Part of the Stotts Group, Willmotts Transport (Willmotts) is one of the largest privately owned distribution companies in the south western region of the UK. Founded in 1918, the firm was originally established in Wells, Somerset, but moved to a new site near Shepton Mallet in the 1980s, where it remains today. Group Managing Director, Andy Stott, has overseen much of this expansion, and in the last ten years Willmotts has grown significantly. We recently caught up with Dan Gray, Managing Director at Willmotts, to find out more.

Indeed, change has become a fundamental part of the distribution company’s growth strategy. For instance, Willmotts now operates multiple warehousing sites in Somerset, including Shepton Mallet, Radstock, Glastonbury, and Frome, as well as operating other depots in Bristol, Bridgwater, Devizes, Warwick, and Sheffield. A 125,000-square-foot warehouse in Radstock was purchased in 2021, but has already been rapidly filled, demonstrating the incredible rate of growth that Willmotts is experiencing. The company has therefore further augmented its warehouse capacity, recently constructing a new and fully-racked 20,000-square-foot site in Waterlip, near Shepton Mallet.

In the last five years alone, the firm has expanded from a relatively modest portfolio into over 400 active accounts, ranging from large multinational organizations to small enterprises and start-ups. Further, Willmotts has secured long-term contracts with numerous, prestigious brands, demonstrating external confidence in the company’s ability to support and enhance the competitiveness of its working partners.

“Central to our growth has been continued investment in our vehicles, sites, and warehousing facilities to support our customers’ requirements as well as the upskilling of our employees,” notes Dan. “This has become even more important since the complexity and range of our services has dramatically increased over the last few years.

“Very early on, we acquired BRCGS certification, which is now maintained across four sites, as well as certification from the Soil Association and both ISO9001:2015 and ISO14001,” he goes on. “This gives customers the reassurance of independent quality assessment with regards to our professional handling of both food and non-food products.”

Dan took over the reins as Managing Director in 2022 and is focused on driving further strategic development within the business, zeroing in on supporting local and national food, drink, Fast-Moving Consumer Goods (FMCG), and packaging manufacturers to support pre- and post-production warehousing and distribution requirements.

Leading a company is no easy feat, especially during the turbulent post-pandemic period. As Dan explains: “Along with practically every transport operator in the country, in the last 12 months we have experienced an acute driver shortage, which threatened to leave some of our trucks parked up. With fewer large trucks on the road, much distribution was diverted into networks, leading to an excess of network freight volumes; the network infrastructure simply could not cope.

“It was the perfect storm,” he states. “Yet, quite rightly, it led to a necessary review of driver salary packages, substantially enhancing their personal sense of worth within the profession. Reflecting back on that time, we are incredibly grateful for the loyalty many of our drivers showed. In the end, employee retention was good and our customer base remained stable.

“We believe that running the newest, premium equipment is not only environmentally sound and a good advertisement for our customers, but, particularly in a difficult labor market, has also helped us to attract and retain our driving workforce,” continues Dan. “To secure new business, differentiation from competitors is crucial, and this is most readily achieved with strong branding; however, much new business comes from recommendation. The requirements of the food, drink, FMCG, and packaging sectors are very specific; customers are looking for food safety processes, traceability, and reliability in a fast-moving and demanding environment, as well as scalability to cope with seasonal fluctuations. Our growth has enabled the company to develop more sophisticated logistics and IT solutions, building a bank of expertise and resources that puts us in a better position to secure new contracts.”

Since navigating that perfect storm, Willmott has continued to grow organically; however, a key part of the firm’s recent expansion is the result of the acquisition of Parker Transport by Stotts Group in June earlier this year. Indeed, the Group, which also includes bulk transport specialists S&B Transport Services, operates more than 150 vehicles and covers 400,000 square feet of warehousing space across eight locations.

“The acquisition has certainly increased the strength and depth of our resources and capabilities,” Dan asserts. “We have focused on strengthening our marketing and digital branding, and forging better, long-term alliances with local manufacturers. Combined with our technical expertise, robust facilities, and growing vehicle fleet, the move has enabled us to attract new business and win a number of major new contracts within the last 12 months.

