Motor Transport 24th July 2017

Sharp ■ Informed ■ Challenging

24.7.17

the NEXT GENERATION SCANIA

PREMIUM REDEFINED WELL DONE TO OUR 2017 WINNERS DATE FOR THE DI ARY 4 JULY 2018 MTAWARDS.CO.UK #MTAwards2017

NEWS INSIDE Tough times

DX Group financial director and CEO quit p3

Sign here

Eddie Stobart buys 50% stake in Speedy Freight p4

Best gig in town?

Industry responds to Taylor Review on gig economy p10

OPERATORS IN THIS ISSUE AM Widdowson ....................................p8 Argos .................................................p12 Bulk Logistics Group ...........................p14 Ceva Logistics ......................................p8 Co-op Society .......................................p4 DHL Supply Chain .................................p8 DX Group ..............................................p3 Eddie Stobart ........................................p4 Fowler Welch .......................................p4 Gist ......................................................p4 XPO Logistics .......................................p8

Mark Thompson deal expands Kinaxia UK empire Kinaxia Logistics has bought Mark Thompson Transport, its eighth operator acquisition in just over five years. The deal is Kinaxia’s third this year: it bought Panic Transport in February and Maiden’s of Telford in May. Mark Thompson, which runs 153 vehicles with 160 employees, had a turnover of £17.7m for the year ended 31 March 2016, with pre-tax profit of £1.5m.

Kinaxia said that Mark Thompson Transport’s exper-

tise in night-time operations boosts its presence in the sector. It confirmed MD Mark Thompson will remain in the

post and will join the Kinaxia management team to “extend his overnight logistics business model across the group”.

Kinaxia Logistics director Peter Fields said the group anticipated further acquisitions this year. “These will be in line with our aim to build a flexible, efficient, service-focused haulage and warehousing group in the UK,” he said.

Thompson said: “We have seen substantial growth over the past five years and are delighted to be joining Kinaxia.”

All Mark T hompson employees will remain with the Warrington, Cheshirebased company.

Hauliers coming under increasing cashflow pressure as clients stretch credit terms

Get paid not delayed

By Carol Millett

Hauliers are calling for action against a rise in clients demanding extended credit terms, MT has learnt.

Operators report some clients demand credit terms of up to 120 days, while others try to lock prospective suppliers into agreeing 60-day credit terms as a condition of completing electronic tenders.

Bullet Express MD David McCutcheon told MT the problem is on the rise. “We’re having issues with major clients that are extending or requesting credit terms as long as 90 days. They’re using this to increase cashflow in their business. I have two clients demanding credit terms of 60 days-plus; one is using a new trick of locking the credit terms in the online tender process

at 60 days. The tender process will not let you continue unless you agree to 60 days-plus.”

Condemning the practice as bad for the haulage industry and the economy, McCutcheon called on the government to require firms to register their payment terms at Companies House. “This would force majors to be better organised and avoid the last-minute queries that suit them and delay payment. Companies would want to be in the red area or risk suppliers adding to their costs to cover for payment term costs.”

Expect Distribution MD Neil Rushworth said the problem generally lies with larger firms using their clout, which he condemned as an outdated attitude. “We have parted company with Fox’s Biscuits

after trading with it for more than 10 years on agreed payment terms, only for it to tell us that its payment terms are now 120 days.”

Rushworth said Expect Distribution has taken a firm stance on extended credit terms. “We rarely trade on terms in excess of 30 days. We include payment terms in quotations, tender documents and contracts and make it clear that they cannot be exceeded. Over the past three years we have focused on reducing debtor days and we now average 48 days – three years ago we were nearer 60 days.”

He called on hauliers to do more. “We have a choice, we can all put supply on stop if the terms agreed at the outset are exceeded and we can

choose how to manage relationships with clients. If the industry follows this approach, customers looking for terms of 60 days-plus will find there’s no supplier to match their expectation,” he said.

PREMIUM REDEFINED

News Extra p12 Politics Focus p16 Highwayman p18 Succession planning p22 Fuel cards p24 MT Awards Winner Profiles p26-29

MTR_240717_001.indd 1

20/07/2017 15:16:50

Businesses Businesses across across the the country country have have vehicle vehicle runaways runaways every day, costing hundreds of thousands every day, costing hundreds of thousands in in vehicle vehicle and and building building damage, damage, injuring injuring people people or or even even causing causing fatalities. fatalities. However, However, vehicle vehicle rollaways rollaways are are rarely reported in the press. rarely reported in the press.

In In fact fact these these devastating devastating accidents accidents can can be be prevented. prevented.

Any vehicle with pneumatic braking including Any vehicle with pneumatic braking - including articulated articulated and and rigid rigid vehicles vehicles can can install install VT VT BrakeSafe BrakeSafe on on their their vehicle vehicle to to autoautomatically matically prevent prevent vehicle vehicle rollaways rollaways from from ever ever occuring occuring again. again.

BrakeSafe uses multiple sensors including the BrakeSafe uses multiple sensors including the driver driver door door and and seat, seat, which which must must all all be be activated activated before before the the system system takes takes control.If control.If the the signals signals are are all all active active and and the the park park brake brake is is not not on, on, BrakeSafe will instantly apply the handbrake and caution BrakeSafe will instantly apply the handbrake and caution the the driver driver with with an an audible audible warning. warning.

6XLWDEOH IRU QHZ LQVWDOO RU IRU UHWUR¿W DFURVV \RXU ÀHHW 6XLWDEOH IRU QHZ LQVWDOO RU IRU UHWUR¿W DFURVV \RXU ÀHHW BrakeSafe BrakeSafe will will make make vehicle vehicle runaways runaways are are aa thing thing of of the the past, past, saving time, money and most importantly lives. saving time, money and most importantly - lives.

AD_240717__P2.indd 2

BrakeSafe BrakeSafe will will prevent prevent vehicle vehicle runaways, once runaways, once and and for for all. all.

*Int. Patent Pending PCT/GB2016/053385 *Int. Patent Pending PCT/GB2016/053385

20/07/2017 12:27:33

News

motortransport.co.uk

Air quality focus should be UK-wide More attention must be paid to air quality outside of London, according to a report by the Institute for Public Policy Research.

Speaking about the report – Gearing up for the Transition – researcher Darren Baxter said: “Toxic air is killing up to 40,000 children and adults a year. Too little attention is paid to this key issue, especially outside the capital.”

The report highlights congestion as a key issue, holding it accountable for costs of £2bn a year in lost productivity in Manchester and Liverpool.

The report was released in anticipation of the government’s clean air strategy, which it must publish before the end of the month.

RHA director of policy Jack Semple agreed the issue is often London-centric, but for good reason. He said: “The reason London has so much coverage is not just because it is the UK’s biggest city, but because its congestion costs have been rising calamitously.”

There should be “greater recognition that Euro-6 trucks perform to standard and that NOx emissions are plummeting as a result”, he added.

Jonathan Spruce, head of policy and strategy at Transport for the North, said: “We recognise that the position, with all but two of the 11 UK air quality reporting zones in the North exceeding legal limits on NOx, needs addressing.”

Restructuring specialist to transform business into two divisions after difficult year

Top bosses quit DX Group

By Emma Shone

The CEO and financial director of DX Group have resigned with immediate effect after an “exceptionally difficult year”.

Petar Cvetkovic and Daljit Basi have left the board and company, with restructuring specialist James Hayward stepping in as chief financial officer.

While the financial results for the year to 30 June are not expected to be announced until September, the group has predicted turnover of £292m (2016: £288m) and profit before tax to be in line with expectations.

DX announced the departures in a trading update last week, in which it laid out plans to restructure the group into two divisions. DX Express will encompass DX Exchange, DX Secure, courier and mail

activities; DX Freight will comprise Logistics, and one- and two-man freight deliveries.

Chairman Bob Holt said: “The changes we are making to the board of directors and

to group’s operational structure are aimed at supporting business transformation. In a challenging year, we are pleased to have the support of our bank and remain committed to acting in the best inter-

Turbulent times followed by meaningful steps, it’s all go It’s been a troubled few months for DX Group, which has seen a police investigation into its Exchange operation dropped last week, and its largest shareholder, Gatemore Capital Management, calling for the removal of chairman Bob Holt and non-executive director Paul Murray and opposing the proposed merger with John Menzies’ distribution arm.

Gatemore managing partner Liad Meidar welcomed the news that profit was expected to be in line with predictions and said the company’s relationship with the board had improved. “Since February we have been calling for the board to re-focus on the freight business and end the failed OneDX integration programme. This announcement makes clear it is taking meaningful steps in that direction. Our relationship with the board has become more productive and we will continue to be supportive of its efforts to unlock the potential of DX Group’s freight business.”

Responding to the trading update, Menzies said: “John Menzies will continue to work with DX to establish the effect of DX’s announcement on the proposed combination of DX and John Menzies’ Distribution division.”

Port queues likely if there is no Brexit transitional period

Press Association

Brexit could see thousands of trucks queueing at Channel ports unless the UK government negotiates a transitional deal of at least three years, Karen Briggs, KPMG head of Brexit, warned.

As the second round of talks kicked off, Briggs said exiting the EU on 29 March 2019 would deliver a chaotic exit

24.7.17 MTR_240717_003.indd 3

from the EU that could damage the UK economy.

“Industries including aviation, life sciences, automotive, chemicals, and financial services have all invested in pan-European business models,” she said.

“A sudden exit on 29 March 2019 would rip apart the thousands of bonds that bind the

ests of all our shareholders.”

Business transformation advisor Ian Gray, who has been working with DX since January, joined the DX board as a non-executive director on 1 July.

UK and Europe, rather than carefully unstitching them.

You then have the challenge that every big exporter will need an automated system for trading goods with the EU. Resolving this challenge cannot be done overnight.

Without the right infrastructure, we could see thousands of trucks being held up – already a frequent occurrence at the Turkey-Bulgaria border.

KPMG corporate communications senior manager Paul Middleton said: “The government has to agree to a customs union process and then large companies are going to have to automate that. That is a

massive job and they could have fewer than 12 months to do so. That has huge implications for the haulage industry.”

Last week, the FTA called for speedy negotiations, warning industry will face a cliff edge without a rapid settlement on transport issues.

Pauline Bastidon, the FTA’s head of European policy, said: “The clock is ticking and we urgently need agreement on the first phase of negotiations so we can move on to crucial issues such as trade, transport and the establishment of a transition period to allow businesses and authorities to adapt.”

The award goes to...

Video highlights from the Motor Transport Awards, the biggest night in the road transport calendar, are available to watch on YouTube.

Whether you missed the night or want to experience it again, join host Gabby Logan and relive the highs of the event, which took place on 5 July at the Grosvenor House hotel in London. Twenty awards were presented to the cream of the road transport crop, while comedian John Bishop had the audience in stitches, and guests later danced the night away.

■ Watch the broadcast, sponsored by the RHA, at youtube. com/roadtransport.

MotorTransport 3 19/07/2017 16:18:06

News

motortransport.co.uk

50% stake in B2B express freight services company expands Eddie Stobart’s whole supply chain offering

Stobart quick to sign Speedy deal

By Chris Druce

Eddie Stobart has purchased a 50% holding in express delivery company Speedy Freight.

