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Many small firms struggle to compete in haulage. But Paisley-based

13th September 2001
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Page 46, 13th September 2001 — Many small firms struggle to compete in haulage. But Paisley-based
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Which of the following most accurately describes the problem?

McDevitt and Walters is different: the men behind the firm choose to carry out subcontracting work for logistics giant TOG. As David Craik reports, this arrangement equates to a busy fleet—and excellent rates.

t is said that the strength of any partnership lies in the partners' understanding of each other. This is a quality that seems to have come naturally to the joint owners of Paisley-based hauliers McDevitt and Walters, and not just because they share the Christian name Brian. No, the successful growth of the five-strong fleet, which specialises in container deliveries, is more secure than that.

Walters says the decision to join forces with his friend and fellow owner-driver McDevitt was made three years ago: "At the time TDG, which we do go% of our work for now, were wanting extra vehicles off the two of us. They wanted us to do more work for them. It was felt that financially we would be stronger together and we would be able to increase our fleet."

This ambition has been fulfilled. The firm's fleet now comprises three 36ohp Scanias and two Mercedes Actros.

The men still drive one vehicle each, and they employ three other drivers. Walters

admits that at the mature age of 56 he sometimes finds it difficult to adjust to the sleek developments in the cab of wagons like the Mercedes Actros: "I get confused in there after a few minutes. I usually leave it to the younger guys, who are full of praise for the machine." Perhaps this is why Walters has become the partner who carries out the everyday administration of the small firm. while McDevitt's concentrates on driving. Walters explains that this demarcation of responsibilities reveals the way the partnership works. "We get on very well and we trust each other," he says.

McDevitt arrives on cue after spending the day on the road. He says his driving plays a large part in maintaining sensible and structured management at the firm: It means that I am very hands-on. I am at the forefront of the business and I see what exactly is going on in our sector, unlike other managers."

Does he think, then, that the merging of two owner-driver businesses is a good idea for others out there struggling to cope by 0

themselves in a hostile climate? He is less enthusiastic about the prospect than you might expect: "I've known guys that have gone down that route but have fallen out quickly and been left in all sorts of financial bother. I stress again, you have to get on with your partner even over little things such as making sure that you take your holidays at different times."

Most of the container work the firm carries out for TDG comes off the docks at Greenock, and among the products is one of Scotland's best natural flowing waters—whisky.

Good days and bad

"Just before Christmas almost every container we move will be full of whisky" Walters says. It is a comment which reflects one of the problems of container haulage—the volume of traffic varies from day to day.

"This job is great when we are busy," says Walters. "However, on the quiet days TDG tends to use its own vehicles first on the jobs. Maybe that is a lesson to us not to keep our eggs in just the one basket, but this is balanced out by the fact that TDG is a very good payer."

Even though McDevitt reports that at the moment he is working so hard on the road that he can hardly get away even for an hour, Walters says the firm has just lived through one of the worst days of the year—the August bank holiday. "There are far too many bank holidays in the year for the good of road haulage," he laughs. "Those days are very quiet in terms of how many containers are moved in the country."

McDevitt and Walters restrict most of their work to local distribution, although Walters says they could find enough long-distance work to keep all the vehicles busy. The limiting factor on such ambitions is the same as for many small hauliers: fuel prices. "It's the main killer of our business," he says. "The distance work down to, for example, Liverpool docks always looks financially healthy on paper. However, when you really add up the figures, mainly the fuel costs, you realise it's sometimes better to be local."

Major bugbears

The other major bugbears of container hauliers nationwide are the long waiting times and queues at docks. However, this is not a problem for Walters or McDevitt "Greenock docks, which is owned by Clydeport, has improved immeasurably in the past few years," says Walters. "You get a very quick turnaround there, and an excellent allround service. Years ago you used to queue like for an execution."

Is the growth of rail freight another major problem for a firm specialising in container work? "It's been a challenge for years, hut there are still too many problems with the system," he says. "Only recently we had to move some products down to Liverpool docks after a hold-up with one train. I suppose the growth in rail-freight facilities is useful in keeping the Green Party happy, though."

Walters speaks with both confidence and caution about what the immediate future holds. He explains that a new ship comin into Greenock obviously means extra wort but adds that a lot of the best business is bein swallowed up by larger companies.

Prohibitive prices

"I'd love to have tny own work and my Owl contracts, but it is difficult for small hauliers, he adds. "If we did pull out of TDG, could w find enough work to keep us busy? As fo diversification, here again the price of buyin new equipment is prohibitive."

Back to the vehicles. Walters reports tha they are all leased: "Road tax is included in th package, as is a full maintenance service. Ou dealers phone us up a couple of days before service is due, and any problems that crop u in between our dealer can fix immediately, da or night. It is much less hassle for us.'

Walters is busy, apparently, with more tha the everyday work at the firm; he has anothe job: "I work with another friend, steam-clear ing vehicles. It's just beer money, though. You could never call these guys workshy!

Tags

Organisations: Green Party
Locations: Paisley, Liverpool, Clydeport

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