Motor Transport 24 June 2019

Sharp ■ Informed ■ Challenging

24.6.19

QUALITY. COMFORT. PERFORMANCE. Two councils postpone CAZ start dates due to vehicle checker tool delay

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Stobart still has value

Eddie Stobart Logistics remains a business with a good story to tell and solid “underlying fundamentals”, despite a share slide that has resulted in its value more than halve since it was listed.

Speaking to MT, Neil Shah, director of research at Edison Group, said he remained a fan ahead of an expected trading update this week.

“We like the trends in the sector.

Logistics will continue to expand off the back of e-commerce and there is a lot of fragmentation and opportunity to consolidate,” he said.

Since listing at 160p in April 2017 with a market cap of £572.7m, the share value has fallen to 74p, giving the company a market value today of £277.8m.

Leeds and Birmingham clean air zones delayed

By Hayley Pink

Leeds and Birmingham councils are to “significantly postpone” the January 2020 start dates of their clean air zones (CAZs) due to a government delay in the development of an essential online tool.

In a joint statement issued last week, the two councils said they had been on track to roll out their CAZs on the basis that a vehicle checker tool, which is being delivered by the Joint Air Quality Unit (JAQU), would be ready by October this year. However the JAQU has confirmed that the system will not be available until at least December, which would leave just weeks before the zones were due to come into force in January 2020.

Additionally, the councils said the government is now expecting local authorities to deliver a system for collecting payments from noncompliant vehicles that enter a CAZ despite previously promising it would deliver this.

James Lewis, deputy leader for Leeds City Council, said: “It is disappointing that Leeds has been forced to delay the introduction of one of the UK’s first CAZs because of the government’s failure to meet its own commitments to the two largest local authorities.

“Leeds City Council has worked incredibly hard to ensure the CAZ would be delivered on time, successfully meeting a number of challenging deadlines set by the government. Many local businesses have similarly invested both time and money into ensuring they are ready for January.”

Cabinet member for transport

Clean Air Cities Date

City

and environment at Birmingham City Council Waseem Zaffar said: “It would be unfair on residents, businesses and visitors who would have a matter of weeks to make key choices. This is unacceptable.”

MT understands that the Birmingham CAZ will now start

by July 2020.

A spokesman for the Department for Environment, Food and Rural Affairs told MT: “We are aware of concerns over delays and are carrying out work to develop key components of the system to support the charging CAZs for January 2020.”

Responding to the news, RHA chief executive Richard Burnett said: “The government is failing to deliver on its policies and needs to encourage local authorities to look at congestion-easing measures if it is serious about reducing emissions. Its delays in getting the technology ready postpones the arrival of enforceable zones in two key cities, but for operators facing the prospect of £50 per day charges it’s a delay, not a reprieve.

“It’s time for a rethink on improving air quality. CAZs will

Status

prove ineffective if they keep disproportionately targeting HGVs while ignoring other factors and vehicle types.”

Head of UK policy at the FTA Christopher Snelling said: “We’ve been in talks with government regarding the charging mechanism and enforcement and we are pleased that Birmingham and Leeds have taken this step because they are absolutely right that the government is not ready for this.”

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News extra: Multimodal p10 Tyres p14 Logistics: Speedy Freight p16 Interview: Malcolm Wilson p18 MT Awards shortlists p20-26

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20/06/2019 09:14:30

News

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Hauliers are frustrated by protracted five-year process to publish safe working guidelines

HSE’s tail-lift guidance faces further delays

By Carol Millett

The long-awaited publication of the HSE’s updated tail-lift delivery guidance is facing further delay, some five years after it launched a review.

The HSE confirmed last week that it has comments that it wants the RHA working group to consider, after which the guidance will be put through “internal governance procedures” before it can be given the green light.

The RHA working group had been hopeful that the updated guidance on tail-lift deliveries,

including pallet weights, would be launched at the CV Show in April. This was after HSE asked it to review the final draft in January. It is understood a second deadline of 28 May was set following the first publication date being missed.

Pallet networks and hauliers have expressed frustration at how long the HSE is taking to deliver the final draft, with some questioning whether Brexit has added to the delay.

However, the HSE told MT that there are still a number of hurdles

the guidance has to negotiate. A spokesman said: “We have reviewed the latest version of the guidance and we have comments, which we need to take back to the RHA’s working group for consideration. After this stage there is an internal governance procedure for clearing HSE contributions to guidance produced by others and this takes place on a monthly basis.

“We cannot comment on timescales and expectations expressed by others. Our priority is that those of us involved get it right for the wider benefit of the industry.”

The HSE’s review of the guidance on pallet weights, which is contained in the tail-lift guidance, has stoked controversy in the past with the HSE’s decision last year to not put a limit on the weight of tail-lift pallet deliveries severely criticised by both pallet networks and hauliers.

However, one industry source said that while the updated guidance will not set a pallet weight limit, it will “make it almost impossible for operators to conclude that the heavy pallets on tail-lifts in ‘real world’ conditions are, in fact, safe”.

PA

NV Transport enters liquidation with 50 job losses

PARALYSIS AT THE BORDER: A no-deal Brexit could result in one lorry every 30 seconds being subjected to checks at the border in Northern Ireland, according to the FTA. Policy manager Seamus Leheny predicted “paralysis at the border” if the UK crashes out of the EU later this year without a deal and therefore with a disparity between UK and EU food regulatory standards. His warning followed the publication of a report, commissioned by Northern Ireland’s Department for the Economy, that offered “a sobering reflection” of the impact of a no-deal, with severe problems for Northern Irish businesses and the construction of border inspection posts to monitor trade in animal and food products.

24.6.19

NV Transport in Chichester has gone into liquidation with the loss of 50 jobs. Following a meeting at the company on 29 May, FRP was appointed to voluntarily wind up the business and auction its assets.

Joint liquidator Ian Vickers said the business, which had its principal trading address in Runcton and operated 42 HGVs and 63 trailers out of three bases in the southeast, had experienced cashflow pressures and ceased trading on 14 May. Vickers said: “We supported the wind up of the business after it experienced a prolonged period of difficult trading. We are now

focused on selling the business’s remaining assets and are working with the Redundancy Payments Service to ensure employees receive

support at this difficult time.”

The company held two standard national O-licences, both of which have now been surrendered.

Morrisons Unite members vote on outsourcing deal A ballot of Unite members at Morrisons following the supermarket group’s decision to outsource three northern transport hubs and vehicle maintenance operations to Wincanton will close today (24 June).

The union announced last week that nearly 400 Morrisons drivers and mechanics will be asked whether or not they wish to proceed to a full-scale industrial ballot, which would pave the way for strike action. Ballot papers for the initial vote were sent to

members at the affected sites in Gadbrook, Cheshire; Stockton-onTees, County Durham; and Wakefield, West Yorkshire.

The move follows Wincanton winning a five-year contract to run Morrisons’ transport operation at the DCs from August, as well as handling vehicle maintenance at a number of sites via its Pullman Fleet Services subsidiary.

Unite national officer for road transport and logistics, Adrian Jones, said: “Our members have been working for Morrisons for

many years, some of them for up to 30 years, and feel let down that this decision has been made without involving their trade union.”

A Morrisons spokesman said: “We want to talk to all our colleagues’ representatives and we hope to see Unite at our consultative meetings over the coming days. We want to listen to what they say about this agreement, which transfers our colleagues’ jobs to a leading logistics company with comparable terms and conditions. There will be no job losses.”

MotorTransport 3

News Investments in pallet networks demonstrate market confidence

Appetite for networks proves sector’s appeal

By Chris Druce

A continuing appetite among private equity and the entry of trade buyers into the sector is proof of the enduring attraction of the pallet network model, according to Palletways CEO James Wilson (right).

Speaking to MT, the man behind modern Palletways, who retires from his role at the end of this month (MT 27 May), highlighted the recent changes in network ownership as testament to the sector’s success and appeal. “We are seeing two different appetites.

An appetite from the private equity world, which is a positive thing as it’s a strong signal that investors see future investment potential.

These people don’t do this unless what they are investing in is viewed as having something

UP NORTH: The Fortec Distribution Network plans to open a northern hub to unlock Scotland by the year-end. MD Adrian Bradley said the previous management’s decision to scuttle its northern hub in Warrington would probably be reversed.

“We’re doing the business case for it. But there are so many benefits [to having one], such as a reduction in mileage and carbon footprint, so I’m 90% certain it will open in the third or fourth quarter this year.” Fortec said that while it may team up with a member for the premises, it is likely to man the site directly, adopting a landlord and tenant relationship where it can have direct control. “It would serve Scotland and predominately be a northern gateway rather than a northern hub,” said Bradley.

that sets it apart and can grow further, so I take that as a positive statement,” he said.