Puro Ventures, trading as Speedy Freight, provides nationwide B2B express freight services.

“This acquisition complements the group’s service offering to business customers in the e-commerce and manufacturing, industrial and bulk sector and broadens its capabilities across the whole supply chain,” Eddie Stobart said in a statement.

Speedy Freight is structured around a regional franchisee model, with independent couriers working under the parent company’s patronage with access to its marketing and technology. It does not hold an O-licence, according to DVSA records.

Parent company Puro Ventures has traditionally

published only abbreviated accounts at Companies House. For a company to do this it must tick the box for at least two of the following: annual turnover of no more than £6.5m; no more than

£3.26m on the balance sheet; and fewer than 51 employees.

Ian Southworth and Michael Le-Gallez were, pre-deal, listed as equal owners of the company. Puro Ventures was incorporated at Companies

House in 2006. Its headquarters are in Knutsford, Cheshire.

In April, at the time of its listing on the Alternative Investment Market, Eddie Stobart revealed plans to buy retail logistics management

group iForce with the promise of a pipeline of further acquisitions, such as the likes of Speedy.

In a pre-close trading statement, the logistics provider added that in the six months to 31 May 2017, sales had increased 13% to £287m yearon-year and Ebit margin also increased year-on-year.

CEO Alex Laffey said: “We are pleased that following our successful IPO in April we have continued to trade well.

Our investment in the business and targeted acquisitions are giving us greater capabilities across our e-commerce and manufacturing, industrial and bulk sectors.

“Our operations continue to trade well as we move into the second half of the financial year, and we look forward to delivering a full year performance in line with market expectations.”

Campaigners delay Stack replacement The construction of a truck park in Kent to replace Operation Stack will not begin until 2018 at the earliest after a judicial review was announced for December.

Former chancellor George Osborne pledged £250m in 2015 to build a holding area at Stanford West, but campaigners opposed the plans and

launched a judicial review. The election stalled progress and court proceedings will not begin until 6 December.

Stanford Parish Council chairman Matthew Webb said momentum to build a park was waning. “The longer it takes, the more chance someone will say ‘why are we going ahead with it?’.”

Union resolves pay dispute at Gist The threat of industrial action at Gist has ended, with Unite stating the argument over pay at a Hemel Hempstead DC run on behalf of Marks & Spencer has been resolved. Last month, the union called off the first of 12 strikes in favour of talks. Unite was pushing for “equal pay for equal work” for employees it claimed were paid less than some colleagues. Unite regional officer Alan Brkljac said: “Members have accepted the deal, giving them pay parity with their fellow workers.”

Co-op DC closures jeopardise 111 jobs The Lincolnshire Co-op Society is to close two DCs, putting 111 jobs at risk. The DCs provide ambient goods to its 83 stores in the area.

4 MotorTransport MTR_240717_004.indd 4

The society said closing the sites would save an estimated £1m a year through increased efficiency, and give customers more product choice.

LOOKING BRIGHT: Fowler Welch has a “bright, interesting and profitable future ahead”, according to its parent company. In its preliminary full-year results to 31 March 2017, Dart Group said turnover at its logistics business rose 14% to £163.5m (2016: £144m). In the past year Fowler Welch started a new operation for Dairy Crest at Nuneaton, and its joint venture Integrated Service Solutions, which ripens, grades and packs fruits, expanded. The operator’s 500,000ft² Heywood hub, a shared user site, reported depressed revenues in the second half of the year (down 4%), which was attributed to competition in the ambient grocery distribution market. Pre-tax profit fell 17% to £4.5m (2016: £5.4m), partly due to lower volumes at Heywood and a £400,000 bad debt following a poultry supplier customer going out of business. The directors said the business had made a satisfactory start to the current year’s trading, and with a number of initiatives put in place by management coming to fruition, the board remained encouraged by the opportunities available to Fowler Welch.

24.7.17 19/07/2017 16:43:42

DELIVERING ENERGY AND PERFORMANCE ACROSS THE UK

WE’RE EXPANDING OUR MOBIL™ OFFER ACROSS THE UK For over 20 years, WP Group have been proud to represent Mobil. Now we’re rolling out our first-class service across the UK, allowing us to offer more customers our unrivalled technical, engineering and commercial vehicle support.

Wherever you are in the UK, find out how Mobil Delvac™ can help you improve efficiency, maintain warranties and extend engine life. Get in touch today.

Call: 0330 333 2399 Visit: www.WP-lubricants.co.uk/commercial

AD_240717__P5.indd 5 3002-05_COM_WP_CVL_GENERIC_MotorTransport_226x300_AW-1.indd 1

19/07/2017 15:25:40 14/07/2017 09:31

News

motortransport.co.uk

First LoCity Roadshow brings together fleets, manufacturers, suppliers and infrastructure providers

Taking the first step towards operating electric vehicles

By Hayley Pink

Operators headed to east London earlier this month to learn about the practical aspects of choosing, running and maintaining electric vans and trucks on their fleet.

They were taking part in the first of four interactive LoCity Roadshows to help the industry understand alternative fuel technology and give them the confidence to make the switch in their own fleets.

LoCity was set up by TfL in January 2016 to help the freight sector prepare for the capital’s Ultra Low Emission Zone in 2020. It aims to provide guidance for operators, ensure sufficient refuelling infrastructure is planned, and encourage manufacturers to commit to ultra-low-emission technologies.

Real-life experience

Delegates heard from Londonbased operators at Hackney Council, Clear Channel and Heathrow Airport about their experiences of running electric vehicles (EVs).

Useful tips shared included: ■ Range – it is essential to

make sure you pick the right routes for the vehicles. Fleet additions need to be relatively predictable, enable low average speed and a return to base at night. Also take into account weather conditions.

■ Maintenance – savvy operators can drive down third-party maintenance costs, because much less routine servicing is needed compared with ICE counterparts.

■ Silent technology – drivers love the quiet running of the vehicles and experience less fatigue. However, it is important to factor in additional safety measures for pedestrians who might not hear them approaching.

Infrastructure

UK Power Networks helped operators understand the steps they might need to take if looking to install recharging points at their sites.

It used the event to launch a guide about the options available when connecting to the electricity network. These vary depending on whether an operator is thinking about charging a single vehicle over-

night, multiple vehicles, or requires rapid charging facilities on site.

TfL principal strategy planner Judith Hayton explained the work taking place in London to significantly increase the capital’s public charging network, with at least 300 rapid charging points in place by 2020.

Fergus Worthy (above), freight and fleet programme project manager at TfL, said: “The first LoCity Roadshow was a great success, bringing together fleets, electric vehicle manufacturers and suppliers, and infrastructure providers.

“The London mayor wants to work towards a zero-carbon city, so transport managers should start thinking about the implications of operating EVs.” He added that through the series of roadshows, as well as training, online tools and case studies, “LoCity is helping fleets make informed decisions about their vehicle choice”.

gates that by 2025 a quarter of all vehicles in the Daimler group would be electric.

Mercedes-Benz Trucks national key account manager Paul Robertson said: “It’s important to reduce emissions and Mercedes-Benz believes electric is the future. But the big news for us is at the end of this year the eCanter, which is the first 7.5-tonne all-electric truck in the market, will be launched by Mercedes-Benz and will be here in London with a number of customers.”

The first one is due to arrive in September, with 10-12 in the capital by the end of the year.

Series production will start in 2019 and “we see this being one of the mainstays of our business going forward”, said Robinson.

Rental firm Fraikin gave delegates a UK premier of its 12-tonne rigid truck (below left) with KERS (kinetic energy recovery system) technology.

It works by harnessing the energy created under-braking and storing it in a set of ultracapacitors. This is then used to provide acceleration assis-

tance via an electric motor fitted to the prop shaft, thus reducing fuel usage, CO2 and NOx emissions.

The system can be fitted to new vehicles or retrofitted to existing fleets.

DELEGATES’ VIEWS “Electrification is very important for our industry. It’s the way forward for us and we need to start looking at these things now. We have learned a lot today.”

“We’re not quite there yet, but we’ll get a trial van next year and then hopefully by 2020 roll out as many as we can across the fleet. A lot of it depends on the distance they can drive. It’s great this event has been put on for us to find out all about the vehicles. “ “We decided to come today to find out more about the infrastructure.”

Vehicles

NEXT STEPS

Operators interested in running electric vehicles on their fleet or taking part in trials, should contact locity.org.uk.

The next LoCity roadshow will focus on gas-powered commercial vehicles. It is being held in London on 21 September at the Twickenham Stoop Stadium. Register your interest to attend at: locityroadshow.co.uk.

■ Keep 7 November free for this year’s Freight in the City Expo, which promises to be bigger and better than last year, with an exciting exhibition of the latest urban-centric trucks and vans on display at London’s Alexandra Palace, a line-up of industry speakers and a dedicated LoCity Zone.

Register now at freightinthecity.com.

6 MotorTransport MTR_240717_006.indd 6

A broad spectrum of 10 electric freight vehicles was available on the day, from small utility units supplied by Bradshaw Electric Vehicles through to a converted tractor unit with an Emoss all-electric driveline and 2.5-litre LPG gas range extender (right).

Headline sponsor MercedesBenz Trucks brought its hybrid eCanter to the event and shared its commitment to electrification across all vehicles ranges.

The manufacturer told dele24.7.17 20/07/2017 14:57:46

FUEL

TOLL

REFUND

VEHICLE SERVICES

ONLINE SERVICES

Great Cards for Great Britain!

Looking for a cash-free solution and competitive prices for diesel in the UK? Do not look any further and contact DKV, free phone from the UK 0800 1973 950 or check our website. dkv-euroservice.com

AD_240717__P7.indd 7 KV_UK_226x300_rz.indd 1

19/07/2017 15:27:52 03.05.17 11:27

News

motortransport.co.uk

New contracts boost UK turnover following Norbert Dentressangle acquisition

XPO wins offset dry bulk volume decline

By Christopher Walton

A significant number of contract wins in XPO Logistics’ Supply Chain and Transport Solutions divisions more than offset a decline in dry bulk volumes during XPO’s first full financial year of trading since acquiring Norbert Dentressangle in 2015.

In 2016 XPO won contracts with Performance Doorset Solutions and toy manufacturer VTech, as well as to manage a pan-European DC for Ted Baker, but its major win was the transition of the management of Iceland’s warehousing and distribution operation from DHL Supply Chain in a £500m, five-year deal in March that year.

It also extended its contracts to: deliver to Co-op stores across the south of England and Wales; provide reverse logistics to Asda Walmart; provide warehousing to Sealed Air Corporation and provide next-day deliveries for Moores Furniture Group.

Combining the interests of its three major businesses in the UK – XPO Supply Chain UK, XPO Transport Solutions and XPO Bulk UK – XPO ranks third in the Motor Transport Top 100 2016.