“Despite extended lead times, our vehicle renewal program has remained in motion; ten new trucks and 12 trailers have joined the fleet, and we are continuously looking to expand,” he adds. “Many of the trailers are Willmotts branded, but some have been liveried for customers. In fact, two examples feature The Lily Foundation, an important charity fighting mitochondrial disease that we are supporting, which have created a lot of interest.”

Willmotts considers the practice of good corporate social responsibility an essential trait, assisting an array of humanitarian aid services in Ukraine by transporting essential medical supplies and hospital beds to the border. Another aspect of the geopolitical crisis – the knock-on economic impacts – cannot be ignored.

As Dan notes: “The current economic climate is very challenging; operational costs are still rising exponentially. However, as in the past, we are well placed to weather the storm, and remain confident that we can provide a competitive offer and add tangible value to our customers’ commercial operations, which will put us in a good position to maintain growth going forward.

“We see our service as an essential component of the UK economy,” he concludes. “As we enter the pending recession, it is undoubtedly disappointing that the government has not gone far enough to reduce the costs of doing business and stem the upward trend in prices. In common with most other logistics operators, we would welcome more help with fuel duty and energy costs. That being said, we remain committed to maintaining and developing the business, enabling us to provide intelligent and sustainable one-stop solutions for a variety of manufacturers.”
www.wtl.uk

When XDP Ltd (XDP) began trading in 1996, the company initially supplied the security and electronics sectors, specializing in parcel carrier services. But entry into these fast-evolving markets was an immediate recipe for growth. It wasn’t long before XDP transitioned into the Irregular Dimension and Weight (IDW) market, adding a two-man service to its initial one-man offering.

Since then, XDP has grown to become the largest privately owned freight network in the UK. The company boasts a fleet of over 500 vehicles, and a network in excess of 30 depots nationwide, along with 15 corporate sites, and two distribution hubs. It’s a significant footprint, and one that XDP has been able to build thanks largely to an emphasis on customer-focused logistics, prioritizing reliability and quality of service.

As a privately owned freight network, XDP sits between the parcel and pallet sectors. The company’s full manual-sort offering also enables it to carry fragile items – typically those smaller in size, but which can’t be run through the ordinary mill of automated belts found throughout the parcel sector.

“Our strength lies in the combination of old and new worlds,” are the words of Isabella Wayte, Managing Director at XDP, when speaking to Transportation & Logistics International. “The old world of the manual sort and a real person on-hand to speak with, combined with the latest and greatest technological innovation and AI capabilities.

“We carry predominantly for the B2C market for some of the UK’s largest retailers,” she continues. “XDP offers both a one-man and two-man service across mainland UK and offshore. We also provide dedicated loads and trucking.”

It’s been an interesting time for logistics. The industry underwent a boom in the wake of Covid-19, as repeated lockdowns saw consumer purchases soar. But increasing business has its challenges. For XDP, it was a challenge to the company’s technological and physical infrastructure.

“As a business, our flexible and agile operation was certainly put to the test with the large increase in online shopping,” Isabella confirms. “Many lessons were learnt, which paved the way for many of the new technologies we’ve since put in place – including contactless, QR signing, as well as resource efficiency and performance quality.”

Despite its significant business growth, XDP remains true to its core values. The company remains the only freight network to provide a fully manual operation, a fact that distinguishes it amid a competitive field. “Our operational offering means we’re able to carry a wide variety of goods that, due to either size or product type, aren’t able to travel the conventional way without damage,” Isabella explains. “Providing a fully manual sort allows us to carefully handle all items and manage quality.”

It’s in pursuit of this same quality that XDP continues to introduce innovation throughout its operations. Most recently, this has taken the shape of the company’s ground-breaking new DriverX platform.

“Our real-time DriverX platform delivers enhanced performance, communication, and visibility of all our one-man and two-man deliveries,” Isabella reveals. “The app enables next-stop notification, contactless QR signing, proxy consignee contact, and dramatically improves tracking visibility for customers. It represented a big project for the business, and although – as with most large investment rollouts – we encountered some inevitable teething issues, its impact has been revolutionary.”

