Motor Transport 21 March 2022

Sharp ■ Informed ■ Challenging

21.3.22

NEWS INSIDE Diesel surcharges

Hauliers pass on rising costs p3

Driver pay

XPO gives staff an 8% boost p4

Vox pop

Tackling surging fuel prices p6

OPERATORS INSIDE 3T Logistics................................................... p4 ABE Ledbury.................................................. p3 Boughey Distribution ..................................... p3 DHL .............................................................p38 John Dinham Transport.................................. p4 Kinaxia ......................................................... p3 Kuehne+Nagel .............................................. p4 Moody Logistics ............................................ p4 Ningbo Palletised Distribution........................ p3 Palletline Logistics........................................ p3 Pall-Ex.......................................................... p4 RAJA UK ....................................................... p3 Wincanton .................................................... p4 XPO .............................................................. p4

CONCRETE GAINS: XPO Logistics has started to take delivery of 76 Volvo FM 6x2 tractor units that will be used exclusively on its contract with building materials supplier British Gypsum. The new truck will play a crucial part in the companies’ commitment to a more sustainable future – 23 of them are Volvo FM LNGs running on bioLNG, and the other 53 will be fuelled with hydrotreated vegetable oil (HVO). Their GHG emissions will be about 90% lower then equivalent diesels.

All the vehicles come with Globetrotter cabs and meet TfL’s 3-star Direct Vision Standard rating.

Dan Myers, MD – UK and Ireland at XPO Logistics, said: “British Gypsum and XPO have built a true partnership based on shared values, with a clear focus on safety and sustainability. Our investment in a fleet powered by bioLNG and HVO technologies demonstrates the importance we place on helping British Gypsum move towards net-zero carbon.”

Parcels firm unveils new identity alongside plan to auto-enrol its couriers in pension scheme

Hermes rebrands itself as Evri

By Steve Hobson

Leading B2C parcels delivery firm Hermes UK is to rebrand as ‘Evri’ and will auto-enrol its selfemployed plus (SE+) couriers who make up 85% of its workforce into a company pension scheme by the end of this year.

Evri said this was a first for the UK logistics industry and would see the firm contribute 3% of couriers’ earnings into a pension pot, costing it at least £7m a year, with the couriers contributing a minimum of 5% of earnings – though they can opt out of the pension scheme.

In addition, Evri will introduce the right to maternity or paternity leave for all SE+ couriers with effect from this month.

Stephen Timms MP, chair of the House of Commons Work and Pensions Select Committee, said: “This is a huge step in the right direction and will help thousands of couriers plan for retirement.

“I am delighted to see Hermes provide pensions and parental leave in addition to the holiday pay,

guaranteed pay rates and union recognition already available.”

Evri chief executive Martijn de Lange commented: “When we first announced our SE+ model in 2019 we committed to continuing to develop our support for our self-employed couriers and we are proud to have been true to that and be leading the industry once again.

“Our couriers receive guaranteed pay rates, paid holiday and now a pension, but have also been able to retain the flexibility that so many treasure, fitting in their

deliveries alongside their other (often family) commitments.”

The rebrand will also see a significant investment in customer service, including Evri opening a fully UK-based customer service team, adding 200 experts who will be based in local depots, upgrading its chatbot facility, and releasing more phone lines for those who prefer to speak to a human being.

De Lange continued: “This rebrand follows significant investment and two years of dramatic growth which has resulted in our entire business going through a major transformation programme.”

The Evri brand also reflects the firm’s commitment to electric vehicles, part of its net-zero target for direct and indirect emissions for 2035.

Evri is second only to the Royal Mail in terms of parcel volumes delivered in the UK. It started in Bradford when as the Grattan catalogue company it introduced mail order in 1974. In 1999, Grattan and

Freeman’s merged their delivery operations to form Parcelnet and in 2008 Parcelnet formed closer links with its sister Otto Group company in Germany and rebranded as Hermes Parcelnet.

In August 2020 private equity firm Advent partnered with the current management to acquire a 75% stake in Hermes UK while Otto Group continues to own 25%.

News extra: driver agencies p8 Road Transport Expo p12 Focus: emissions p14 Viewpoint p16 Telematics p20 Marketplace p26 DigiHaul p38

News

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Rocketing pump prices prompt surcharging and calls for cuts in duty

Operators pass on soaring fuel costs

By Tim Wallace

Photo: Shutterstock

Leading operators are being forced to pass on rapidly rising fuel costs to their customers by employing significant surcharges.

The move comes as energy experts warned diesel prices could go as high as £3 per litre and fuel even be rationed as a result of

Russia’s invasion of Ukraine.

The RHA has also repeated its plea to the government to freeze fuel duty, delay new rules affecting red diesel use, and introduce an essential user rebate.

“Sadly we have to pass the price increases on to customers,” Kinaxia chief executive Simon Hobbs told MT. “It’s our secondlargest cost and the increase is so great that the margins aren’t there to absorb it.

“We’re looking at weekly surcharges as opposed to monthly and when the price drops those surcharges will reduce.”

“The majority of customers were on surcharges anyway and we’ve written to the few that

weren’t stating why we need to do it,” he explained.

“If there is severe pushback from any, I’ll probably reflect on whether I carry on doing the business.”

Clive Bro oks, MD of Herefordshire-based ABE Ledbury, said he was passing 100% of the rising cost to customers.

“There used to be a monthly review and now it’s weekly because the price is skyrocketing,” he said.

“We benchmark at a £1, but anything over that we’ve got a fuel surcharge and it will vary by customer, whether it’s haulage or network. We can’t afford not to.” n For more on this story, see our Vox Pop on page 6.

New Boughey MD is perfect pick(er) Cheshire-based Boughey Distribution has named Angela Carus (pictured) as new MD. She joins from Culina Group, where she was director of operations and takes over the role from Keith Forster who has retired after 20 years with the company.

Her first job in the industry, not long after leaving school, was as a warehouse picker for Wincanton. Since then, she has held senior roles with a broad spectrum of companies including Gist, Kuehne+Nagel, XPO and NYK Logistics.

She aims to prioritise the environment, staff development and customer care in her new role, securing the strength of the business for the future, the company said.

Angry franchisees blast Tarmac as trailer row boils over Tarmac’s franchisee operators have accused the company of decimating businesses after it told them the premium rate for running moving-floor trailers would no longer be paid.

Its insistence that firms start using non-tipping trailers was

made several years ago on the grounds of health and safety, but Tarmac cushioned the expensive investment by paying hauliers using them at an enhanced rate of between 9% and 12%.

But operators said Tarmac has announced it is removing this rate

RAJA builds with Dawsongroup RAJA UK has teamed up with Dawsongroup truck and trailer to build an in-house distribution fleet.

The packaging firm said significant organic growth had meant moving its operations to purpose-

21.3.22

built premises near Bedford and internalising part of the company’s freight distribution.

This has involved building up its fleet of 7.5-tonne and 12-tonne curtainside rigids, a process that started with nine vehicles in 2021 and is expected to increase in number during 2022.

Last year, Dawsongroup provided seven new-build 12-tonne DAF LF curtainsiders and two further 7.5-tonne curtainsiders on temporary service from its core rental fleet.

Two new 7.5-tonne DAF curtainsiders are now due to be delivered to replace the temporary vehicles supplied. All the vehicles are CAZ and ULEZ compliant.

– and as a result the used market has been flooded with trailers.

One franchisee operator said he was forced to consider either investing in more equipment, or making drivers redundant: “The value of moving-floor trailers has plummeted,” he said.

“Hauliers did exactly what Tarmac wanted and now they have turned around and kicked us in the teeth. They are gambling with people’s lives and jobs.”

Another operator said he was looking at around a £20,000 loss per trailer.

PALLET PARTNERS: Palletline subsidiary Palletline Logistics has acquired the distribution and warehousing elements of Palletline member Ningbo Palletised Distribution. This is Palletline Logistics' ninth acquisition since it was launched

by Palletline in 2015.

This latest purchase sees the creation of Ningbo Wrexham and Ningbo London. The two will employ a total of 120 staff and operate a fleet of 70 vehicles. Ningbo Palletised Distribution, which was established in 1994, has been a Palletline member since 2015. It began by supplying and delivering nationwide contract furniture and expanded its services to include palletised distribution, moving floor bulk distribution, storage and warehousing, pick and pack, contract furniture sales and commercial property. Following the acquisition, Ningbo Palletised Distribution will retain 40 staff and focus on moving floor bulk haulage, online contract furniture sales and commercial property rentals.