XPO’s Supply Chain UK division saw

UK DIVISIONS YEAR-ON-YEAR PERFORMANCE COMPARISON 2016 XPO Supply Chain UK XPO Transport Solutions UK XPO Bulk UK Total

Turnover (£m) 872 304 81 1,257

Pre-tax profit (£m) 28 2.7 4.6 35

Employees 13,752 2,222 793 16,767

2015 XPO Supply Chain UK XPO Transport Solutions UK XPO Bulk UK Total

Turnover (£m) 760 289 84 1,133

Pre-tax profit (£m) 24 -8.9 1.7 17

Employees 12,237 2,074 811 15,122

NB: excludes XPO Maintenance UK

turnover rise 14.8% to £872.6m (see table) for the year-ending 31 December 2016, while pre-tax profit increased 16% to £27.5m, according to its most recent filings at Companies House.

It said average employee numbers increased because of “higher than forecast new business wins”.

XPO Transport Solutions UK turned an £8.9m pre-tax loss into a £2.7m profit as turnover rose 4.8% to £303.7m.

XPO Bulk UK, however, saw turnover dip 3.6% to £80.9m, which the company

ascribed to “reduced volumes with existing customers, particularly in the dry bulk road sector, of £4.6m”.

Pre-tax profit, however, rose 169.5% to £4.6m. This was aided by the sale of its share in industrial packaging firm NCG UK to joint venture partner Mauser, which realised a profit of £518,000.

In June 2016 Eddie Stobart Logistics replaced XPO Logistics as the logistics partner for Aggregate Industries’ Concrete Products division. The five-year contract began in October 2016.

New Scotland facility for DHL Supply Chain DHL Supply Chain has begun operations at a new cross-dock facility in Scotland.

The site in Dyce, north-east Scotland, offers 20,000ft² of warehousing space and is suitable for multi-temperature customers. It is operating at 50% capacity, and DHL said it will create 45 jobs when it reaches 100%. However, the operator could not confirm when this would be.

It said the site was servicing specific dedicated customers and has aviation security clearance to support its work with DHL Global Forwarding.

The site has been leased on a five year contract.

Ceva renews UKPN Ceva Logistics has renewed its contract with UK Power Networks for five years. The operator has held the deal with UKPN since 2009, which gives Ceva responsibility for the storage and distribution of its cable, plant and other materials.

Dissolution ends long-running AM Widdowson & Son saga The Widdowson Corporation has been officially dissolved, closing a tumultuous chapter in the long-running saga that saw haulier AM Widdowson & Son hit a wall and cease trading.

Widdowson Corporation was set up

by HLD Group in 2015 to enable its purchase of AM Widdowson & Son in June that year.

Despite efforts to turn around the haulier, which once counted the likes of Waitrose as a major customer, via a company voluntary arrangement, it collapsed into administration in July 2016, owing creditors £13m.

Demis Armen Ohandjanian is listed as the sole director of the Widdowson Corporation, with HLD Group the ultimate owner. It was officially dissolved on 6 July.

AM Widdowson & Son lived on past its July 2016 collapse when it was sold for £2.5m in a pre-pack deal to Davis Haulage Group, a business associated 8 MotorTransport MTR_240717_008.indd 8

to it by common ownership. It then became Widdowson Logistics.

A recent update from the administrator handling the insolvency process, Leonard Curtis, noted £108,000 of the £2.5m sale price paid by Davis Haulage Group remains outstanding.

Widdowson Logistics stumbled on until being placed into administration in January this year following an aborted attempt to merge with Birds Transport and Logistics, seemingly killing off the famous name for the last time.

However, HLD Group has maintained a connection throughout, and in March MT revealed that Ohandjanian had struck a service agreement with the administrator of Widdowson Logistics and has been running transport and warehousing activities from its Mill Lane Industrial Site base near Leicester using some former staff and assets.

24.7.17 19/07/2017 15:51:26

AD_240717__P9.indd 9

19/07/2017 15:29:49

News extra The Taylor review’s call to shake up the way agency staff are used by businesses has had a mixed reception

Time to find a better gig?

By Grace Wood

The Taylor review, released earlier this month, has called for changes to legislation and taxation for workers in the gig economy. It calls for a shakeup of the perceived inequality between employed and self-employed workers and suggests a new category of dependent contractors – for those who rely long-term on zero-hours contracts or agency work – to replace that of a worker.

The report argues that while flexibility is good for the economy and the workforce, it is being abused. “The review does not want to stop companies using agency staff, but we propose to address situations in which companies use agency workers over a longer period,” it said, adding that those who work the same job for more than 12 months should be given the same rights as employees or offered same contracts.

Taylor argued that a higher minimum wage, for variable hours, would encourage employers to think harder about guaranteeing more fixed hours. The report also called for more opportunities for growth and development for ‘independent contractors’.

The review has been met with mixed reactions. Ashtons Legal associate solicitor Colin Makin does not think we are any more enlightened. “The issue of the employment status of drivers is not made much clearer by the Taylor review. The effect of the review will not be known until

it becomes clear whether the government has the appetite to implement the required changes,” he said.

More rights

However, FTA head of skills campaigning Sally Gilson praised the review. “The proposed dependent contractor status would give those working in the gig economy greater rights, without taking away the flexibility that is so important for businesses,” she said.

Perhaps unsurprisingly, the GMB has criticised the review for not going far enough. It has recently launched legal cases against UK Express Delivery, Amazon, DX Group and Hermes in a bid to win

more rights for self-employed staff at those firms.

“Given the epidemic of precarious work in the UK, this report does not go far enough in fixing a broken system that gives employers the choice of whether to treat their workers fairly or not,” the union said in a statement.

Frank Proud, market analyst at Apex Insight, agreed. He said businesses in UK transport could pay staff more and still succeed. “The obvious benefit of paying workers more is that there would be several thousand people with a bit more money in their pocket. Some of that would inevitably end up being spent on buying things on the internet, meaning there would be more parcels to deliver, which would be good news all round.”

Taxation

UNDER FIRE: Hermes has been criticised for relying on the self-employed model

10 MotorTransport MTR_240717_010-011.indd 10

A self-employed worker, doing the same work as an employed worker, can pay a different amount of tax or NI despite being paid equally, the report said.

This affects businesses, which also pay NI contributions, as well as HMRC, which loses potential revenue.

HMRC estimates it loses out

on £5.1bn a year from the lower rates of NI contributions paid by self-employed workers. “For businesses engaging labour, the cost of labour (whether employed or self-employed) should be neutral,” said the report.

Hermes came under fire from the Guardian newspaper and GMB last year with The Work and Pensions Committee criticising businesses reliant on the selfemployed model ahead of the end of parliament for the recent general election.

However, Proud doubts that a change in legislation – if the government decides to act on the Taylor report findings – would be ruinous for it or others. “I expect Hermes would still be extremely competitive if it did everything that Taylor recommended. Hermes makes good margins and could pay its delivery workers more and still make money.”

Legislation

The confusion continues into the legal definition of those who are self-employed as opposed to employed. Taylor said: “The number of cases in the Employment Tribunal and higher courts evidences that

the lack of clarity in relation to definitions in the law is central to an increasing problem.”

The report goes on to call for a “new legislative framework” and clearer legislation. It said workers and businesses are not always clear where they stand under employment law and “legislation that reflects the reality of the modern workplace” is needed.

Complicated

Backhouse Jones lawyer Jonathon Backhouse said the system was unnecessarily complicated. “Recent changes in the workplace and developments in ways of working, most notably in the emerging gig economy, have complicated the complex issue of employee status, both for employment and tax.

“This leaves employers struggling to understand the distinction or the importance of it. A new legislative framework could attempt to codify the position that is set out in statute, developed by case law and emerging in practice.”

This is not just a problem for employees, businesses can also get caught in the legislative trap. Proud said: “Businesses generally want clear regulations and guidance so they 24.7.17 19/07/2017 16:21:48

motortransport.co.uk

know what they have to do and have a level playing field.”

The report suggests government produces an online tool to determine the status of a worker in the majority of cases.

“Government should build on legislative changes to improve clarity and understanding by providing individuals and employers with access to an online tool that determines employment status in the majority of cases,” it said.

Flexibility

While many have demonised zero-hours contracts and firms that rely on agency workers, the work can offer much needed flexibility to some. The report said: “One in four people aged 16 to 30 say they would consider some form of gig working in the future.”

With an ageing workforce and a growing driver shortage, the gig economy could be the young labour boost the road transport industry needs.

Logistics Job Shop MD David Coombes said a shakeup was needed. “With our increasing skills challenges it would be wrong to think

24.7.17 MTR_240717_010-011.indd 11

FULL OF PRAISE: FTA head of skills Sally Gilson welcomed the review

that moving to shifts that attract gig workers is going to solve this. However, if the industry can adjust its rigid work patterns to attract some of these young workers then that has to be an opportunity we should harness,” he said.

While flexibility is often valued in the industry, 14% of gig economy workers agree the reason they work in it is because they cannot find a traditional job. Coombes agreed the industry needed to do more to offer flexible

working. “We need to offer much more flexibility around part-time and shift starts for employed staff,” he said, adding that an adjustment to the system and the introduction of the dependent contractor could benefit workers in the logistics industry.

However, the FTA said it was concerned that the report’s failure to define working conditions could jeopardise the need to provide flexibility in the logistics sector. Gilson said: “It’s important this doesn’t confuse an already complicated job market further, and it is certain that clear guidance on any new worker status will be required.”

Productivity

“The UK has suffered from very weak productivity growth since the financial crisis,” said the report, and Proud agreed.

“Low productivity has been a problem for the UK economy for a very long time,” he said.

“Growth in productivity needs investment in education and technology, not cheap labour.”

He wants workers to be paid more. “Companies will have more incentive to invest

to improve the productivity of their workers when they cost more.”

Wages

The report raised the importance of the National Living Wage. Backhouse said: “There are five rates of National Minimum Wage depending on the age and status of the worker; the National Living Wage is the fifth and most recent rate, added in April 2016.

“Workers aged 25 or over are entitled to be paid the

National Living Wage of £7.50 an hour.”

Though some argue that businesses struggle to pay the minimum wage, Proud agreed workers should be paid more.

“Internet retail would still be viable if drivers’ wages rose.

Let’s say a driver is delivering 100 parcels a day. If he is earning £7.50 an hour, that would be £60 for 8 hours after van costs. If that went up to £10, it would be £80, or an extra 20p per parcel delivered. People are not going to stop shopping online for the sake of 20p.”

SELF-EMPLOYMENT IN THE INDUSTRY The Chartered Institute of Personnel and Development estimates there are 1.3 million people in the UK working in the gig economy. The Office for National Statistics said in 2017, 52,000 people were self-employed in the mail and courier industries and a further 9,000 in the warehousing sector.

MotorTransport 11 20/07/2017 11:42:39

News extra High street retailer Argos has reinvented itself for the digital age by putting transport at the heart of its offer

The fast and the furious

By Chris Druce

Two years ago Argos signalled its ambition to take the fight to e-retailers and their increasingly sophisticated express delivery services.

Argos Fast Track, which was trialled in 2014 and rolled out in March 2015, meant the advent of same-day delivery for 20,000 of its products, with customers in-store or online able to choose from four delivery slots.

How does it work?

Once a customer’s delivery is despatched that becomes a condensed two-hour time slot, and a 30 minute advance warning is issued to them.

