a person in the UK who has said I want these people to go back, within any sector.

“I am unconvinced anyone will be required to leave the UK, it is not credible and therefore not an issue.

Regardless of what deal we get into, it is within the gift of the UK to keep them in the UK.” The Home Office said it would not comment on individual sectors, but the home secretary said: “There will be

a chance for businesses and employers to express their opinions. I would encourage industry representatives to get involved in the process.”

A different kind of conversation

In response, Hookham said: “This is a chance to have a different kind of conversation with government and as soon as it gets into Brexit mode we will be there.

“The FTA will issue a survey or questionnaire to get a scale on how much operators rely on EU nationals.”

In the meantime, he said: “The FTA needs to be at the negotiating table with Rudd, May and Hammond. Logistics needs to be at the top table, this is a cross-sector issue but we run the supply chains on which all other sectors depend.”

IS IT TOO LATE? Many have said the report comes too late. James Hookham agreed: “The study won’t make a lot of difference to the Brexit negotiations. But it’s promising that the government is ready to talk about it; previously it had said ‘this is when we’re leaving: deal with it’, but it has recognised it’s not as simple as that.”

Duncan Buchanan welcomed the study. “It would have made sense to do it earlier, but we can see how it has taken longer than it should because of the referendum, Article 50 and then the election.”

David Coombes took a more critical stance. “This is too little too late,” he said.

He suggested the study considers the differences between EU workers and UK nationals in the industry.

“We need to compare pay rates and length of time in role – EU national versus UK nationals. We also need to look at

churn – if they are permanent, how long do they stay as EU nationals rather than UK nationals?”

He also suggested the study compare the productivity of EU workers with that of UK nationals. “We can do that by looking at telematics information and compare EU nationals’ productivity with UK workers.

EU nationals are hard working and conscientious.”

MotorTransport 11 10/08/2017 09:05:58

Focus: Warehousing

motortransport.co.uk

Renewed confidence means space remains tight developed below a new public park in Hounslow (below). And in Theale, Berks, a planning application has been submitted for a 100,000ft2 of refurbished space and 135,000ft2 of new development by McKay Securities (right, bottom).

Planning

Flaws in the planning system are adding to a shortage of land for warehousing, according to research from planning consultancy Turley.

Its Industrial Revolution report said some local authorities are taking insufficient account of the needs of different occupiers and sectors when allocating land. Instead they are using the government’s Planning Practice Guidance (PPG) to identify land for general purposes such as ‘employment use’.

Turley would like to see a closer analysis of the needs of logistics, manufacturing and offices occupiers so that suitable sites could be found for each; for example, major DC sites close to transport infrastructure.

“We are calling for a more pro-business planning system that enables growth in the right locations and creates certainty for companies looking to invest, evolve and expand their operations,” the report said.

Developers face a lengthy process when bringing forward distribution schemes. Paul Weston, senior vice-president of Prologis, said it can take up to eight years to get a development off the ground if it involves a greenfield site.

Success often hinges on traffic modelling, noise, visual impact and sustainability, as well as engaging with the local community. However, there are variations around the country. “It is not easy to gain consent – it is often a challenge requiring real skill,” he said.

One problem the logistics sector has faced

is a perception that it creates only low-skilled, low-paid jobs. Cushman and Wakefield partner Simon Lloyd said things are changing, however.

“There is still a slight stigma but the tone from many authorities is more pro-development than it used to be,” he said.

Some sites cross local authority lines and he believes that development of these may be aided by the advent of metro mayors in many regions. “They look at the needs of the wider economic region,” he added.

TAKE-UP OF BUILDINGS ABOVE 100,000FT2 40 35 30 25

Q4

20

Q3

15

Q2 Q1

10 5 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Demand for large sheds fell in H1 but is still slightly above average, according to the latest research from Savills. Its Big Shed Briefing report said take-up of buildings above 100,000ft2 was 12 million ft2, a drop of 27.4% on the same period last year and 41.7% down on H2 2016. However, Savills said this year’s performance is only 1% below the long-term average and that there are several occupiers looking for space. “We expect a number of large requirements to be satisfied in H2,” it predicted.

Supply has risen by 1.5 million ft2 to 28 million ft2 this year, with several speculatively developed warehouses reaching completion.

Source: Savills

Carmody Groarke

The South East has seen several large deals this year and agents believe demand is still strong, despite a fall in overall take-up in the region. But there are concerns about how future requirements will be met.

Gus Haslam, a partner at Knight Frank, said one striking factor is the absence of a Brexit effect among occupiers. “Everybody thought there would be uncertainty in the market, but we haven’t seen it on the occupier side. If anything, there has been renewed confidence in the past 12 months, bucking what everyone thought would be the trend,” he said.

This year Aldi has taken 666,000ft2 in Queenborough on the Isle of Sheppy in Kent; Wincanton secured 230,000ft2 in Harlow; and publisher Hachette UK signed up for 242,000ft2 in Didcot.

Despite these positive signs, however, takeup of buildings above 50,000ft2 fell to 2.48 million ft2 in H1, according to Knight Frank’s Logic report. That was down 48% on H2 2016, but the figure was skewed by a large letting to Amazon at Tilbury last year – leaving that aside, the decrease was 5%.

Space is tight in the region, partly because much available land has been converted to residential – according to the GLA, London’s industrial land supply has fallen by 16% since 2001. The situation could become more acute, particularly around Heathrow where up to 2 million ft2 of space could be lost as a result of the third runway being built.

Developers are progressing schemes where they can. Prologis has gained planning consent for a seven-unit scheme totalling 585,000ft2 in Hemel Hempstead (right, top), while Formal Investments has had plans approved for up 1.9 million ft2 of underground warehousing to be

Million ft2

South East

12 MotorTransport MTR_140817_012.indd 12

14.8.17 10/08/2017 09:40:28

Highwayman

motortransport.co.uk

Grab yourself a great package deal If you have a story for Highwayman, send it to highwaymanMT@ gmail.com

The Motor Transport Awards is usually a particularly expensive night for Highwayman.

It’s the only night of the year he really gets to let his hair down. Spending upwards of £50 on a round of drinks doesn’t really matter when he’s surrounded by the industry’s finest, even if his wallet would think otherwise.

But when the fun is over and the MT team want nothing more than their beds,

Highwayman has to put his responsible hat on and make sure everyone gets home safe.

Which means his wallet will take another hit as he promises the team a comfortable taxi ride home rather than taking one of London’s reasonably priced night buses.

This got Highwayman thinking – the team have just spent several hours in the Grosvenor House Hotel with hundreds of operators who

have access to a wide range of vehicles. Surely some of them would be happy to give them a ride home?

After getting the taxi bill through, Highwayman swiftly logged onto a parcel delivery comparison website to see how much it would be to courier the team home.

Unsurprisingly, the £48.29 it would cost to send a humansized package from the Grosvenor to their Surrey

Can you guess the slogan?

Driving up the M1 the other day Highwayman mused upon the various slogans and straplines now appearing on the side of some operators’ trucks. The workings of the judges’ minds for the Motor Transport Livery of the Year award have long been a mystery to the masked one, but the amount of free advertising space on the mobile billboards represented by hauliers’ trucks and trailers that is wasted with inane slogans is mind boggling.

Here are a few recent examples of straplines employed by

some of the UK’s leading logistics providers. Some are more descriptive than others – can you match the slogan to the company? The answers, if you need them, are upside down – no need to call our 50p a minute premium rate number, as this is just for fun.

1. We are XXX 2. Logistics without limits 3. Sure we can 4. XXXXXXX delivers 5. Delivering sustainable distribution 6. United problem solvers 7. Delivering winners 8. Excellence. Simply delivered 9. Your delivery, your call 10. Listening…

Responding…

Delivering.

Answers: 1. XPO.Logistics 2. Bibby Distribution. 3. TNT Express.