MotorTransport 3

News

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Transport firms deliver to assist Ukrainian relief efforts Logistics UK has had more than 50 offers of help from transport firms keen to distribute aid donations to Ukraine.

But with storage capacity under increasing strain, companies with available warehousing space are being urged to come forward.

The call comes as Moody Logistics opened its warehouse facilities to Newcastle’s Polish Centre to help it cope with a flood of donations.

Pall-Ex is also coordinating the collection of aid at its central hub in Leicestershire, where

Tender meanz end of Heinz deal for Wincanton Wincanton’s 25-year distribution partnership with food manufacturer Heinz has ended after Leicester-based 3T Logistics won the tender to take over the operation.

Transport management firm 3T Logistics will replace Wincanton from 30 June.

It is expected that Kuehne +Nagel, 3T’s food and FMCG transport partner, will handle the transport element of the deal. However Wincanton has retained the warehousing contract on Heinz’s extensive Wigan site.

A spokesperson for Wincanton commented: “We can confirm that the Kraft Heinz transport operation will no longer be run by Wincanton from 1 July 2022. We expect to be able to offer all colleagues alternative roles within Wincanton.”

it will then be transported to its new Poland hub in Łódź. “The whole industry has really stepped up, the response has been incredible,” Logistics UK deputy communications director Rona Hunnisett told MT. “But the Ukrainian embassy have been inundated with people arriving with donations, so they’re keen to find warehousing space to move it to. If any operators have spare capacity please email supplyukraine@logistics.org.uk” “We’ve had offers of help ranging from an

individual manager with a Class 2 licence happy to drive, to people such as DWP offering a whole refrigerated fleet,” she added.

“It’s been everyone from Asda to Heron Foods, FMX Event Services, Jaguar Land Rover, Middlegate, Harrier Express in Kent, Gist, Burke and Wills Removals, even a pet transport company.

“There are also so many individuals who have taken time off in lieu to help. It’s very humbling.”

Bumper offer will bring operator in line with competitors, says union

XPO averts strike with 8% pay rise

By Chris Tindall

XPO said it had reached an agreement with its drivers to increase pay by 8% after the Unite union threatened strike action.

The logistics firm said it would also raise the hourly rate for warehouse workers by 13% over the next 15 months.

Unite claimed the pay increases for HGV drivers, warehouse staff and crossdock operatives were secured after its members voted for industrial action because their rates of pay were below those of XPO’s competitors.

Matt Draper, Unite national officer for transport, said: “From

the outset, Unite had made it clear that it believed this dispute should be resolved via negotiations.

“Once XPO understood the strength of feeling of its workforce, a new offer was tabled and agreed by members.”

An XPO spokeswoman said: “Over the last 18 months, we have consistently reviewed the developing driver availability and pay environment.

“As a result, working with our employees, we amended our compensation in 2021 and agreed to increase the hourly rate by 8% for our drivers and 13% for our warehouse colleagues in the next 15 months.

“By ensuring that our pay and benefits remain competitive, we have remained an employer of choice and have increased our employed driver and warehouse population to above pre-pandemic levels,” the spokeswoman added.

CNG Fuels goes big on biomethane Avonmouth has become the venue for the world’s largest biomethane refuelling station, capable of refuelling up to 80 HGVs an hour.

CNG Fuels said the location, near to the M4/M5 junction just outside Bristol was in a key location for many of its customers and it will support brands such as Lidl, Royal Mail, Amazon and Warburtons.

When fully utilised, CNG Fuels said it would cut 70,000 tonnes of greenhouse gas emissions each year by taking diesel HGVs off the road.

4 MotorTransport

The site is part of the fuel company’s network of eight renewable biomethane refuelling stations and it is aiming to build 12 additional stations each year to cater for the growing demand.

John Dinham, owner of John Dinham Transport, said running its fleet on 100% renewable fuel was a win-win for the business and for its customers: “It has been a huge selling point for us, especially amongst our bigger corporate customers who have pledged to reduce their carbon footprint,” he said.

ON THE CHARGE: Ford is set to launch a new generation of all-electric vans by 2024. The iconic Transit range will include four new electric models – the all-new Transit Custom 1-tonne van and Tourneo Custom multi-purpose vehicle in 2023, and the smaller, next generation Transit Courier van and Tourneo Courier multi-purpose vehicle in 2024. The E-Transit (pictured) offers 198kW – the equivalent of 265hp – for the top-rated version, while the less powerful 135kW model still provides 181hp. Range is claimed to be up to 196 miles from the 68kWh battery, which can be charged from 15% to 80% in just 34 minutes.

21.3.22

News

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VOX POP How are you tackling rising fuel costs?

Bob Terris, chairman, Meachers We have passed on all the increases we have incurred without any queries from our customers. We have had a fuel surcharge/rebate mechanism in place since 1984. All quotations and contracts state the base price of fuel applied. A surcharge or rebate is then applied based on the current price. The details of the mechanism and the various prices are on our website, which enables our customers to check the price applicable to them. This enables them to check and pass our invoices.

Lesley O’Brien, director, Freightlink Europe Operators cannot ignore escalating fuel costs. I calculate +52% since February 2021, which comes straight off an operator’s bottom line. Unless enjoying massive margins, those who fail to monitor costs and implement a fuel surcharge are committing operational suicide.

We have had a fuel escalator for some time now, so conversations with clients have

not been too difficult. It’s vital to have an ongoing narrative with clients. The danger is to price match with those operators who fail to monitor costs and drive down rates.

I would very much urge the wider industry to unite in ensuring that fuel increases are passed on/accepted, no matter how painful.

This is not profiteering. Of course we hope that Rishi Sunak will grant an essential user rebate, which will not only help our industry, but consumers – fingers crossed?

Caroline Green, CEO, Pallet-Track Hauliers are already having serious problems and are likely to see even more cost increases.

And with the rise in fuel prices, the amount you pay in VAT keeps going up and up, and into the government’s pocket.

The duty is 57.95p per litre at the moment.

Yes, it might be frozen, but it is already too high. If net diesel prices are £1.45 per litre and were 80p pre-pandemic, that means VAT has gone up from 16p to 29p on every litre.

Businesses can reclaim VAT paid on company purchases, which helps with cashflow but little else. For hauliers, a VAT cut is essentially irrelevant. We need

government help that will have a direct impact. It’s totally within their gift to delay the change in the red diesel law change – or forget it altogether.

Kevin Buchanan, CEO, Pall-Ex As fuel surcharges have been necessary for a long time we already have them in place and customers have to pay them or we cannot afford to work with them, especially with fuel at the level it is. I agree with Lesley on all points, but I very much doubt we will see the Chancellor give anything back in terms of fuel duty.

Moreton Cullimore, MD, Cullimore Group We are having to attempt (attempt being the operative word) to recoup the fuel increases through surcharges or increase base cost haulage. So for us, it’s trying to get it in any way we think best with each job/type of work. A blanket approach will not work for us as we are in multiple sectors. Achieving increases and winning work at the same time is very difficult.

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21.3.22

News extra: Driver agencies

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Driver agencies are often criticised for poor performance. But would more regulation really help?

The elephant in the room

By Steve Banner

Calls by some operators for driver agencies to be regulated may have been greeted with bemusement by some businesses active in the sector. Agencies are, after all, heavily regulated already.

Their conduct is governed by the Employment Agencies Act 1973 and the Conduct of Employment Agencies and Employment Businesses Regulations 2003, points out Carla Feakins, a senior associate at leading employment lawyer Lewis Silkin.

“They stipulate when fees may be charged and the terms which must be contained in contracts governing the supply of labour,” she says. “They also mandate various record-keeping and administrative requirements.

“The statutory regime seeks to prevent bad practice in the industry and includes protections for work-seekers and, in some cases, hirers,” she adds.

Under this regime, an operator is entitled to be informed by an agency if a driver it has been supplying is no longer suitable for the work being undertaken; if for example their vocational licence has been revoked or their CPC has expired.

Enforcement action

The rules are enforced by the Employment Agency Standards Inspectorate (EASI), which comes under the Department of Business, Energy and Industrial Strategy.

Employers can complain to the EASI if they believe an agency has breached its statutory obligations, says Feakins.

“The EASI has wide powers to

enter and inspect businesses, including accessing and removing documents, records and financial information,” she points out. “It also has the power to bring prosecutions, which may result in unlimited fines if an agency is found guilty of an offence.”

