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Making tracks for the future
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Getting freight off the roads and on to other modes of transport is a hot topic as businesses consider their carbon footprints. CM went to Multi Modal 2008 to find out about the latest suggestions...
Words: Dave Young ROAD TRANSPORT STALWARTS, including Malcolm Logistics, the Potter Group, Bulmers, John G Russell, Stiller and Wincanton were among 120 exhibitors at Multi Modal 2008. The NEC show was, according to organisers Clarion Events, the first of its kind in the UK, with delegates from blue-chip names such as Dixons, Volkswagen, The Body Shop, Kue hne+Nagel, Ford Motor Company, DHL, BOC, Schenkers, Tesco, Kellogg's, NYK Group, FedEx, Marks & Spencer and Exxon Mobil.
At this year's show, a series of associated paid-for conferences and free seminars featured speakers from bodies including the Chartered Institute of Logistics and Transport, and the Border and Immigration Agency. There was also a guided tour of Roadway Container Logistics' Birmingham Intermodal Freight Terminal.
Exhibitors covered a wide range of logistic providers, port authorities, rail freight operators, container lines, and equipment and systems suppliers.
Road/rail terminals are much in vogue at the moment, with a number of exhibitors attributing their raised UK profile to the Tesco/Stobart partnership showing how consumer goods, rather than traditional high-volume raw material traffic, can be moved in this way. There is a pattern emerging of fleets with existing warehousing and road depots increasingly trunking the longer legs of journeys by rail for customers who are concerned about carbon footprints, as well as cost. "Rail is an easy-win green policy,wryly observed one delegate.
A colourful presence
Increasing numbers of medium-sized firms are entering into joint venture deals, working co-operatively, rather than competitively, as the road network succumbs to congestion. Among larger multi -national companies, consolidation and acquisition, including mergers between shipping and road transport enterprises, continues.
For ports, the centre of gravity is moving north, with one exhibitor claiming 60% of imports go to locations above Birmingham. Teesport and Immingham are expanding as southern facilities reach capacity, and on the Mersey, the Stobart group is investing in Weston. The availability of grant funding to tie such schemes into regional economic development plans is key. The Malcolm Group took a large stand to launch its new logo, but also included a railway engine cab simulator, which proved popular with visitors. The business, bought back by its founding family three years ago, is already running rail trunks for supermarket customers (Asda), traditional raw materials (gypsum) and includes what it claims is the shortest commercially viable UK rail freight service between Glasgow and the Firth Ports at Grangemouth. Malcolm's rail operations, which started in 2001 in partnership with Direct Rail Services of Carlisle, also operate south to DRIFT at Daventry, where goods arrive by Channel Tunnel rail link from Germany, Italy and Finland. Alan Russell, IT manager, and Freddy Solomon, assistant warehouse director, said the exhibition was a 'roaring success' and had rebooked for next year event.
Wincanton's presence at the show was in the form of its recently purchased container haulier Hanbury Davies, which has become part of Wincanton's multi-modal operation. This means that the old Hanbury Davies livery was turned Wiricanton blue' in a classic rebranding operation. The company has 23 operating locations, and is working as a 'bolt-on' service at present, but is likely to be rapidly integrated into Wincanton's strategic supply chains. Staff were "surprised" by the interest shown and, in common with other exhibitors, cited day two as the busiest.
Quality of visitors A newly confident Roadway Container Logistics was re-establishing its presence in the market, and making the most of the opportunity to take delegates on a tour of its adjacent BIFT site. It will shortly introduce a new vehicle livery and had just secured a very large, yet to be formally announced, multi-modal contract to serve a large retailer.
John G Russell had put a cautious toe in the water, with a stand the size of a wardrobe, which belied its experience in this field, "We've been running trains for more than 30 years," said contracts manager Eddie Grier. "Original customers, such as Masterfoods, are still with us." Russell sends two 26-wagon trains north from Daventry to Scotland every day, running into its own sidings. An additional bonus of rail/road freight for Russell is the ability to get greater productivity from trucks and drivers by using them for short journeys and double shifting. Grier liked the diversity of exhibitors, and at least two of his suppliers were close by in hall 10. "We'll be here next year," he concluded.
The Stiller Group was part of a strong contingent of north-east exhibitors, including PD Teesport, which had just been given the official green light to expand. "No-one knew what to expect, but we thought it best to be here," said John Welsh, commercial general manager. -On the first day, there was a lot of networking between the 3PL (third party logistics) exhibitors. We're not all at each others throats, there are opportunities to share." Stiller, which has recently added freight forwarding to its services portfolio, found a business partner for a venture at the show.
Bulmers was exhibiting to offer a one-stop-shop to customers, and found the event was perfect for networking. "There's been quality, but not so much quantity of visitors to the stand,said marketing PA Julie Hodgson.
Derrik Potter was at the show in a dual role for his own group and as chairman of UKWA (UK Warehousing Association), which had a number of members exhibiting in its branded 'village' section. "We had stopped going to exhibitions. This is the first for quite a while. We'll be here next year," said Potter, who found the event useful.
UKWA CEO Roger Williams said: "Most shows are for suppliers. Multi Modal is the best for 3PL companies.
Matthew Lamb, Potter MD, said: "It's difficult to see why you wouldn't be here." Potter is already involved in a number of rail operations that serve a number of niche markets. including ADR. "With finite capacity in road transport and the pressures of diesel costs and drivers' hours, the multimodal solution is obvious.., to get as close to markets as possible for maximum efficiency."
Along with Wincanton, Potter sees excellent future opportunities in recycled and waste material transport, especially as return loads. "Outbound volume creates traffic for shipping lines and a new revenue stream," said Lamb.
On the Stobart stand, it was recent aquisition the O'Connor Group's day. Commercial director Peter Lea emphasised the experience this container specialist haulier brings to the Stobart empire with its existing intermodal rail terminal in Widness, Cheshire with links to Felixstowe and Southampton and the developing adjacent port of Weston.
Good enquries In common with rivals, O'Connor finds running trucks over shorter distances more profitable and helpful in recruiting and retaining staff in an age of familyoriented drivers. "We've been doing multi-modal since 1998. The show has been a success. We'd probably support it again. We have been taken seriously."
The Widdowson Group had a quieter show, but a couple of good enquiries, said commercial manager Terry Smith. Widdowson has a freight forwarding division and plans to grow its added value warehousing and packing services to clients. It's not in rail, yet... is