4. CM Downton. 5. Eddie Stobart. 6. UPS. 7. Gregory Distribution.

8. DHL Express. 9. Yodel. 10. Fowler Welch.

Celebrate the summer in style – with roadworks As this is the summer holiday edition of Highwayman (unofficially) and the Great British public will soon take to their cars en masse to enjoy wet staycations across our sceptred isle, it would be remiss not to celebrate that other holiday tradition: August roadworks.

This year’s top spots for sane road transport profes14.8.17 MTR_140817_013.indd 13

sionals to avoid are, according to Highways England, many.

Dominating the charts like a malingering Ed Sheeran single is the likes of the connector at the M1 junction 42/M62 to junction 29, where you can enjoy daily misery through to 25 August, in a three-phase approach that ensures equal distribution of

motoring pain. There’s loads of other stuff on the M1, but Highwayman won’t spoil the surprise.

Not to be outdone, the ironically named M606 fast slip from M606 J1 southbound exit to M62 J26 eastbound access will make you wish you were away in warmer climes until (very specifically) 23:59

on 31 October 2018. Nice.

Not being quite so greedy, the M6 northbound between J11A and J12 will only hurt the ones its loves until 31 January 2018.

For the sake of balance, chronic congestion and roadwork hell is available in Wales and Scotland too.

Happy holidays.

home is a much cheaper option. Even the £62.79 this particular parcel carrier would charge to deliver one of the larger members of staff wouldn’t break the bank.

Either London’s minicabs are charging too much or parcel carriers aren’t charging enough!

Highwayman will be sure to bring the bubble-wrap next year, complete with a ‘this way up’ sticker of course.

MPs should take the roads most travelled Liam Quinn of Quinn’s Transport took time out from hauling potatoes recently to bend Highwayman’s ear about the state of the UK’s road network. He was frustrated about the fact that today’s chronic congestion isn’t reflected in the maximum daily driving hours available to hauliers, who spend an increasing amount of time at a standstill due to heavy traffic.

Quinn’s call for a motorway from Felixstowe to Newcastle, to make more use of the east of England’s capacity, especially given the great expense and effort being put into the HS2 railway line, was persuasive.

However, there appears to be little political will to return to a road-building agenda – at least with any great ambition – given the thorny issue of the UK’s emissions challenge.

Highwayman liked Quinn’s no-nonsense approach to getting the issue back on the political agenda. “Once they’re back from holiday, get every MP to drive home to their constituency after they’re finished at Westminster on Friday for the next three months,” he said.

MotorTransport 13 10/08/2017 09:44:09

Viewpoint

motortransport.co.uk

Too many chiefs, not enough roles S Anne Watson COO In Touch Networks

pecialist expertise has never been more valuable at executive level. The business landscape is becoming increasingly complex and challenging, with the pressure evident in the boardroom. The danger for any management team in this climate is focusing a disproportionate amount of effort on tackling here-and-now challenges and neglecting to future-proof the business. As a result, we are likely to see the introduction of new roles requiring specialist expertise, and also the recruitment of nonexecutive directors based on such skills.

These might include: ■ chief automation officers (CAO): many executives recognise the ability of artificial intelligence (AI) to revolutionise their business, but are wary of its potential to create unforeseen challenges. As the technology continues to develop, driven by the likes of Facebook, Amazon and others, we are likely to see the introduction of specialist AI experts to the board room; ■ chief freelance relationships officer (CFRO): beyond the gig economy and its intricacies, there is an important change taking place with the growth in self-employment. It’s a change that has seen huge benefits to businesses that have

embraced this more flexible way of working.

However, executives are mindful of the fact that much of their talent lies outside the business, and are acutely aware of the importance of keeping contractors happy; ■ chief cyber security officer (CSSO): cyber security is not a new issue, but is certainly a growing one. Yet, despite 75% of UK businesses admitting that cyber security is a priority for their senior management, only 3% employ a specialist cyber security officer. Just less than half of UK businesses identified at least one cyber security breach or attack in the past 12 months, yet only 11% have a cyber security incident management strategy in place; ■ chief futurist officer (CFUO): we have long been in awe of the futurist, their ability to study the future and make predictions based on mathematical analysis and assessment of future trends.

With continuing political and socio-economic developments and the advancement of technology, we will see companies following in the footsteps of Google, Wired and Cisco, appointing dedicated futurists, joining the board to provide powerful advice and counsel to senior management teams.

the NEXT GENERATION SCANIA

PREMIUM REDEFINED

A national plan is needed to improve air quality

W Steve Hobson Editor Motor Transport

hy is the government having such trouble creating a coherent, viable and effective air quality strategy? It has been dragged kicking and screaming through the courts by activist lawyers ClientEarth to force it to publish its plan to bring air quality within EU legal limits – but its latest effort was dismissed as “a shabby rewrite of the previous draft plans” that is “underwhelming and lacking in urgency”.

Poor air quality in our towns and cities has taken over from global warming as the most pressing environmental issue, but the government seems intent on passing the problem to local councils and city mayors. That is fine – local problems require local solutions – but for national HGV operators the nightmare is that each comes up with a different approach. Add in the danger that they will take different views on what modifications are required to safeguard vulnerable road users, and the prospect of speccing very different vehicles to

14 MotorTransport MTR_140817_014.indd 14

enter each of our cities becomes a real possibility.

Clean air zones (CAZs) seem to be straightforward solutions to local air quality issues, but what vehicles are to be excluded at what time of the day? Air quality is a tricky beast to pin down – individual streets can suffer from very different pollutants from different sources at various times.

Even diesel trains can pollute areas around stations at peak periods. And banning polluting vehicles from a small part of a city can simply push the problem into neighbouring areas around the CAZ. So the government must step up and take responsibility for developing a national plan to prevent the UK becoming a patchwork of badly thought-through schemes around which operators must navigate.

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Group managing editor 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 2173 Layout sub-editor Grace Wood 2174 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 Kelly Farley 2135 Head of product Andrew Chilvers 2138 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 £125/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 14.8.17 10/08/2017 09:25:45

100% Extra FREE on all deliveries A recipe for success...

Transdek’s refrigerated double deck Wedge trailers* carry up to an amazing 100% more load compared to single deck and 25% more load compared to other double deck trailers.

Food for thought...

“Just two daily Wedge trailer trunk deliveries save us 157,00 miles and over £200,000 in transport costs a year” Distribution Manager - Thomas Ridley Foodservice

*Patent granted

Call 01302 752 276 or visit www.doubledeck-trailers.com

RoadTransport (TRidleys) 138 x 206.indd 1

06/04/2017 16:54

The one-stop-shop for all your digital and analogue tachograph supplies

Digitall Printer Rolls Digit Product code: DPROLL Price from: £2.95

Operator – Download Starter Pack Product code: DSP1 Price: £293.50

DIGIDOWNPLUS Product code: DIGIDOWNPLUS Price: £189.00

Free delivery on orders over £100

DigiFob Pro Product code: DFPRO2 Price: £295.00

Quote WELCOME2 to receive your FREE Tachodisc welcome pack including:

Tachograph Charts – Numbered Product code: T1/ T2 Price from: £3.98

Driver’s Daily Vehicle hi le Check and Defect Book Product code: T20 Price from: £1.45

Please contact us today for more information Motor Transport - Tachodisc Shop 138x206 0617.indd 1

AD_140817__P15.indd 15

01925 283328

• • • •

vehicle mileage log defect book drivers’ hours law guide Tachodisc memory stick

and much more!

www.tachodisc.co.uk/welcome 22/06/2017 10:15

09/08/2017 11:20:13

Fuel

It’s a gas, man Gasrec has bet a small fortune on the future of natural gas as a road transport fuel.

Chief executive Rob Wood tells Steve Hobson the odds are moving in its favour

F

or those in the road transport industry with long memories, the era of gas-powered vehicles has dawned before – but proved to be false. Will things be different this time, as diesel is not only more expensive but is being demonised for its carbon dioxide, particulate and NOx emissions?

