Freightliner cuts back
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• Freightliner, BR's road transport subsidiary, is planning to close eight of its 22 depots and cut up to 480 of its 1,747 staff in a move to improve margins which will radically affect its domestic distribution operations.
Last year, Freightliner made a profit of 200,000 on turnover of 207million, before extraordinary losses of 2.5 million. Bryan Driver, company chairman and managing director, says: "For too long we have supported a depot network geared to increasingly unprofitable, largely shorterhaul, domestic distribution. The new network will enable us to meet the needs of the markets that we can serve best and achieve long term profitability."
Driver plans to concentrate Freightliner's business on Deepsea and European markets; that is long distance international and continental Europe and Irish markets.
The depots, which are due to be closed on April 6, are Aberdeen, Dundee, Edinburgh, Newcastle, Hull, Longsight (Manchester), Nottingham and Swansea.
Freightliner hopes to offer alternative employment to all 480 staff affected by the changes, and consultative procedures have begun with the trade unions involved. The company is sending full details of the changes to its customers, but claims less than a quarter will be directly affected.
Freightliner's decision to concentrate on long-haul operations reflects the strength of competition it has faced from hauliers.