Transport Business Magazine issue 25

RAIL MANAGEMENT – Improving supplier relations for a better service + MORE

ISSUE 25

Business Information for Transport Professionals

INTELLIGENT TRANSPORT SYSTEMS

ROAD MAINTENANCE

RENTAL AND LEASING

www.greenfleet.net

ISSUE 53

Tips to get you

safely through the

coming months

WINTER DRIVING

ALTERNATIVE FUELS – Exploring the potential of biomethane to power waste trucks

TYRE MAINTENANCE

Please

turnover for

Transport

Business

The consequences of

poorly maintained tyres

Please

turnover for

GreenFleet®

magazine

The besT way To finance your vehicles

AT OVL WE PRIZE OUR HIGH LEVEL OF CUSTOMER SERVICE ABOVE ALL ELSE. all of our staff are focussed on bringing our customers a whole contract life service. every effort is made to source the best finance for our client’s vehicles, usually beyond the efforts of our competitors.

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Contents

PUBLISHED BY PUBLIC SECTOR INFORMATION LIMITED226 High Rd, Loughton, Essex IG10 1ET. Tel: 020 8532 0055 Fax: 020 8532 0066 Web: www.psi-media.co.uk

EDITORIAL DIRECTOR Danny Wright ACTING EDITOR Angela Pisanu PRODUCTION EDITOR Karl O’SullivanPRODUCTION DESIGN Jacqueline Grist PRODUCTION CONTROLLER Reiss Malone ADVERTISEMENT SALES Clive Beer PUBLISHER Chris Jones ADMINISTRATION Victoria Leftwich GROUP PUBLISHER Barry Doyle REPRODUCTION & PRINT Argent Media

P ONLINE P IN PRINT P MOBILE

© 2011 Public Sector Information Limited. No part of this publication can be reproduced, stored in a retrieval system or transmitted in any form or by any other means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of the publisher. Whilst every care has been taken to ensure the accuracy of the editorial content the publisher cannot be held responsible for errors or omissions. The views expressed are not necessarily those of the publisher. ISSN 1362 - 2541

It’s that time of year again when highways authorities and councils put in place their winter planning strategies to keep the country moving during severe weather.

According to the Local Government Association’s annual ‘Winter Readiness Survey’, councils are better prepared than ever to deal with winter weather, with more salt, new gritters and better communication plans using facebook and twitter.

Following the winter weather comes the need for extensive road repairs. On page 7, we highlight all the latest news on pothole prevention and repair, including how 44 per cent of councillors have called for increased funding from government to help maintain local roads.

RAIL MANAGEMENT – Improving supplier relations for a better service + MORE

ISSUE 25

Business Information for Transport Professionals

INTELLIGENT TRANSPORT SYSTEMS

ROAD MAINTENANCE

RENTAL AND LEASING

www.greenfleet.net

ISSUE 53

Tips to get you

safely through the

coming months

WINTER DRIVING

ALTERNATIVE FUELS – Exploring the potential of biomethane to power waste trucks

TYRE MAINTENANCE

Please

turnover for

Transport

Business

The consequences of

poorly maintained tyres

Please

turnover for

GreenFleet®

magazine

WELCOME

Angela Pisanu

05 NEWSThe latest news and developments for the transport industry

07 ROAD MAINTENANCEWe round-up the latest news surrounding pothole prevention and repair in the UK

09 RAIL MANAGEMENTJohn Abbott, RSSB’s director of national programmes, highlights the need to improve supplier assurance to create a safer and cost-effective railway

13 FINANCE & LEASINGJohn Lewis, chief executive of the BVRLA, reviews the year gone by for the leasing industry and the wider fleet sector it serves

16 INTELLIGENT TRANSPORT SYSTEMSWhat is the role of intelligent transport systems during times of transport infrastructure spending cuts?

19 FUEL MANAGEMENTThe answer to rising fuel prices is not just in fuel-efficient cars, it’s in the person behind the wheel. Simon Elstow gives tips for a more fuel-efficient driving style