Gasrec is betting the time has come for natural gas – methane – to capture a significant share of the road freight fuels market and, despite the current low volume of sales, continues to invest in its UK gas refuelling network. Without an adequate network of gas stations open to all vehicles, most hauliers will be reluctant to buy gas vehicles, so in the absence of government support beyond a pledge to hold down duty on gas someone has to be brave enough to spend money ahead of the curve.

“We have invested heavily in the UK gas market,” says Gasrec chief executive Rob Wood. “We’re funded by a New York-based family that believes, when you look at the financial and environmental case, that this is something that will happen.”

Our interview takes place at Gasrec’s flagship open-to-all gas station close to the Daventry International Rail Freight Terminal, where many of the UK’s top 3PLs have large sites. The station, which opened in 2013, is currently undergoing a major refur-

16 MotorTransport MTR_140817_016-019.indd 16

bishment, with five new dispensing pumps being installed among other upgrades. The station has refuelled up to 210 vehicles in a day, and vehicles operated by DHL and Brit European fill up during our visit.

Wood has been converted to gas, having started out at BP, well before it began calling itself ‘Beyond Petroleum’. BP eventually began to look at alternatives to oil and that is how Wood got involved in gas as a road fuel.

“I was with BP for 24 years in a variety of roles and got my first job selling diesel to truck drivers,” he says. “Then I got involved in the gas business and moved to Gasrec in 2013.”

Compared with diesel, natural gas vehicles can reduce NOx emissions by around 70%, particulates by 90% and CO2 by up to 90% when using biomethane.

Another lesser known but very harmful emission generated as a by-product of diesel exhaust after-treatment is nitrous oxide (N2O). While N2O is also known as laughing gas, this is no laughing matter – it is an aggressive greenhouse gas that is over 300 times worse than CO2.

“The AdBlue treatment to suppress NOx is producing N2O as a by-product,” says Wood. “This came out of tests done by LowCVP last year at Millbrook. They’ve seen it in buses and 14.8.17 08/08/2017 09:30:05

motortransport.co.uk

now they’re beginning to see evidence of it in trucks. N2O is really bad, and it doesn’t need much for it to have a massive effect on global warming. On Euro-6 diesels, it’s not regulated so it’s not measured.

“But when you look at the chemistry of NOx treatment, you’re going to produce N2O, there’s no question – it’s just how much.”

Because burning gas does not require exhaust after-treatment to meet Euro-6, no N2O is produced. A gas engine just has a simple catalyst to ensure no methane escapes to atmosphere unburnt. Gas engines are also quieter, easily meeting the Dutch Piek low noise standard.

Quite apart from the environmental benefits of switching from diesel to compressed (CNG) or liquefied (LNG) natural gas, at current prices it also makes financial sense. But cynics fear the government will hold down duty on gas until operators have invested in gas trucks, then hike up the duty (see panel page 19).

“The pump price today of gas is around 40% lower than diesel, underpinned to some extent by a government guarantee to maintain a 50% duty discount on diesel,” says Wood. “The government has pledged to keep it the same until 2024. At that point, it will be reviewed. The case we always made to government is that we need a duty differential versus diesel while the industry is starting up.

“In the long run, because gas engines are simpler than diesel engines, there is no reason why you need to have that differential. The duty incentive in my mind is purely temporary in order to get it all moving and get the basic infrastructure in place.

“What the government should do, however, is knock the heads of the top 20 logistics firms together and tell them they must do something to reduce emissions or we will legislate.”

While the initial cost of gas vehicles is considerably higher than their diesel equivalents – mainly because volumes are much smaller – the lower cost of the fuel means the payback period is anywhere between one and five years depending on the type of operation. But Wood argues the current model of three-year first life ownership or contract hire needs to change.

“The OEMs have effectively encouraged operators to change vehicles every three or four years,” he says. “That’s great from a vehicle manufacturer’s perspective, because they sell more vehicles.

“With gas, you have to do something different. Because it’s a high capital cost, operators would benefit by keeping the vehicle for longer. There will be some dilemmas for the industry as it starts to realign around a different business model as the market moves towards gas vehicles.

“The vehicle manufacturers will sell fewer trucks and they won’t have the same secondary markets overseas.”

Gas is also a cleaner fuel for the vehicle, another reason gas trucks should last longer.

“Anecdotal evidence from people who have been running gas buses for some time is that engine wear is imperceptible.

They talk about the engines being absolutely spotless inside,” Wood says. “The only downside is that you have to change the oil more often with gas engines as they run at higher temperature and lubricant technology hasn’t caught up yet.

“But I mentioned that to one of the oil companies and they said ‘we’ve got a gas lubricant that works well at high temperature’. Maybe the industry hasn’t quite woken up to all the opportunities yet.”

Wood believes gas has a place in both urban and long-distance operations. An Iveco gas-powered 4x2 Stralis recently ran 837 miles from John o’Groats to Lands End on a single tank of LNG, while several city bus and refuse collection fleets have switched to gas.

“In town centres, it’s all about air quality,” says Wood. “On trunking operations, it’s all about cost. A lot of our customers are retailers and they are not immune to the air quality argument.”

Hydrogen has also been touted as a zero-emissions alternative to diesel, and in a few places, such as London and Aberdeen, bus operators are being heavily subsidised to trial it, but Wood says that for the foreseeable future gas will be a much cheaper option.

“The problem is that hydrogen is really expensive,” he says.

“The refuelling stations are expensive, and the buses – I ➜ 18 14.8.17 MTR_140817_016-019.indd 17

ARE GAS-POWERED VEHICLES A REALISTIC ALTERNATIVE? That’s the question I have been asking for many years, and now with the extended range available on gas-powered vehicles, is it a realistic alternative to diesel power?

One of my most important roles at Abbey Logistics is to analyse and trial new vehicles and associated technology. Before selecting any vehicles for our fleet, I take a highly detailed approach to understanding the vehicle’s whole-life cost, taking into account everything from mpg performance, maintenance costs, kerb weight, specialist equipment fitting and aerodynamic drag.

Having tested many gas-powered vehicles in the past, including dual fuel, LPG, LNG, CNG and many more, trials have usually shown the same results: promising technology, easy maintenance, lower emissions and reduced fuel costs. However, and crucially for a company such as Abbey Logistics, which counts every penny of its fleet costs, and relies on the flexibility of our network, the vehicles have always been too expensive to buy and their mileage range has always been too low to be a viable alternative to diesel.

That was until now. Innovative new technology from Scania and Iveco means that LNG and CNG can be used in vehicles that can achieve almost the same miles per tank as their diesel equivalents.

Abbey Logistics is working with CNG Fuels, the UK’s leading operator of CNG, to run trials on new CNG vehicles. The trucks from Iveco and Scania will be put through their paces in a two-month trial, operating on the same routes carrying the same loads as their diesel counterparts to give us a clear picture of how they are performing.

One of the key benefits of conducting real-world trials of new vehicles, especially ones that use new technology, is that our drivers have the opportunity to give feedback on how they are performing. Are they comfortable? Is safety and compliance affected in any way? Are there any other concerns that only emerge once the vehicle is out on the road? We conduct in-depth interviews with drivers to get their feedback, which is vital as it is our drivers who will be working with these vehicles every day.

Drivers involved in the trial will be trained to use the new refuelling pumps, which use a traffic light system (pictured) that tells the driver when fuelling is complete, and it takes no longer than filling up a diesel tank. Refuelling is also inherently safe and clean due to zero spillage and the driver doesn’t need to stand next to the vehicle during the process.

Additional benefits are obvious – minimised emissions and reduced fuel costs – and because the engines themselves are much simpler than modern diesel engines, maintenance costs should also be reduced.

While the latest CNG developments are exciting, we are reserving judgement until a full evaluation of the gas-powered vehicles is complete.

