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EU expansion brings • not pnly - rnore competitors
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_ but also more_ clients. has bee speaking.to UK operators who see Eastern_ cproRe not as a-threat bUt a-s_an opportunity.
The European Union has done away with border controls and encouraged free trade. But there is no parity for UK operators: they are routinely undercut by Continental hauliers who enjoy lower running costs. And that disparity became more significant with the accession of the Eastern European states in May 2004 —operators in newly joined states like Hungary Poland,and Slovenia can run trucks at a fraction of the cost of UK firms.
On the other hand,some UK companies are reaping the benefits of a larger market.This doesn't necessarily entail sending your own fleet to these far-flung Eastern European markets.
DFDS Nick Trencher,manager at DEDS's Eastern European Division, reports: "We send out well in excess of 40 trucks a week from this Purlleet site to Eastern Europe."
But they are not UK-registered vehicles— the 35 rigids based at Trencher's Purfleet depot only serve the British domestic market.
Some of the trucks heading east from Purlleet are DFDS vehicles based in Poland; others are run by Eastern European subcontrators.All foreign subcontractors are vetted, and they have to meet British standards.
"The Eastern European division has been operating for 10 years," says Trencher. DFDS used to send its trucks to UK ports; from there unaccompanied trailers were ferried across the North Sea on DEDS'sTor Line ferries and picked up by DFDS trucks. "We don't send unaccompanied trailers anymore," he adds.
DFDS now has bases in Denmark, France, Germany, Scandinavia,Poland. the Czech Republic, Slovakia,Lithuania, Latvia, and Estonia." 011f Polish-based HGVs bring wooden furniture and automotive parts to the IK.Wood manufacturing is massive in Poland, and imports into Britain reflect this. Palletised timber also comes in from Latvia and Estonia."
The company. has been dealing with the Eastern L u rop;2; in states for a long time:since their admission to the Et .1Trencher reports: lbere is growth in business, but there has also been a massive growth in Eastern European trailers coming into the UK."
This influx of foreign trucks is driving rates down—Trencher's operation benefits from the sheer number of import and export movements,rather than generous payments. DFDS works strategically. Its individual national bases work independently, but they also assist each other:"It could easily be every man for himself but, in the bigger picture, this is not the case. Everyone must make a profit."
This philosophy manifests itself in the Polish DFDS trucks which roll into the Put-fleet depot.Theoretically, the company could choose to service this depot exclusively with Eastern European subcontractors But every Polish DFDS truck means one less Eastern European truck entering the country, and the company wants to keep it that way.
Trencher explains:"Every DFDS truck that comes here is under our control, and it will leave under DFDS control. If we used more foreign operators they could bring more trucks into the UK: this would mean the pressure on our [domestic] trucks would be greater."
Poland has a population of 38 a massive market," Trencher cnthuses."We send out computer components and photographic goods"