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MAY 2011 | ROADWAYS ROUTE TO SUCCESS

As seen in Railway Strategies- 2nd May 2011

Following a company restructure and new operating system, Roadways Container Logistics (Roadways) is aligning itself with the cargo transportation needs of the future

With a unique network comprising both port and inland operations to its name, Roadways Container Logistics is one of the UK’s leading multimodal transport and container handling specialists. The company’s infrastructure consists of four well-placed port depots – Felixstowe, Southampton, Liverpool, and Tilbury – as well as inland terminals at Leeds, Manchester, and Tamworth, which are strategically positioned in key commercial areas. At any one time Roadways’ storage facilities can accommodate up to 10,000 TEU (20 foot equivalent units).

Alongside its modern road haulage fleet of 280 vehicles, Roadways’ inland terminals are connected to the rail network, offering a cost-effective and reliable mode of cargo transportation. By bringing cargo inland to one of its hubs, Roadways delivers benefits to its customers in avoiding the high costs of ports, and providing a reliable and on-time service to all major industrial and commercial areas.

Internal restructuring
Since Railway Strategies last spoke to Roadways in March 2010, the company has undergone a major internal restructuring with former commercial director Nick Matthews assuming the role of managing director. Elaborating upon the reasons driving such a development Nick says: “Whilst I, and the finance director David Fowle, report to the company shareholders, below us is a much flatter structure with two layers of management either reorganised or removed. This allows the directorship of the business to be at the heart of the decision making process, allowing for faster lines of communication and flexibility – capabilities that are crucial for a business in today’s market.”

Certainly the industry has experienced tough conditions in 2009 and 2010, and with 2011 showing signs of returning volumes and haulage rates, Roadways has taken this opportunity to reorganise itself for the future. This includes developing stronger links with its main client base to ensure longevity and a sustainable platform for future growth.

The company has also strategically decreased the size of its terminal in Manchester, by agreement with the land owners, in order to bring it more in line with current operations. “This decision was in response to the market. Retailers are continuously looking at reducing the cost of their supply chain in order to remain competitive, and in doing this, longer free storage time agreements are being given at the ports of entry, which means goods are held at the ports for longer periods of time before being booked for direct delivery. This reduces the necessity for large inland storage terminals, and in response we have adjusted our capabilities to offer a more efficient rail terminal,” notes Nick.

With this focus on cost efficiency remaining a primary concern of clients, Roadways’ ability to offer port management, road and rail manoeuvring options, and final delivery all under one roof, provides a genuine opportunity to drive supply chain costs down. By operating a hub and spoke principle, where cargo is moved both inbound and outbound through a hub, Roadways has created a model where within hours of its arrival in the UK, cargo can be in close proximity to its end destination.

Although the company is seen as a major road haulier, rail is Roadways’ first mode of choice for moving cargo inland due to its advantages in cost efficiency, and reduced environmental impact. As such, Roadways continues to invest in its rail capabilities as demonstrated by the successful completion of a three-year development programme with Network Rail and Advantage West Midlands in 2009 to become gauge cleared at its Birmingham Intermodal Freight Terminal (BIFT). This development saw the terminal expand from receiving three trains a day to seven trains a day, significantly increasing Roadways’ rail link to the Felixstowe and Tilbury ports and ahead of the planned gauge clearance out of Southampton.

New service
Nick highlights Roadways’ plans to further develop its rail operations: “We have a new Barking to Manchester service commencing on the 4th April 2011 with GB Railfreight. This will service a number of clients moving cargo inland, both north and south, as well as offering an alternative to shippers importing through Tilbury and Thamesport via a road shunt. We have also secured a contract for a major shipping line to rail containers into BIFT, which will bring new road and rail opportunities to the company. The rail terminal at Manchester has the capacity to receive additional trains to their schedules, and we expect these slots to be taken during the build up to the retail peak this year.”

The company is also investing in its road fleet with plans to introduce between 30 and 50 new Volvo 440 Tractor Units from May 2011, in order to facilitate brand recognition and driver retention, as well as improve vehicle efficiencies. In terms of maintaining its high levels of performance, Roadways is currently in the process of implementing a more efficient operating system throughout the business. “I am delighted to confirm that Roadways has almost completed the transfer from an aged bespoke operating system to the Fargo Suite – including Vehicle Maintenance and Management, the CYMAN Yard Operating System, and TOPS (Transport Operations and Processing System). This change will bring increased visibility to our operations allowing for greater efficiency and better cost management. The Fargo Systems will allow us to seamlessly integrate our road and rail operations to the best advantage of both customers and our operators,” describes Nick.

By streamlining and strengthening its core operations in this way, Roadways continues to offer its clients industry leading container transportation services for today’s market. With this in mind Nick concludes with his aspirations for the business: “Roadways will continue to offer a best-in-class service for the years to come, with a focus on responsible and sustainable growth that is managed around the unique benefits Roadways offers through the true integration of rail and road services.”

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