Argos had, in its own words, brought “shopping into the digital age for customers”.

With the second, bigger than ever, Christmas period now safely behind Fast Track and planning for the next one under way, the retailer hasn’t looked back. But Andy Brown, central operations director at Argos, paused long enough to tell MT about Fast Track at a meeting at the retailer’s headquarters in Milton Keynes.

Brown came from Tesco, where he was general merchandise development director in 2013, as Argos began a five-year digital transformation strategy across its business. “I was one of a number of people brought into the business to realise the strategy. The strategy included home delivery from store. It included the concept of hub and spoke, but it’s one thing having an idea. It’s quite a different skill to realise that,” Brown said.

The move was in recognition of how we, the increasingly spoilt consumer, and our expectations when shopping had changed irrevocably.

“I want to know it [my order] is coming,” said Brown. “I want it quickly most of the time, but I want the certainty that it’s going to come when you say it’s going to come.” He adds that there can’t be many people waiting in for products these days.

“If I’m having a product 12 MotorTransport MTR_240717_012-013.indd 12

delivered to home I want to know when it’s going to come so I can plan my life around when it’s coming. From an Argos point of view it’s the market dynamic of customer expectation and desire with a competitive landscape that’s been changing.”

Part of the change to the Argos business was working to get products to customers as conveniently as possible.

Another was stocking more high-end brands such as Bose.

The other was evolving sales channels to be truly digital.

“More than 50% of our sales originate online and half of those are mobile,” said Brown.

The hub and spoke of it

Fast Track is built on top of the hub-and-spoke concept popularised by the pallet networks.

Hub stores – around 160 of them, typically with the capacity to run a fleet out of the back – ship to spoke stores, which are sometimes housed in larger stores such as Sainsbury’s, twice a day.

“Home deliveries will come from the hub store. We use the same vehicles to deliver to spokes as we use to deliver to customers. So the same funda-

mental 20,000 products that sit in our hub stores, are available same day, next day, for collection in the spokes, or to deliver to your home,” said Brown.

While Argos has a two-man delivery service that runs in tandem with Fast Track, the new service was the first time it had delivered from store having relied on third-party couriers before. One of the key concepts was to achieve great service levels and it hit on the idea of using staff in store to also deliver the products. It took the unusual step of building a 500-strong van fleet – in the main 3.5-tonne long wheelbase Mercedes-Benz Sprinters – from scratch and in-house (leased but in Argos livery).

“It’s all sitting as a single stock pool. The customer then has the choice of how they want that product fulfilled. Do they want to collect it in that store? Do they want to collect it in another store, or do they want it delivered to their home? We’ll pick it in identical fashion for all three of those customer journeys. If it’s going to a spoke then we will obviously put it with the other items going to that spoke, and store it until we get ready to

deliver, and if it’s going by home delivery we’ll pick it, pack it and label it in that store,” said Brown.

Starting with a core of drivers, Argos has 3,000 contracted drivers for Fast Track. Many were in store and have taken the opportunity of “some extra hours driving on top of their store hours” and as a retailer used to recruiting 10,000 or so temps for the Christmas period, recruitment was already a big part of the Argos job description.

Beyond expectations

Working initially with a fleet partner, although now armed with its own group of driver assessors, all would-be pilots are assessed and trained in both the process and the doorstep experience the retailer is trying to achieve.

“The level of demand when we launched Fast Track delivery nationally was beyond our expectations,” said Brown.

“That first six months we saw 80% year-on-year growth of home delivery. Total Argos sales had low single-digit growth, so to have one channel growing at 80% – it was more than we expected.

“Again, it was a significant

MAKING IT PAY

Argos charges Fast Track customers a flat fee of £3.95 for delivery. But it’s not a loss leader. Andy Brown (below) said: “If you buy a product from an Argos store we move that product to the store for you, effectively put it away on the shelf, and then when you buy it we’ll pick it for you and give it to you.

When you order online we do the same things (and even if you order in store, an Argos employer still picks the item for you).

Therefore, at the point the product leaves the back door, it’s exactly the same model as if it was going out the front door in your hand. The delivery charge is covering the last-mile cost.”

24.7.17 20/07/2017 15:36:20

motortransport.co.uk

PARAGON The two technical partners behind Fast Track are Accentia Technologies, described as the retailer’s strategic IT partner, and Paragon Software Systems.

Traditionally known for its routeing product, Paragon HDX facilitates the dynamic planning of delivery slots for Argos, with the software continually re-optimising the routes and schedules as every order comes in.

Paragon Software Systems MD William Salter described it as software that never sleeps, never reaches a stage where it’s done. It has worked with Argos for decades, initially making use of its routeing software. “There’s no downtime with this system,” he said, adding that in terms of system updates or upgrades judicious planning is required as a consequence. “If you go onto the Argos website and place an order, HDX routes in realtime,” he said. “We shouldn’t underestimate how forward-looking this project was and it was well supported from the top of the company and that’s what has pushed it through.”

challenge through peak 2015 to maintain the service, and we had some challenges. We had to quickly get more drivers and more vans onto the road.

We worked with a courier partner who supported us by giving us effective additional drivers and vans to support that volume.

“Coming in to peak 2016 we saw very strong growth, but

obviously a second year, and an extra year of maturity, meant we could handle those volumes. We actually had fewer vans on the road yearon-year,” Brown said.

Convenient stores

“We want our customers to have whatever whenever they want. That means having a combination of convenient

stores that you can get products from, or collection points in Sainsbury’s where you can collect your product from, or we’ll deliver it to your home.

We want to make sure the experience you get is a consistent Argos experience.

“What makes us different from a pure online retailer is our people and our stores. Fast Track delivery has enabled us

to use those two things and to create something special, and importantly, everywhere. We have hubs in Aberdeen, on the Isle of Wight, in Cornwall where other fulfilment offers aren’t there.”

It’s the Isle of Wight that is the final challenge, with Brown recounting that when introducing the service there – which due to its reliance on

ferries “no one delivers same day” – a customer contacted Argos.

“Your website has just told me my delivery is coming this evening,” they said. “There must be a mistake.”

“No, it’s coming this evening,” replied the Argos employee. As of 2017 there’s little doubt that Fast Track has arrived.

23% Extra FREE on all deliveries Revitalise your supply chain Offering up to 23% extra load and 7 tonnes more payload compared to other double deck trailers, it’s easy to see why so many high street names are switching to Transdek’s innovative fixed deck Wedge trailers*.

“We are aiming to save over 1,000 trunks and 216,000 miles a year with our Wedge double deck trailers” Primary Transport Assistant Contract Manager, Boots UK

*Patent granted

Call 01302 752 276 or visit www.doubledeck-trailers.com RoadTransport (Boots) 138 x 206.indd 1

24.7.17

MTR_240717_012-013.indd 13

MotorTransport 13 06/04/2017 16:55

20/07/2017 15:37:04

News

motortransport.co.uk

FTA deputy chief executive James Hookham says it’s time for the debating to end

Time to start planning

So, that went well!

Last month’s column mentioned that the FTA, together with several leading business groups, asked the government to think through its decision to leave the EU Customs Union when it exits the EU in 2019.

After a lot of supportive noises from some cabinet ministers and a highlevel summit chaired by Brexit minister David Davies, the answer was a resounding no. There will be no change in the stated policy and the UK will step out of the frictionless trade arrangements for UK-EU trade provided by the Customs Union in March 2019. Unless and until new equally seamless procedures can be negotiated, the industry needs to confront the reality that customs and other border checks will become part of the way of life for international haulage in less than two years’ time.

But at least we asked the question!

The task now is to ensure that whatever

arrangements are put in place, they don’t disrupt the flow of traffic into and out of the country on the ro-ro services across the Dover Straits and the Irish Sea. It’s time for the policy debate to end and the practical planning to start. At its national council meeting on 6 July, FTA members adopted a series of principles that will guide our development of these systems and procedures with HMRC and other agencies as we strive to keep the UK trading post-Brexit.

This was in the same week that the prospect of a fast-track trade deal with the US was promised by president Donald Trump in discussions with prime minister Theresa May at the G20 summit. This is the upside of leaving the Customs Union because it means the UK can pursue its own deals with other countries without having to wait for 27 EU member states to agree the terms. Remember how the parliament of Wallonia in Belgium

nearly scuppered the EU-Canada trade deal last year?

The FTA’s role is to make sure that, despite the haste, the trade procedures are thought through and can work in practice – not always a priority for politicians in a hurry to shake hands for the cameras.

Meanwhile, back in London, the government has issued its Repeal Bill to rebase the legal authority for EU legislation in the UK parliament – a

big step towards regaining sovereignty over the laws that apply to us all. This will be debated in the autumn and is set to become a political bun fight as MPs table amendments to repeal or augment the requirements of selected directives, regulations and rulings that have been adopted over the 45 years that Britain has been a member of the EU. And, of course, there is more where that came from. In June the European Commission published its Mobility Package that revises and uprates several directives and regulations, most significantly on cabotage and operating conditions for van fleets.

These, together with separate proposals revising the Driver CPC directive, fall into the shadow world of legislation – will we leave before they are adopted or are they also part of the Brussels legacy that will need to be picked through over the next few years as the UK decides which EU laws it wants to scrap, change or keep?

Bulk Logistics Group on the hunt for acquisitions

By Carol Millett

A new consolidator plans to tip the bulk transport sector on its head, powered by a £9.4m fund for acquisitions.

Bulk Logistics Group is looking for further purchases after buying North Yorkshirebased bulk carrier firms WG&H Horsley and Hare Bulk Haulage last month.

The two other parts of the group are J&J Ward and its subsidiary DH Pearson.

The group was formed last year by J&J Ward owner Michael Ward and former corporate financier Andy Castle. Castle’s son-in-law David Edghill, a former senior manager at Ernst & Young, has also joined the group as finance director, and Paul Tolmie has joined as general manager.

Castle told MT he joined forces with Ward after being impressed with the high levels of customer service offered by J&J Ward and DH Pearson.

“I saw an absolute gem of a business – all we have to do is polish that gem and use all the 14 MotorTransport MTR_240717_014.indd 14

business already achieved to expand it both organically and through a buy-and-build strategy,” he said.

The Bedale, Yorkshirebased group runs a fleet of 100 vehicles and specialises in hauling agricultural products, salt, coal, aggregate and waste across the UK. It achieved a claimed £30m turnover last year and employs 150 staff across its sites in Middlesbrough, Leeds, Carlisle and Newcastle. Its client base includes Cleveland Potash and Sita, and it has recently won major new contracts.

Castle said the bulk transport sector “is ripe for consolidation”, adding: “As tenders get ever more complicated, the smaller firms can’t compete.

We are an organisation that can meet the criteria of the large blue chip tenders – so we are an attractive prospect for firms in the sector. We have a collegiate approach and we are looking for firms with the same high standards to join us.”

Castle said part of the £9.4m funding with Secure Trust Bank Commercial Finance (STBCF) will be used to

complete a management buy-in that will see the Ward family sell shares to Andy Castle, David Edghill, and Castle’s daughter Gemma Edghill, an accountant who has joined the team.

