NFC strikes oil with tanker contract
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by Alan Millar
THE DAYS of own-account transport in the oil industry look numbered, following Texaco's decision, announced on August 1, to hive off its transport to the National Freight Consortium.
It has told the Transport and General Workers Union that its entire road distribution operation will be taken over by Tankfreight, NFC's specialist tanker subsidiary, and SPD, its recently-acquired distribution company, with effect from November 1.
Tankfreight, which bid earlier this year to take over BP's tanker fleet as part of a policy of seeking more petroleum traffic, is to operate petroleum product deliveries using tank trailers painted in the Texaco System 2000 livery and tractive units in Tankfreight livery.
SPD will handle packaged product deliveries.
At the same time, five of Texaco's 22 storage locations — Dagenham Fuel Oil, Canvey, Nottingham, Cardiff and Falmouth — are to be closed.
All 570 driving and maintenance staff at Texaco will be made redundant on October 31 and will he offered redundancy terms in accordance with the existing agreement with the TGWU.
A Texaco spokesman said that these terms were "well in excess of statutory requirements".
Tankfreight is expected to offer jobs to about two thirds of the redundant staff, all of whom are being sent Tankfreight job application forms with their redundancy notices, but this may vary from plant to plant. Some staff are expected to take early retirement.
The move, which Texaco said last week was necessary for it to "continue to improve its downstream efficiency", is being contested by the TGWU.
It is opposed in principle to oil companies putting their delivery work out to contrac tors, but "when and if" the takeover goes ahead will seek terms and conditions from Tankfreight which preserve national negotiations and meet industry rates, London regional officer John Moore told CM.
As this takeover follows Amoco's decision earlier this year to hive off its delivery work to Wincanton Transport, all the hallmarks of a new fashion are becoming apparent.
For the tanker operators, it means the next few years could be a time of great opportunity as they vie with one another to win over the other oil companies to their services and to hang on to the business once they get it.
The Texaco contract — the value of which is still a secret — will be Tankfreight's biggest so far.