While I’ve known about the potential benefits of gas power in HGVs for a long time, it is only now through these new engines that a real alternative to diesel is emerging. I’m excited to understand how these trucks perform in the real world as the potential benefits to the environment and our cost base is significant. We will test them objectively and if we find they perform as well or better than our current fleet, that will be a real game-changing moment for Abbey and the wider industry.

Abbey Logistics Group fleet engineer David Batty

MotorTransport 17 08/08/2017 09:30:12

Fuel don’t know the precise number – but people talk about £1m a bus. The cost of hydrogen is a country mile more expensive than any competing technologies. There’s no question that it will come down in price, but not any time soon.

“Gas is currently the only practical alternative in the heavy transport sector.”

So Gasrec and other gas refuelling networks are playing their part to make natural gas available to more operators. Crucially, truck manufacturers are also doing their bit by introducing factory-built gas vehicles that retain the full OEM warranties with acceptable horsepower and range.

“There are a number of manufacturers making trucks in the 300hp to 340hp power range, often used for refuse trucks,” says Wood. “The Iveco Stralis Natural Power puts out 400hp, while Volvo and others are soon to introduce ratings of 430hp or 450hp in a 6x2 tractor.”

Volvo is working with Westport Technology to develop a more efficient and powerful LNG high-pressure direct injection (HPDI) engine that uses a small amount (around 5%) of diesel to ignite the gas. This avoids the loss of efficiency in sparkignition gas engines, almost halving the CO2 emissions. HPDI should not be confused with the old dual-fuel technology that was effectively killed off by the recently completed Low Carbon Vehicle Trials.

Iveco makes gas versions of the Daily and Eurocargo for urban applications, but the focus so far has been on heavy trucks and buses.

“The conversation three or four years ago was about CO2 reduction,” says Wood. “Nobody bothered about air quality. If you look at CO2 reduction, it pushes you towards bigger vehicles consuming the maximum amount of fuel.

BIO OR NON-BIO? Ordinary methane is readily available from the UK’s gas distribution system – it is after all piped to most UK homes and businesses. While it provides substantially reduced CO2 emissions over diesel, it is still a non-renewable fossil fuel. For a truly sustainable alternative to diesel, some operators, such as Waitrose, are sourcing biomethane, produced from anaerobic digestion (AD) of organic waste, to power their gas trucks.

In theory, biomethane is zero carbon, as the AD process captures methane that would otherwise be released to the atmosphere. In terms of its effect on global warming, methane is 80 times worse than CO2. But demand for biomethane is high, and transport operators are competing with industry and commerce for limited supplies.

The National Grid estimates the UK could boost its current output of biomethane from AD tenfold by 2035, but that will require considerable investment in new plant.

The government currently subsidises the use of biomethane for heating buildings through the renewable heat incentive, making it even harder for transport operators to secure adequate supplies.

“Everybody is keen to see biomethane substitute for fossil methane, and that’s because of the CO2 advantages,” says Wood. “There is quite a lot of biomethane around. The question is how to use it and how to allocate it. We would argue that in transport, you have few alternatives.”

A DfT consultation closed recently on changes to the Renewable Transport Fuels Obligation (RTFO), which requires that 5% of road fuel comes from renewable sources.

“For the relatively recent AD projects, there’s a prospect that all of the gas could go to transport because it will be more attractive,” says Wood. “The RTFO subsidy regime isn’t quite clear. In its last consultation, the DfT was proposing to create an advanced RTFO tier, which is probably going to be for waste-derived fuels, where the subsidy could be set at a high level. But nobody knows what the price is yet. My interpretation is they want it to happen and now they’ve got a mechanism for making it happen.”

18 MotorTransport MTR_140817_016-019.indd 18

14.8.17 08/08/2017 09:32:19

motortransport.co.uk

THE PRICE OF GAS Comparing the cost of gas and diesel is difficult, because gas is priced in kilograms while diesel is bought by the litre.

“A kilogram of gas has more energy in it than a litre of diesel,” says Gasrec chief executive Rob Wood. “If you multiply a kilogram by 0.72, then that’s the equivalent of a litre of diesel. You save tax on gas, which is about 18ppl equivalent, compared to 58ppl on diesel.

“By 2025 or 2030 we will be at a point where you can take away that duty benefit and gas is still viable.”

But what about the cost of the product itself? Unlike diesel, which is a byproduct of oil and so tracks the volatile and highly political oil price, gas is a separate commodity for which the price varies depending on worldwide supply and demand.

Natural gas comes from the North Sea and from other less stable parts of the world such as Russia, Iran and Qatar in the form

of LNG carried by ship to UK terminals in Milford Haven, the Isle of Grain and possibly in future other smaller terminals.

As output from the North Sea declines, the National Grid forecasts that by 2030 more than 60% of our gas will be imported.

Shale gas is another huge potential source that the US is enthusiastically exploiting, but the UK remains ambivalent.

“The price of gas could go up, it could go down, it could stay the same,” says Wood. “If you look at the big picture, there’s an awful lot more methane out there than there is oil.

“For the UK, shale gas could be a very big thing and could substantially change that picture. Gas exports are starting to come from the US, so the prevailing view is that over the next five to 10 years, gas prices will go down. Gas is sourced from different places, so we’re not so exposed to Middle Eastern politics.”

“But what’s emerged recently is perhaps a bigger issue, which is air quality. ” Even with this shift in emphasis from CO2 to local air quality, heavy trucks are likely to remain the focus for legislators.

“According to government figures, 6% of road vehicles – buses and HGVs – account for 47% of NOx emissions,” says Wood.

“If you want to deal with the issue, then deal with the heavy vehicles. They contribute most to the problem.”

Wood is dismissive of the government’s latest air quality strategy, describing it as a “missed opportunity”.

“The air quality plan doesn’t, in any shape or form, target the opportunity of using gas to displace diesel,” he argues.

“Particularly at the heavier end, it pretty much ignores the issue.

It says: ‘Euro-6 diesel is the solution. Let’s look at cars’.”

Nevertheless, Gasrec is confident the tide is at last turning towards gas trucks and the technology is moving into the mainstream. Switching refuse collection vehicles to gas already makes financial and operational sense with fleets of 12 or more, as the vehicles are back at base every night and it is worth installing a dedicated gas refuelling station.

But the open access infrastructure that would enable a haulier to send a gas truck tramping around the UK is not there – yet.

Gasrec currently operates two open access fuelling stations, at 14.8.17 MTR_140817_016-019.indd 19

Daventry and Bridgwater in Somerset. It estimates it has 65% of the gas road fuel market, most of which is supplied through operator-owned dedicated stations.

“In terms of demand, by 2025 the market could be 25,000 gas heavy trucks,” says Wood. “Our aspiration is to be satisfying about 30% of that. That would mean we’re refuelling about 7,500 vehicles with 300,000 tonnes of LNG. So roughly we’re expecting that to be 10 to 20 refuelling stations of this sort of size [Daventry].

“The trampers will be the last people to move to gas. The first to adopt it will be the guys who are going from the depot out and back in the same day. And, of course, there are a lot of those in places like this in the ‘golden triangle’ of big logistics parks.”

When Gasrec opened its Daventry station in 2013 it was refuelling 35 trucks a day. The company’s investors have stuck with the UK gas market partly through faith and partly because they remain confident the technology’s time has come.

“To some extent, they are doing this because they think it’s the right thing,” says Wood. “But clearly they are looking for a return on their investment. They are staying with it and believe in the business case.” ■ MotorTransport 19 08/08/2017 09:32:34

Technology: tachographs

motortransport.co.uk

The

smart set

The latest generation of digital tachographs are set to change the way operators and enforcement agencies monitor vehicles. Ashleigh Wight reports

Images: Shutterstock

T

he next generation of digital tachographs is on its way. From 2 March 2019 all newly-registered trucks across the UK and the EU will be required to have one fitted.

The current generation plays an important role in ensuring compliance with drivers’ hours rules and improving road safety, but its successor is expected to be more sophisticated.