Moving forward, XDP is rolling out a series of IT innovations to further enhance RFT, customer experience, and performance. A second phase DriverX platform and second-phase Consignee App will also be rolled out in the coming months.

“We’ve also invested in some more developments for our two-man offering, to further improve customer experience,” Isabella tells us, with those expected to go live within a couple of weeks of our conversation. “Furthermore, we’re working hard to reduce our carbon footprint by ensuring we maximize trailer fill, and are currently trialing electric vans in central London. We’ve recently undertaken a complete review of our customer services department, and we’re in the process of a complete rebrand that focuses on next generation customer care.

“People are imperative to our business,” she adds. “We’re proud that some of our staff have done the full 26 years with the business, and we continue to pride ourselves on a culture of leading by example, and allowing staff a real voice within the business. We’re constantly looking to add further talents to our fantastic and long serving team.”

With eyes firmly fixed on the future, XDP already has a full year of development work scheduled for 2023. “Although we won’t be immune to much of the economic uncertainty currently facing the UK, we remain well-positioned to face these challenges,” she concludes. “Our tenacity and determination are the skills that will be key in the upcoming years. Our focus remains on quality, and on our people, as we look to provide all our customers, old and new, with a fairly priced and quality service.”
www.xdp.co.uk

When Total Vehicles Solutions Group was formed in 2018, it was intended as a holding company for three brands – McPhee Mixers, Priden Engineering, and SB Components. Come July 2021, another brand was added to the portfolio: Wilcox, the leading aluminum Tipping manufacturer, raising the company’s turnover to a total of £65 million. In 2022, the company then underwent a rebrand, when it adopted its current name: TVS Interfleet Limited (TVS).

Products manufactured by TVS fall into two sales verticals: industrial and commercial. The former encompasses the company’s McPhee and Wilcox brands, providing concrete mixers, aluminum rigid tippers, and trailer tipper equipment. A third brand, Priden Engineering, also falls within the sector, manufacturing agricultural blowers. “We’re trusted and used by household names within the construction industry,” notes Phil Ashton, Group Commercial Director at TVS. “McPhee in particular is the UK market leader for concrete mixers.”

The commercial arm of the company’s business incorporates two divisions: SB Components, and the newly rebranded Purpose Bodies. “Within SB Components we have three outlets,” Phil goes on. “The truck and bus outlet provides catwalks, tanks, wet kits, and infills to the UK transport industry. We then have our fleet work outlet fitting mainly health and safety items such as side scan, cameras, A-frames, and more, working with customers including Asda, for whom we’re currently fitting around 270 vehicles, as well as Tesco and Royal Mail. The third outlet, based in Holland and operating under the brand TVSE, sells aluminum diesel and Adblue tanks to the Dutch and European market.”

One of the most significant recent changes to take place at TVS has been the rebranding of its bodybuilding division. Previously housed under SB Components, Phil explains that the Purpose Bodies division hasn’t always received the attention it deserved. “No-one, including myself before I joined, really knew that SB Components actually built ambient bodies,” he says. “I’d known and used SB Components for 25 years, and when I first toured the production facility after joining, I was absolutely amazed to learn that they built bodies for the likes of John Lewis, SIG, and BT Civils.”

To Phil, it was evident that a change needed to take place. “We’ve been working with an external branding company since the start of the year, who have a track record of success with major companies to raise their brand profiles,” he reveals. “They helped us with the rebrand to TVS, and it’s with them that we came up with the Purpose Bodies name, which we launched at this year’s Motor Transport Awards ceremony on 7th September, hosted at Grosvenor House in London.”

TVS operates a total of ten factories, across three locations in the UK. The home of McPhee Mixers is an all-new factory located off the M8 at Glasgow’s Euro Central. Wilcox, meanwhile, is based across four factories in Market Deeping, on the outskirts of Peterborough. A third location is situated in Wisbech, Cambridgeshire. But the company is no stranger to flexible methods of manufacturing.