Under Section 3 (a) of the above act, the EASI can apply to an employment tribunal for an order

banning an individual from running an agency or being involved in running one. Five individuals were subject to such a ban at the time of writing, for periods ranging from three to 10 years.

The maximum is 10 years, and anybody who breaches such a ban can face criminal proceedings.

The legislation applies to businesses supplying labour to all types of industry and does not specifically address road transport.

Quality issues

KNOWLEDGE GAP: Agency staff with knowledge of skip-loaders or cranes can be hard to find, say some – whatever the agencies themselves may claim

8 MotorTransport

The difficulties operators experience in obtaining agency drivers capable of doing the work that is required of them are legion however, and desperately need addressing, according to Kieran Smith, chief executive officer of driver agency Driver Require. He roundly criticises the quality and competence of all too many agencies countrywide; and the poor standard of the drivers they are in the habit of supplying.

“I think it is atrocious,” he states.

“I am horrified by the lack of

knowledge they have of everything from the drivers’ hours rules to how trucks should be loaded safely and securely.

“This is despite the fact that they are driving killing machines.”

So far as the hours rules are concerned, they may have insufficient grasp of the requirement to take weekly rests, he contends, and little understanding or awareness of the Working Time Regulations.

“You would be appalled if you knew how remiss many of them are in these areas,” he states. They rely on the operator’s transport planners to tell them what to do, he says; but it is their vocational licence that is at risk if a planner issues instructions that result in the hours rules being broken.

Any business searching for agency drivers who know how a skip-loader operates or are familiar with skeletal trailers or moving floors is likely to struggle, Smith suggests. Their knowledge of how even the most basic onboard equipment found on a truck or trailer works is liable to be ➜ 10 21.3.22

News extra: Driver agencies

INCREASING FOCUS: Logistics UK deputy operations director David Jordan

sketchy, he says, even if they, or the agency providing them, claim otherwise.

Much of Smith’s ire is directed towards some, though by no means all, of the major agencies who work in a variety of different industries, and have insufficient awareness of the qualifications and capabilities of the drivers on their books.

“They can be the worst, because they often lack the specialist knowledge transport requires,” he argues.

Mike Bones, who manages driver agency Velocity Recruitment, says: “There are a lot of agencies out there that provide drivers who are less than competent. They can be agencies that do not specialise in providing drivers, and do not always understand what is involved.”

There are of course big multisector agencies that are acutely aware of the needs of the transport industry and those who work in it.

Last year saw Pertemps, a major player, offer suitable candidates free training to become truck drivers. In return, they were expected to sign a contract to work with the agency for at least two years.

Says Pertemps Driving Academy director John Poliquin: “We felt we needed to do something to try to get things moving and attract the next generation of drivers.”

Regulations over and above the main statutory obligations that apply across all forms of labour supply are already in force in certain areas of industry.

Firms supplying workers to the agricultural and food processing 10 MotorTransport

sectors, for example, must be licensed by the Gangmasters and Labour Abuse Authority says Feakins. Licensing is required in much of the care sector, she adds, so there are sectoral precedents the transport industry could cite when it comes to imposing specific requirements on driver agencies.

DVSA advice

Might the DVSA get involved in the licensing and regulation of driver agencies? That looks unlikely at present. Says a spokesman: “It’s not a priority, but it’s something we might look at in the future.

“However we would advise operators to make enquiries about the legality, suitability and reliability of a driver agency before subcontracting drivers from them,” he continues. “It is an operator’s responsibility to carry out the necessary due diligence before using agency drivers.”

Self-regulation could therefore be a more immediately effective option for the transport industry, and a programme is in fact already in place. Fleet managers could be forgiven for being unaware of its existence given that it has not been widely publicised.

Developed by operators and agencies, the Driver Agency Excellence scheme is managed by Logistics UK and steered by a governance group made up of driver agencies.

Agencies certified under the scheme are subject to an annual Logistics UK audit which scrutinises the procedures they adhere to when it comes to ensuring the

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drivers they provide are of the quality that customers have a right to expect.

Says Smith: “It addresses an agency’s core business standards, along with its driver management and recruitment standards.”

Areas examined include an assessment of the driver’s knowledge and competence, awareness of the importance of health and safety, and ability to handle specialist equipment. A procedure must of course be in place to ensure that the individual has a valid driver’s licence with the necessary entitlements, and a current Certificate of Professional Competence.

The importance of compliance with the drivers’ hours and tachograph rules is covered too, as is the agency’s drug and alcohol policy, and the agency is expected to carry out periodic checks of the individual’s expertise to ensure that it has not deteriorated.

Programme members include Driver Require – Smith is chair of the governance group, in fact – Velocity and Employ Recruitment.

Says Logistics UK’s deputy operations director David Jordan: “It ensures that operators are engaging with a reputable agency and that the drivers it provides have been properly screened. We’ll be increasing our focus on it over the next six months.”

Adds Smith: “I am leading a refresh of the scheme’s strategy and standards.”

“Insurance companies should consider asking operators if they use agency drivers, and if so, if they are Logistics UK DAE audited,” says Bones, pointing out that a higher standard of agency driver is likely to lead to fewer accidents and fewer claims.

Logistics UK stresses that using agencies involved with the

programme helps demonstrate due diligence, so far as Earned Recognition is concerned.

Meanwhile, Employ Recruitment managing director Sadie Weston says: “I think that extra regulation would be a sledgehammer to crack a nut, now the scheme is in place.”

Taking responsibility

She believes that operators should make sure they use agencies that comply with it, and should remind themselves that they too have responsibilities towards any temporary drivers they hire.

“They should for example have an induction procedure in place, and many of the big 3PLs – Wincanton in particular – are very good at this,” she observes. “Others are not so good.”

So what do transport companies think of the quality of the agency drivers they take on? Says Guy Burgess, logistics director at Panther Logistics: “I wouldn’t describe it as poor, but it’s not as good as it was, and we’re having to pay a lot more for them. Availability is better than it has been, though.”

Smith stresses that he has huge sympathy with the majority of hardworking drivers and the working conditions they face. “In many cases they’ve been under the cosh, and treated like rubbish,” he remarks.

That is especially the case when it comes to safe places to stop overnight, he adds.

“We view ourselves as their champions, and we’ve appeared before the House of Commons Transport Committee to put their case,” he says.

“They don’t want to sleep in a lay-by awash with human sewage and people who want to try and steal their load – and I don’t blame them.” ■

21.3.22

Road Transport Expo

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RTX event promises to impress with wide range of exhibitors from all corners of the truck sector

Get this show on the road

By Hayley Tayler

This summer will see the launch of an exciting new industry show that is “all about the truck” – the Road Transport Expo (RTX).

Taking place at NAEC Stoneleigh from 30 June to 2 July, this three-day bumper event will bring together more than 100 exhibitors with specialist equipment to span the entire industry, alongside a topical business conference to keep you abreast of the latest policy and technology updates.

And best of all, it’s absolutely free to attend!

The show is based on a hub and spoke model, with a large inside and outside central area surrounded by a series of specialist zones.

Below we outline a few of the exciting zones to visit at RTX, but for a full list and to see who’s exhibiting and where to find them, head over to roadtransportexpo.co.uk and check out the searchable site plan on the Visitors tab.

LED lighting and workshop equipment to tyres, leasing services, compliance firms and everything else you need to keep a fleet running smoothly.

All the big names you’d expect to see at a major HGV-focused event will be there, along with a host of exciting SMEs and new entrants to the market.

Tippers and tankers

Harrogate’s famous Tip-Ex and Tank-Ex shows have relocated to their new home at the Road Transport Expo, where you can expect to find the same variety of exciting vehicles and technology on display to keep your bulk haulage operations running efficiently.

From the truck-makers’ latest construction ranges, through to top-class bodybuilders and heavy-

RTX Hub

The beating heart of the show, the inside and outside hub areas will bring together everything from

THE URBAN ZONE Clean air and safer towns and cities are the name of the game when it comes to fleet technology aimed at the urban logistics sector.

Those looking to plug in to the zero-tailpipe-emission benefits of electric vehicles should make sure to talk to EQUANS, which will be on hand to offer practical advice on your fleet’s energy requirements.