STBCF sales director Sean Powell said: “Bulk Logistics has a clear strategy in place, with acquisitions supplementing the already impressive levels of organic growth being generated.

“We are looking forward to supporting the business as it rolls out its plans in other areas.”

RT Keedwell founder dies Ray Keedwell, founder of what is now the RT Keedwell Group, has died, aged 75.

In a statement, his son Stuart Keedwell, the current MD of the Highbridge, Somerset-based company, said: “It is with great sadness we announce the death of our founder and chairman, Ray, who passed away after a short illness.

“Ray founded the business in 1969, running two trucks from his home, and built today’s UK-wide operation, which employs 610 people, running 460 trucks from 10 locations.”

A funeral service took place at Sedgemoor Crematorium, Bridgwater, on Friday 14 July.

RT Keedwell Group has been working on expansion in the South East.

The firm that Ray built now includes Ken Jones Transport (Goldcliff ), K&J Logistics and RJ Jones (purchased in 2013). Pre-tax profit rose 27% to £1.9m in 2015.

24.7.17 19/07/2017 16:09:06

RHA Fuel Card - New and Improved Fuel is a key component and large expense of operating HGVs, so no transport company can afford not to regularly review their fuel strategy.

Scrutinising all aspects of fuel buying and usage will pay dividends. This brief article concentrates on the buying aspect – consider this: every penny on the price of a litre equates to approximately £450 per year for a typical 44-tonne artic.

For decades, the Road Haulage Association has provided members with the results of a weekly bulk fuel survey to monitor the immediate trend in prices for oil and diesel costs.

This subscription service (free to RHA members) is used by hundreds of members eager to monitor the market. Pricing information is gathered from members, who tell us on a regular basis what they are paying for fuel, and is also used to assist with planning in monthly and quarterly cycles. The results of the weekly survey, monitoring the cost of fuel in average terms for an HGV, feed into our essential annual Haulage Cost Movement Report. All of which is readily available to RHA members, including historic pricing data, in case members require it for cost analysis or contract reviews.

To ensure we are fully supporting our members, the RHA Fuel Card, in partnership with The Fuel

Card Company, has undergone a stringent review. As it always has been, the RHA Fuel Card is based on fixed weekly prices tracking the wholesale base rate where diesel is concerned and, because this has been negotiated on behalf of RHA members, SULFHV ZLOO QHYHU EH FKDQJHG WR mJDLQ PDUJLQn 3OXV LW LV QR longer a one size fits all offer but is now a flexible product that FDQ EH WDLORUHG WR D PHPEHUnV LQGLYLGXDO RSHUDWLRQDO IXHO QHHGV Several board and regional council members have advised how WKH\ DUH YHU\ SOHDVHG ZLWK WKH UHFHQW UHVXOWV o7KH ZHHNO\ SULFH is becoming more and more competitive, which means we are saving money thanks to the RHA Fuel Card! It really is a great solution giving us flexibility, card security and control on our IXHO VSHQG p 6WHYHQ =ZLQNHOV 1 9 7UDQVSRUW Prices offered will depend on volume and the number of local or nationwide locations where fuel is required. Larger users can request a complete review of their fuel requirements to create a bespoke solution; however, a similar fuel review can be conducted for all businesses.

Along with crucially important consistent pricing, there are no set up fees or contracts, and invoices are HMRC approved. Companies will have greater control over purchases plus access to intelligent reports monitoring fuel, WUDQVDFWLRQV SHUIRUPDQFH DQG IUDXG r PDNLQJ the RHA Fuel Card a vital tool for any business looking to drive down their fuel costs.

“The weekly price is becoming more and more competitive, which means we are saving money thanks to the RHA Fuel Card! It really is a great solution giving us flexibility, card security and control on our fuel spend.� - Steven Zwinkels, N V Transport

RHA Fuel Card – NEW AND IMPROVED. You spoke, we listened and it’s changed.

No matter the size of your business, with the new and improved RHA Fuel Card we have the right solution for you.

Reduce your fuel spend Lighten your administrative workload Free up time to concentrate on what’s really important, your staff and your customers

Speak to us now to learn just how competitive the new RHA Fuel Card is: 0845 270 1612 | info@rhafuel.co.uk AD_240717__P15.indd 15 commercial-motor_jul17.indd 4

19/07/2017 14:41:47 15:32:11 12/07/2017

Focus: Politics

motortransport.co.uk

Greenwood to chair transport committee Lillian Greenwood (Labour MP for Nottingham South) is the new chair of the transport committee having come top in a secret ballot of MPs under the Alternative Vote system on 12 July.

Greenwood, nominated by former chair Louise Ellman, will formally take up the position when the remaining members of the committee have been named by the House.

In her statement to members ahead of the ballot Greenwood said: “I have been heavily involved in transport policy for the last seven years. I know how to get answers out of ministers, operators and nationalised delivery bodies. The DfT needs effective and fairhanded scrutiny, and I believe I have the aptitude and experience to provide it.

“This will be particularly important in the months and years ahead. Decisions on Heathrow, HS3 and Crossrail 2 are now seriously overdue. Cross-border issues in the devolved nations remain unresolved. There are also serious doubts over the ability of Highways England and Network Rail to deliver road and rail investment schemes, and there is already pressure from the Treasury to reign back on existing commitments.

“Promises have been made that affect almost all our constituencies, and thousands of jobs (including in the supply chain) are in the balance. As chair I would be a strong voice for rural and urban transport improvements, as well as a critic of bad schemes.

“New technology, including autonomous vehicles, drones and mobile apps used by companies like Uber, are changing the nature of transport. The committee will have an important role in ensuring that the government’s policies keep pace.”

GREENWOOD’S TRANSPORT EXPERIENCE

2010 Transport select committee member 2011 – 2013 Shadow local transport minister 2013 – 2015 Shadow rail minister 2015 – 2016 Shadow transport secretary 2016 – 2017 Bus Services Bill committee member Member of the Air Safety Group Officer of the newly-formed Women in Transport APPG Vice chair of the Light Rail APPG Treasurer of the Infrastructure APPG

RHA: lack of fluid cross-border trade ‘catastrophic’ Failure to ensure fluid cross-border trade post-Brexit will be “catastrophic” for UK business, the RHA has warned.

Responding to EU chief negotiator Michel Barnier’s claim that “frictionless trade” will not be possible after Brexit, RHA chief executive Richard Burnett said: “Any reduction in service levels through supply chains will be catastrophic and punishing for business and trade.

“Businesses need to know that they can get the goods they need, when they need them. Any uncertainty over transit times, through ports or over the Irish/UK land border must be avoided.”

Meanwhile, FTA deputy chief executive James Hookham said Barnier’s claim was a wake up call

for negotiators. “We are pleased that logistics and trade issues have been put back on the table by the European Commission and that the practical solutions to keep Britain trading with the EU after Brexit can now be discussed,” he said.

“The UK’s departure from the EU can be negotiated to ensure that frictionless trade can continue, provided the logistics industry is at the heart of the discussions. We urge Mr Davis to bear this in mind – and work with industry to prove Mr Barnier wrong.”

The RHA and FTA also called for time to prepare for any new border arrangements. Burnett said it is “essential to have clarity on what will be needed to ensure fluidity across borders and sufficient time must be given to deal with the extra work involved”.

Hookham warned: “The workload is huge. We need an immediate start on building the new customs systems for the 300 million additional declarations that will be required to be made, the learning programmes for the 180,000 businesses that will need to learn how to use them.

“We need to get equal treatment of British goods by the 27 other customs administrations across Europe and new 21st century approaches to inspecting and checking loads to avoid the need to check vehicles in our congested ports.

“Above all, there must be no cliff-edge in arrangements while all this work is being undertaken. We need business as usual until the new arrangements are in place.”

Brexit impact on Ireland ‘poses a significant challenge’ FTA Ireland has said a report by the Republic of Ireland’s Seanad special select committee on the Withdrawal of the UK from the EU did not see road freight afforded the priority it requires to ensure trade is not compromised.

Aiden Flynn, FTA Ireland general manager, said: “It is obvious from the report that the number and complexity of issues facing trade and service providers into and out of the UK is incredible. To ensure that it does not overwhelm industry, action must now be taken to ensure that the impact of Brexit is managed in a controlled and pragmatic way.”

In his introduction to the report senator Neale Richmond, chairman of the committee, said the UK’s decision to leave the EU was “put simply… a bad thing”.

“Minimising and managing the impact on Ireland of this decision will be arguably the most significant 16 MotorTransport MTR_240717_016.indd 16

challenge the state has faced in its short history.”

The report does warn that some eastern European drivers for haulage businesses based in Northern Ireland had gone home, and that with 60% of freight arriving in Dublin port originating from the UK “significant investment” might be required to adapt Irish ports to cater for higher volumes of freight and increase capacity for direct links to continental Europe.

As freight arrangements are related to trade, the report warns, negotiations will be between the United Kingdom and the EU, so there is little scope for a bilateral agreement between Dublin and Belfast. “Following Brexit, additional infrastructure and capital expenditure will likely be required to adapt Irish ports to deal with customs checks and cater for larger volumes of freight,” it warns.

Permanent home being sought for Wales TC Parliamentary business returned following the snap election early last month. Newly appointed road freight minister Jesse Norman MP told the House that Nick Jones, traffic commissioner for Wales, had to use an office in Cardiff as a temporary measure while the DVSA looked for a permanent base in Cardiff. Norman said work is being undertaken by DVSA Estates to agree a lease and layout plan for premises in St Mary’s Street, Cardiff.

The TC is expected to move into it in September 2017.

24.7.17 19/07/2017 16:02:45

AD_240717__P17.indd 17

19/07/2017 15:34:01

Highwayman

motortransport.co.uk

Don’t tie yourself in a knot

Dear BBC boss... please can I be on TV Sponsors of the third best rugby team in the West of England (that would be Gloucester, which finished behind champions Exeter and fifth-placed Bath), CM Downton recently moved a shed for DIY SOS – The Big Build.

Downton collected the shed from manufacturer Forest Garden in Hartlebury, Worcestershire, and delivered it down the M5 to the house in a village near Tetbury on the first day of recording in June.

The shed was required to provide a household with some much needed additional space… all will be revealed when the show is broadcast later this year.

Highwayman is a sucker for a bit of DIY SOS. It’s all the bants with the boys and tears for the big reveal at the end.

It’s just too much… after all Highwayman loves to rob from the rich and give to the poor.

Over at MT Towers, managing editor Chris Walton is less than sympathetic. Walton, who had skin cancer surgery last year, just two years after his baby daughter had open-heart surgery, said: “When am I going to be on DIY SOS? I need a new bathroom. How am I supposed to live in conditions like this? I mean, the taps don’t even come from John Lewis.”

Maybe the whinging Yorkshireman should try applying first….

18 MotorTransport MTR_240717_018.indd 18

Hayes was aghast at the prospect of fielding a question in the House from a member who wasn’t – in his opinion – properly attired.

As he introduced the Air Travel Organisers’ Licensing Bill, no less than the first legislation to be debated in the new Parliament, he said: “There has been some debate over recent days in this chamber about sartorial standards.