“If you were to walk into our Priden Engineering factory today, you’d see that they’re currently building some Purpose bodies,” Phil notes. “Because Priden Engineering’s business is seasonal, we’re utilizing some of that available capacity.

“In the early part of next year, we’re also planning to begin assembly of some of our McPhee mixers in Market Deeping,” he continues. “The concrete industry is booming, largely thanks to a high volume of inner-city development, and our order books are full. Accordingly, we’re focused on how we can grow our production by sharing some of the skills across our various manufacturing divisions.”

The construction industry as a whole is currently in the process of a significant transition, as companies look to diversify away from reliance on fossil fuels, pivoting instead towards the use of electricity. Targets set by the UK Government stipulate that all new vehicles up to 3.5 tons must be electric or zero-emission by 2030, with 26-ton vehicles to follow in 2035, and 44-ton vehicles in 2040. Although the dates might seem a long way off, TVS is pioneering the way. The company has established partnerships with major OEMs to develop lightweight e-mixers and, through a collaboration with Renault, has worked to deliver the UK’s first electric mixer with an electric vehicle chassis, with products already on order.

“Construction is particularly buoyant in inner-city areas, and electrification just so happens to be tailor-made for short-distance journeys,” Phil notes. “Bradford is the latest city to have introduced a low-emission zone, which came into force in September of this year. We were also recently invited by the Highways Agency to tender on the Lower Thames Crossing, with work set to commence in 2025. It’s an £8.7 billion project, designed primarily to alleviate the strain on the Dartford Crossing. The government has designated the project as a diesel-free build, which again lends itself to the e-mixer and e-tipper.

“We’re speaking to all OEMs about their EV strategy,” he goes on. “John Lewis has set us a challenge to create a fully recyclable body solution for their home delivery vehicles, and we’re collaborating with them to create a workable payload.”

When it comes to its own operations, TVS is also making significant strides. As part of its ESG strategy, the company has made a large investment during this financial year into carbon-reduction initiatives across its footprint. But sustainability isn’t the only focus of its innovation efforts. “In the concrete world, one big problem is the potential for concrete mixers to roll over during operation,” Phil reveals. “An inexperienced driver going around a corner can, if there’s a certain volume of concrete in the drum, knock the vehicle off-balance. Approximately 40 such incidents occur in the UK each year.

“Our e-mixers offer one solution,” he continues. “Without a standard drive train, we can set the drum lower in the chassis, giving the vehicle as a whole a lower center of gravity. But we’re also introducing a new smart controller solution, InterLecs, which we hope is going to change the industry when it comes to operator safety. That’s due to go to market in 2023.”

There are an exciting few years in store for this growing business, which is targeting turnover of £90 million within the next three years, driven in large part by its Purpose Bodies division. “Our rebrand shed a light on our bodybuilding capabilities, and we’re now making noise in the industry,” Phil insists. “The next question is: how can we add value? The likes of John Lewis and IKEA are moving aggressively towards their zero-emissions targets, so any payload savings we can find in the body are hugely beneficial. As we say: it’s the truck that drive the body, but it’s the body that drives the business. Moving forwards, we intend to do a lot more value-selling of that kind.”
www.tvsinterfleet.com

With an estimated 700 million parcels currently delivered annually in London, the potential for handling light freight on the River Thames provides a unique opportunity to rethink the logistics of goods transportation.

There is a fast-growing desire across public and private sector organisations to transport light freight, alongside the heavier freight already moved on the river, to secure environment and logistical benefits. Making better use of the river could significantly contribute to net zero ambitions. It could also help improve air quality.

Every 1,000-ton barge of goods transported along the river removes the need for roughly 100 trips made by lorry cutting congestion. There are clear benefits to shifting light freight from road to river including slashing non-exhaust PMx emissions (generated through breakdown of brakes, clutches, tyres and road surfaces) which are a significant contributor to poor air quality, especially in central London and across UK cities.

In their action plan, ‘The Green Blue’, the Thames Estuary Growth Board set out an objective of delivering the world’s greenest, most productive Estuary. A key part of this is to explore how the River Thames can be better used for freight and it is the commitment of the Thames Estuary Growth Board that will ensure river freight is a viable competitive alternative to road transportation.