“We are also seeing trade players that haven’t played in this world starting to invest, such as Stobart [which purchased TPN last year] and Imperial [Palletways’ owner].

“Every corporation wants to expand generically or through acquisition, so this is a positive sign as these companies think there is potential in doing so for their investors.”

Wilson said that if investors felt a sector had failed, that it lacked innovation, they would shy away from investing in it. “What we have [with pallet networks] is a sector perceived as higher yield and with higher growth potential than other parts of transport,” he said.

VAST matches storage buyers and sellers Wincanton has gone live with its Virtual Access to Storage and Transport (VAST) service. The platform matches buyers with sellers, allowing companies seeking storage to find it quickly and landlords to advertise under-used space, generating an income.

VAST has 30 million sq ft of warehouse space – with the number of pallet spaces standing at more than 200,000 – listed. The provision is a mix of Wincanton, Wincanton customers and third party-owned space. Listing is free, and Wincanton charges a transaction fee that covers the cost of running the platform.

However, the service also offers access to the operator’s 4,000-strong vehicle transport fleet and other 3PL wraparound services such as pick and pack, providing a selling opportunity for Wincanton.

Wincanton retail and consumer MD Ian Keilty told MT that the service is open to everyone, including other logistics firms.

“We are serving the need for space in the UK – probably fuelled by Brexit – but could easily expand across the Channel to help our customers on both sides of the border,” he said.

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20/06/2019 09:18:49

News extra HMRC and some creditors saw £1.9m of debt written off in agreement

Aspray CVA had a sting in the tail

By Chris Druce

Aspray Transport’s company voluntary arrangement (CVA) will see £1.9m of debt to certain creditors being written off as well as redundancies, MT can reveal.

The haulier, which trades as Aspray24, was acquired by Lee Bushell’s Bushell Investment Group via holding company Bullamasay XL on 5 March.

A decision to propose a CVA was taken soon after, when its new owners concluded that the haulier would not be able to pay its debts as they fell due. This was despite the new owners investing “significant financial and operational resource in the sales and costs infrastructure of the business”, according to a copy of the CVA proposal.

The decision to put the business into a CVA saw Aspray Transport owner Pat Laight sever ties with the haulier (MT 15 April). The proposal itself was adopted on the 23 April without amendment (MT 29 April). Details of the CVA were not made public at the time, although the proposal document reveals that creditors of the business faced two options: a CVA or liquidation of the business.

A core component of the CVA proposal, which was run by RSM Restructuring Insolvency, was the division of unsecured creditors into two classes: critical and non6 MotorTransport

critical. According to the document, critical creditors were deemed essential to the haulier’s long-term viability. They were owed £2.5m collectively, and as previously stated will be paid in full over the CVA’s term.

However, non-critical creditors will receive just 5p in the pound as will the taxman and category 2 landlords (specifically regarding dilapidations for a number of leased units).

HMRC is owed more than £1m, non-critical creditors close to £300,000 and category 2 landlords £647,000 in dilapidations, totalling £1.95m.

Under the agreed repayment of 5p in the pound for these unsecured creditors, just £97,500 will be paid back – leaving them to shoulder a collective loss of close to £1.9m.

The document also states that as part of the CVA process, approximately 65 redundancies are expected to be made at Aspray Transport, 19 of which were earmarked at the haulier’s Willenhall headquarters.

Based on figures in the report this latest reduction would leave Aspray Transport with a staff of approximately 450.

As part of the insolvency procedure, owner Bullamasay XL promised a further £1m of working capital would be made available to the haulage business after the adoption of the CVA. Approached by MT about the document, a spokeswoman for Aspray Transport did not contest the accuracy of the figures within, or the outcome outlined for creditors of the business.

She added: “The CVA approved

by Aspray Transport’s creditors was designed to address a number of legacy issues that were undermining the historic performance of the company.

“It focused on ensuring that the company’s critical supply creditors were unaffected by the process, and that they were paid in full.

“This compares favourably to other CVAs in the sector, which is why 99% of Aspray Transport’s critical suppliers supported the proposal, and continue to support the business today.”

One-way street Company co-founder Pat Laight began taking a back seat at the business and his son Stuart was formally appointed MD in June 2016.

Aspray Transport had remained true to its roots supplying SMEs in the lock, hardware and fastener products sectors. However, having been in good health, the business came under pressure from 2014 onwards, with retained profit as a percentage of sales falling to 0.5% by 2018 according to the CVA document.

In spring 2018 a contract was signed with a packaging company that was expected to generate £3m in additional sales a year.

But bubble wrap, of all things, hurt the business as it proved problematic due to its light weight but significant transport space requirement. The ‘ugly freight’ contract was deemed loss making and ended in late 2018.

The company’s Noose Lane site was refinanced to cover losses and the haulier, having built its reputation on service, then opted to replace subcontractors with direct resource, taking on 50 drivers. However, this did not go smoothly, standards suffered and several long-standing customers went elsewhere. Pat Laight returned to run the business. In November 2018, 173 redundancies were made and the Harlow depot ultimately closed. Around 119 assets, notably trailers, were sold and Stuart Laight left Aspray Transport.

In the six months to December 2018 the company made an operating loss of £1.3m on sales of £16.7m.

The resulting cashflow pinch saw it fall behind on payments to HMRC, leading to a formal time to pay agreement with the taxman for arrears of £550,000.

Although the restructuring was intended to put the haulier on a sound footing, January was quieter than expected. Fresh funding could not be found and an accelerated sale process launched in late February.

24.6.19

News

motortransport.co.uk

LoCITY lowdown Cities are accelerating the transition to zero-emission freight, writes Cristina Miclea Launched in 2017 by 12 C40 Cities locations including Copenhagen, London, Los Angeles and Paris, the Green and Healthy Streets (Fossil-Fuel-Free Streets) Declaration now commits 27 signatory cities to working with partners to procure only zero-emission buses from 2025 and ensure a major area of their city is zero emission by 2030.

Cities are making significant progress on zero-emission bus procurement. For example, London has the largest fleet of electric buses in Europe with more than 155 on the road. However, the transition to zero-emission areas and zero-emission freight raises new and complex challenges.

Leading cities have been rolling out a series of incentives to reduce the cost of zero-emission CVs and support the deployment of charging infrastructure, two key barriers hindering the transition to zero-emission freight.

Oslo’s Climate Budget includes toll fee

exemptions and free parking for zero-emission commercial vehicles. In 2019 and 2020, Oslo will gradually impose restrictions on access to loading bays for non-zero-emission delivery vehicles. Measures additionally include offering subsidies for professional drivers to install charging infrastructure at home and for companies to finance charging infrastructure upgrades.

Los Angeles’ Green New Deal aims for 100% of urban delivery vehicles to be zero emission by 2035. To achieve this goal, the city will be creating a suite of street and kerb usage regulations and developing an electric freight and commercial vehicle billing rate, as well as pursuing publicprivate partnerships to develop charging depots in the heavy-duty sector.

Milan’s Area B, Italy’s largest lowemission zone (covering 72% of the city’s area and 97.6% of its residents across 129sq km), aims to shift the market by banning the most polluting vehicles and

setting access rules for vehicles longer than 12m and for dangerous goods vehicles.

Leading businesses are rising to the challenge – all Ikea deliveries within inner Shanghai are now zero emission, with the same target set for Amsterdam, New York, Los Angeles and Paris by 2020.

Signatories to the EV100 initiative, which brings together companies looking to accelerate the transition to electric transport, have committed to switching 145,000 vehicles to electric power by 2030, having already electrified 8% of the total fleet.

City policy and business commitments are demonstrating strong demand for zero-emission commercial vehicles. While global vehicle manufacturers plan to invest at least $300bn (£239bn) in electric vehicles over the next five to 10 years, this demand needs to be met sooner.

■ Cristina Miclea is zero emission freight manager, transportation and urban planning, at C40 Cities

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MotorTransport 7

News extra The allocation of ECMT permits was a shambles, according to hauliers. And they’ll have to do it all again for 2020, writes Louise Cole

A paper trail to nowhere

In the run-up to 29 March, the DfT urged 10,000 licence holders to compete for 1,610 European Conference of Ministers of Transport (ECMT) permits that would allow them to keep running trucks on the continent. Trade associations decried the tiny number available, given that in 2018 347,000 individual truck journeys were made by UK hauliers into continental Europe and beyond.

Yet, in the event, only 697 permits were issued by the initial Brexit deadline – and the UK’s international hauliers escaped catastrophe by a matter of days.