Vehicle manufacturers and technology firms such as Allison Transmission, Ford, Iveco, Maxus, Mercedes-Benz, Scania, Tevva and Volvo Trucks will all have their latest city-centric options on show, as will commercial hire specialist Fraikin and Northside Truck & Van. And, of course, that all-essential camera technology is a must to help drivers navigate busy streets and avoid collisions with vulnerable road users, so make sure to visit CameraMatics, CKO International, SmartWitness and Spillard Safety Systems.

The latest telematics and mapping software is also a must to drive efficiency into your urban deliveries and keep you on top of restrictions. So why not check out what’s new from CMS Supatrak, Trimble Maps and Trakm8?

Putting safety at the core of things in the Urban Zone, meanwhile, will be exhibitors Aspock Systems, Disc-Lock Europe, Durite, Handsfree Group, Parksafe Group, r2c Online and Truck Door Windows.

12 MotorTransport

duty workshop equipment, you’ll find it across the vast inside and outside Tipper Zone.

In the Tanker Zone, meanwhile, you’ll find prominent tanker manufacturers on hand to showcase their wide ranges of specialist models, ranging from ADR through to milk and waste vacuum models.

Trailers

Make a beeline for the Trailer Zone at the show if you’re on the hunt for an exciting new model for your fleet.

Head over to the Lawrence David stand to explore its wide range of exciting and innovative products, from curtainsiders and skeletals through to the largest double-decks Trailer axle and suspension specialist BPW will be on hand to answer your questions on new equipment, servicing and training, whilst JOST (GB) will be showcasing its product range, including its award-winning KKS digital coupling device.

Meanwhile, Colson Trailers will be showcasing its robust, affordable half-pipe and scrap trailers, ideal for those operating in construction, aggregates or muckaway sectors.

on-road load handling equipment, intelligent services, smart and connected solutions.

If you’re after a truck-mounted forklift, make sure you check out the latest range on offer from MEB Equipment, which can also help you with maintenance and sales of existing gear.

For your bespoke heavy handling requirements, talk with Megalift, which can help you explore its range of materials handling equipment for large loads.

Waste and recycling

For those in the waste and recycling sector, major players exhibiting their newest models include Dennis Eagle, Scania (GB) and Volvo Trucks.

■ Book your ticket today at roadtransportexpo.co.uk

Materials handling

If you’re in the market for cranes and materials handling equipment, this is the zone for you.

Global technology and mechanical engineering giant Palfinger will be on hand with its vast selection of innovative crane and lifting solutions. And Hiab will be showcasing its extensive range of

30 JUNE - 2 JULY NAEC STONELEIGH I WARWICKSHIRE

REGISTER NOW! IT’S FREE TO ATTEND! Roadtransportexpo.co.uk

21.3.22

Focus: zero emissions

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Zemo Partnership charts its progress over the last decade in the push for net zero emissions

Working to decarbonise

By Andy Eastlake

It’s now 10 years since I took over leadership of the Zemo Partnership (back then, the LowCVP) and it’s certainly been a period of great turbulence and dramatic change in the way we view and operate our transport system.

The partnership was set up over 20 years ago to work closely with government, industry and other key stakeholders to accelerate the transition to a lower carbon transport system.

The headline objective, of course, changed in 2019 when the UK government agreed the now legally binding commitment for the UK to achieve net zero emissions by 2050. This effectively means removing emissions from our transport operations within 30 years.

The momentum towards achieving this target has increased significantly in recent times, culminating in the landmark publication of the UK’s Transport Decarbonisation Plan last year. It’s this plan that now shapes Zemo’s activities.

Light vehicle success

We’ve seen dramatic progress in decarbonising cars and vans, with the latest figures showing that more than one in five of all new cars sold is rechargeable from a plug; more than half of these being full battery electric vehicles. While progress has been somewhat slower in the van sector, we think this is also gaining momentum.

The focus is moving to the infrastructure we’ll need to support the changing fleet.

Large commercial vehicles are responsible for approaching onefifth of the UK’s transport-related CO2 emissions. Meanwhile, the bus sector has been a leading light in the transition. That’s why the focus of the decarbonisation agenda is increasingly moving to the larger freight sector.

However, for many larger, heavier and long-range operations, electrification is not yet an option and there are still differences of opinion about the technologies we should be pursuing, particularly for the short to medium term.

That’s one reason why Zemo has been supporting the adoption of fuels like biodiesel, hydrotreated vegetable oil (HVO), biomethane 14 MotorTransport

and, potentially, renewable hydrogen for use in the freight sector.

Our recently launched Renewable Fuels Assurance Scheme gives operators confidence in the information provided to them about the fuels. Using renewable fuels, on their own or in high blends, can make a significant immediate impact in the emissions of commercial vehicles where there are no viable electric alternatives yet.

Within the sector the vast range of vehicles involved, along with their ancillary power requirements such as refrigeration units (TRUs), plus the diversity of their operations including refuse collection, makes decarbonisation of the freight sector particularly complex and challenging – but also interesting!

Real-world experience

Establishing and sharing real-world experience and evidence is even more critical in these applications so Zemo has been working closely with government and industry on a range of practical trials and demonstrations to find out what works and what could work with complementary measures. The focus then moves to agreeing what policy

measures are needed to accelerate the desired changes.

We were close collaborators in the Low Emission Freight and Logistics Trials (LEFT) and are now focused on disseminating the results to key audiences. We’re also providing technical and promotional support to the DfT’s Zero Emission Road Freight (ZERF) programme, which is working to deliver significant, practical and robust trials across three likely future zero-emission solutions. The results of these trials will provide the basis for policies and incentives to enable the market transformation needed.

Zemo has also focused on some more specialist challenges which have a significant impact on energy use and the overall emissions impact of road freight. Our work testing TRUs, for example, has shown that emissions and fuel use can be dramatically reduced – by more than 85% in one trial involving two auxiliary TRUs. All our work and reports are available via our website, with members having more detailed information and direct input to the development and conclusions, together with the opportunity to work with government and key stakeholders on policy solutions based on the evidence.

With the pressure on all players in this market from OEMs, fuel providers and logistics customers ultimately to the operators themselves, collaboration to create shared understanding and agreed objectives is vital.

Zemo Partnership is a member organisation and we welcome participants from the freight sector, so join us, make your views heard and hear those of others – and help to accelerate the transition to net zero in UK freight.

■ Andy Eastlake (pictured) is CEO of Zemo Partnership 21.3.22

Viewpoint

motortransport.co.uk

Put VAT not duty on fuel T

he chancellor will present his spring Budget on March 23, but don’t hold your breath for any action on the crippling rise in fuel prices triggered by the Russian invasion of Ukraine.

Diesel pump prices hit a record 173ppl Steve Hobson earlier this month, according to the RAC. Editor While hauliers often buy in bulk at better Motor prices, and should have fuel price Transport surcharges built into contracts, the hit to cashflow caused by rapidly rising fuel prices can be enough to push some operators over the edge.

What is less clear is the effect of higher fuel costs on consumer price inflation, which rose to 5.5% in the 12 months to January. With fuel duty frozen at 58ppl for the last 12 years, there is still plenty of scope for the government to heed the pleas from tireless campaigners FairFuel UK and its 30 supportive MPs for an immediate cut of 5ppl in fuel duty. But with public finances still in a dire state and the prime minister wedded to the increase in National Insurance in April, the chancellor is

unlikely to agree to cut other taxes.

That is why the RHA’s call for a 15ppl essential user rebate is even more likely to fall on deaf ears. The government argues that it is impossible to give any sector a leg-up while general taxes are rising.

There is another avenue open to the government now that the UK is outside the EU that MT has called for before – increase the 20% VAT rate on fuel and cut fuel duty to maintain revenues. That would enable every VAT registered business to claim back the extra VAT, but leave motorists paying a little more at the pump.

Those with long memories will remember the fuel duty escalator, which was presented as a green tax to encourage drivers to make the switch to more fuel-efficient vehicles. Surely now, with the UK net zero carbon emissions target just 30 years away, there can be no argument against a carbon tax on car drivers who have the choice to switch to electric vehicles while HGV operators who have far fewer options pay less for their essential fuel.

Where is your next business owner?

A

Iain Speak MD Iain Speak Consultancy

ll businesses face many challenges, however privately owned companies led by the founders or subsequent generations often have unique issues and dilemmas, often around succession and strategy planning.

Many of the leaders of such companies today are ‘mature’ and they have often held the guardianship of their companies for many years. They look to the past, quite rightly, with pride, but looking to the future is significantly harder. Who will succeed in the leadership role? How will the worth of the business be preserved whilst recognising that the future will almost certainly need investment?