There is a growing body of evidence and guidance supporting movement of freight from roads on to rivers and inland waterways. This includes a ‘Light Freight: Design Solutions for Thames Freight Infrastructure’ study co-commissioned by the Thames Estuary Growth Board, the Port of London Authority (PLA) and Cross River Partnership (CRP), that considers the design of the existing piers along the River Thames and how they could be modified to accommodate the requirements of a light freight service.

A suite of design solutions demonstrate how a shortlist of prime pier locations along the Thames could be modified to support light freight as either a partial or continuous service in addition to the potential construction costs involved. The study highlights that while a partial service may be more financially viable to begin with, the volume of cargo would be limited. Whereas a continuous service would require more significant investment but would support a larger operation.

A future-proof vision of safe, sustainable and predictable movement of large-scale light freight in a city that is notoriously difficult for making deliveries is currently being mapped out to realise this. A report published by Thames Estuary Growth Board in partnership with the PLA ‘Light Freight on the River Thames’, prepared by WSP, clearly defines what a commercially viable river freight solution might look like, alongside a well costed business case.

A precedent for this has already been set with multiple trials on the river including Guys and St Thomas NHS Trust / CEVA / Livetts, and DHL. DHL in particular is exploring this potential for expansion after a positive trial.

Ben Hiles, Senior Director for Engineering and Infrastructure, DHL Express UK said: “Our river boat has an impressive 98 percent journey time reliability, which is a huge asset given the time definite service we offer our customers. We are already moving 50,000 parcels a year using this mode and continue to explore opportunities to further expand the project.”

The co-location programme, which is bringing together historic markets of Smithfield, Billingsgate and New Spitalfields to a purpose-built site at East London’s Dagenham Dock is also looking at using the Thames. This mode of moving freight to and from the markets is cleaner, greener and efficient and importantly, instrumental in helping to reduce the capital’s carbon footprint.

Aside from lack of awareness that waterborne freight is an option, the determining factor for many businesses is cost. However, while the cost may be seen as a barrier for short term and low-scale uses, a long-term look at light freight reveals substantial economies of scale. And many businesses appreciate the reliability of a service unimpeded by congestion and roadworks.

The wider environmental and social benefits are recognised as significant and potential users can unlock subsidies or incentives, including the Government’s Mode Shift Revenue Support (MSRS) scheme. The MSRS was developed with the aim of enabling modal shift away from road transport, but applications from parties interested in waterborne freight have been extremely low.

In response to this, Thames Estuary Growth Board and PLA recently published The ‘Mode Shift Revenue Support (MSRS) – Light Freight Analysis Report’, which provides a succinct evidence base that informs the case for reforming the MSRS scheme to better support the shift to water. The report considers both light and heavy freight, the different needs of river and maritime services, and highlights a number of barriers as well as enablers, including focussing on net zero (such as environmental reporting), technology and innovation.

Four simple changes can make the scheme more effective, according to the report by consultants, WSP. They recommend adjusting the scheme: taking account of the additional barriers faced by waterborne operators; encouraging innovation, particularly in light freight; developing pilot studies to test alternative modes for specific cargo types; and allowing grant funding for capital expenditure in setting-up new operations, rather than just operating costs.

Perry Glading, Deputy Chair of the Thames Estuary Growth Board said: “We’re now inviting businesses to come to talk to us. The fundamentals are there, now it is a matter of getting the supply chain linked up and operational to deliver the volume that will make waterborne freight a commercially sound option. There is no wrong door and the Thames Estuary Growth Board, together with partners including the PLA, Logistics UK and CRP can help connect different businesses interested in participating in this ecosystem and exploring the possibilities light freight can offer. Together we will get the dialogue on what is possible moving at a faster pace with all interested stakeholders, including the DfT, and then turning that into a real shift from road to water.”

With investment and development opportunities to make piers, wharves and river vessels fit for purpose – essential in handling large scale river freight – now is an exciting time to be involved in moving goods on the Thames.