Enforcement agencies, such as the DVSA and its counterparts in other EU member states, will be able to remotely access a vehicle’s tachograph data at the roadside, making it easier for them to pick out those who are offending.

A vehicle’s location at the start and end of a journey will be recorded. This data will be used to determine if the journey was possible within the constraints of the drivers’ hours rules and provide a more accurate picture of a driver’s’ working day.

The latest tachographs are expected to make it more difficult for false records to be created and will remotely inform nearby enforcement staff of any potential fraud.

But will the next generation – or smart tach-

20 MotorTransport MTR_140817_020-022.indd 20

ographs as they are also known – reduce the opportunities for rogue operators to get away with flagrant breaches of the rules?

Or will they simply catch out more largely compliant companies that do their best to act legally?

Tim Ridyard, road transport law specialist at Ashtons Legal, says the most compliant operators, or those who strive to be, will welcome the introduction of the latest digital tachographs.

Location data provided by a GPS system will make it easier for operators to contest suggestions they have been breaking the rules and disprove any allegations of wrongdoing.

He says: “Accessing location data could help when dealing with investigations and prosecutions to establish innocence, or at least provide greater clarity as to the facts.”

Unreliable methods

The lack of location data means enforcement officers have to rely on testimonies from drivers and operators to determine whether drivers’ hours offences have been committed, or use the ANPR network to track whether vehicles

are able to legally get from A to B without inter interfering with tachograph equipment.

These methods can often be unreliable, especially if the investigation occurs months after an alleged offence has taken place and the driver or operator cannot remember where they were or how many hours they worked.

“The new tachograph will make this information available so an examiner or police officer would know if a driver was at the docks, at the operating centre, at a truckstop or overnight at a customer’s depot,” says Ridyard. “Currently, the DVSA or the police will examine digital data but not have this information.”

For operators

Monitoring of compliance levels is likely to be enhanced when smart tachographs go live.

Operators will be able to download data remotely, allowing them to check that drivers are complying with the rules even if they are away from base, or based at a different operating centre.

Colin Ferguson, MD of fleet optimisation at telematics and tachograph data analysis firm 14.8.17 08/08/2017 09:24:41

5574 TM Motor Trans Ad 223x297mm.qxp_Layout 1 02/08/2017 12:43 Page 1

Tachograph analysis software from the undisputed market leaders

8 Free 2ial Day Tr t ntrac No Co Driver £1 Per eek Per W

Tachomaster has analysed over 100 million cards, charts and vehicle downloads since 2006.

Join thousands of other companies and take the stress out of your tachograph analysis and improved your compliance today.

Tachomaster has transformed the industry, helping customers to manage their compliance, reduce infringements and control their drivers more effectively.

Tachomaster gives you instant analysis and unrivalled management reporting with no joining fee or contract to sign.

Try it for FREE. What have you got to lose?

Core Benefits • £1 per driver per week • No contract and no joining fee • View analysis in seconds • Includes WTD analysis • Numerous calendar tools • FREE mobile worker app • Remote vehicle downloading* • CPC/DQC management • Unrivalled management reporting • Manage the drivers disciplinary process automatically with DCRS, the Drivers Compliance Reporting System • Tachomaster LIVE, real-time connection to the tachograph* • Integrates with other Road Tech Systems and excepts some external data feeds

www.tachomaster.co.uk Call 01923 460000 You can download the app from the App Store and Google Play. Please note you will need to sign up to our FREE 28 day trial first. *Compatible hardware required.

AD_140817__P21.indd 21

09/08/2017 11:23:02

Technology: tachographs Trakm8, says: “Having on-demand access to driver card data means drivers are not required to return to base but allows operators to improve planning with real-time information on remaining drivers’ hours – even when they are still out on the road.

“Remote downloads will make life more difficult for operators that disregard the rules but will give generally compliant businesses the confidence they need to ensure they are compliant at all times.”

Smart tachographs will be beneficial to operators looking to take part in the DVSA’s earned recognition scheme, says Jemma James, commercial director at tachograph analysis provider TruTac. They will help the DVSA to achieve its focus of targeting the seriously and serially non-compliant, rather than those who make the odd mistake. Administration is likely to become easier for operators, who will not have to rely on printouts to be made or cards to downloaded manually.

James says the tachographs will provide “360degree live vehicle visibility” and will likely minimise mistakes made by drivers when recording their duties. They will also assist operators in planning drivers’ hours and jour journeys. “Manual entries are a headache for drivers and transport managers, as few do it 100% correctly,” she says. “Drivers won’t be able to specify incorrect locations. It should help combat fraud along with other features.”

An operator’s best friend

The system will also be easier to integrate into operators’ telematics systems, which assist in the management of other areas of compliance, says Ferguson, further saving operators time.

“Our system, for example, retrieves tacho data but also allows transport managers to gain insights into vehicle whereabouts, driver behaviour, and outstanding maintenance reports.”

Ridyard suggests the DVSA could use the data harnessed by the next generation tachographs to look at an operator’s compliance with other areas of legislation, such as operating centre requirements under O-licence law. If the smart tachograph data shows vehicles are

22 MotorTransport MTR_140817_020-022.indd 22

motortransport.co.uk

often parked at a particular site not listed on the firm’s O-licence, this could indicate an unauthorised operating centre is being used.

He says: “One can imagine the DVSA being able to look at location data to establish whether or not locations, other than the authorised operating centre, on the operator’s licence are being used, and whether there is any operator’s licence breach. Currently, it is more difficult to piece together a vehicle’s location away from base, as a driver does not enter this information into the digital tachograph.”

While many would agree the ability to remotely access tachograph data is easier for all involved – saving time for the DVSA and the operator – there are questions around data security and whether the system can be hacked.

James says: “Despite Brexit, the UK has indiindi

cated it will implement the EU’s General Data Protection Regulation from 25 May 2018, and this could have huge implications and fines for operators that fail to manage and store valuable personal data correctly.

“However, remotely accessible data will not contain standard drivers’ hours data and can only be held by enforcement agencies for the duration of the check, and can’t be stored for longer than three hours, unless it shows poten potential misuse or fraud.”

There does not appear to be much resistance from the compliant industry, and it is likely that most operators will welcome the timesaving benefits and extra layer of visibility smart tachographs will provide. Those keen to see rogue operators removed from the industry can be assured that it will be much harder for them to stretch the drivers’ hours rules once the technology is introduced. ■

NEXT GENERATION ■ Under EU regulation 165/2014, smart tachographs must be fitted to all vehicles registered in the EU after 2 March 2019.

■ Brexit is unlikely to prevent them being fitted to vehicles that operate only in the UK – the UK is signatory to the AETR agreement, which adopts all EU transport regulations.

■ They are not required to be retrofitted to domestic HGVs right away.

■ A location stamp will be recorded at the start and end of driving, at three-hour intervals, and when the vehicle crosses a geographical border.

■ Data will not be transmitted to enforcement staff at the roadside unless there is a possibility of data manipulation being committed, such as no driver card inserted in the tachograph unit.

■ As well as drivers’ hours data, the tachograph will send details about the vehicle’s total weight and weight per axle.

14.8.17 08/08/2017 09:24:53

www.vdo-fleet.co.uk

The Changing World of Digital Tachograph VDO Digital Tachograph 3.0 From Autumn 2017 • One minute rule – more time more deliveries • GPS Data built in • Improved download performance from front interface up to 25% • Faster card ejection by up to 50% • Remote access of Tachograph and Driver Card data via smart device

AD_140817__P23.indd 23

• Mapping packages – no additional software required • Enhanced Illumination • Faster system activation due to improved chip card handling For more information contact: uk@vdo.com

09/08/2017 11:42:14

MT Awards 2017 winner profile Partnership Award

Island life

A trio of firms took home trophies in this year’s Motor Transport Partnership Award, and while it might have been for their success transporting goods to and from the Isle of Wight, it wasn’t all sun and sand – there was plenty of hard work too

M

eachers Global Logistics, Red Funnel and Steve Porter Transport Group offer a great solution to a part of the UK that is “bloody difficult,” as one of the judging

panel put it.