Some have the next generation of family coming through who are both able and willing to take the business forward. Some don’t. The later may be in a situation where the only option, certainly in their minds, is to carry on and put off the inevitable decision to sell. It’s not just about the financial prize, but often these private companies face several other non-financial factors, such as security of employment for their people and customers, the maintenance of their values and culture, and protection of their legacy. The business has been their life, and should they sell, a big void will be created, which without other interests will be very difficult to fill.

So, what are the options for such

16 MotorTransport

business owners? There are only two: do nothing and keep going, hoping for the best; or sell – but who to and when.

This is a fundamental element of a strategy. Targets can be set, plans can be put in place to deliver the target, but you must also consider the organisation, which often lags and inevitably runs hard to try and catch up. As the owner matures, they themselves are in catch-up mode, and become part of the strategic challenge!

The future owner has to step into your shoes and tick all your boxes.

In my view, the earlier business owners start to consider the future and options for their companies, the better. For those who simply wish to cash in and get the biggest cheque possible, focus on the short-term P&L and balance sheet. But… It’s a lot harder for those who put at least an equal value on the non-financial aspects.

You have to look beyond and behind the numbers and do your due diligence... not every buyer is going to be acceptable to you.

You must seek out that acceptable future owner as it is unlikely they will find you.

Like the driver shortage, there is also an owner shortage!

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Head of content Tim Wallace2158 Events and projects editor Hayley Pink 2165 Group production manager Isabel Burton Layout & copy editor Nick Shepherd Senior display sales executive Barnaby Goodman-Smith 2128 Event sales Tim George 0755 7677758 Classified and recruitment advertising rtmclassified@roadtransport.com Sales director Emma Rowland 07780 604075 Divisional director Vic Bunby 2121 MT Awards Katy Matthews 2152 Managing director Andy Salter 2171 Editorial office Road Transport Media, First Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Email:customercare@dvvsubs.com Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £146/year.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 ©2022 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 21.3.22

Telematics

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The telematics transformation

Rapid technological developments make choosing the most appropriate telematics system for a particular operation more complex, as Malory Davies reports

20 MotorTransport

T

elematics systems have become standard in many fleets, with four out of five operators saying they use them, according to research

by Motor Transport last year. Not only that, 90% of users say they have seen real benefits to their operations from doing so.

But technology is moving on. The use of cameras was given a boost last year when London introduced its Direct Vision Standard (DVS), while the growth of smartphone apps and the introduction of the 5G mobile system is making planning a strategy increasingly complex.

In the early days of telematics, vehicle tracking was a priority for fleet operators, but the range of functions has grown to include driver monitoring, improving fuel consumption and boosting safety. Telematics also has the potential to optimise supply chains, making the sector safer, more sustainable and more efficient.

“However, for this to be successful, we need to find a way to integrate individual systems across the industry, bringing together fleets with subcontractors,” says Martin Willmor, chief executive of DigiHaul, which has a network of around 750 carriers. “Our industry relies on these subcontractors and smaller fleets, so it’s only by bringing them together that we’ll be able to access the full benefits of telematics systems.”

Leonardo Mifsud, product marketing manager at Microlise, points out that vehicle tracking can now be performed on a smartphone while fleet technology has

continued to improve to keep pace with these changes and there has been a shift in benefits and priorities. With a 40% rise in fuel costs over recent months, improving fuel consumption is a key consideration for any transport operator, but so too is optimising and getting the most from existing assets.

“Safety can be improved not only by monitoring driving style, but by giving drivers a view of nearside or rear vehicle blind spots, or through sensor packs which alert of nearside movement, detecting vulnerable road users such as cyclists,” he says. “Bridge strikes are a real concern, both operationally and financially, particularly as bridge repair and train passenger compensation costs can be passed on to transport companies.

“With climate change remaining high on everyone’s agenda, operators are also considering their impact on the environment, and this filters down to how they are measuring emissions for reporting purposes. Again, driving style has a key role to play here, as do planning tools that can optimise routes to reduce mileage travelled and reduce emissions and wear and tear on vehicles.”

Seeking partnership

James Dewhurst, corporate sales manager at Webfleet Solutions, says: “We find that customers are looking for a partnership that will help them gain insights into the data. It’s not just about selling systems; we sit down with the customer every few weeks to review the data.” ➜ 22

21.3.22

Telematics

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Compliance is a big issue, Dewhurst points out. Lots of companies have different systems and systems like Webfleet can integrate information from third-party systems.

The business case for telematics has been changing, according to Chris Woods, enterprise sales director at Trakm8. At one time, operators wanted it simply for tracking the vehicle, but today it is more about vehicle utilisation, sustainability, vehicle uptime and how it is being driven.

Camera integration

The integration of cameras with telematics has grown significantly over the past couple of years, not least because of London’s DVS, which came into force in March last year. In a Motor Transport survey in September last year, 55% of responding operators had fitted cameras to their vehicles in the previous two years.

Richard Lane, commercial director at VisionTrack, says the company has seen exponential growth over the past few years, reflecting the growing use of cameras in telematics systems.

Eliminating a truck’s blind spots is an obvious use for cameras but, says Lane, more advanced systems can use ultrasonics and artificial intelligence to pick out vulnerable road users.

When it comes to driver behaviour, cameras can give fleet managers a deeper understanding of events. Lane gives the example of a harsh braking incident: from the data it might appear that the driver had been irresponsible, but video footage could then show the driver had actually been skillful in avoiding someone.

“We have seen quite a number of incidents where video footage has had an impact,” he says, pointing to cases in which drivers have been involved in collisions where there were no witnesses. If the fleet operator has video footage and can prove it was a non-fault incident, then it can be resolved more quickly, he says.

Not surprising, then, that fitting cameras can

SMARTPHONES: ALTERNATIVE OR COMPLEMENT? There is an increasing number of smartphone apps that offer telematics functionality. In fact, DigiHaul offers its own app to smaller members that don’t have telematics systems in place. The app enables operators to input the data to give shippers updates.

Willmor says: “As with a lot of technology, there is a push to make the kit more compact and more portable, and apps will definitely have a key role to play in the future. What we are trying to do is simplify our technology and always keep the driver in mind. As such an important part of the end-to-end process, we must keep drivers at the centre of our thoughts and make sure the tech supports them when they need it most.”

Microlise’s Mifsud believes that smartphone apps are great for basic functionality. “Accurate GPS position can be obtained by using one,” he says.

“SmartPOD, our ePOD app, is ideal for subcontractors feeding proof-of-delivery and location information into a customer’s system. However, they’re limited in what they offer and can’t be as reliable as a telematics unit connected directly to the FMS port reading directly from an engine.

“Apps are driver-centric and serve a useful function, undoubtedly, but they can’t provide a planning and route optimisation solution or schedule execution tools and they simply can’t deliver the same benefits to the back office of an operation.”

And, warns Sensata SmartWitness’ MacGowan: “The main problem with telematics apps is the lack of accuracy. Firstly the GPS data often lags behind the actual location and the data itself is at best a rough estimate, plus there is no contextual analysis of the data and so it will include a lot of false positives. Only with sophisticated AI software and with accurate GPS and G-shock data can you get an accurate view of driver behaviour.

“But what we have found telematics apps are useful for is self-installation and calibration of cameras.”

22 MotorTransport

lower the frequency and cost of insurance claims.

Innovation is rapid in video technology. Lane points out that VisionTrack has a large team of developers working on ever-more sophisticated AI and machine learning systems. It has developed computer vision systems to automate the analysis of captured video footage. This allows operators to identify and respond more quickly to collisions, near misses and harsh driving events.

Safety benefits

The safety benefits are highlighted by Sensata SmartWitness MD Fearghal MacGowan. “A recent pilot scheme of SmartWitness hardware and software saw a 15% average reduction in vehicle accidents, along with a 30% increase in efficiency and productivity, and a 7% reduction in fuel and maintenance bills.”

The adoption of telematics systems has been led by larger operators who can see a clear return on their investment in managing complex fleet operations. Smaller operators have been slower, fearing that the cost of the systems will not be recouped in improved efficiency.

However, Depti Yenireddy, senior director of product management at Samsara, is clear that the small and medium fleets will see efficiency savings from adopting telematics technology. She emphasises the role it can play in enabling fleet managers to coach drivers to save fuel and improve safety.

