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MAR 2010 | ROADWAYS HANDLING THE CRISIS

From European Supply Chain Management Magazine

As one of the UK’s leading multimodal transport and container handling specialists, Roadways Container Logistics provides customers across a range of industries with a number of services. These include road haulage, inland storage, container repair, hazardous goods transporting and handling and hub and spoke services for containers transported inland by rail. The company operates from a number of port and rail or road terminals throughout Britain, in Felixstowe, Tilbury, Southampton, Manchester, Birmingham, Liverpool and Leeds.

The company originally operated as a subsidiary of global shipping giant, PONL, before being sold in December 2008 to Aegeus Transport. The act of separating from its parent company has brought many advantages to Roadways Container Logistics, as commercial director, Nick Matthews, explains: “After being purchased, we have effectively expanded from being an exclusive shipping-line hauler to a more commercial and independent business. It has given us direct access to our shareholders, which means that it is much easier for us to act quickly, responding to changes in the market. We no longer have to deal with the abundance of bureaucracy and red-tape that comes with being a multinational company, and we have since been able to flourish in the market.”

Roadways Container Logistics has also recently invested more than £7 million in new equipment to bolster its fleet. The money went specifically towards new tractors and trailers, and Nick elaborates on why the investment was made, outlining some of its benefits: “We had an ageing fleet profile that needed to be renewed, and by replacing them with new models we are getting more miles per gallon from our vehicles, which is very important in our business as fuel is the second largest cost for us. It also results in lower maintenance costs, and it means the drivers get to benefit from the most modern equipment.”

He adds: “The taxation rules on these engines bring cost advantages to us, and the reduction in carbon emissions is a massive bonus too. We believe that we must take advantage of any opportunity to lower our environmental impact - and this is something that is equally as important to our customers.”

Roadways Container Logistics takes many other steps to pursue this philosophy and, in 2009, spent over £1.5 million on moving rail network cargo inland, which is considerably more carbon efficient than using road. The company also uses cranes that can generate their own power, using the natural forces of the motors to feed electricity back into the grid. Motion-sensor lighting that switches off when no one is present is also used in most of Roadways Container Logistics’ buildings, and a waste management programme has been implemented for oils and water, with biodegradable soap being used to wash the trucks. Nick reveals: “On many levels we try and do what we can, and we like to think of ourselves as environmentally responsible. Trucking is renowned for not being environmentally clean so we look at the impact of our activities on every level, scrutinising anything we can in our operations to do our bit to help.”

The company continues to develop its service portfolio, and in May 2009 its rail terminal at Birmingham Intermodal Freight Terminal (BIFT) became gauge cleared, allowing it to increase its services from three trains a day to seven trains a day. This terminal was also selected by Allport to be used as its main hub for its entire Midlands’ activities in a rolling contract that is expected to become a long-term commitment.

Whilst Roadways Container Logistics has been investing over the past two years, it is not completely immune to the effects of the financial crisis, as Nick reveals: “One of the biggest impacts of the downturn upon our industry has been that rates of freight from Asia to the UK fell significantly in 2009 - which also puts a lot of pressure on haulage rates too. In terms of activity, we have managed to grow by 15 per cent over the past year. In terms of revenues, however, we have pretty much stood still because of these reduced rates. Luckily, the market is showing signs of recovery so we expect 2010 to be a better year.”

Nick foresees a positive future ahead for Roadways Container Logistics, as he concludes: “In the long term, our strategic goal is to become both sustainable and profitable. We would like to see more growth in our business – although this is less of a driver than ensuring that we can give the best service levels to our customers. As long as we have a solid platform to continue building from, then I expect us to expand by another 40 per cent over the next five years.”

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All press enquiries and image requests should be directed to info@roadways.co.uk