Importing and exporting to the Isle of Wight adds the kind of complexity that anyone delivering to an SO or PO postcode will recognise.

Catching the ferry adds time, complexity and cost but the 140,000 people who call the island home (not to mention all the tourists) need food, drink and medical supplies in just the same way as anyone else on the mainland, and its exports – from wind-turbines to agriculture – don’t get to the mainland by themselves.

Therein lies the opportunity, identified by Steve Porter Transport Group, the island’s largest independent transport company, Southampton-based Meachers and Solent ferry operator Red Funnel.

The partnership officially began in 2012, following Steve Porter’s acquisition of Red

Funnel’s distribution arm in 2011. Steve Porter and Meachers knew each other then too, via mutual customer Gurit (a composite materials manufacturer on the island).

Steve Porter Transport MD Malcolm Gibson took up the story: “[Gurit] had various requirements, both national and international. And for a lot of its freight, Meachers was supplying it with a warehousing solution. Its whole warehousing function was exported from the island to Southampton and we were the transport link.

“It’s quite interesting… when you look back this group is almost like the Spice Girls – it was manufactured.”

“And you’re Old Spice!” quipped Meachers commercial director Gary Whittle.

This exchange highlights the depth of the partnership. There is nothing fake, there’s no show just because Motor Transport has turned up. It’s just guys getting down to business and delivering the goods.

“From our perspective we were quite a small

player on the mainland,” said Gibson, “while Meachers was a more dominant supplier on this side and we wanted to tap into that resource for the benefit of our services and our customers. We started with the UK full-load operation and Meachers was happy for us to utilise its trailers – which is unique as you can lose a trailer for a day, or maybe two, delivering to the island. That gave us an advantage because we went from a small fleet to a large fleet.

“That was the catalyst. We moved from the drop-trailer service to developing trunking services. We are a member of Fortec and Meachers provided us with trunking mechanisms to deliver to the Midlands. We were also working together for [packaging firm] Huhtamaki,” he added.

Increasing volumes

That drop-trailer volume has increased by 28% for Steve Porter since the inception of the partnership in 2012, while Meachers is processing some 1,500 trailers a year for Steve Porter at its

Wincanton Industrial and Transport MD Chris Fenton, second from right, presents trophies to Meachers Global Logistics commercial director Gary Whittle, Steve Porter Transport Group chairman Steve Porter, and Red Funnel CEO Kevin George

24 MotorTransport MTR_140817_024-025.indd 24

14.8.17 08/08/2017 10:10:36

Sponsored by RED FUNNEL Unfortunately, getting three busy logistics companies (and Motor Transport) in the same room at the same time proved to be challenging, so we caught up with Lee Hudson, revenue director at Red Funnel, a few days after our visit to Southampton.

“The initial deal [to sell Red Funnel Distribution to Steve Porter Transport] set the tone for this arrangement,” he said, emphasising that the transfer of staff from Red Funnel to Steve Porter enabled the partnership to run smoothly.

“It helped to bed the partnership in. Red Funnel was playing both roles as a haulier and ferry company. The deal, and the partnership, has enabled us to focus on being a ferry service.

“We get all kinds of customers contact us to get cargo moved to the island.

Through the partnership we can work with the customer to get cargo moving to and from the island seamlessly. All the customer has to do is work with one of us to get a door-to-door service.”

One of the main benefits for Red Funnel has been controlling drop trailer volumes to free capacity on ferry crossings, particularly during the peak hours of 6am to 8am, and because it is transporting so many trailers every day it has been able to reintroduce an overnight service to take trailers to the island and free up capacity on its peak boats – ensuring goods reach customers first thing in the morning.

Hudson was also keen to stress the benefits of consolidating deliveries and the number of truck journeys it has taken off the roads. While the environmental benefits are clear, it also has operational benefits, given the shortage of drivers in the industry, as reducing road journeys means using fewer drivers.

“It has definitely unlocked benefits for us that we could not have realised without the partnership,” he added.

facilities outside of Southampton.

“The big feature now is the groupage service.

Mainland-based hauliers don’t want to be sending their goods across to the island. They can drop off their freight here and we can deliver it on to the island. As we speak that is the busiest operation – we’re moving 80 trailers a month through the consolidation centre,” Gibson said.

Whittle took up the story: “The initial set-up was these guys buying the Red Funnel logistics arm, and part of that package was the droptrailer option. We looked at it and said ‘we can’t deliver on the island anywhere near as well as Steve Porter’. It has a significant infrastructure on the island and understands what it takes to deliver on the island.”

Steve Porter Transport has depots in Newport and Cowes and is the sole approved supplier of BOC Gases to the Isle of Wight.

“Red Funnel operates a ferry service, which we don’t, the value that we bring is the scale of running our UK operation. Malcolm can organise to pick up any load in the UK; groupage or full-load,” said Gibson. “We can bring it down here using Meachers’ USP, we can take it to the island using Red Funnel’s USP and we can deliver it on the island using our USP. The 14.8.17 MTR_140817_024-025.indd 25

three of us are so much stronger together, so no-one can compete in terms of efficiency and cost. We are utilising the thing that all three of us are best at.”

A balancing act

The model for the three parties isn’t a revenue share. Whittle said: “Commercially it is difficult to sell a multi-party solution, because the expectation is that one party is always going to do more than the other. What about service levels?

Who owns what contract? It can become quite messy. Certainly when we have spoken to people in the past we have clearly denoted in every tender that Steve Porter is our island solution and Red Funnel is our cross-Solent solution.

But there is one port of call and that’s us.

Similarly we’re comfortable if that one port of call is Steve Porter.”

This is the core of the relationship’s success said Whittle: it’s informal, it’s relaxed and it is clear to customers which firm does what: “We have marketed jointly, but we have stopped short of an economic entity because the relationship is so relaxed that we don’t have an issue. The minute we start waving contracts at each other the basis of this relationship disappears.”

Gibson concurred: “It’s natural. And the strength of it is trust.”

To win the Partnership Award – if you’re interested in entering in 2018 – you have to have one thing in mind: how does the partnership make all parties stronger than they would be without one other? It’s a simple enough question, but one that is often difficult to express. For Meachers, Red Funnel and Steve Porter if they don’t play the rules of their game then no one benefits. It’s a simple as that.

Gibson said those rules apply to customers as well. They need to be aware throughout their entire supply chain of who has ownership of what, that they understand the reasons the trio work as they do, and they understand that moving goods in this way is for their benefit.

On this basis the partnership has gone from strength to strength – innovating along the way. Motor Transport was lucky enough to tour Meachers Sustainable Distribution Centre (SDC) in Southampton, consolidating goods bound for the Isle of Wight.

Ports and pollution

Fortuitously the development of this site has come at the same time as Southampton is set to introduce a Clean Air Zone (alongside Birmingham, Leeds, Nottingham and Derby).

In 2019 the most polluting vehicles – and for HGV operators that is anything below Euro-6 – will be charged to enter the city. In a Southampton City Council report HGVs were identified as being responsible for 34.1% of all air pollution in the city, so it’s safe to say this is a responsibility that all three parties take seriously.

To that end, Whittle explained, Meachers has been working closely with Southampton council – as the main areas of pollution are areas approaching the city and in and out of the port. Meachers itself sits just outside of the Clean Air Zone, but is as close to it as it could possibly be (the next junction down the M271 or a quarter of a mile). If you were to set up a consolidation centre for city and port freight, Meachers is based in precisely the right location.

“Because we’ve established this groupage and consolidation service,” said Whittle, “we have calculated, working with Southampton University, that per annum we have managed to save 22,000 journeys, or 11,000 round trips, to the Red Funnel port in the city centre. And that is just for our Isle of Wight operation.