For a list of the sources used in this article, please contact the editor

Perry Glading, Deputy Chair of the Thames Estuary Growth Board

To find out more about light freight in the Thames Estuary and connect with the Thames Estuary Growth Board, visit thamesestuary.org.uk or to join the conversation and be part of the light freight economy in the Estuary contact enquiries@thamesestuary.org.uk.
Find out more about the PLA (pla.co.uk) Logistics UK (logistics.org.uk) and CRP (crossriverpartnership.org).
We’re in a good place for greener freight. Join us.

Time moves quickly in shipping. Just a few short years ago, biofuels were a marine fuel option being adopted by environmentally minded pioneers. Today, biofuels are in the mainstream, with a dramatic increase in demand leading to customers in an ever-wider range of countries and market segments trialing and adopting the fuel at scale.

If the first eight months of the year are any indicator, 2022 will be recorded as the point that this demand transitioned from speculative to permanent, driven by the increasing pressure on the industry to decarbonize and the industry scrambling to find immediate ways to reduce its emissions.

Companies turning to biofuels to decarbonize their activities now span all shipping segments, including dry bulk, containerships, tankers, ro-ro operators and, more recently, cruise operators. The sheer numbers of owners and operators throwing their hat in the ring prove that biofuels are no longer the preserve of a handful of first movers.

So far, this significant shift has mostly been driven from within the industry itself. Given the urgency of the climate crisis, consumers’ demands for better, greener practices are being sounded out loud and clear – and these consumers are increasingly putting their money where their mouth is.

As a result, industry giants have pledged to zero-carbon transport, and crucially they are ready to pay a premium to ensure their cargo is transported sustainably. In practice, the capacity to deliver carbon-free shipping is already a key factor in tenders and for when cargo owners choose their supply chain partners. Aware of the importance of sustainability for the supply chains of the future, investors are also closely monitoring companies’ ESG credentials when making investment and lending decisions.

The sourcing challenge
The acceleration of demand for low carbon fuels has led to a fundamental paradigm shift. We are now in a seller’s market, and the days of fossil parity are over. Increasing production and sourcing new feedstocks to ensure we can continue to respond to the industry’s needs are challenges that we must address today, not in some hypothetical future.

Huge effort is being expended on the part of suppliers like GoodFuels to ramp up production and find new sources of renewable bio-energy. We must also do this without compromising on sustainability, ensuring that all feedstocks are sustainably sourced and certified as 100 percent waste or residue.

For example, GoodFuels’ current stock of fuels can be composed of sustainable waste materials including sawdust, crude tall oil (a by-product of wood pulp manufacture), tallow, sewage sludge and used cooking oils from industrial applications. As demand expands, it’s inevitable that more sustainable sources will be transformed into advanced marine fuel.

On the customer side, the barrier to entry is low, which is proving to be a real differentiator versus other alternative marine fuels that are further off in terms of their development. Sustainable marine biofuels can ‘drop in’ to existing engines and infrastructure, without the need for any downtime. They require no technical changes on the part of the operator or crew but, critically, can make an immediate and measurable sustainability impact, slashing CO2, NOx and SOx emissions.

However, despite the increase in demand, it’s obvious that a broad range of future fuel options will be needed to help shipping achieve its radical decarbonization transformation. Biofuels will be one critical piece of the puzzle, but we are moving away from an era of commodity fossil-based fuels and into a more fragmented landscape that will see a plethora of renewable, sustainable, low and zero-carbon options bunkered around the world.

The internationalization of biofuels
On the biofuels front, it’s important to recognize that supply has now ‘gone global’ in a way that other alternative marine fuels are still aiming to do. From what began as an essentially Western European market, more regions are opening up. After all, a global industry needs globally assured supply. This is a key driver behind GoodFuels’ determination to cement our presence in Asia, with the opening of our office in Singapore earlier this year.

In addition to growing interest in Asia, there is also a significant and growing demand in countries like the United States, the United Kingdom and France, where more favorable legislation provides additional incentives for companies and suppliers.