MacGowan agrees, pointing out that many mediumsized operators have seen a return on investment from SmartWitness integration within six months. “One of our clients is an HGV training company just outside Birmingham, which was getting four to six false insurance claims per week before it installed ➜ 24

21.3.22

Telematics THE GENERATION GAP For years, telematics systems have managed perfectly well using the 2G mobile phone network as they have been designed to use minimal amounts of data.

But mobile technology is moving on with the arrival of 5G, which promises dramatic increases in speed and reductions in the delay between sending and receiving information (known as latency). So can operators benefit from looking to 5G now?

Microlise’s Mifsud points out that the value of 5G is limited at the moment owing to incomplete geographic coverage and an unfavourable cost-benefit ratio.

“At present, mobility is still restricted to the 4G network so a truck in transit will gain little from it,” he says. “However, 5G does present huge opportunities in the future. Faster download speeds will drastically enhance the usability of highresolution image quality from in-vehicle camera technology, for example.”

DigiHaul’s Willmor is clear that for a connected supply chain to work, it is crucial systems can speak to each other, as doing so permits greater efficiencies like dynamic re-routing and the live-shifting of operations in response to real-time developments.

“The first step to achieving this network of vehicles which are all able to communicate with each other is integration, and 5G technology will be critical to this,” he argues.

However, to free up spectrum for 5G, the government has set out plans to switch off the 2G and 3G networks by 2033, while some networks are planning earlier shutdowns. Telematics providers are expecting a smooth transition, but operators should check with their provider so that they don’t get caught out.

360-degree camera systems. It was paying out £500 to £1,000 on each claim prior to installation, around £3,000 a week, because it was cheaper than starting a lengthy insurance dispute. Since installing cameras that has dropped to practically nothing because it can effectively contest every case with video evidence.”

DigiHaul’s Willmor points to other benefits: “In particular, telematics and visibility give smaller operators the opportunity to access a wider range of potential contracts, as shippers prioritise working with carriers that can supply them with accurate tracking data.”

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“This will require more than a network of vehicles which communicate with each other or the operator; it will need an intuitive and adaptive system that communicates with charging systems. Telematics will be vital in optimising the service provided by hybrid and electric vehicles as supply chains seek out more sustainable modes of transport.”

Trakm8’s Woods highlights the importance of telematics data in enabling operators to look at the feasibility of moving to alternative power sources for vehicles. At the moment, operators need to consider how to make electric vehicles fit in with conventional vehicles in the fleet to maximise the benefits. There are several issues such as range and journey type, as well as dealing with the challenge of reliance on public charging networks.

Before operators can put an electric vehicle on the road, they need to know that it can complete the cycle using optimisation algorithms to find a route that is EV-friendly. Telematics is mission-critical to this in enabling the customer to see the state of charge.

Battery monitoring

Woods also points to another issue: enabling the operator to monitor battery degradation as a vehicle ages. Over a period of time, battery degradation could mean a vehicle can no longer complete its assigned route.

Steve Thomas, MD sales and marketing at Ctrack, says: “Customers want assistance in deciding which vehicles can be replaced.”

This is not always straightforward. Thomas points out that a vehicle might have to travel more than its nominal range which, at first sight, would rule out going electric. But it is possible that it could stop near a charging point, enabling it to recharge.

Another factor is the high cost of some public chargers. If a vehicle needs to use a public charger, it could make going electric uneconomic, he says.

Microlise is currently scoping requirements as new electric vehicles are released and the market recalibrates, says Mifsud: “For instance, there is still a lack of clarity around whether 3.5-tonne EVs will need a tachograph as the weight of batteries required will technically push them into the next vehicle weight category. However, the benefits from an end-to-end telematics solution across electric vehicles will still deliver similar rewards; for example, instead of increasing MPG, improved driving will increase range, and so on.” ■

Hybrid and electric vehicles

The move away from diesel for commercial vehicles is gathering pace, adding a new level of complexity to operations as fleet managers balance the different imperatives of diesel, hybrid and electric vehicles.

“Telematics for hybrid and electric vehicles will have the unique function of calculating the best routes based on current charge of a vehicle and the locations of available charging stations. Telematics systems will then have to be integrated with a platform that displays charging station data in real time to maximise their effectiveness,” says Willmor.

24 MotorTransport

21.3.22

Marketplace news Arrival of 165 tractors and 40 rigids bolsters contract and spot hire fleet

Melanie Creedy to help Northgate’s clients move to EVs Northgate Vehicle Hire has appointed Melanie Creedy (pictured) to the role of EV business development manager, as its fleet customers continue to make the shift away from diesel.

Creedy brings more than eight years of fleet expertise to Northgate.

She will operate on a national level and work closely with head of strategic accounts, Kathleen Whittam.

Her brief includes working with the sales team to set up strategies to help businesses manage the transition to electrified fleets, offering turnkey solutions including EV infrastructure.

Creedy said: “I am excited to be working for such an established brand within the industry, and one with such an extensive national reach.

“For a lot of fleets, the Drive to Zero can seem challenging, but I am delighted to simplify that process as much as possible at all levels.

“With the right framework for a transition to electric vehicles, it can be a remarkably simple process.”

Whittam said: “We are looking forward to Melanie adding to our already highly skilled team.

“Her knowledge of facilitating large-scale fleet transitions and her passion for greener, more sustainable fleets will be of huge benefit to all.”

26 MotorTransport

Salford Van Hire takes on £16m of Renault Trucks

Salford Van Hire has taken delivery of its order for more than 200 Renault Trucks, worth in excess of £16m.

The order is made up of 165 tractor units, 20 rigid box vans and curtainsiders built on 6x2 chassis at 26 tonnes from PPS Commercials in Pilsworth, and

20 rigid tail-lift dropsides and taillift box vans on 18-tonne chassis built by Martin Williams of Hull.

The units will be added to Salford’s contract hire and spot hire fleets, which have been waiting for the new arrivals after supply chain issues caused primarily by the pandemic.

SVH chairman Raffaello Bacci said: “We are a customer-led company and our customers tell us they like the Renault offering.

That factor, combined with our own exhaustive vehicle research and testing, means we have faith in the Renault range.”

Speaking about the recent delays in deliveries, Bacci said: “It has been frustrating for all concerned but we are confident the worst is behind us and that the future is bright, despite the recent announcement by Ryder about its withdrawal from the rental sector here in the UK.” Salford Van Hire is also opening a new preparation and maintenance centre in the Crumpsall area of Manchester close to its main depot on Sherborne St. Last year, the company added 220 new DAF Trucks to its hire fleet in another fleet refresh.

Fruehauf production already on the increase Trailer manufacturer Fruehauf has confirmed that it has already increased production to 12 units per week and hopes to reach 20 units a week by year-end.

It has been just four months since MV Commercial secured the future of Fruehauf and its 67-acre Grantham site, with production now focusing on tipping trailers and several new products scheduled for launch during this year.

An additional 30 new staff have been recruited since October, with total employee numbers expected to reach 175 by the end of the year.

Steven Cairns, MD of MV Commercial, said: “As we start to see the result of the introduction of new build lines and state-of-theart equipment, we anticipate that number reaching 20 a week before the end of the year.”

21.3.22

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Renault Truck Commercials Felixstowe moves to new site Renault Truck Commercials Felixstowe has moved to new eco-friendly site.

The purpose-built 1.5-acre facility at Hodgkinson Road is located just over a mile from the dealer’s previous location, and offers excellent access to the A14 and the docks.

The new site, which has been built to comply with Renault Trucks’ exacting dealer and sustainability standards, is headedup by service manager Marc Chetty (pictured).

Facilities at the new location include a three-bay workshop and bodyshop. The site provides all-makes servicing, repairs and maintenance, as well as Renault Trucks’ 24/7 roadside assistance.

Waiting drivers can use a comfortable, well-equipped rest room with refreshments, shower, free wi-fi and large TV.

Con Rooney, MD of Renault Trucks Commercials, commented: “We are delighted to open the doors to our new Felixstowe site, which offers a superb, eco-friendly retail experience for our customers

and a comfortable working environment with a particular focus on well-being for our employees. Marking a significant investment, our newest depot has been designed from the ground up to

Group aims to create youngest contract hire and leasing fleet in the UK

Asset Alliance to invest over £100m Asset Alliance Group is acquiring more than 1,400 new vehicles worth over £100m this year, as it aims to create the youngest contract hire and leasing fleet in the UK. The order includes 935 tractor units and rigids, 400 trailers and 60 vans from manufacturers including DAF, MAN, MercedesBenz, Scania, Chereau, Dennison, Krone and Montracon.