Whether or not we learn these lessons of history, this is one fiasco we seem doomed to repeat.

Just one week before the UK was set to leave the EU without a deal, UK international logistics was a hair’s breadth from disaster.

There was no system in place to allow the movement of most UK trucks through EU countries or to travel through them to third countries. Quite simply, said FTA European policy manager Sarah Laouadi, had Brexit not been delayed and had proposed EU contingency plans for transport not passed, “thousands of UK international haulage firms would have had to stop work”.

And, in the run up to a possible hard Brexit on 31 October, international hauliers will once again be at risk. The EU contingency

8 MotorTransport

plans allowing free movement of UK trucks expires on 31 December 2019 and there is no mechanism other than the woefully inadequate ECMT to facilitate UK trucks moving abroad.

Who needed an ECMT?

DfT claimed that any EU-based road transport movement would require an ECMT in the event of a 29 March hard Brexit. It had 984 permits available at first, which it managed to eke out to 1,610. In the event it received 11,974 applications, which RHA figures suggest came from fewer than 2,000 companies.

Anecdotally, some operators who chose not to apply say they were relying on a Brexit deal being hammered out, or in some cases, they decided to focus on domestic transport if their international operation became untenable.

By 31 March the Df T had granted only 697 permits. All 1,610 were eventually allocated but by that time they had been superseded by other agreements and so many were not claimed.

The application process opened in November 2018 and many hauliers applied instantly. In December, the EC offered a contingency plan which would mean hauliers could continue straightforward deliveries to Europe and back. Cabotage would be limited to two jobs. ECMTs would only be needed to travel on beyond

Europe to third countries, eg Switzerland, Czech Republic etc (for perspective, in March 2018 only 21 such permits were in use).

However, said Laouadi, the contingency plans were not guaranteed to pass through all the necessary parliamentary procedures on either side – and were not finally rubber stamped until 25 March, just days before the original Brexit date.

Hence in January and February 2019, the calls were still being made for all hauliers running to Europe to apply.

On 12 January 2019, the FTA tweeted: “Under a week to go, have you applied for your #ECMT permits? If you transport goods to/from Europe, they will be needed after #Brexit.”

On 14 February, RHA spokesman Paul Mummery tweeted: “If there’s no deal then the default is ECMT permits all round. Each EU state has their own limited quota.”

In Q1 2019, despite the potential for a transitional agreement covering most European freight, there was no clarity.

Short of a new formal agreement with the EU, the ECMT is the only instrument that can be used to authorise the movement of commercial vehicles. However it was never designed to be more than a marginal and ancillary system that sat alongside bilateral deals and the EU licence.

ECMT agreements make no provision for cabotage at all. And although there are exemptions to needing an ECMT – such as events-based transport and ownaccount movements – the 43 participating countries can cherry pick which exemptions they wish to honour. Eleven countries currently refuse the own-account exemption, with a key one being

France, which clearly has the potential to stymie much of the UK’s own-account exports.

ECMT permits can be used multiple times but only on one journey or truck at a time. And the ultimate limitation of the ECMT is that the UK only has sufficient to cover 5% of our necessary outbound freight movements.

Telford-based Mac European Freight received an email from DVSA in 2018 saying it would need an ECMT to continue running trucks to the EU. “We applied as soon as the window opened in November,” said director Louise Debbage. “We had to count our journeys for the previous 12 months, where they were to, and the types of load.”

Despite being contacted several times for more detail on its application, in February Mac was turned down – even for the one permit it needed to continue shipping headstones to the Commonwealth War Graves Commission.

Perhaps in an attempt to forestall a barrage of phone calls, the refusals were sent out en-masse at 9pm Saturday 10 February.

“We were informed, without any reasons, at 9pm on a Saturday evening. That was appalling even for them [DVSA]. There was a lot of anger about that,” said Debbage.

The ‘apply again’ button on the rejection email helpfully landed hauliers on a page which claimed the application window had closed on 1 January 1970.

MT calculated that the granted ECMTs cost industry £83,000. But Debbage said the true cost was higher. Each application cost a non-refundable £10 per permit.

Some hauliers were applying for dozens. If each of the DfT’s “10,000 licence holders” applied for just one permit, that’s £100,000 24.6.19

motortransport.co.uk

industry), by frequency and distance of journey, and by the percentage of international work making up the company’s total journeys. Hauliers had to provide vehicle details, and proof of routes and frequency. Most permits are for Euro-6 vehicles, with only a small number for Euro-5.

Having scored permit applications against its criteria, DfT then randomised the final allocation, so companies with the largest operations didn’t monopolise the permits at the expense of smaller players.

What happens in October?

the industry will not see again.

Debbage was furious at being rejected for a permit which the government had told her she required. “I was gobsmacked to be honest,” she said. “They gave no reasons. It’s not clear how the next application process will work but given that you have to account for recent journeys, I suspect we’ll have to do it all over again.”

Brian Yeardley Continental applied for 70 permits as soon as the process opened. “We were granted 14,” said operations director Bruce Newton. “It was nothing like sufficient. We’ve had many conversations with the DfT, and frankly, they don’t seem to understand the process or what’s going on either.”

Newton said the company gathered all the information it could to prepare and to protect its Europeanbased business. “We believed we had the right information but as it turned out that was not the case.

We’ve now paid for 14 permits we don’t need, but we’ll have to do the whole thing again later this year.”

Not only would the permits Yeardley was granted have been insufficient if needed but there was no discernible logic behind them.

“We run maybe 12 trucks at a time in eastern Europe for music tours, but only received two permits for the area. Italy is a big market for us but we received hardly any that would let us run there,” said Newton.

“It all seemed completely arbitrary.”

Both operators were surprised when MT revealed only 697 permits were issued. “Just more evidence that it was all a complete shambles,” said Newton.

Despite DfT maximising its number of permits, the application process was always going to be oversubscribed. Allocations were made by sector (with 39% of permits available for the food 24.6.19

Laouadi said: “There is no EU contingency measure for 2020, meaning the ECMT permit is the only market access instrument that is currently secured.”

DfT has confirmed to MT that its final allocation is 1,610 annual permits and 4,824 short-term permits. “The government is unable to further increase its allocation of ECMT permits prior to the October Brexit deadline,” said a spokesperson.

There are three possible scenarios for international freight transport during Brexit. “The best case scenario would have been a proper transition agreement,” said Laouadi. “We could have a land transport agreement which covers everything, but that’s not on the table. The EU has been extremely cautious about granting concessions or contingencies.

“So finally, we could have agreements with individual EU members. But they are not permitted to negotiate formally until 1 January 2020, so even if everything is prepared through back channels, it is very hard to see how we could communicate a plethora of new rules to drivers, hauliers and enforcement agencies.”

The UK’s deal with the EU to allow continued access under existing licences has a final complication. The EU’s half of the deal expires on 31 December 2019. The UK’s counterpart legislation, however, has no expiration date, meaning that unless the government revokes it, European hauliers will be allowed to enter Britain freely, while UK haulage movements abroad may be curtailed.

However, revoking EU hauliers’ right to run in the UK is problematic because 80% of cross-channel freight movements are imports so UK supply lines would be severely compromised.

In all probability, hauliers will have to apply for a 2020 ECMT permit later this year, spending time and money on something they likely won’t be granted and they should pray they don’t need.

MotorTransport 9

Multimodal

motortransport.co.uk

Steve Hobson brings you the highlights from last week’s Multimodal at the NEC, Birmingham

Malcolm calls for 48-tonne trial Malcolm Group reported strong interest from customers at the show in response to its proposal to run a trial of 48-tonne trucks within 48 miles of rail terminals – dubbed 48T for 48M – and remains cautiously optimistic the Df T will give it the go ahead later this year.

CEO Andrew Malcolm said road and rail should complement each other instead of competing for business, and allowing the company’s “game-changing” 15.65m longer semi-trailers that can take 50ft multimodal containers to carry an extra 4 tonnes would give them the same payload as a standard 13.6m trailer.

“We carry 800 containers a week by rail and the Scottish Government wants to boost rail freight by 7.5% in the next three years,” Malcolm told MT. “We carry cube into Scotland and weight out. At the moment our longer semis carry 15% less payload.” As a result, Malcolm’s 50ft containers make full use of the extra 15% cubic capacity northbound but are 15% under-used heading south.

“We are trying to move more volume with our existing resources,” he said. “We will not increase our road fleet in the next

five or 10 years because of the driver shortage and the rising cost of trucks.”

Malcolm’s latest tractor units have been specced to haul 50 tonnes so do not require any modifications to run at 48-tonne GTW. With 150 longer semis it is the largest operator in the government’s trial of these trailers.