The role of legislation in encouraging future fuels update can’t be understated. In order to truly decarbonize shipping, regulators must ensure that new legislation is goal-oriented and technology neutral, and does not allow for the preferential treatment of any technology unless it concerns the phasing out of fossil energy.

Partnerships based on trust
In this new normal, trusted and reliable partners are more important than ever, and independent validation and verification are key building blocks of that trust. All of GoodFuels’ biofuels are certified under the global International Sustainability and Carbon Certification (ISCC) system, ensuring true sustainability and transparency within the fuels supply chain. Additionally, the type of feedstocks GoodFuels uses are approved by an independent sustainability board, to make sure all of the company’s biofuels come from sustainable feedstocks that do not cause land-use issues, compete with food production or cause deforestation.

At the same time, technology is also likely to play a greater role in ensuring transparency and accountability. For example, blockchain technology can facilitate tracing and guarantee that the products genuinely meet all sustainability criteria.

The coming decade will be full of challenges as GoodFuels continues its work to meet the new normal demand for biofuels, but this also comes with fantastic opportunities to create new partnerships and have a tangible impact in more regions of the world. The planet cannot wait – to limit the impacts of climate change, we need decarbonization action to start today. And with biofuels, we have a powerful tool at our disposal to allow more cargo around the world to be transported carbon neutrally in the immediate term. Let’s work together to create the greener, cleaner future for shipping that we all want to bring about for our own businesses, our children, and generations to come.

Dirk Kronemeijer is CEO of GoodFuels, a Netherlands-headquartered global pioneer in sustainable marine fuels, with offices in Europe and Singapore. The company has created a one-stop shop for marine industry customers, integrating the entire supply chain for sustainable marine biofuels. From feedstock to tank, GoodFuels’ proposition covers elements of sourcing feedstock and ensuring its 100 percent sustainability, the production and refining, the global distribution, quality assurance and marketing programs with ports, governments, and cargo owners.
www.goodfuels.com

The UK’s Rail Reform White Paper (AKA Williams-Shapps Plan) included a welcome ambition to increase the amount of freight carried by rail in the UK and underpin this by setting a growth target.

The first question that springs to mind is why set a target? The White Paper recognizes that to get more freight on rail requires behavioral change – Rail Freight Group strongly supports this view and believes this change needs to be embedded in every route and region as well as within the governance of Great British Railways.

On 5th July, the Great British Railways Transition Team (GBRTT) launched their document Rail Freight Growth Target – A call for evidence on designing and delivering rail freight growth target options for the rail network. Although we have given evidence to previous forward-looking consultations, such as the Whole Industry Strategic Plan (WISP), in January this year, this latest evidence gathering demonstrates that our messages in previous consultations have become embedded in mainstream thinking and that rail is seen as a desirable mode for moving freight. It is accepted for example, that rail has only a quarter of the carbon footprint per unit load compared with road transport, suggesting that carbon escapement will be challenging for road, and that one train can do the work of 76 lorries, which suggests our messaging around congestion and road maintenance has been well received.

Evidence from users and potential users of the railway
The call for evidence is in two parts. Before constructing a target mechanism, GBRTT is keen to know more about what drives the market for rail freight. It wants to hear evidence from existing users but also from those who do not currently use rail to identify some of the barriers, whether real or perceived, that might frustrate further modal shift to rail. There are 17 questions grouped under four headings: – Understanding your views on the rail industry; Understanding current and future demand; Understanding the opportunities and challenges to rail freight growth and Understanding your priorities and future engagement. These seek to identify everything from attitudes to decarbonization, why customers choose their current mode of delivery (cost, journey time, reliability, flexibility)?, have they tried using rail previously?, over what distances do they typically send freight consignments? What are the opportunities for growth over the next five, ten or 30 years?

What target should we set?
The second part deals with measuring growth. What should be the preferred metric for judging success or otherwise? And discusses several possible measures in turn:

Value of freight £x; not a measure used currently and one which might be difficult to measure, particularly as it tends to become eroded with inflation! Nonetheless it might help to justify investment.