“I ought to say as a matter of courtesy I won’t be taking interventions from anyone who’s not wearing a tie, on whatever side of the House they sit.

“As well as courtesy, I believe in generosity, and anyone who is sartorially challenged or inadequate I will provide a tie for. I do have a tie here that I’m prepared to offer,” he said, waving the offending item, for he had brought a spare for whoever needed it.

He added: “Of course I exclude from that lady members of the House, who I would hardly expect to dress in either my tie, one of their own or anyone else’s.”

Thanks for that John, very generous of you to allow a lady to dress as she would like.

Image: Shutterstock

If you have a story for Highwayman, send it to highwaymanMT@ gmail.com

Followers of Highwayman will know he has taken a keen interest in the outbursts of transport minister John Hayes.

The right honourable member for South Holland and The Deepings is known for his flowing, and occasionally rambling, prose. Who can forget his divisive ‘Ode to Beauty’ speech, launching the major road network upgrades?

“So be warmed – or warned – when I speak next I will set out when and how.

“How we will change what is built and what is saved – roads, rail and beyond?

“Some who did the damage to our country were crass and careless.

“But some wrought monstrous havoc knowingly, wilfully.

“All of them Philistines.

“Well now the Philistines have met their David.”

Unforgettable, as I’m sure fans of William Rees-Mogg will agree.

Hayes was back in the headlines recently, not for literary excellence, but sartorial elegance when he railed against the decision of speaker John Bercow to relax the parliamentary dress code.

Unfortunately, as someone pointed out, the decision made by the Speaker was in part inspired by Labour MP Jared O’Mara (who ousted Nick Clegg from his seat in Sheffield Hallam) – who has cerebral palsy and is unable to fasten his shirt buttons. In fact he told the Guardian as much last month: “I can’t wear a shirt and tie because I can’t do the buttons. I’m going to be wearing plain T-shirts here [Westminster], which is against the dress code.”

Hayes defended himself in his local paper with a column

that claimed his ire was directed at Liberal Democrat MP Tom Brake (Carshalton and Wallington) whose views, he wrote, are “a throwback to the ‘do as you please’ mindset that typified the bourgeois left.”

Call Highwayman a member of the bourgeois left, but with EU negotiator Michel Barnier saying full inspection of all loads entering Europe after Brexit is possible, perhaps our transport minister has more important things to worry about than whether someone who is asking him a question is wearing a tie.

ALRIGHT AT THE MT AWARDS: Heaven forfend that Highwayman becomes a spurious gossip column treating captains of industry as nothing more than fodder for tittle-tattle, but he has a page to fill and we’re all desperate.

So… former Daf boss and Service to Industry winner Ray Ashworth (left) nearly missed the whole thing, as he had a nightmare drive down from Kendal, hitting the M40 (which went down to one lane). Diverting onto the M1 he faced the curse that all drivers in the South East face, the M1 was also shut. We’ve all been there Ray, we’ve all been there… Highwayman learned that the RHA’s Richard Burnett is a big fan of face-painted rockers Kiss – and there is rumoured existence of a photograph of Richard dressed as Kiss lead singer Gene Symonds – doing a signature ‘stick out your tongue’ pose.

Crazy, crazy nights indeed. If anyone has a copy, then we’d be happy to publish it. Finally, according to Grosvenor House hotel insiders, of all awards events held there, the MT Awards’ bar bill is the highest! While an utterly unverified rumour, good work everybody! Keep it up!

24.7.17 17/07/2017 11:59:30

12:40 12.40…

2.40… When it comes to keeping your trucks compliant, technician Kevin O’Neill leaves nothing to chance. His keen eye for detail and understanding of the science behind compliance delivers you 100% 00% every time. That’s true commitment in practice.

Discover more www.volvotrucks.co.uk/volvo24

www.volvotrucks.co.uk

Search: VolvoTrucksUK

Volvo Trucks. Driving Progress

55677

55677 Motor Transport 24 HOUR_COMPLIANCE_HP_206x138.indd 1

AD_240717__P19.indd 19

25/05/2017 12:30

19/07/2017 15:38:29

Viewpoint

motortransport.co.uk

HMRC: make taxing not so taxing T Jack Semple Director of policy, RHA

ax rules are complicated enough without HMRC making them more difficult and bureaucratic. But that is what it has done with lorry drivers’ overnight allowances. A system that has worked pretty well for 26 years is now mired in complexity and chaos.

Hauliers have a right to expect clear and consistent guidance of what they are required to do, but HMRC is either unable or unwilling to provide that on this issue. The RHA/HMRC sleeper cab rate is up to £26.20: whether drivers need receipts for the full amount of the allowance paid, or £5, depends on who you speak to at HMRC. HMRC has lost all sense of proportion on this issue, with a string of undesirable consequences.

These include thousands of drivers losing their tax-free allowance and being urged by employers to claim back the tax through the online form P87 – just when HMRC is trying to reduce these claims, across the board.

HMRC insists that checking receipts is a legal requirement – although it has recently added the concept of photographing meals. The RHA, taking expert tax advice, says this is incorrect and that there is no legal requirement. If HMRC does not move its position, the two sides are likely to contest the issue before the Tax Tribunal.

Is £26.20 a lot of money? Over five days, it adds up to a significant sum, HMRC tells us. But it is no small thing for a driver to be away in his cab all week, inevitably incurring costs, and the sum total is what most employees incur when they are away for just one night.

The RHA is working with officials at HMRC to find a way that works for our industry’s specific circumstances and at least clarifies the rules. It is proving to be extremely challenging. The solution is clear to us – to adopt a modified version of the system that worked for the past 26 years.

HMRC needs to recognise this.

the NEXT GENERATION SCANIA

PREMIUM REDEFINED

Workers and industry want best gig in town W Grace Wood Layout sub-editor Motor Transport

ith the hastily called general election and Brexit negotiations, all government plans, reports and reviews were put on hold. But the dust seems to be settling and all the work the civil service was putting off is finally being finished. One such example is the Taylor Review. The report (pages 10-11) was commissioned to look into the expanding gig economy and what it means for UK businesses and their workers.

But it leaves me wondering, why bother? There is nothing close to a policy idea in the report, it simply paints a picture of how the vague laws allow some to take advantage of those who try and do things by the rule book – an age-old story. It then lays the blame and responsibility for change on private companies, relieving the government of any hard work or obligations.

Firms that, while legally, base their business model on self-employed workers continue to have an advantage over firms that employ their staff directly, pay national insurance, contribute to pensions and provide paid holiday.

While there are no easy answers, as the report points out, there are clearly some imbalances in

20 MotorTransport MTR_240717_020.indd 20

the UK market. And it’s not just firms that face the imbalance: while 1 in 4 people aged 16 to 30 say they would consider some form of gig working in the future, 14% of gig economy workers say the reason they do it is because they cannot find a traditional job.

There are many positives to self-employed working, for example parents who can do local parcel deliveries for four hours a day while their children are at school. But there are also those who work long hours at less than the minimum wage with no holiday or pension just to feed their families.

The dependant contractor term, proposed in the report, is a good description of those who exist between self-employed and employed, but do we really want to encourage that? Surely workers, and those who pay them, should be given clearer guidelines about where they stand, which would benefit road transport as a whole?

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 Editorial team Ashleigh Wight 2167 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 24.7.17 20/07/2017 11:26:39

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_240717__P21.indd 21 print V3 MT Size.indd 1

13/06/2017 15:40:45 16:28:57 19/07/2017

Succession planning

Keeping it in the family The family firm is the mainstay of road transport – but fewer children than ever are following their parents into haulage.

Louise Cole reports

A

high proportion of regional haulage firms started out as family concerns, yet evidence suggests that many of them will struggle to pass the firm to a second, let alone third generation. This has become an acute problem for haulage owners in the past two decades where more young people than ever go to university. In 1970, the participation rate for higher education was 8.4%; in 2012 it was 42%. Career choice has never been wider and, for the sons and daughters of transport business owners, haulage seems an unlikely winner.

Robust plan

Haulage families do not face this crisis alone.

The PricewaterhouseCoopers (PWC) UK Family Business Survey 2017 found that only 13% of UK family businesses had a robust and documented succession plan. Its 2016 global survey showed substantial issues with the running of family firms, of which succession is often the ultimate killer. Fewer than half intended to pass the business to the next generation. Some of the factors related to this were: ■ the ‘heirs’ need to work far harder than others to earn their position; ■ 17% have no conflict resolution mechanism in place, should the family disagree over strategy; ■ the smaller the firm the less likely it is to have a succession plan; ■ a quarter of family firms reach the fourth generation but entrepreneurial skill ebbs with each generation. By the fourth, families are more concerned with preserving the legacy than developing it. They also have more noncontributing, income-dependent shareholders; ■ this increasing conservatism runs counter to family firms’ belief that they can reinvent 22 MotorTransport MTR_240717_022-023.indd 22

themselves with each generation; ■ firms’ attitude to long-term strategy is inexorably linked to succession – 68% of UK family firms prize the concept of longevity and longterm strategies, yet only 17% prize innovation.

Nor do they have medium-term strategy. In other words, they have a vision of the future but no thought-through means of getting there; ■ PWC says succession planning is a natural extension of the ‘family strategy’, a cohesive plan as to how the family works together.

However, this is a poorly understood concept.

Family businesses must decide which word is most important in how they define themselves. Family or business? The first step to ensuring longevity is to professionalise the business, capturing those things that family firms feel their origins enhance, such as: care for their community; their sense of legacy; their sense of responsibility for their workforce; and becoming more focused and less emotional about the commercial and operational skills needed.

Bringing in sufficient skilled and professional management is a challenge for many family firms but it can provide stability at the company’s core, particularly at times of transition. It also offers an alternative to handing management to the next generation.

Choices and consequences

When companies approach succession planning, there are choices. Some fold, although for most haulage businesses there will be substantial assets and goodwill to sell. The PWC survey shows that one third of UK family businesses plan to pass ownership of the company to their next generation but not necessarily management of the firm. Some 38% intend their heirs to run it; and 22% intend to sell or float.

Some haulage heirs do not want the responsibility that comes with transport even if they have professional management in place. Potter Logistics had been managed by a professional team overseen by chairman Derrick Potter but was recently sold because his heirs did not want the burden of running a substantial fleet operating in the food and chemicals sectors.

Generation game

Nigel Cook is the fourth generation of his family to be in haulage and the second to run Elddis Transport. His son has recently finished a scriptwriting masters and his daughter is studying Chinese, so he doubts either will be drawn to a life of haulage. However, Cook has been proactive and open about his succession strategy, discussing it with his senior management team.

“I may scale back my involvement at a younger age and enjoy the extra free time. I have always surrounded myself with good people, as my father recommended, and we deliberately overlap our responsibilities so we can cover for one another,” he says. “But you have to have an open dialogue about it because it affects other people’s futures as well as your own.

“It is 50-50 whether haulage firms have a succession plan. It can be a very emotional decision, and it also depends on timing,” Cook continues. “My father handed the business to me with a nine-month transition just at the point when computers were becoming essential to business, and he was of the wrong generation to take that forward. He’s 80 now and he still drops in, saying he’s the ‘raining chairman’ – when the sun’s out he plays golf, when it rains, he’s chairman.”