“Our warehouse at Crick has a

BOX CLEVER: Trailer builder Krone showed a FS10 Box Liner sliding skeletal trailer capable of carrying any size container up to 45ft. It takes advantage of the 150mm extension allowed to the length of multimodal trailers to use single front locking pins, saving 60kg on unladen weight, according to UK sales manager Jason Chipchase (left). The trailer has a cathodic powder-coated chassis with a 10-year guarantee and uses standard components including BPW drum braked axles and JOST landing legs. Krone has sold 300 in the UK.

rail head so we wouldn’t need to run at 48 tonnes on any Highways England roads,” he said. “There is nothing new here – it is cutting and pasting together existing technology. This isn’t theoretical – we know it would work in practice.”

The operator showed its Transaid trailer (above) to promote the industry charity and its efforts to reduce road deaths in Africa.

■ Malcolm Group is trialling six LNG tractors, four 4x2s and two 6x2s, supplied by IVECO and Volvo, and expects that by 2020 10% of vehicles purchased will be powered by alternative fuels. It wants the trucks to deliver a minimum range of 420 miles on a single fill so they can return to base every day and refuel at its Newhouse headquarters, Motherwell.

Stobart boosts rail freight service Eddie Stobart Logistics (ESL) showed its range of services, with group companies iForce, The Logistics People, Speedy Freight and The Pallet Network all represented.

ESL is expanding its rail freight operation, which includes trains from DIRFT and Tilbury to Scotland, mainly carrying product

for Tesco, with the launch of a weekly direct service linking Tilbury and Grangemouth. Run in association with Forth Ports and Direct Rail Services, the 36-containercapacity service was launched following demand, according to John Clark, sector director at ESL. Frequency could increase if demand continues, the company said.

Learn from other industries how to attract new entrants A debate on the labour crisis facing the sector chaired by Ian Nichol, head of logistics at Career Ready UK, heard that the industry should be more approachable for new entrants from all walks of life, not just school-leavers.

Beth O’Neill, UK business development director of DHL Europe, said employers were missing out on a large part of the talent pool 10 MotorTransport

by not being more welcoming to women and ethnic minorities. She said employers needed to simplify the language it used to describe the career opportunities available as it often came across as too complicated and boring.

Leigh Anderson, MD of Bis Henderson Recruitment, pointed out there was not a single logistics firm in the Sunday Times ‘Best

companies to work for’ listings, and Hamish Nisbet, global head of resourcing and onboarding at HSBC, said the logistics sector had to learn from other industries how to attract and retain the best people.

FTA head of skills Sally Gilson said that what can often be perceived as negatives in the logistics sector – such as unsocial hours – could be turned into a positive

in that the industry can offer flexible working patterns.

Nichol said that while there was great training available in the industry there had to be a change of mindset about who should pay for HGV driver training. “Employers should see it as an investment.

What we have in terms of apprenticeships does not compare well with other sectors,” he said.

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20/06/2019 09:29:17

Viewpoint

motortransport.co.uk

Would your kids work here?

T Steve Hobson Editor Motor Transport

he recent Multimodal exhibition held a debate on the labour crisis facing logistics, and while as ever it generated more questions than answers there are now some pointers emerging on the way ahead if the industry is to compete effectively for the available pool of labour.

With or without Brexit, relying on foreign workers to fill our warehouses and truck cabs was never going to be a viable long-term solution. Yes, restaurants in London will probably always employ a high proportion of foreign waiting and kitchen staff, many of whom will be transitory rather than migrant workers. But working in logistics should not be seen as a McJob

– it should be a skilled, well-rewarded career that attracts the full range of potential recruits, from school-leavers to graduates and ex-service personnel.

Why isn’t this already the case? Every employer in the sector needs to ask themselves that, and why they don’t appear in the various ‘best companies to work for’ rankings. Logistics has a bad reputation among the public as a boring industry with long, unsocial hours and a macho attitude. Changing this perception won’t happen overnight but it starts with every manager out there looking in the mirror and asking ‘would I want my kids to work here?’ If the answer is ‘no’ things need to change from the inside.

Back to school to fill skills shortage A Trevor Edden MD, TWE Haulage

t TWE Haulage we face the same driver recruitment and retention issues as everyone else. I’m a big believer in training and developing young talent and yet I’ve been frustrated for years with the sector’s apprenticeship offerings. So I decided to go back to the way we used to train – not just for a role but for an all-round employee. I decided to find a young, enthusiastic individual who was interested in the logistics sector.

After months of searching and becoming disappointed in how it seems the majority of youngsters want a quick route to an HGV licence, I discovered 22-year-old Dale McMillan. Dale reinfused my appetite to train somebody the old-fashioned way in road haulage.

I’ve long been concerned that too many people enter the industry as a way of making quick money, rather than truly understanding the industry and their role. The difference is that one gives them some limited short-term benefit and the other gives us all long-term benefit. It gives their employer a longterm return on the time and expense of training them.

Dale and I discussed my vision for his training, which would put him through all aspects of handling freight from

12 MotorTransport

collection to delivery. Between us, we agreed on a training programme that would see Dale obtain his C+E licence.

But we weren’t just training him to drive a lorry. We were training him to be a lorry driver – which I think is a much bigger role than simply moving the vehicle.

Dale’s journey with TWE began in July 2016. He started work as a warehouse operative, scanning freight and ensuring the warehouse was fit for use. After six months of unblemished good work, we escalated Dale to the role of a collection and delivery van driver, as well as forklift driver on a split shift.

Skip forward to March 2019. TWE has funded Dale’s category C licence and provided him with his first 18-tonne rigid collection and delivery vehicle. In March 2021, he’ll start his training for his C+E licence and when he passes this, he’ll get his choice of role within the fleet.

We may have a driver shortage in the industry but that doesn’t mean we should rush, look for quick fixes, or employ those who want quick money. Sometimes the best way is the old-school way.

The newspaper for transport operators

To contact us: Tel: 020 8912 +4 digits or email: name.surname@roadtransport.com Editor Steve Hobson 2161 Editor-in-chief Christopher Walton 2163 Head of content Chris Druce 2158 Deputy head of content Hayley Pink 2165 Group production editor Clare Goldie 2174 Deputy production editor Jo Saunders 2173 Key account manager Andrew Smith 07771 885874 Display telesales Barnaby Goodman-Smith 2128 Event sales Richard Bennett 07889 823060 Tim George 0755 7677758 Classified and recruitment advertising rtmclassified@roadtransport.com Head of sales Emma Tyrer 07900 691137 Divisional director Vic Bunby 2121 Head of marketing Jane Casling 2133 Head of events/MT Awards Stephen Pobjoy 2135 Managing director Andy Salter 2171 Editorial office Road Transport Media, Sixth Floor, Chancery House, St Nicholas Way, Sutton, Surrey SM1 1JB 020 8912 2170 Free copies MT is available free to specified licensed operators under the publisher’s terms of control. For details, email mtsccqueries@roadtransport.com, or call 01772 426705 Subscriptions Tel 0330 333 9544 Quadrant Subscription Services, Rockwood House, Perrymount Road, Haywards Heath, West Sussex RH16 3DH Rates UK £135/year. Europe £163/year.

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20/06/2019 12:03:00

Tyres

motortransport.co.uk

A tread ahead

We joined hundreds of European operators at Bridgestone’s Rome test facility for Truck World 2019 to hear about the latest developments from the world’s largest tyre maker. Will Shiers reports

B

ridgestone says more UK fleets should be switching to low rolling resistance tyres, in order to slash their fuel bills and cut their carbon footprints.

According to Terry Salter, Bridgestone’s truck product manager of Northern Europe, less than 4% of UK fleets currently run some form of fuel-efficient tyre, whereas 15% would see a significant benefit by switching to them. “The right customer can take 10% off their fuel bill by moving [from regional tyres] to energy-efficient tyres,” he said at Bridgestone’s recent Truck World event at its test facility in Rome, where some of Europe’s largest hauliers had gathered to hear about the tyre maker’s latest developments.

One of the key messages at the event was that Bridgestone’s recently launched Ecopia H002 range of steer, drive and trailer tyres aren’t only vastly better than their H001 predecessor, but are more fuel-efficient than rival Michelin’s X-Line Energy range, too. Backing up this claim, Bridgestone provided details of an independent trial that took place in May. Carried out in collaboration with MAN ProfiDrive, it saw three identical MAN-powered artics shod with different sets of tyres, then driven from Munich to Rome in identical conditions. One was fitted with Bridgestone’s previous generation of regional tyre, the second with Michelin X-Line Energy tyres, and the third with Bridgestone Ecopia H002s. Fuel consumption measurements subsequently showed the truck clad with Bridgestone Ecopias was the clear winner.

