Captain Cargo takes off
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• Britain's already overcrowded overnight parcels business faces a fourth newcomer to the market in as many months — Captain Cargo.
The new operation has been set up by Network Transport, based at Heathrow, and Freightspeed from Manchester Airport. Since 1983 the two companies have co-operated together in both air freight and commercial express parcels delivery, and they are now establishing jointly-owned Captain Cargo as a separate company.
Though the companies have been offering a national parcels service for five years, they have decided to go for stronger national coverage by franchising.
National sales manager John Witteridge says: "We have spent a number of years setting this up. We know there have been some nonresponsible bodies setting up parcels companies through franchises recently. We have done it professionally and we don't want to be confused with people doing it the wrong way."
Captain Cargo is looking for 50 new franchises in the first year, working from Captain Cargo depots at Manchester, Derby, London and Gloucester. The franchises will cost £5,000, but operators can expect to pay £7,500 plus VAT for a complete package, including insurance, the first months contract hire payments on the vehicle and the first month's rental on a cellular radio.
Thereafter, the operator needs to pay around £110 per week for a full two-year contract hire package and around £50 per month for rental of the cellular radio.
Witteridge says parcels payments are generally made one month after the work is done, so operators will need some collateral to cover the first couple of month's operation. Captain Cargo could help operators to overcome cash-flow problems during the first year.
Franchise holders will be allocated exclusive areas and will immediately take responsibility for all deliveries. Assistance in building a customer base will be given.
Witteridge says Captain Cargo's customer list already includes Racal, Hermetite and Hawker Siddeley. Network Transport and Freightspeed together operate 130 vehicles and employ more than 200 people.