The latest deliveries will take its fleet to more than 5,000 vehicles.

Asset Alliance Group’s contract hire and leasing sales director Paul Wright (pictured) said: “A strong supply of high-quality multi-brand trucks and trailers is at the heart of what we do.

“We take pride in being able to give our customers exactly the assets they need, which is why we put so much focus on long-term planning and large orders.

“These new vehicles will help us achieve our goal of having the youngest fleet on the market, and ensure our customers can run modern and reliable vehicles,” added Wright.

21.3.22

deliver maximum vehicle uptime.

“It is an important part of our growth strategy for the Felixstowe area that will help support our customers and colleagues for many years to come.”

Thomas Hardie upgrades with Totalkare lifts Volvo Trucks dealer Thomas Hardie Commercials has upgraded its Trafford Park and Preston sites with new Totalkare Y-MECH vehicle lifts.

Chris Schofield, head of procurement at Thomas Hardie Commercials, said: “We needed a solution to the challenge of preparing HGVs for ministry MoTs, while maintaining high levels of safety for our operatives.

“We have done away with using outside pits and the Y-MECH product was a natural choice.”

The galvanized lifts will be supported by a comprehensive Totalkare aftersales service contract with two routine service engineer visits a year.

■ Totalkare will be among the firms exhibiting at the exciting Road Transport Expo 2022, which takes place from 30 June to 2 July at the NAEC Stoneleigh.

30 JUNE - 2 JULY STONELEIGH PARK I WARWICKSHIRE

MotorTransport 27

Photos: Craig Eccleston

Marketplace

Way out west Having opened last November, Volvo Truck and Bus Wales & West’s new Avonmouth facility offers an environmentally friendly one-stop shop, with all the company’s services under one roof. Colin Barnett reports

J

ust a year ago, we published a picture of two men in full PPE standing in front of a dump truck in a muddy field. The two men were Billy Nairn (MD of Volvo Truck and Bus Wales & West) and Christian Coolsaet (MD of Volvo Trucks, UK and Ireland). Today, the builders have gone, and the field is now the impressive new headquarters of the independent dealer group that covers south Wales and the south-west of England. Although the new premises nominally serve Avonmouth, that whole complex is now spreading along the Severn Estuary so quickly that they are actually located at Hallen, in Gloucestershire.

Actually, ‘field’ is an over-generous description of the marshland that required extensive preparation, including inserting 21m steel piles, to stabilise the ground enough to build on. The first sod was cut in January 2021, and the business moved in on 1 November. This was a month later than planned, due entirely to the ongoing building materials shortage, which affected many aspects from doors to manhole covers, and even meant mortar had to be mixed on-site. Prior to the move, the Avonmouth operation was conducted from two separate sites – one specialising in heavy major repairs, and the other handling lighter jobs and aftersales work.

Hallen is the HQ of the whole group that comprises 28 MotorTransport

10 sites covering an area bounded by Hereford, Swindon, Shepton Mallet and Swansea. It was originally owned

by Volvo, but in 2008 the business was bought out by incumbent managing director Nairn and fellow directors Richard Millar and Jeff Clarke. Since then, group turnover has more than doubled from £32m to £66m. Apart from a six-month interlude with another Swedish brand, 63-year-old Nairn has worked within the Volvo Truck organisation since leaving school at 16, becoming MD of Wales & West in 2005.

Grand tour

Arriving at the new site, there is a spacious car park to the right, a used truck display area to the left, with its own dedicated sales office, and straight on through the security barrier to the main building and aftersales operation. The whole site is surrounded by newly planted trees, which will eventually screen the view of lots of trucks.

It currently occupies 7.14 acres with 28,000sq ft of building. The company also owns an adjacent 2 acres, ready to accommodate any future expansion needed. A drone’s-eye view of the site can be seen at www.youtube. com/watch?v=P1eaShCgRSY. Hallen is as environmentally friendly as possible. Nairn says: “We’re trying hard to keep away from fossil fuels.”

21.3.22

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And to achieve this, an array of solar panels feeds a substation capable of supplying 1,000kVa, although only 200kVa is currently taken. This more than covers the site’s present needs, and even the vehicle washdown is electric. Workshop heating is by an innovative infra-red system, and air-conditioning is from an air-source heat pump.

The new site is fully compliant with Volvo’s brand guidelines, Nairn saying: “We’re happy to run the Volvo way. It’s a fantastic brand.” The main office facility is on two levels. Upstairs is a spacious area providing headquarters facilities such as director’s offices and a boardroom reflecting their various sporting interests.

Downstairs are the customer-facing functions. Just through the main door is the service reception, and next to it is the drivers’ waiting area, open-plan to prevent any ‘them and us’ atmosphere, and with a self-service kitchen and toilet just for drivers.

Also downstairs are the local aftersales management, with offices looking into the workshop area, the parts

A LIFE’S WORK: MD Billy Nairn has worked within the Volvo Truck organisation since leaving school at 16

operation and the impressive staff welfare facilities, with a separate entrance for the 26 technicians.

These include a so-far unused area for female technicians and innovations such as wash basins with knee-operated taps. Another nice feature is a wash basin in the workshop, enabling technicians to leave with clean hands.

The workshop consists of nine bays, including a 3m-wide bay for heavy jobs, and just approved an ATF lane, initially for one day a week. Opening hours are 8am to midnight in two shifts, five days a week, plus Saturday morning. There is also a collection of out-buildings, housing oil stocks, air compressors and warranty items awaiting return. There is also a standalone valet area for the sales operation.

At the time of our visit, 25 22-reg tractors for B&Q were being processed. Some these were CNG, and Hallen shares the group’s gas and electric vehicle support function with Swindon, with almost 200 gas trucks being served by Hallen alone. n

EVESHAM SITE As well as the totally new headquarters at Hallen, Volvo Truck and Bus Wales & West has also made a substantial investment in its small but strategically important site at Evesham. £500,000 has more than doubled the footprint of the facilities, with the three workshop bays now increased to six. With an external ATF provider just around the corner, there was no need to incorporate one on-site. There’s currently insufficient demand locally to install the dedicated infrastructure needed to service gas and electric trucks.

The office end of the building, including a kitchen and staff welfare facilities, has 21.3.22

been expanded and totally modernised, and in fact, the final deliveries of new furniture were still awaited when we visited.

The staff, under the direction of the enthusiastic dealerpoint manager Lisa Mackinnon, number two office staff, a parts supervisor and seven technicians.

A few staff left during the pandemic, but numbers have largely been restored, although Mackinnon says she would still like two more technicians to utilise the site’s capacity. With the number of Volvo operators in the area, there’s a vibrant parts business.

Outside, the surface has been improved.

There’s a new truck wash bay and space to display up to 50 used trucks, a key part of Evesham’s role. Mackinnon reports that the expansion is already paying off in raising Volvo’s profile in the area and increasing the customer base.

MotorTransport 29

Sustainability

I

n January 2022 DHL Supply Chain announced it was introducing a ‘Green Carrier Certification’ scheme for 750 subcontractors through its third-party carrier management partner DigiHaul (see box on page 42). The Green Carrier Certification programme helps to identify subcontractors that are already contributing to sustainable logistics, while encouraging even more investment in green technologies to reduce carbon output.

DigiHaul manages a network of 750 carriers on behalf of DHL, who will all be invited to take part in the certification programme. DigiHaul will be responsible for encouraging participation, conducting the assessments and managing the certification process.

Tutu Akinkoye leads DHL Supply Chain UK and Ireland’s GoGreen environmental programme and she says: “Visibility of transport carriers’ emissions has been a challenge to date. DigiHaul has the data collection and processing capabilities to manage the certification programme, as well as strong relationships across the carrier community to encourage even more effort from everyone in our industry.”

Carriers will be assessed on whether they have an environmental or sustainability strategy in place, as well as their ability to measure their carbon footprint and share their data. In addition, the assessment will look at features of their fleet – from basic technologies such as low rolling resistance tyres, aerodynamic enhancements and idle cut-off, to advanced green technologies such as sustainable fuels and alternative drivetrains.

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In it for the long haul DHL’s third-party carrier management partner DigiHaul is looking to engage its 750 subcontractors in a longterm certification programme to ensure greener operations. Steve Hobson reports on its progress

Certification levels

The process will result in carriers being awarded one of four levels of certification: ‘Pass’, ‘Good’, ‘Excellent’ and ‘Outstanding’. While there are currently no plans to reward ‘Outstanding’ carriers with higher rates or exclude carriers who do not achieve a ‘Pass’, the categorisation will enable DHL and its customers “to choose greener services and create an additional decision point for future transport tenders and assignments”.