From this, Bridgestone concludes that a 40-tonne artic covering 130,000km per annum and running with Ecopia tyres on all axles will consume €741 less fuel than an identical truck fitted with Michelin X-Line Energy tyres. The saving over the regional tyre, meanwhile, would be €4,818.

Wet grip winners

Bridgestone’s Ecopia tyres get a B-rating for wet grip.

They’re also winter-ready, and proudly wear the threepeak mountain snowflake symbol and the M+S markings on their sidewalls.

In a demonstration of what the tyre maker describes as “class-leading” grip, we witnessed two identical solo MAN tractors accelerating hard on a wet surface.

One was fitted with Ecopia rubber, while the other was wearing Michelin X-Line Energy tyres. Driven in full automatic mode, both trucks produced plenty of wheelspin, but the one shod with Bridgestone Ecopia tyres had noticeably more traction. It was able to change gear and accelerate considerably quicker.

Taking regional control

Bridgestone has also recently launched the Duravis R002 regional tyre range (right), which it claims has 45% bet14 MotorTransport MTR_240619_014.indd 14

ter wear life than its predecessor, and 15% lower cost per km too. Duravis, which features a new pattern and compound, has a B-C-B (steer, drive and trailer) rating for fuel efficiency, and an A grade for wet grip on the steer axle.

To prove its superior grip, Bridgestone put on a live demonstrations at its Italian test facility. Firstly, a pair of identical MAN TGS 4x2 tractors, one shod with Duravis R002s and the other with Michelin Multiways, were driven in circles around a wet skidpan. Not only was the demo driver clearly fighting to keep the Michelin-clad truck going where he wanted it to, but its average speed (45.99kph) and lap time (21.77 seconds) were worse than the Bridgestone truck (49kph and 20.66 seconds). Duravis is initially launched in 315 80 and 315 70 (steer and drive) and 385 55 and 385 65 (trailer) sizes. They will be joined by the 295 80 next year.

Performing under pressure

Bridgestone has enhanced its Tirematics offering with the FleetPulse app. Aimed at trucks that are away from base for three or more days at a time, the system allows a driver to check a truck’s tyre pressures by simply walking around it and pointing a smartphone at the wheels.

Tyre pressure monitoring valves, fitted to all of the wheels, emit their data every six seconds, allowing the entire check to take place in less than a minute.

Earlier this year Bridgestone acquired TomTom Telematics for €910m. According to Paolo Ferrari, vicepresident of Bridgestone Corp, the purchase will help the company’s “transformation from tyre producer to mobility solutions leader”.

The first sign of this journey is the integration of TomTom’s Webfleet fleet management solution with Bridgestone’s Tirematics tyre pressure monitoring system.

“It allows the traffic office to detect a problem with a tyre and, via the Fleetbridge system, alert the driver,” explains Beverley Wise, TomTom sales director UK and Ireland.

Depending on how critical the situation is, the driver will then either be advised to make a delivery before seeking help, be sent directly to a Bridgestone tyre agent to get the problem sorted, or told to wait for a Bridgestone van to attend. ■ 24.6.19

18/06/2019 11:23:02

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20/06/2019 09:36:06

Logistics

When speed is of t When your logistics operation doesn’t go to plan, who you gonna call? Speedy Freight.

Louise Cole look at the varied and unpredictable world of emergency deliveries

I Speedy Freight MD Mike Smith

n most logistics operations, the emphasis is on optimised loading, shared platforms and sweating assets. For Speedy Freight, specialist in urgent or sensitive deliveries, the focus is on speed of response and satisfying challenging customer expectations. The primary service offer is to collect within 60 minutes, although in practice 60% of jobs are scheduled or next-day bookings. The freight – however large or small – is taken directly to its destination, with no other collections or deliveries on route.

It’s a tall order but one which manufacturers, retailers, construction companies, industrial suppliers and even hospitals call on with increasing regularity. So much so the company’s year-on-year growth has exceeded 38% to reach annual turnover of £26m since Eddie Stobart Logistics bought a 50% share in the company in July 2017.

MD Mike Smith says his job is to keep growth at this level, with a target of £36m turnover for 2019.

Logistics fixers

“We are the fixers,” he says. “We’re called when the plan fails, the production line is about to stop, when fluctuating orders defeat the planners, or the show can’t go on without a new lighting rig. Some of our biggest customers are major logistics businesses, who use us as a contingency service.”

The company’s promise to never co-load renders usual optimisation techniques redundant but Smith says efficiency comes in other forms. “Many of our customers cannot predict the size or type of vehicle they will need, so we give them flexibility without having to park up vehicles. We leverage our national network of more 16 MotorTransport MTR_240619_016-017.indd 16

than 50 offices to ensure backloads whenever possible.

And for some customers we circumvent the normal supply chain by bypassing the RDC or the store and delivering straight to the end user.”

Live construction sites and manufacturing plants are staples of this just-in-time delivery, and the same-day consumer market is growing at 11% year on year. Speedy Freight has a contract with a major retailer to deliver click-and-collect orders into stores five days a week. “We wouldn’t have been on its radar without the Eddie Stobart connection,” he says. “It already had a major logistics partner, but it couldn’t provide the customer service or flexibility it needed. We created a solution and 12 months on the retailer couldn’t be happier.”

There is seemingly nothing Speedy Freight won’t deliver. Giant stuffed guinea pigs, dinosaurs to exhibitions, blood samples to labs for doctors and vets, emergency containers of CO2 shipped from Turkey to Ireland for a semiconductor plant, abnormal loads and chilled truffles. All to be collected within 60 minutes.

Speedy Freight has 36 franchisees who have bought their territory, with prices starting at £50,000 for an undeveloped area. Some franchisees operate multiple territories. The company provides business development support, IT, health and safety expertise, job allocation and route planning, auditors and finance, and pays drivers directly to remove the cashflow burden from the depot. The franchisees concentrate on building their relationships with local customers and drivers.

“Our franchisees have all the enthusiasm and drive of entrepreneurs and are heavily invested in providing an excellent customer service. In return we allow them to grow their businesses with little risk,” says Smith.

24.6.19

18/06/2019 11:43:26

motortransport.co.uk

f the essence Franchisees typically earn back their initial outlay within 12 months, despite paying their 12% commission on jobs to the Knutsford-based support centre. Its top branches regularly turn over £100,000 a month.

They can draw on the 4,000 plus vehicles available to them throughout the network, as well as the Eddie Stobart fleet, and Speedy Freight’s own fleet of 12 tonners. The majority of work requires vehicles between 3.5 tonnes and 12 tonnes, with only 4% of jobs requiring artics.

“Our strength is in finding solutions,” says Smith.

“Whatever you need, we can provide it, whether as a one-off or regularly.”

Just over half of Speedy Freight’s 8,000 customers will only use them two or three times in a year, but the majority of turnover comes from the 44% of regular repeat business. Its top 20 customers book more than 1,000 jobs a year each, adding £3.5m in sales revenue.

60-minute collection window

Although 96% of Trustpilot respondents score it as excellent, it isn’t always possible to hit the 60-minute collection window for unusual freight. “If the customer wants something very specialised, we advise them of likely collection and delivery times, so the key is in clear communication and managing customer expectation,” says Smith.

Currently the bulk of Speedy Freight’s vehicles come from owner-drivers and, to maintain its growth levels, the company will have to recruit more – a challenge in today’s market. Smith says that particularly at peak times, driver resource is scarcer than he’d like. Given its diverse client portfolio, the company is affected by multiple peaks, some of them regional, including garden centres gearing up for Easter, summer festivals, and even panto season.

Drivers currently see local job postings online and volunteer their availability. However, in July, Speedy Freight will launch an app that simplifies the process, 24.6.19

MTR_240619_016-017.indd 17

and moves it away from the freight exchange model towards a two-way commitment for a greater proportion of their drivers. The app will offer work on a tiered basis, with preferred drivers seeing it first. These drivers, who will also qualify for uniforms and liveried vehicles, can expect to carry out a minimum of 15 Speedy Freight jobs a month. All drivers can invoice directly from the app on job completion and will be paid within one week.