Across the piece, we have saved just under 80,000 road journeys a year by running this consolidation centre. That is enormous.”

It is just this level of return that saw Steve Porter Transport, Red Funnel and Meachers take home the Partnership award at the Grosvenor House Hotel in July. ■ MotorTransport 25 08/08/2017 10:10:50

MT Awards 2017 winner profile Apprenticeship of the Year

Cemented success Cemex has developed an apprenticeship scheme to attract young people into the business, then trains them to be safe and competent drivers

T

he driver shortage is reaching crisis levels, with the RHA estimating there will be a shortfall of up to 100,000 drivers across the industry by the end of next year.

One company taking a proactive approach to the problem is building materials producer and supplier Cemex UK, which runs a fleet of more than 300 articulated cement tankers and bulk aggregate tippers, employing 350 drivers, up to 80 agency drivers, and logistics support staff. Its approach saw it take the Apprenticeship of the Year award at this year’s MT Awards.

In 2014 Cemex UK created a scheme to provide a long-term solution to the problem of an ageing driver workforce, a lack of new drivers and dwindling agency resources. The scheme involves site-based learning, theory, practical and driving elements.

Business plan

A business case was developed and approved by the board for the pilot scheme, and nine apprentices were taken on. In 2015 the scheme was extended to the cement division and 15 apprentices were taken on.

Carl Milton, regional logistics manager at Cemex UK, said:

“It’s key that any apprenticeship programme has buy-in from the top of the organisation. You cannot just implement a successful apprenticeship scheme without a well thought-out and approved business plan. It has to fit and work for the organisation and bring positive benefits for the company, its employees, the apprentices and the local communities in which we operate.

“We were given the full backing of the Cemex board from the initial pilot, and there is an annual update to the senior team on the progression of the scheme.”

The apprenticeships are advertised on the government Apprenticeship Vacancy Matching Service website, various recruitment sites and internally. After an initial screening of the applicants, there is a phone interview followed by a face to face interview, testing and practical driving assessment.

The 2017 drive attracted 331 applicants for 18 positions across 15 sites. These were filtered down to 87 candidates who were put though a rigorous interview and assessment process. This focused on safety, driving skills and ability – including practical driving assessment and testing – with candidates evaluated and tested for personal maturity, motivation and commitment.

Costs are offset by a combination of Apprenticeship Levy funding and the value the apprentices bring to the business as productive drivers.

“A points-based system ensures the process is rigorous and fair in evaluating who wins the placements,” said Milton.

“This year we have also piloted additional process, via Thomas International, involving a personal profile analysis focusing on emotional intelligence and we hope this will further our ability to select and retain the best candidates.”

Payroll, job, commitment

Apprentices are put on the payroll as full-time employees from day one and given a driving job on full pay when they have successfully completed the one-year programme. There are no retention clauses if they decide to move on from the scheme.

“This is a big draw for candidates, whereby we ensure successful candidates have Cemex’s full commitment and recognition of their hard work in successfully completing the scheme with the reward of a fully paid role at the end,” said Milton. The commitment gives stability to the apprentice in that from day one they are part of a team and on a flight path to a career within the company.”

Cemex selected System Training as its partner to design a bespoke driver apprenticeship programme covering specialist training for tipper work in quarries and construction as well as pressurised tank work for cement tankers.

A joint support team ensures the apprenticeship scheme receives adequate resources with regular reviews and a progress report to prioritise any issues.

26 MotorTransport MTR_140817_026-027.indd 26

14.8.17 10/08/2017 09:48:44

Sponsored by From left: host John Bishop; Carl Milton, northern regional logistics manager Cemex; Tony McHugh sales and marketing director for truck and bus at Giti Tyres; Paula Sedgwick, HR manager, logistics, Cemex; and MT editor Steve Hobson

THE WINNING FORMULA Judges were looking for a well-structured apprenticeship scheme that met the business’s needs, had a good take-up, high retention rates and a good rate of employment at the end of the scheme. Cemex’s winning entry stood out because it focused on recruiting and training HGV drivers rather than vehicle technicians.

One of the judges said: “This is a bespoke programme designed for the company’s needs”, and “there is a good recruitment process which has attracted lots of applicants.”

Another judge said: “The backing of the board is essential, while mentors and coaches are also key to its success.”

Paula Sedgwick, HR manager, logistics, Cemex, said: “It’s recognition of the hard work of the logistics team – everybody’s involved in this from top to bottom.”

There are also regular update conference calls and one-to-one apprentice reviews involving the Cemex manager and the System Training adviser.

“It is key that to run a successful levy approved apprenticeship scheme you have a professional training resource and partner who is accredited and audited by the regulatory bodies,” said Milton.

“This partnership includes the provision of jointly-produced training materials and a year’s training plan that exceeds the basic required framework and mandatory elements, encompassing specific company requirements and with a heavy focus on health and safety and vulnerable road users.

“It includes the training and booking of licensing tests, workbooks, evidence-based learning records, joint individual progress reports and reviews.”

Each apprentice receives a comprehensive course workbook that covers all aspects of the company, course content and key subject areas such as health and safety.

Bridging the gap

Candidates have a training adviser assigned from System Training – and independent of Cemex – for guidance, coaching and assessment through the specific training external modules.

They are also assigned a driver buddy, manager and lead driver mentor. The mentors are volunteers who coach the apprentices on a one-to-one basis and who are given external training and certification for mentoring skills.

Milton said: “The mentors are key to the process in bridging 14.8.17 MTR_140817_026-027.indd 27

the practical knowledge and experience gap, and help to coach and guide young people into a professional driving career.

“This has proved to be very rewarding for the mentors who share experience and develop the apprentices and also accelerates the teamwork element and workforce engagement in the programme. Buddy drivers also have an important role in providing support for the mentor.”

The 12-month programme is flexible and each candidate can complete the various elements to meet individual timing and organisational timescales. There is also a comprehensive induction process, carried out at a local level, which covers site, safety and people inductions.

Once apprentices have gained the category C licence, they can progress to take the C + E, with a programme of on-road training and assessment to ensure they are fully competent before they take to the road themselves.

To assist with driver feedback, each apprentice’s truck is equipped with six cameras that film the driver in the cab, around the vehicle and record GPS location and time.

Site visits

Managers organise visits to other facilities to give apprentices an appreciation of the wider industry, including the Rugby cement works and the Daf assembly line at Leyland and vehicle repair facilities. “Visiting manufacturing sites and customer sites during supervised deliveries is key to opening up the apprentices to what the supply chain is all about,” said Milton.

“We are a major supplier to the construction industry and it is great to understand that your contribution as an HGV driver is key to how a complex supply chain works from digging stone out of the ground to making construction materials that build our roads, houses, schools, offices, factories and infrastructure.

“This helps to create value and pride in a driver’s role in the logistics industry.”

Two apprentices have already progressed from the 2014 scheme, with one moving to a quarry manager development role and the other into a more senior production operator role.

Cemex’s first female former apprentice is based at its Rugby Cement operation, hauling bulk cement in a 44-tonne truck.

She has been recognised with the Talent in Logistics Apprentice of the Year award for advancing the profile of women in logistics.

Milton said: “We developed a scheme that is balanced between our normal staff turnover and a viable company recruitment stream for developing young, skilled workers.

“The age profile of our driver workforce is improving, as is our available talent pool. We believe we have developed a sustainable apprenticeship scheme that should be self-sustaining year on year.” ■

YOUNG TALENT Cemex’s website hosts an “apprentice community” section with a series of blog articles for staff to read.

In 2013 the company had no logistics drivers under the age of 27 but in 2016, it had 18 drivers aged between 19 and 25.

Carl Milton said: “We think it’s important to develop young talent and we are delighted about winning the Apprenticeship of the Year category at the MT Awards.”