Lorry movements avoided; This would require accurate measurement of lorry miles over addressable distances to fully understand, though measuring rail freight could be used as a proxy. This is one of the measurements informally applied in Scotland.

Carbon tonnes saved; This could be derived from the above measure but may become less reliable the greater the use of alternative fuels by competing modes.

Net tonne kilometers; The standard metric used currently as it measures work done. Any increase in this metric would still need to understand if it was because of new traffic from road or as a product of cyclical economic changes. Tonnes (of freight lifted); although distance agnostic, it might not capture growth. More aggregate trains and fewer intermodal trains would increase this value without necessarily achieving modal shift.

Freight distance in kilometers; the mirror of the above which may under-record a reduction in aggregates if intermodal traffic grows.

Trains per annum; This would be good to measure new flows but might add the perverse incentive to run trains empty (as if we could afford to do that!)

Although the CFE asks us to choose a metric, the only way we can really understand growth is to apply a blend of measures and use them as Key Performance Indicators (KPIs). But what should the target be? Should it simply follow industry unconstrained forecasts or should targets be stretching? There have been calls for rail freight to treble by 2050, requiring a compound annual growth rate of four percent. Should there be intermediate targets set? To achieve a three-fold increase requires 26 percent more freight to be carried by the end of every periodic review compared with the last.

Whose target is it anyway?
Which brings us to another problem, that of capacity and the actions needed to support growth. GBRTT cannot be allowed to set targets for others to fail. The rail freight industry relies on private investment in locomotives and wagons. Many more of both will be needed if we are to get anywhere near a three-fold increase. With two to three years lead times for delivery, this investment will only be forthcoming if there is guaranteed investment in the infrastructure. Investing to hit a target is not just about buying more arrows, someone needs to improve the bow!

The CFE asks us to identify growth opportunities over the first five years, five to ten years and ten to 30 years and what investment might be needed to support them. At the same time, it makes clear that at least in the short term (zero to five years) money for investment will be tight and any proposals for enhancement must demonstrate value for money. This already sets alarm bells ringing as constraints in the network, such as at Ely, are already suppressing growth.

There are examples of more modest, freight-friendly investments including lengthening loops to allow longer trains, strengthening bridges to allow heavier axle weights, raising bridges (or lowering track beneath them) to increase the loading gauge. These could be achieved in the short-term.

Longer term we need to see investment in network enhancements and a rolling programme of electrification. Not only will this further reduce the carbon footprint, but also speed up freight services which brings several benefits. It reduces the time lost in ‘loops’, as it becomes easier to integrate with the passenger timetable, it offers more competitive end-to-end journey times, and it makes more efficient use of wagons and locomotives. A train that can complete its journey in a single shift is cheaper than one requiring two.

Growing rail freight must be a partnership between the state and the private sector, and the state must be set investment targets too. Our members are ready to play their part, but not to become targets for blame if we fail.

Phil Smart is Assistant Policy Manager at The Rail Freight Group (RFG). The Rail Freight Group (RFG) has been the UK’s leading rail freight trade association since its formation in 1990. It has more than 120 corporate members active in all sectors of rail freight from ports, terminal operators, customers, through to operators and suppliers. RFG’s aim is to grow the volume of goods moved by rail, delivering environment and economic benefits for the UK. RFG works hard for the interests of its members representing their views and providing a wide range of advice and information.
www.rfg.org.uk

Northern Lights is developing the transportation and storage component of Norway’s Longship project to decarbonize industrial emissions.

Norsepower estimates that the rotor sails will reduce the fuel and CO₂ emissions from each vessel by approximately five percent. The two first-of-its-kind carriers have been designed by Northern Lights and are being built by China-based Dalian Shipbuilding. Tuomas Riski, CEO of Norsepower, comments: “Vessels are being built today to operate efficiently ahead of 2050. As fuel prices increase and a carbon levy is initiated, getting newbuild vessels as efficient as possible is essential for long term commercial success. We are pleased to be supporting shipowners in achieving greater climate alignment compliance scores and contributing to the greater sustainability of supply chains as a whole.”