“We’re operating in the heart of the gig economy and so we have to make the work as attractive and easy for drivers as possible,” says Smith. “One hundred of our preferred drivers will have the app initially. We hope this innovation will grow our number of liveried and uniformed Speedy Freight drivers. We want the best driver pool in the UK.” Having a fleet of owner-drivers bearing the Speedy Freight and Eddie Stobart logos brings compliance and brand protection issues, particularly when the safety protocols needed are so diverse. Smith sees Eddie Stobart’s fleet experience as a core strength when devising its fleet safety protocols. Eddie Stobart operates the Speedy Freight 12 tonners under its normal fleet management department, and many Speedy Freight owner-drivers have compliance checks through a third-party software platform. Preferred drivers with smaller vehicles are instructed in compliance through face-to-face meetings with their local depot and manual checks.

“It’s not a simple answer but then it’s not a simple question,” says Smith. “We have many different sources of drivers and we are very aware of the many types of safety and legal compliance we need to ensure everyone stays safe, and to protect our brand reputation.”

It is possible that going forwards the company will be able to draw on the recruitment expertise of Stobartowned Logistics People to help recruit the new drivers it needs and perhaps to offer an extra measure of HR control, but this is yet to be explored.

Rather like pallet network members, Speedy Freight depots are able to claim ‘local relevance with national reach’. They are not restricted to pitching for local work, but can call on the support centre for anything which feels too big to handle alone. “We support our franchisees in pitching, and if they win a national account, we can spread that throughout the network as appropriate,” says Smith.

Specialist one-stop offering

The company can also access work through its parent company, as Eddie Stobart increasingly offers the specialisms it has acquired to clients as a one-stop offering.

“If a customer has a standard trunking or logistics requirement, but will also need our reactive or express services, then we can be involved from the start of the relationship or they can ask for our involvement at any time,” says Smith.

The collaboration between Eddie Stobart group companies – Speedy Freight, iForce, The Pallet Network (TPN), Logistics People and Eddie Stobart – is an interesting experiment in agility and shared resource. There is regular collaboration already between Eddie Stobart and TPN members within and outside of the pallet network, and Smith is exploring routes to collaborate directly with TPN members himself.

He says several TPN members have enquired about taking on Speedy Freight franchises and are potentially interested in working as a vehicle resource. “We are still developing the best routes for this kind of collaboration,” says Smith.

“There are collaboration possibilities throughout the group and they are developing as a reality by the day,” says Smith. “The important thing for all our associated franchisees, members and drivers to remember is that they have control of which business they wish to undertake. Collaboration is always an opportunity, not an obligation.” ■ MotorTransport 17

18/06/2019 11:43:43

Interview

motortransport.co.uk

One-culture

business XPO Logistics Europe CEO Malcolm Wilson wants to be like McDonald’s in that customers know exactly what to expect no matter what continent they are on and their expectations are always met, writes Steve Hobson

M

Malcolm Wilson

alcolm Wilson was appointed CEO of XPO Logistics Europe in September 2017 – well-deserved recognition for the work he did integrating the UK operation over the previous 12 years.

Wilson, who has 25 years’ experience in the logistics industry, was MD of Christian Salvesen when it was acquired by French 3PL Norbert Dentressangle in 2007 and successfully managed the integration of TDG (where he worked before Salvesen) when Dentressangle bought the company in 2011. He subsequently became UK MD and then Europe MD for the supply chain business of Norbert Dentressangle before it was taken over by the top 10 global logistics provider XPO in 2015 for €3.5bn (£3bn) and was rewarded with the top job at XPO Logistics Europe two years later.

XPO Logistics Europe employs more than 50,000 people in 14 countries across Europe and is still headquartered in Lyon. The UK remains XPO’s second largest European market outside France with 22,000 employees including more than 5,000 drivers and 14,000 warehouse staff, annual revenue of €1.75bn (£1.5bn) and a fleet of 4,100 vehicles.

Cultural observations

So, having worked for British, French and now US 3PLs, what differences in cultures has Wilson observed?

Wilson says XPO is “culturally different, but not so different”.

“I think it’s a good blend of everything. The US organisation is much more centralised but it’s incredibly fast and agile. It’s quite a flat organisation and it’s easy to have contact with the top management. We don’t have bureaucratic procedures so we’re able to do things quickly.

In fact, that’s probably one of the hallmarks of what makes the company so successful today. Last year, revenue growth was something like 12% year on year which is the result of satisfied customers. We’re doing well – but always look to do better,” he says.

Despite its size – globally XPO employs more than 100,000 people across 32 countries and turns over $17bn a year – few people in Europe had heard the name when it made its surprise swoop on the family-owned Dentressangle.

“In making that acquisition XPO was able to secure a sizable Europe-wide footprint. UK is the third market for XPO today after North America and France, with little difference now between French and UK revenues,” says Wilson.

18 MotorTransport MTR_240619_018-019.indd 18

Wilson has a deserved reputation for managing mergers of different cultures and he says the integration of Dentressangle and XPO integration went “incredibly smoothly”.

“Honestly, the integration took place over the first three to six months,” he says. “That was mainly changing our processes and systems. The lion’s share of the people remained because they saw the huge benefits of being part of a truly global enterprise with a lot of reach and an ability to satisfy its customers everywhere. It really went very smoothly.”

In the year to 31 December 2018, XPO reported revenue of $17.3bn (£13.3bn), a 12.3% increase on 2017, while the adjusted 2018 EBITDA increased 13.9% to $1.56bn.

Although Wilson bridles at the comparison, XPO wants to be like McDonald’s in that customers know exactly what to expect no matter what continent they are on and their expectations are always met.

“We are a one-culture business,” he says. “One of the things the customers like about XPO is they can enjoy the same kind of experience working with our supply chain business on the US west coast as they get in Spain or Poland.

“That comes because the business has done a good job of maximising communication at senior levels and making sure that permeates through the business. So, we have lots of different tools that allow us to make sure that how we do things in Europe is the same as how we do things in the US. “It’s not a case of ‘everything in the US is best, so copy this,’ it’s truly a culture where we take the best of what the business does and not being precious about whether that is in the US or Europe. We take the best process and try to make that global.”

XPO Drive and XPO Connect

Two best of breed systems that XPO has introduced into Europe are XPO Drive and XPO Connect. XPO Drive is an app, designed for carriers, supporting real-time visibility across transportation modes and integrating carrier operations with daily productivity tools in one technology. Connect is a self-learning tool that allows XPO to match transport demand and capacity that runs with XPO’s Freight Optimizer software and is used for all the company’s brokerage business.

“In Europe, brokerage wasn’t a particularly wellregarded service,” says Wilson. “Today it is because high levels of control over quality means it’s a valuable tool in our toolbox.

24.6.19

18/06/2019 11:52:01

motortransport.co.uk

“Of course, we’re still one of the largest operators of our own vehicles and drivers throughout Europe and the UK in particular. Nevertheless, our brokerage business is growing rapidly and XPO Connect is the glue that helps everything work in a very efficient way.

“Drive and Connect really are at the forefront of online technology for road transport. XPO is investing $550m (£430m) in 2019 on IT and technology. Realistically, we could never have developed those systems in Europe under our own steam. We leapt forward because they were already at an advanced stage in our US business.

“It’s a good example of where we’ve used the best technology and we are trying to use the same technology no matter where we were. We can say the same in our supply chain business where we’re rolling out our latest software for warehouse management.”

Best practice exchange

But it has not been a one-way street, and the staff development schemes set up in Europe have been exported to the US parent. “Our XPO graduate and apprenticeship programmes are being replicated across all our businesses, and its origin is Europe,” says Wilson. “It is a true exchange of best practice.”

As a global logistics firm, XPO is able to offer multinational manufacturers and retailers the full range of services in most of the major markets, and in the UK it has held several meetings with customers to discuss the implications of Brexit.

“While most of our customers just do business within the UK, a lot are international by their nature,” says Wilson. “Many customers in Spain work in France and the UK and it’s the same in Italy, the Netherlands and Sweden. Our experience across Europe is very strong.

Sharing of best practice has allowed us to provide many customers with different services across a number of countries.

“It took six to 12 months for customers to realise that they had a perfect partner for working in the US. What we’ve seen over the last three years with XPO is many of our customers now work with us in the US. We are truly global partners with them.

“For 90% of our top 100 customers, we give more than one line of business across different countries. Being a global business has helped us accelerate our growth with big customers, particularly in the ecommerce field.

Having gained trust in XPO in one market, it’s easy to lift that experience and put it somewhere else.”

In Europe, XPO’s Logistics business is worth $3.7bn 24 .6.19

MTR_240619_018-019.indd 19

(£2.8bn) a year, around 54% of total European revenues, and continues to grow faster than Transport because of the size of logistics contracts XPO is winning.