MotorTransport 27 10/08/2017 09:19:57

All_Products_Motor_Transport_August_2017.ai

1

11/07/2017

15:32:21

Ταχηοσψσ µανυφαχτυρε τηε ωιδεστ ρανγε οφ Ταχηογραπη σολυτιονσ

Storage Tank Solutions

ΡΕΜΟΤΕ ∆ΟΩΝΛΟΑ∆ 10,σ οφ 1000σ οφ ϖεηιχλεσ αλρεαδψ φιττεδ αχροσσ τηε ΕΥ.

C

∆ΕΠΟΤ ΤΕΡΜΙΝΑΛΣ

M

Y

Οϖερ 10,000 δεποτ ινσταλλατιονσ

CM

MY

CY

•

From 500 to 200,000 litre capacity

•

Single or multi-compartment

•

Diesel, Gas Oil and AdBlue

•

One of the UK’s leading suppliers of above-ground storage tank systems

•

Fully compliant with Environment Agency specifications

•

Fitted with Merridale fuel pumps and management systems

CMY

ΗΑΝ∆ ΗΕΛ∆ ΣΟΛΥΤΙΟΝΣ

K

Φαστ, εφφιχιεντ ανδ ωιδεστ ρανγε οφ οπτιονσ αϖαιλαβλε

FUEL MONITORING SYSTEMS

FUEL PUMPS

FUEL TANKS

TANK GAUGES

Sales

ΥΚ ανδ ΕΥ Ρεσελλερσ − χηεχκ ονλινε

MANAGEMENT SOFTWARE

Service & Support

Sales: 01902 350 700!

Service: 01902 350 701

Email: sales@merridale.co.uk

Email: support@merridale.co.uk

Merridale Works, Lower Walsall Street, Horseley Fields, Wolverhampton, WV1 2EU

www.merridale.co.uk

FT-30M

+

Touch screen operation with high resolution.

On-board Weighing Indicator

+

Din slot or dash mount.

+

Two overload alarm set-points.

+

On-screen customer identification.

+

Print & record weights per customer ID and/or per delivery/ collection.

+

Two channel mV input

+

Weigh in Kg or Lbs.

+

Wide range of load cells and accessories

+

VCA certified

02920 600 394

Motor Transport 1/2 ad.indd 1 AD_140817__P28.indd 28

www.flintec.com/uk/ft30m

16/05/2017 16:13 09/08/2017 12:40:56

Careers

motortransport.co.uk

DSV appoints customer service head DSV is looking to boost its relationships with clients across the UK with the appointment of a new head for its customer service team.

Kelly Dennis, previously a customer service manager at freight forwarder Arcese, will also be involved in DSV’s customer service training academy.

She said: “It is clear operational excellence and delivering great customer service have always been high priorities for DSV and I am delighted to be joining what is already a team of committed professionals. I also fully understand

that our clients are very reliant on us and I am excited to have the opportunity to bring some new initiatives to the role and to streamline processes so we can deliver an even higher level of service.”

She will report to business change manager Michael Heard, who said: “We are focused on providing the best customer experience and I am sure this will only be enhanced by Kelly’s introduction. I am confident her considerable experience and expertise will add value for our customers across the UK and Europe.”

Ex-Ford dealer to lead Daily team Iveco has appointed a new director to head up its Daily range.

Emmet Wrafter, who ran his own dealership until he joined Ford in 2011, is the manufacturer’s new light business line director.

During his time at Ford, Wraft worked in roles including direct fleet sales manager and national accounts manager.

He said: “After roles in retail, fleet and leasing, it’s the perfect chance to bring all of my skills and experience together with a brand and a model range that offers significant growth potential.

“The UK is moving more freight on small to medium sized vans than ever before; the dynamic of the market is changing, and I don’t believe there’s another manufacturer as best placed to respond.”

He added he was enthusiastic about the development of alternatively fuelled vehicles. He said: “Iveco is developing the right products to meet customer needs. When you consider the opportunities for Daily Natural Power and Daily Electric, it’s an exciting time to be joining Iveco.”

Wrafter will be based at Iveco’s Basildon HQ and report to UK and Ireland business director Stuart Webster.

Write to: Motor Transport, Road Transport Media, 6th floor, Chancery House, St Nicholas Way Sutton, Surrey, SM1 1JB. Email: chris.druce@roadtransport.com. Please include your full name, position, address and contact details. Letters published may also appear on our website: www.motortransport.co.uk. Motor Transport reserves the right to edit letters.

Embrace the Apprenticeship Levy Coverage in the national press has undoubtedly highlighted concerns about the Apprenticeship Levy, with many bemoaning its arrival. However, while there will always be those who continue to harbour reservations, the deal’s done and the levy is here to stay. The chance is available for those employers seeking training partners that operate with integrity, transparency and probity, to seize the opportunities and move into a new training and skills landscape, which, in equal measure, offers both challenge and reward.

Surely, it’s not unreasonable to suggest a key issue is our own cultural bias towards traditional routes into professions, together with a view that apprenticeships are for those who are perhaps less scholastically able, while for those who are 14.8.17 MTR_140817_029.indd 29

LETTERS

more academically motivated, the way forward must be university before starting a career. For years, apprenticeships have been stigmatised – the perceived option for those who have limited ambition, or are simply low achievers – but the work of the Trailblazer scheme among other initiatives has done much to raise awareness, changing the way apprenticeships are seen.

The levy is an opportunity for transport and logistics’ employers to invest more ownership than previously held in their own apprenticeship schemes, integrating training with skills development across whole swathes of operations, while embedding new blood deeper than ever before in a business’s culture, ideology and corporate identity.

■ David Cormack Strategic account director, System Group

Staffing Matters

By David Coombes

The Taylor Review: what are our working practices?

The Taylor Review was published in July 2017 (MT 24 July) but I’m assuming it might not have made its way onto your summer reading list!

Much of the press coverage focused on zero hours contracts and the gig economy.

However, as I read the report I was struck by some of the high-quality evidence-based business advice that could have an effect on the functioning of businesses across our sector.

Of course the government is the major player in employment law, but we know the success or failure of our businesses is largely dependent on our actions.

So here are some of the key points I took from the 116 page document.

■ Technology – are firms using it effectively? It can save time and money but many of us are nervous about taking the plunge and put off the investment. Are they open to new and innovative approaches?

■ Good work leads to employee engagement, retention and better corporate performance.

But it comes from strong leadership and effective management. Is there a clear direction and ethos in the organisation? Is it investing enough in its managers and executives?

■ Employees are a major asset to a company.

The better the staff, the better the company and vice versa.

As I read the Taylor Report it spoke to me about the need to develop the right culture in companies and teams.

Choosing a company to work for is not all about salary. Much of the choice is based on other factors such as employee engagement, vision and behaviour.

So are firms doing everything they can to create a desirable company to work for?

That’s my takeaway from Taylor – I will make my company somewhere people want to work, keep my team and attract the best from outside.

Tel: 0117 9859 119 logisticsjobshop.co.uk admin@logistics jobshop.co.uk @LJSJobs MotorTransport 29 10/08/2017 10:49:08

Innovation and Safety in Road Transport Engineering the 2017 irtec Scottish Convention 5

5

HOURS

RS CP D OU H

Wednesday 18 October, Murrayfield, Edinburgh

Join us for the haulage operations and maintenance conference of the year, of benefit to all interested in technology, safety and policy developments. On top of presentations and lively debate, there will be vehicle displays, networking opportunities and a chance to visit the turf.

Highlights include: • Keynote: Humza Yousaf MSP • Mock Public Inquiry hosted

by Joan Aitken • Presentations from BPW, DAF, TEXA and more

Early bird prices available until 31 August!

Find out more and book: w: irtecscottishconvention.eventbrite.co.uk t: 020 7630 2150 e: events@soe.org.uk

The irtec Scottish Convention is an initiative from the Scottish Development Committee of IRTE, a professional sector of the Society of Operations Engineers.

AD_140817__P36.indd 36

09/08/2017 11:35:40