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LEADING THE CHARGE: Tutu Akinkoye leads DHL Supply Chain UK and Ireland’s GoGreen environmental programme

“The rankings are based on a uniform set of questions across four categories,” says Akinkoye. “They give carriers the opportunity to give us visibility of what they are doing and build a foundation and work collaboratively with our carriers to continually improve. We haven’t set minimum criteria in any category, but we are asking what Euro standard their vehicles are so we can understand what vehicles they have and then take them on that journey.”

Martin Willmor, CEO of DigiHaul, says: “It’s vital that everyone involved in road transport is on the same path towards a more sustainable future. The certification programme is a great way of recognising the efforts of those who are already making positive changes, as well as motivating and onboarding others who are a little further behind.

“This for me is all about helping the carriers. ➜ 40

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Sustainability

We have often treated our carriers quite tactically – ‘we will call you when we need you’ – and now we are building that relationship and seeing them as partners.”

Akinkoye has worked for DHL Supply Chain for 12 years and is responsible for delivering the UK and Ireland’s share of Deutsche Post DHL Group’s target to reduce greenhouse gas emissions to below 29 million tonnes by 2030 and to net zero by 2050.

“I am focusing on decarbonisation measures, but I also cover a number of other environmental impacts from warehousing to packaging and working with our customers to develop a strategic roadmap to achieving our long-term 2050 goals,” she says. “They might seem a long way away, but we also have interim targets.”

Investing in sustainability

The group is investing €7bn in climate-neutral technology by 2030 in initiatives such as switching to sustainable fuels, electrification of last-mile delivery and

GAINING TRACTION WITH SUBCONTRACTORS DigiHaul started out managing DHL Supply Chain’s full truckload movements but towards the back end of 2021 a large proportion of its business moved to traction, and it has recently made improvements in how the system manages traction-only contracts.

“Historically traction was booked on 12-hour shifts with a kilometre cap and I would tell you where to go on the day,” says Willmor. “What we are doing now is providing visibility on where that vehicle goes. Rather than planning work for 12 hours we can be much more precise with what that vehicle is doing.

“Now we have a year’s data we are doing some work with our customers to say ‘don’t just book a 12-hour shift because you might need it – we can tell you that vehicle only did seven hours’. So you can use that truck elsewhere for five hours or book it as a full truckload movement.”

While DigiHaul’s main business remain full truckload, it also handles tractiononly, multi-drop and multi-collection loads.

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building climate-neutral logistics sites and warehouses.

Ground transport accounts for 21% of the group’s total carbon emissions and reduction of emissions across the company’s subcontractor network is described as “critical” to support DHL’s investment in its own fleet.

The UKI fleet recently saw the arrival of 13 more new Volvo FH LNG tractor units that will deliver up to 80% reductions in carbon emissions when fuelled with bioLNG and up to 20% with fossil gas.

Ian Clough, UKI MD of DHL Supply Chain’s network logistics and transport, says: “As part of the world’s largest logistics company, we have a clear set of ambitious environmental targets to achieve, as well as ones to deliver for our customers. To help enable greener supply chains and support our customers in their proactive approach to sustainable transport, we continue to work closely with both our customers and partners to find the best solutions. We are talking to a number of different customers with the aim of having more than 500 gas vehicles in operation across the fleet by 2025.”

The FH LNG engines use Volvo’s patented HPDI system in which small amounts of diesel are injected to ignite the methane. This enables the G13C engine to deliver the same 460hp and 2,300Nm of torque as its diesel counterpart.

Carbon management

Reducing the carbon emissions from DHL’s own fleet as well as those of its subcontractors is vital as the majority of its £2bn per year UKI business is done with its own or customer-owned vehicles. While DHL has been looking at ways to maximise the productivity of its in-house fleet including reducing empty running by more internal backhauling, DigiHaul is responsible for managing most of its subcontractors.

“One of the challenges with a dedicated fleet, particularly a customer-owned fleet, is that they ➜ 42 21.3.22

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DIGIHAUL’S DEVELOPMENT DigiHaul uses an automated algorithm to match loads to available capacity to reduce empty running and so reduce carbon emissions.

Co-founder and CEO Martin Willmor (pictured) helped set up the business in May 2021 after joining DHL Supply Chain as a graduate and working for the 3PL in various roles for almost 20 years, most recently setting up and growing the Supply Chain Solutions division.

DigiHaul operates like a 4PL, allocating loads input by DHL and other 3PLs and shippers to its stable of 750 subcontract carriers.

“We have the magic ingredients – you need volume to feed the carriers to keep them interested and you need the technology to hold it altogether,” says Willmor. “We have a struck a good balance between them.”

Willmor left DHL in September 2020 and the company remains a shareholder in DigiHaul, even though it now manages loads on behalf of other freight shippers such as retailers and 3PLs. DigiHaul has recruited 200 of its 750 carriers since becoming independent of DHL. “I worked for DHL for over 19 years in various roles and one of the challenges we had was that we were set up as independent sites with 130 different transport operating locations,” he says.

“One big thing for me was how we centralised and standardised

what we do and leverage the scale we were sitting on.

“From a carrier point of view, to an extent they still see each site as independent customers, be that Sainsbury’s or Argos, and so on. They don’t see DHL as the big customer it is. With DigiHaul, instead of each site just phoning the subcontractor when they have a problem, we are able to work more strategically.

“We have joined all the data between those sites and have identified ‘hot lanes’. If there is a route say from Doncaster to Birmingham, instead of sites booking individual transport we now have minimum volume guarantees so we are working on a lane basis rather than being site-led.

“In 10 or 15 years I hope it won’t matter to a customer whether or not they own their fleet – they can use our platform and know they will get the same reliability of service.”

DigiHaul was awarded a 10-year contract by DHL and in its first year has already brought in £100m of DHL’s £200m annual spend on subcontract carriers to its platform.

“It has grown really quickly and what I’m pleased about is how the value proposition to the customer is really holding up,” says Willmor. “That has also enabled us to build better relationships with the carriers and allowed them to invest in their own fleets.

“There is plenty more to do, but we are on the journey.”

still want to protect the service levels and performance of their own individual sites,” says Willmor. “There is no reason why at some point we can’t use the DigiHaul business to onboard those volumes or at least enable DHL to see where empty running exists and try to improve it.

“The dedicated business is very effective, but the subcontraction element needed improvement and that is where DigiHaul can play a role. When you’re sitting on a couple of billion of transport business, £200m isn’t that significant. But it is significant to me and DHL is still my biggest customer.”

Shared resources

Willmor says he always been passionate about finding ways to share transport resources to improve efficiency for both clients and subcontractors.

“I worked in DHL Supply Chain Solutions from 2014, looking at emerging markets and new products and services,” he says. “One of our biggest success stories was aviation where we took our business from pretty much nothing to a £230m turnover.

“When Covid came around, some parts of my business were on fire while others like aviation quietened down almost overnight. This was always something I had a burning desire to do, to solve a problem from both the perspective of economies of scale and network optimisation and empty running.

“It doesn’t make sense to me to have different retailers in the same part of the country booking their subcontraction on a not-contracted spot rate so the carrier has no long-term commitment. How do we then reduce empty running and the impact it has on the environment?

“Especially in times of driver shortage, it seems pretty poor to be running empty vehicles around.”

Providing confidence

The longer-term relationships with subcontractor carriers allowed by DigiHaul is also key to giving them confidence to invest in cleaner vehicles – and so move up the Green Carrier scale.

Willmor continues: “DHL is always upgrading its fleet and is now buying gas trucks. Some of our carriers, especially the smaller ones, don’t have the deep pockets to continually invest. Getting visibility of some of their pain points enables us to come up with solutions to help them.”

These solutions might involve giving carriers access to more advanced routeing and scheduling or telematics systems that could further improve their efficiency, but Willmor is clear that DigiHaul is not trying to take control away from the carrier.

“We want to collaborate with the carriers and it is not a mandate to run their business in a way they wouldn’t want to,” he says. “We empower them to do their job and we are in no way governing them in terms of their performance. We are providing them with a set of skills and tools to improve, but ultimately they run their own business. This is about enhancing what they do, not mandating improvement measures.” ■ 42 MotorTransport

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