Like many successful family heirs Cook started at the bottom of the business and worked his way up, and he spent time at another trans24.7.17 18/07/2017 10:01:12

motortransport.co.uk

SUCCESSFUL SUCCESSION ■ Invest in young people, including family members, if they come into the business.

Remember the value of training, proper appraisals and career development. Even shareholders need to understand the business.

■ Start early. A year before retirement is too late to start thinking about succession.

■ Know your options, which are: retain ownership and leave management in professional hands; sell as a management buy-out, flotation or to a third party; hand it on to the next generation.

■ Check tax and legal implications.

■ Plan to diversify personal wealth. Don’t burden the firm with your retirement cost.

■ Surround yourself with a strong board of directors.

■ Plan your own future. If it is true that your business is more than you, then you are also more than your business. Plan a new chapter or you will either not want to let go when the time comes or mourn what you’ve lost.

■ Don’t put yourself in the way. Know when to step down.

port firm. He and his senior management team have all been trained up through the ranks.

Cook is also chairman of the Transport Association, a 60-strong collaborative group of hauliers. He says he sees succession as a major issue there. Four association members have recently been bought by their pallet networks when the owners wanted to retire, most recently ABE Ledbury by Palletline.

“If hauliers want to sell though, they need to plan it early and act before they devalue the

business,” he says. Even for pallet network members, a network purchase will depend on location and their strategic importance. If it is as easy to replace the member with another haulier, a network is unlikely to buy.

Does family matter?

The idea of the family organisation is deeply rooted in the British business consciousness.

Family-owned and run hauliers often cite their family status as a mark of their values as a

company: rooted in their communities and offering a personal connection and service to their customers. It is not uncommon for the bosses of family firms to confide that they also employ families and that they have more than two generations of the same local family working for them. A sense of connection to colleagues and customers that goes beyond the professional is very important to their sense of identity.

Cook believes that the family company will survive because they tend to be flexible and have can-do attitudes and build strong collaborative relationships with customers and other hauliers.

“You need a certain amount of critical mass to survive in the middle ground of haulage.

It takes 100-plus vehicles to be safe and it is hard to step up to this but very easy to downsize.

You need scale that requires infrastructure.

This is where we are seeing a lot of sales of small hauliers into larger conglomerates,” he says.

Family firm owners also have a strong sense of legacy and obligation, not just to employees but to the family itself.

“I am the custodian of our family wealth,” says Cook. “It’s all been kept in the business.

That’s quite a responsibility.”

And the flip side

This is borne out by the global PWC survey that showed that family managers were far more concerned with ensuring that all staff were well rewarded and shared in the company’s success than non-family managers were.

On the flip side, family members do not go for growth, innovation, profit or greater professionalism to the same degree. Non-family managers are not invested in the long-term status of the company: they typically care only that it is successful. ■

PROFESSIONALISING THE FAMILY FIRM: TWE HAULAGE Banbury-based TWE Haulage MD Trevor Edden discussed career options with both of his sons when they reached 16. The eldest, Tristan (left), immediately wanted to join the firm and had always loved the trucks and the yard. Ross (right), however, had little interest in the operational side of the business and initially thought about a career outside transport. However, it soon became clear that Ross’s talents for IT, innovation and customer service were every bit as useful to the firm as Tristan’s operational instincts.

Edden ensured his sons were trained and managed by other colleagues and that their progression and salary were commensurate with their skill. “I see hauliers making mistakes when they bring their kids into the firm,” he says. “Some exploit them, using them as cheap, uncomplaining labour. Some expect them to absorb how to run a firm by osmosis, without training.”

Ross says that he had to work harder and more willingly than anyone else. “There’s a definite stigma when you first start and people assume everything has been gifted to you,” he says. Now 23, he is commercial manager and 27-year-old Tristan is operations manager. In April, they will progress to be directors with shares in the firm.

“We had a plan and we’ve stuck to it,” says Trevor. “An aspect of this is planning an alternative role for yourself. I know that in a few years I won’t be needed here – the boys already run the firm more than I do. So I have to plan what I’ll do next. It would be counterproductive for me to be here in three years.”

He says you have to give young people a chance to grow into 24.7.17 MTR_240717_022-023.indd 23

their roles. “You must give them goals and then let them get on with it. Let them forge their own relationships with people and also to make their own mistakes, and put those right. Just telling someone ‘one day this will all be yours’ doesn’t motivate or prepare them,” he says.

Trevor says a proper succession plan can help wider recruitment. “If you subtract me, the average age of our employees is about 31 because young people attract young people. And it is important for customers and the community to see that you are investing in your company’s future.”

MotorTransport 23 18/07/2017 10:02:34

Sector report: Fuel cards

Fuel for thought

Choosing the right fuel card not only helps drivers on the road, but can save money as well. Roanna Avison reviews the options

C

hoosing a fuel card that is right for your business is not as simple as it sounds. With an array of fuel cards on the market, provided by everyone from the major oil companies, the RHA and FTA to fuel card suppliers and resellers, is it possible to find just one card that does everything an operator needs?

Research conducted by MT suggests most operators that use fuel cards have more than one supplier (see box). By far the biggest fuel card supplier is Fleetcor, which not only has the Keyfuels and Allstar brands in its portfolio, it also owns card reseller The Fuelcard Company and supplies the RHA and FTA fuel cards.

Keyfuels

Keyfuels cards are aimed at HGV fleets and offer a choice of two cards – Keyfuels Direct and Keyfuels Pay-G. The Keyfuels Direct card allows fleet managers to negotiate the best fuel price directly with the oil company of their choice, a spokeswoman says. “Fuel can be purchased in bulk for the most favourable commercial prices, and the fuel is then made available at all participating Keyfuels sites.”

The Keyfuels Pay-G card provides a weekly fixed price for diesel, “enabling substantial savings against traditional retail-based fuel card offerings”, she adds. “Customers are looking for savings on the cost of fuel, size and accessibility of a network, plus flexible opening hours.” She says some customers that operate large haulage businesses use a mix of a fuel card and an own-yard fuel bunker.

Keyfuels offers an own-yard management service, which makes use of its card-reading technology at an operator’s bunker and gives the operator a complete picture of fuel usage.

The spokeswoman says a Keyfuels fuel card offers operators the benefit of cost savings and access to a large network of HGV-friendly sites with flexible opening hours. But these are not the only benefits of the cards, she adds, citing: “Keyfuels fuel cards offer HMRC-compliant invoicing, an online portal to manage fuel cards and access to data, which enables operators to analyse fuel consumption and costs at a driver/ vehicle level and for the fleet as a whole.”

Allstar

Allstar has a much larger network of 7,000 garages, but some of these will not be accessible by HGVs. “We have a number of cards available through AllStar including our latest 24 MotorTransport MTR_240717_024-025.indd 24

Allstar Plus card that we launched in partnership with Visa, which allows users to pay for hotel rooms, train tickets and parking,” the spokeswoman says. “This card comes with strict controls, so drivers can only use the card for certain things and up to a certain threshold.”

Fleetcor also provides the RHA and FTA fuel cards through its reseller arm The Fuelcard Company. Following a recent overhaul of its fuel card the RHA has three product offerings: a card with access to the full network of more than 2,000 sites; beneficial pricing offers at the sites most suitable for drivers; and a tailored solution to suit the needs of large fleets.

The FTA card gives members a fixed weekly fuel price across the whole Keyfuels network.

The Fleetcor spokeswoman says: “The FTA offers the Allstar One card, which is more suitable for van fleets, suits FTA members who are part of its Van Excellence scheme.”

AS24

AS24 specialises in fuel cards for HGV fleets and MD for the UK and Ireland Charlotte Lecoutour says one of the company’s key selling points is providing fuel cards with EMV chip and pin technology (the same as Visa and Mastercard). “This provides the highest level of security for transactions done with AS24 cards,” she says, adding every transaction on the AS24 network is checked online before being authorised. “Customers can set different limits on their cards, which gives them full control of their fuel expenses.”

AS24 also offers tolls solutions throughout in Europe, VAT recovery, breakdown assistance and geolocation boxes “because our customers like to have one supplier, one single point of contact, one invoice for all this, instead of dealing with many suppliers”, Lecoutour says.

While agreeing that some fleets prefer to use more than one card, Lecoutour says others want to use one to simplify the process. “Our last survey shows our customers have chosen AS24 for two reasons: network and prices,” she highlights.

“The network is a key point when a transport company has to find a fuel provider for \ journey in Europe. With 800 dedicated HGV sites in Europe (more than 12,000 including partner sites), most with AdBlue pumps, AS24 is probably offering the best option to national and international hauliers.”

24.7.17 18/07/2017 11:20:33

motortransport.co.uk

CARD OR NO CARD?

Scania

Scania’s fuel card aims to help operators save money on fuel, by offering discounts on driver training and telematics. Matthew Watson, general manager of optimised services, says customers like the flexibility of the Scania fuel card because there is no minimum usage. “Some of our larger customers, with fuel in their own yard, like the fact they can use the 480 sites if their drivers are low on fuel on the road.”

The Scania card is open to any operator, not just Scania customers. “Our card can be used to pay for tolls and AdBlue as well as fuel,” Watson says. The card is also operated by The Fuelcard Company and Watson adds: “Many of our customers will have another fuel card, but like to have ours as a backup.”

DKV Euro Service

Pan-European fuel card provider DKV Euro Service has an independent network of more than 65,000 service stations in more than 40 countries. MD for Benelux and the UK Gertjan Breij says: “All purchases can be made with the card – fuel, toll and vehicle-related purchases such as oil at service stations. All charges will be settled on one invoice and DKV can handle all VAT and mineral oil tax refunds.

“Companies often look for a larger coverage of service stations. The additional services DKV offers, such as route-planning tool DKV Maps, enhance the efficiency of the card. DKV Maps plans a route to the service station that meets your need – whether this is secured truck parking or a station tailored to coaches,” he adds.

DKV also offers services such as online fleet management analysis and tailored card solutions, but Breij says some customers also use other fuel cards in addition to their main DKV card. “This decreases the efficiency that DKV offers of one invoice and one online reporting tool for the whole fleet,” he argues.

Operator view

From an operator point of view, the choice of fuel card depends on a number of factors. Allen Rees, general manager at Fagan & Whalley, says the operator uses two fuel cards. “We have a BP Plus card through Bunker Cards, which goes in all our vehicles, and we have Shell cards for the vehicles that go to France.”

While price is an important factor in Fagan & Whalley’s decision, Rees states the quality of the fuel is also a consideration and this is guaranteed from a major oil supplier. “Our vehicles go from John O’Groats to Land’s End, so it is important to have coverage throughout the UK,” he adds.

However Fagan & Whalley does not rely only on fuel cards. “We are also a member of the Transport Association, and can go to fellow members to fuel up at their sites, but we let the driver decide when to fill up and encourage them not to let the tank get too low. We use about 5.5 million litres of fuel a year and of that 24.7.17 MTR_240717_024-025.indd 25

Research by MT suggests the majority of operators that use fuel cards have more than one supplier. There is a wide spread across all the major fuel card suppliers, with Keyfuels and Allstar One (42%) and the major oil companies (39%) the most popular choices. UK Fuels has 21%, AS24 6%, Scania 2% and the RHA/FTA 2%.