“Customers are much more confident to trust a huge contract to the big players,” says Wilson. “That’s the differentiating factor for XPO. The company has been able to behave as a true global business. That’s attracting larger customers to us and it’s one of the reasons we’re increasing much faster than the marketplace.

“Three years ago, when XPO came to Europe, we were 40,000 people. Today, we’re approaching 50,000 people.

Every year of the last three years, we’ve recruited around 3,000 to 4,000 people. That’s a small acquisition in own right every year.”

Despite the uncertainties that Brexit has created, XPO and its customers are pressing ahead with some major logistics projects in the UK. “One of the things XPO is good at is managing big automation projects,” says Wilson. “Those generally are 12 months in the planning. We have a large new fullyautomated snacks facility with Nestlé in the Midlands that’s in construction now. It’s going to be a flagship site that will showcase all the latest technology that we can use in our warehousing.

“On our transport activity, our vehicle procurement is as strong as ever. We continue to be a big partner to all the big manufacturers such as Renault and Daimler.

Our truck purchase programme, if anything, is reflecting the growth of the business.”

Shared services

Another change since the XPO acquisition has been an effort to simplify the old divisional split between Transport and Logistics. “One of the things we’ve done in the past two years is pretty much eradicate those different siloed divisions and come together as OneXPO,” says Wilson.

“We still have lines of business, so less than truckload and last mile are strong products that we offer, as well as value-added or niche services such as CoPack, equipment management and consolidation centres in contract logistics.

“But, more and more now, we manage those different services not by line of business but by contract. We still have a strong transport business unit and a strong supply chain business unit, but we have common shared support services such as HR, finance, IT, health and safety, procurement, etc.”

After several years where costs have risen faster than revenue for most 3PLs, Wilson says the pendulum is now swinging back to more sensible rates.

“Tariffs are hardening and getting stronger, and that’s just a common-sense function of the cost increases we have seen recently,” says Wilson. “In most territories, you’ve got driver shortages, vehicles are going up in price because there’s more technology involved and wages are up in certain specific job categories. All of those factors are fueling an environment where there’s less capacity to meet the demand, and that is slowly lifting prices.” ■

ONLINE SHOPPING BOOM SHOWS NO SIGN OF SLOWING While the boom in online shopping is hitting the UK’s high street hard, it is presenting new opportunities to XPO. “Our ecommerce business represents around 30% of our portfolio of services across different industries,” says Wilson. “This includes our last-mile service where we offer two-man delivery into the home of bulky items like furniture, washing machines and refrigerators.”

This service relies heavily on XPO proprietary technology to route and schedule deliveries, and reroute live on the day if a customer decides to rebook a delivery.

While the workhorse home delivery vehicle remains the diesel-powered 7.5 tonner, XPO is dipping its toe in the water with electric vans in Paris, Madrid and soon in London.

“We’re trialing that at the moment,” says Wilson.

MotorTransport 19

18/06/2019 11:52:13

MT Awards 2019 shortlists Urban Delivery Operator of the Year Sponsored by MT profiles the shortlists for this year’s awards O’Donovan Waste Disposal

O’Donovan Waste Disposal runs a fleet of 95 HGVs across six London depots with a clear safety and efficiency culture. It has held FORS gold for eight years and worked closely with the CLOCS team to shape ideas for safer urban truck design, being an early adopter of direct vision lorries to its fleet. It places a significant emphasis on training and ensures drivers take part in courses such as LoCITY driving and counter terrorism best practice. It runs community events, such as Exchanging Places with the Metropolitan Police, to help people understand the view from a cab.

O’Donovan also ensures its fleet policy focuses on Ultra Low Emission Zone regulations and has switched its van fleet to electric.

Judges praised the time and financial investment the family firm had made to mitigating its effect on the urban environment.

DPD UK

In 2017, DPD UK launched a Smart Urban Delivery Strategy, with an ambition to become the UK’s “most responsible city centre delivery company”. A key initiative was to open a series of eight all-electric parcel hubs in London, with the first in Westminster launched in October 2018. The operation has slashed unproductive stem mileage and will reduce CO2 emissions by 45 tonnes in 2019. The hub not only features all-electric last-mile delivery vehicles, comprising Nissan ENV-200s and Norwegian imported Paxsters, but also ensures its trunking leg is carried out on electric FUSO eCanters. DPD UK has also collaborated with organisations such as TfL, the DfT and the GLA to tackle the issue of urban deliveries.

Judges said DPD had offered a great solution for city air quality that was both innovative and scalable.

Bimson Haulage

Bimson Haulage specialises in transporting construction materials, often to restricted sites in urban areas. It has focused on tackling key city delivery challenges, such as air quality, vulnerable road users and

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narrow streets. In particular, the firm’s Urban Brick Crane Trailers have proved a huge success for transporting heavy loads to difficult-toaccess sites, usually only suitable for 6- or 8-wheel rigids. The trailer has the flexibility to transport 26 tonnes of goods in a traditional artic formation, before parking near to site and reconfiguring into a shorter vehicle able to enter the restricted access site. The design has not only reduced vehicle movements, but also halved delivery costs to restricted access sites.

Judges said the trailer was “truly an innovation in its sector” showing a lot of thought on reducing the impact on the urban environment.

Restore Datashred

Restore Datashred operates 12 shredding centres and 250 vehicles, and shreds and recycles 100,000 tonnes of material annually. As many of its collections are in urban environments, it ensures its fleet of HGVs and vans is fitted with noise-reduction technology and safety features such as additional viewing panes on passenger doors. It has also focused on reducing vehicle mileage across its operation, now prioritising larger vehicles with more volume capacity over smaller vans. Its use of a Mercedes-Benz Econic fitted with Faun Rotopress equipment has reduced its number of 7.5-, 12- and 18-tonne rigids threefold due to collecting confidential paper from customers on a milk round basis, which is then taken to shredding centres operating 24 hours a day to also reduce peak-time vehicle movements.

Judges praised the milk round concept and the effective reduction in vehicle miles this provided.

Wilson James

Wilson James founded its original London Construction Consolidation Centre (LCCC) in 2005 in collaboration with TfL, Stanhope and Bovis Lend Lease. Fourteen years later and the LCCC, now located in Silvertown, east London, is still helping to remove vehicle movements on the capital’s roads, reduce congestion and drive down harmful emissions. The centre’s Euro-6 fleet is ULEZ-compliant, with the latest addition of electric vans and charging infrastructure on site also enabling the consolidation and delivery of parcels, which were previously handled by one-off courier deliveries. Using its in-house Fulcrum delivery and inventory system, the LCCC co-ordinates the movement of goods and materials for customers to drive efficiency and reduce wastage. The LCCC is FORS gold accredited.

Judges believed the LCCC concept was a great example of how other major cities should be serviced.

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MT Awards 2019 shortlists

Partnership Award Clipper Logistics

With emissions high on the agenda in the UK, Clipper Logistics showcased its commitment to limiting the effect of its expanding operation on the environment. In its submission it detailed the changes made to its fleet through its renewal strategy to reduce not just CO2 emissions, but also unnecessary road miles. To this end, in 2018, the operator began working with Northern Commercials, IVECO, trailer manufacturer DonBur and TIP Trailer services in a five-way partnership described as “exceptional”. “Bringing together five companies to find a solution to operational and environmental challenges is impressive,” one of our panel said.

Pall-Ex (UK)

Through investment and commitment, Staples Solutions and Pall-Ex have built a mutually beneficial relationship. Utilising Pall-Ex’s network of more than 96 hauliers and Staples’ fulfilment and warehousing within a 500,000sq ft warehouse in Rockingham, Northamptonshire the two have successfully won new business together. The partnership demonstrates that by working together to offer a full portfolio of services, Staples Solutions and Pall-Ex are growing and winning together. “An interesting model that’s well through and shows strong execution,” one of our judges opined.

“There was clear pain and gain, and good teamwork demonstrated,” said another. The partnership also continues to develop with the launch of dual branded trucks now in place.

The Haulage Holdings Organisation

Best kept secrets? 2013 saw the environmental company Leo Group and The Haulage Holdings Organisation begin their journey into the development of a partnership agreement to deliver a best in class operation in the demanding waste management and recycling for animal by-products sector. The overall objectives undertaken, in the partners’ own words, were successfully achieved by collaborative working and the pooling of resources and vast experience from both organisations. “The comprehensive nature of this project marked this out as a strong contender,” said one of our judging panel. Another drew out that the partnership had taken an innovative approach through the structure of the Haulage Holdings business and “ensured high levels of customer satisfaction and enabled new revenue opportunities”.