Fuel price (44%) and the size of the refuelling network (41%) are the most popular reasons for choosing a fuel card, with ease of driver and card management (31%) the third biggest factor.

However, these are not the only reasons operators decide on a particular card. Good information on fuel use and security are important to operators, as is the flexibility they provide, with owners citing factors such as a lack of in-house bunkering and fuelling while away from the home depot as a reason for choosing a fuel card.

Having a fuel card available for drivers to use in a geographic area or having one as backup to ensure drivers are able to refuel when on the road are also important factors.

But feedback from many of the UK’s largest operators reveals that operators able to use in-house bunkering will opt for that rather than using fuel cards because of the cost benefits.

Ian Moore, freight customer account manager at Taylors Transport International, says he no longer uses fuel cards and believes this is typical of large operators.

“We have three sites in the UK and bulk buy fuel 36,000 litres at a time because of the cost savings compared with off-site fuelling, and because of the fuel control and vehicle MPG.”

the cards account for about 700,000 litres, so it’s not a huge amount,” Rees says.

The majority of Denby Transport’s fuel card spend is abroad (about 75%) and it uses an AS24 card for this. MD Peter Denby says: “We have been with it a long time and I believe it offers the best compromise of price competitiveness and geographical spread.”

For UK operations Denby Transport uses Certas Energy and Shell. “There is a lot of competition for fuel cards in the UK and prices are fairly competitive,” Denby says. “We use two cards in the UK because Shell has a station in a particularly important location for us and Certas doesn’t.” Mor Cross Transport Services uses more than one fuel card supplier. Director Graham Cross says it uses BP, Shell and UK Fuels. “We predominantly use Shell and sometimes UK Fuels when it is cheaper, but its network is not as good.”

Cost matters

Despite keeping abreast of weekly price changes, Cross says: “You can’t always go on cheapest price because these are often at sites where my vehicles won’t fit.” He adds that experience has shown that some fuel card agents advertise they have 15,000 sites. “But half will be at Morrisons, Tesco and the likes, where I can’t get my vehicles in.”

CM Downton uses the Keyfuels card because it is the cheapest available. MD Andy Downton says: “As a major operator, we use a lot of fuel; it’s convenient for our drivers to fill up when they need to at the lowest possible price.” The operator’s decision is based solely on price, with Downton revealing: “Differences between cards in terms of service and other benefits would offer no significant advantage to us.

Buying the cheapest fuel is important.” ■ MotorTransport 25 18/07/2017 11:21:36

MT Awards 2017 winner profile Livery of the Year

Night on the tiles Having undergone a complete brand overhaul, Topps Tiles decided that it would make its first entry in the MT Awards, in the Livery of the Year category, and came up trumps

T

his year’s Livery of the Year winner had never entered the Motor Transport Awards before. But after three years of rapid growth in sales and store numbers and a fresh new look, the own-account operator had something to shout about.

Topps Tiles’ new livery was the “final puzzle piece” in a business-wide brand overhaul. Its blue and yellow trucks with the tile character were a familiar sight on UK roads, but head of supply chain Doug Bingham said Topps Tiles wanted to make itself less “blokey”.

“We wanted to take it up a notch because the brand was starting to feel a bit dowdy and out of date. And we wanted to try and make our brand appeal to female customers more. We were trade friendly and a bit blokey.

“The charcoal grey, white and yellow took the brand up a notch. Our 370 stores have that branding and everything inside the business is also coming into line. The trailer fleet was the last part of the jigsaw. We wanted to get away from that old blue and yellow and bring it to life.”

The livery complements a new fleet for Topps Tiles, which Bingham said has undergone a major overhaul in recent years.

He said: “We’ve done a huge fleet replacement in the last couple of years on my watch.

We had a real hotchpotch of equipment, we had some trailers that were old and we had some short-term hire stuff.”

Topps Tiles runs 23 artics, 27 trailers and four rigid HGVs, all mounted with Moffat forklift equipment. To cope with the increasing

business demand, and to modernise, the business took new SDC trailers from Ryder.

With this came the opportunity to design a new look for the fleet. The business needed to come up with something that would advertise the brand on the road or when parked outside its stores.

Topps Tiles selected a core project team to work on the livery. It worked with a host of businesses including creative agency Makalu; SDC Trailers; curtain manufacturer Image Signage; and Cargotec.

The livery, which depicts a man tiling inside the trailer’s curtain, was by no means the first design Topps Tiles came up with.

Bingham said: “We could have gone with a bog-standard grey trailer with the logo on it, but we wanted to do something a bit more fun.

Topps Tiles national transport manager Kevin Smith and Topps Tiles head of supply chain Doug Bingham, centre left and right, receive the award from sponsor John Bratton of SDC, second right. They are joined by host John Bishop far left, and MT editor Steve Hobson far right

26 MotorTransport MTR_240717_026-027.indd 26

24.7.17 18/07/2017 09:58:22

Sponsored by

“We went through a number of different ideas. We had some initial slogans in the mix such as ‘Grout Britain’ with a union jack on the side, but we decided it was a bit cheesy.

Then we had a few permeations of the one we eventually landed on. It brings it to life, and that’s what it’s about.”

One of the things judges praised about Topps Tiles livery was that the design offered a degree of flexibility, in that it could stay the same but with a different photograph.

Bingham confirmed this is something the company would consider doing in the future, though not necessarily by changing the male character, as the judges suggested. The real stars, he told MT, are the tiles the man is placing.

“The tiles in the imagery are among our best selling. But were they to drop out of fashion next time we come to do curtain change – you probably get four to five years before they get tired – we can update the imagery and keep the scene but change those elements.”

Topps Tiles has no intention of slowing its growth spurt. “Our publicly stated goal is to up our sales to £300m. Last year we were at £250m, and we want £300m by 2020.

“We’ve got a pretty aggressive store opening programme to help us get there; we’re opening 24.7.17 MTR_240717_026-027.indd 27

about 25 new stores a year and we’ll end up at about 450 by the end of our 2020 financial year.”

He added there would no doubt be more fleet investment to support the stores, but at the moment the business’s main vehicle strategy was replacing older units when necessary.

Bingham said the response to the new vehicle design has been positive at the business and employees were involved in the naming of its new fleet. The names were selected in a variety of ways, including recognising longserving members of staff, allowing staff to choose names, and giving a nod to its charity partner, Macmillan.

The staff, said Bingham, are proud of their new company look and its livery, and are extremely proud to have won the Motor Transport Livery of the Year Award.

“There’s a huge amount of pride. It’s the first time that we pitched in at the MT Awards and it’s fantastic to be recognised for what we think is a really good design.

“I’m at the head office today and walking round, everyone’s talking about it. Not just the transport people, people in IT and operations, everyone. We’ve made a big deal of the fact we’ve won the award and there is an over-arching sense of pride.” ■ MotorTransport 27 18/07/2017 09:58:53

MT Awards 2017 winner profile Fleet Van of the Year

Given the blue light Flexible manufacturer, expanding dealer network and vehicle range, and improved durability, Fiat’s Ducato is a worthy winner for MT’s Fleet Van of the Year award

28 MotorTransport MTR_240717_028-029.indd 28

A

s a shared product with Peugeot and Citroën, which produce the Boxer and Relay versions of the Fiat Ducato, Fiat happily shares the chassis and body panels with its French partners but has a distinct advantage – its dealer network.

Described by our panel as “one of the most flexible manufacturers to deal with”, Fiat and its large Ducato model has been making inroads into the fleet market thanks to its ever improving range of vehicles, expanding dealer network and greater dedication to supporting its commercial customers.

Acknowledging the efforts of the Fiat Professional network to ensure support is constantly available with improved opening hours from its 78 Fiat Professional dealers in the UK, the panel liked its support network built up from an array of dealers with an HGV background – thanks to its group partner Iveco.

Backed up by a 24-month unlimited mileage or three-year 120,000-mile warranty, the panel noted that they have encountered excellent parts availability for the Ducato. But they conceded that vehicle availability could be better – a result of the increasing demand for the model and the prized position that it holds among bodybuilders.

One judge said: “The

Ducato is evidence of the changing attitude towards customer feedback,” with Fiat’s own products and its dealers responding to customer demand with changes to the product and its aftersales services.

Multi-functional

Highly regarded in Europe as a chassis for motorhomes, the Ducato is now recognised for its excellent payload capacity and improved durability in the UK and among a variety of fleets. Servicing intervals are now at 30,000 miles and the Ducato has been improved with a new clutch system, upgraded brakes, stronger door hinges and body panel reinforcements.

These changes have been made to help prolong the life of the vehicle, and helped secure it some impressive new customers – most notably in blue light services where a raft of NHS trusts have added the Ducato to their fleets.

AND FROM THE NIGHT...

“I am absolutely delighted that the Ducato has won this important award against some strong competition,” says Richard Chamberlain, head of brand, Fiat Professional UK. “We are confident that the Ducato is an excellent van choice for large and small fleets, so to have that confirmed by a panel of esteemed judges makes the award all the more important for us. This is also recognised by many ambulance authorities, saving lives across the UK, which run Fiat Ducatos as their core front line choice of vehicle.”

24.7.17 17/07/2017 10:25:08

Sponsored by

VisionTrack chief technology officer Anthony West (above, second right) presents the trophy to Fiat Professional press relations manager Tom Johnston (second left) and head of brand Richard Chamberlain

While Fiat’s dealer network certainly sets it apart from much of the competition, the Ducato is also a standout candidate. A range of different power outputs and separate engines set it apart from the Citroën and Peugeot jointengineered vans, with the Ducato’s 3-litre 177hp engine a key factor in its success at larger GVWs. With weight options from 3 tonnes to 4.2 tonnes, and a range of body variants that include tipper, dropside and chassis cabs, the new Ducato range looks to continue its established tradition of being a reliable chassis at the higher weights. This has seen the Ducato dominate the coach-building end of the market with its chassis cab, and it has a dominant stake in motorhome conversions as a result.

With more than 10,000 configurations in the range, which extends from L1H1 to L3H2 models in the regular vans and then to more heavy-duty Ducato Maxis from L2H2 to L4H3, there is also plenty of choice among the panel vans too. Add to that the option of a ComfortMatic automatic transmission, a requirement that is fast becoming mandatory for large fleet operators, and the Ducato appears to have the range and repertoire to accommodate any buyer.

When Fiat launched the new Ducato it simply arrived and delivered. It’s unpretentious and proving reliable, and that, in a nutshell, sums up why our panel chose the Fiat Ducato as its winner. Describing it as a vehicle with great opportunities, and an increasing following in large fleets, the judging panel for Fleet Van of the Year recognised the Fiat Ducato’s significance in the large van sector and the Fiat Professional network’s continued improvement and customer support. ■ 24.7.17 MTR_240717_028-029.indd 29

MotorTransport 29 17/07/2017 10:26:57

AD_240717__P36.indd 36

19/07/2017 15:42:37