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The Swain Group

The Swain Group secured an 18 month contract to support both Mace and Saint-Gobain deliver a significant residential build project in Stratford, London, part of the post Olympic Games regeneration program. The project was to manage a direct asset-based supply chain for all construction materials, including internal fit-out for two residential blocks located next to Stratford International station. The construction process was, at that time, a unique and untested method called ‘jump-factory’. The Swain Group provided full logistics support from multiple vendor locations across the UK to the main construction site. “It clearly delivered,” said one of our judges. Our panel also highlighted that the nature of the work was not the norm for Swain yet the haulier had delivered despite “a novel build technique… and the need to integrate with a lot of other systems made this one of the stronger entries for me,” said another.

Wincanton

In its submission Wincanton detailed its partnership with its fast growing client, Screwfix, and how it had kept pace with the now household name by using, ultimately, four DCs and associated transport to get product – in the form of around 2,000 weekly deliveries – to trade counters across the UK and Germany. Wincanton’s partnership with Screwfix began in 2007 when they took over the operation of the Trentham TD1 facility, and has kept up with a client that has gone from less than 200 outlets to more than 600 today. Wincanton supported the opening of 50 new trade counters last year alone, while adding just one delivery route. Picking out strong client testimonials, our judges said the partnership while impressive in scale also showed excellent attention to detail. “Both business have grown significantly off the success of the partnership and the growth of the Screwfix trade counters. But it was good to see that safety remains a key consideration, especially when delivering to technically difficult sites with a high retail footfall,” said one of our panel.

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18/06/2019 10:26:53

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MT Awards 2019 shortlists Sponsored by

Apprenticeship of the Year Close Brothers Asset Finance

With the cost of obtaining a category C+E HGV licence being approximately £4,000, many smaller operators cannot afford to run a apprenticeships for drivers. Enter the Close Brothers’ SME apprenticeship scheme, which was launched in 2017 in partnership with the RHA and TRS Training, and is aimed at enabling hauliers with fewer than 20 vehicles to take on apprentices. Under the scheme Close Brothers Asset Finance funds half of the new recruits’ wages in the first six months and a quarter in the second, freeing SMEs from covering the full cost of employing the apprentices until they qualify.

Judges commended Close Brothers for supporting smaller hauliers and setting an example to other asset funders.

Imperial Commercials

Approximately 20% of Imperial Commercials’ 1,250-strong workforce are apprentices, with most training to be HGV maintenance and repair technicians. The scheme’s success speaks for itself with both apprenticeship pass and retention rates running at 100%. Key to this is the way the company values its apprentices, paying them above average wages. But it’s not just about financial rewards. Apprentices are supported by teams of dedicated mentors, regional buddies and skills coaches and have regular reviews with managers. Family support is also encouraged, with parents kept informed on the apprentices’ progress. Apprentices are also encouraged to take pride in their achievements with family and friends invited to a graduation ceremony.

“This is a remarkable apprenticeship programme, creating a really important reward and recognition programme,” said one judge.

Fowler Welch

Standards are so high at Fowler Welch’s apprenticeship scheme that two apprentices have qualified to enter the company’s Driver of the Year competition. The scheme operates a rigorous selection process to ensure high-quality candidates. The 12-month scheme not only teaches driving skills but also enhances apprentices’ understanding of the business through secondments in customer service, transport planning, despatch and warehouse roles. Apprentices are paired with experienced mentors and their progress tracked and

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compared with Fowler Welch’s experienced drivers. The results are impressive with telematics showing 75% of apprentices performing at level B, compared with the group rating of level C. Retention rates are good, with 16 of last year’s 27 apprentices full-time Fowler Welch drivers and an 87% retention rate for the 2018/19 cohort.

The judges praised the scheme for “very impressive results on retention and employment levels”.

Nagel-Langdons

Nagel-Langdons’ National Apprenticeship Academy is dedicated to bringing new, high-quality talent into the sector. Run in partnership with N-Gaged Training, almost 200 apprentices have successfully graduated over the past five years, with 100% finding employment. Of the 27 HGV driver apprentices that joined in the past 12 months, 100% have successfully graduated, with 90% achieving a distinction grade.

The company is also proud of the diverse backgrounds and age range of its apprentices. High-quality mentoring is central to the programme’s success, with all line managers undergoing a 12-month mentoring course to ensure apprentices are fully supported. This has contributed to the high retention rate among apprentices employed by Nagel-Langdons. Regular meetings with N-Gaged Training to discuss the programme ensures it remains relevant to the sector.

The judging panel praised the company’s commitment to its apprentices and were impressed with the high numbers of apprentices achieving a distinction grade.

Tesco

Launched in 2017, Tesco’s level 2 HGV apprenticeship scheme has expanded exponentially, taking on 145 trainees this year, compared with just 18 in its first year. The scheme, which partners with South Essex College and Scania, recruits from existing staff and guarantees all successful apprentices a driver position. Apprentices not only train for a category C+E licence funded by a Tesco interest-free loan but also study for a BTEC in the Principles for Carrying and Delivering Goods by Road. All apprentices are assigned an apprenticeship coach, a delivery service champion manager and a driver mentor to offer advice and support throughout the apprenticeship.

Judges said the programme was “a highly professional and well supported programme”, and praised its availability to employees across the age range and the inclusion of the BTEC qualification.

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18/06/2019 15:10:21

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20/06/2019 09:46:34

MT Awards 2019 shortlists Sponsored by

Operational Excellence Award City Plumbing Supplies Holdings

A three-year operational programme has focused on taking the recently divisionalised City Plumbing Supplies, which has 370 operating centres in the UK and Ireland and 680 vehicles, to a new level regarding transport and management excellence. The initiative, run by a small, dedicated fleet team, has been instrumental in delivering a transformation programme, which has allowed City Plumbing Supplies to move ahead of its competition and deliver record sales figures. The foundation for the journey from a transport perspective was the Access Operational Excellence programme – a series of commitments comprising availability, compliance, commerciality, efficiency, safety and service.

“This is a really strong entry with a clear narrative of compliance,” said one of our judges. “It demonstrates an ethos of safety, service and compliance throughout the company,” said another.

Wren Kitchens

While the kitchen may well be the heart of the home, compliance and operational excellence is without doubt central to any well-run, sustainable and profitable transport business. Wren Kitchens is a young business founded a decade ago, and therefore has had the advantage – but also the challenge – of establishing systems and processes to encourage safe and efficient transportation. The own-account operator describes its approach to this as evolutionary: continually seeking opportunities to streamline the business, provide greater employee satisfaction and motivation, while improving the customer experience and maintaining the highest levels of compliance.

Our judges described the business as dynamic and fast growing.

“Customer service is at the heart of the operation and Wren understands that to deliver, it has to invest in its systems and people at every level,” said one. Drivers, according to our panel, were clearly integral to the operation with five-day inductions, performance reviews and a training academy. Another judge described the policy of three-monthly licence checks and six-monthly eye tests for those behind the wheel as “industry leading”.

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Speedy Asset Services

In 2015 Speedy Asset Services had eight O-licences, one of which was red, two amber and the other five green. To remedy this, the company introduced a set of standards for vehicles and drivers and an audit that covered all areas of transport compliance. By 2016, the company had seen improvements of 40% in this measure, which increased to 91% by 2017. It led to the operator having the confidence to apply for Earned Recognition and, following three successful audits of the business, a place in the history book as a founder member of the scheme.

“It had a problem and it made sure it addressed it, which I really like,” one of our judges said. Another of our panel agreed: “This is a real success story. The team at Speedy are to be congratulated.”

Restore Datashred

A successful business partnership between telematics technology company Masternaut and Restore Datashred was the core of this submission. According to the operator, Masternaut provides a range of fleet management systems, devices and resulting data to help managers encourage key areas in their teams: safer and more fuel-efficient driving; better customer service and going greener. It requires it as a business, with 45,000 monthly (and rising) collections of confidential documents to be securely disposed of, 12 sites and a fleet of more than 250 vehicles – from vans to HGVs – to co-ordinate. Despite shredding more than 100,000 tonnes of material annually Restore Datashred’s aim is for zero to go to landfill, as well as assisting customers in reducing their carbon footprint.

“Driver infringement statistics and the Masternaut Gold Fleet status evidence the company’s commitment to monitoring driver behaviour and promoting good practice,” said one of our judges. “The green OCRS across all operating centres is testimony to Restore Datashred’s compliant operation,” said another.

24.6.19

ADD A SPLASH OF GLAMOUR

BOOK YOUR PLACE AT THE 2019 MOTOR TRANSPORT AWARDS Motor Transport Awards 2019 | 3 July 2019 | Grosvenor House Hotel, London

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20/06/2019 10:23:44

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20/06/2019 09:53:07