20 PRODUCT FINDERThe latest products and services from the transport sector

CONTENTS

Angela Pisanu, Acting Editor

TRANSPORT BUSINESS MAGAZINE

Business Information for Transport Professionals – www.transportbusiness.net

Volume 25 | TRANSPORT BUSINESS INTERNATIONAL 03

www.transportbusiness.net

NEWS IN BRIEF

Italy unveils new Ferrari-red, high-speed train Italy’s first private rail operator, Nuovo Trasporto Viaggiatori (NTV), has unveiled its new Italo AGV high-speed train which will provide a service between Rome and Milan. NTV has ordered 25 of the latest AGV generation trains from France’s Alstom, which has set a speed record of 575kph but will run at up to 300kph. Services will later be extended to take in Naples and Salerno in the south, as well as Turin and Venice in the north. “This is the most modern train in Europe. We are the first to use this train,” NTV’s CEO Luca di Montezemolo said at the unveiling ceremony at Nola, a logistics hub near Naples where NTV has built a €90m maintenance centre to be used by Alstom to service the trains. The 11-carriage trains offer three classes, with constant WiFi throughout provided by satellite transmission. One carriage is a dedicated 39-seat cinema. All carriages also offer satellite TV through internet provided by 21 Net, an Anglo-Belgian company. Montezemolo is best known as chairman of Ferrari and chose its racing red for the colour of the trains.

New

s

A 200 square metre ‘green wall’ has been installed at Edgware Road Tube station in London to trap pollution on one of London’s busiest roads. The wall features a total of 15 plant varieties crafted into a multi-coloured and patterned design. Studies across Europe and the USA have shown the potential of vegetation, including trees and plants, to trap PM10, a pollutant that comes mostly from traffic emissions. The air

quality benefits of this wall will be monitored by scientists from Imperial College London. The initiatives are part of the London Clean Air Fund financed by the Department for Transport (DfT) at the Mayor, Boris Johnson’s request. The Clean Air Fund measures have been designed to reduce levels of PM10 by between 10 and 20 per cent where applied.

TO READ MORE PLEASE VISIT...www.transportbusiness.net/n/018

POLLUTION

Green wall at Edgware Road Tube station to deliver cleaner air

Business backs high speed rail link to ScotlandA high speed rail network should extend to Scotland if it is to reap economic benefits, according to a survey. Three-quarters of businesses said they believed a fast, new link to the south would attract investment to Scotland. The poll was carried out by the Scottish Partnership Group for High Speed Rail, which was formed by Transport Minister Keith Brown. The partnership group’s Fast Track Scotland document claimed the line would benefit the country to the tune of almost £25bn.

Stations to get access improvements Rail passengers are set to benefit from easier access at stations following £37.5m of government funding. The Access for All Mid-Tier programme will make

stations more easily accessible through upgrades to the stations which will include new lifts, ramps and raised ‘easy

access humps’ on platforms, as well as new accessible toilets.

TO READ MORE PLEASE VISIT... www.transportbusiness.net/n/016

Scotland announces investment in road and railCapital spending worth up to £60 billion will mean substantial investment in Scotland’s rail and road network, Alex Neil, Scotland’s Cabinet Secretary for Infrastructure and Capital Investment, has announced. The pledge came after the Scottish Government’s Infrastructure and Investment Plan was published, which details 54 major infrastructure projects and how the money will be spent up until 2030. As part of the measures, the Scottish Government will dual the A9 between Perth and Inverness by 2025, with a view to completing dualling of the A96 and the dualled road network between all Scottish cities by 2030. The measures also include the complete construction of a replacement crossing over the Firth of Forth by 2016, and investment in substantial rail improvements, reducing journey times between Edinburgh and Glasgow, from Aberdeen to the

central belt, Aberdeen to Inverness, and on the Highland Main line.


Kulveer Ranger views Edgware Road Tube station’s green wall


TRANSPORT BUSINESS INTERNATIONAL | Volume 2504

SECTION HEADING

Bus services across England are set to receive a further £60 million to make them greener, more efficient and easier to use, on top of funding already announced in the Autumn Statement. The investment includes a £50 million Better Bus Areas fund, which will see bus operators working in partnership with local authorities to increase passenger numbers. Successful bids must have the backing of at least one major local bus operator. Bids could include measures to reduce congestion, provide better information to passengers, make improvements to bus stations or encourage people to

switch to buses from the car in densely populated urban areas. In addition, £10 million will be given to support the development of Community Transport, which will provide funding to 76 local authorities. This £60 million cash injection is in addition to announcements made in the Autumn Statement which provided £20 million for a third round of the Green Bus Fund, to help bus operators and Local Authorities to buy low carbon buses; and £10 million to fit pollution reduction technology to London buses.

TO READ MORE PLEASE VISIT...www.transportbusiness.net/n/020

Further £60 million boost for buses across England

PUBLIC TRANSPORT

SECTION HEADING

New

s

Logistics company Stobart Group has re-started its low-carbon rail freight service between Valencia, Spain and Barking, near London. The seasonal rail service, operated by Europorte Channel, the international freight haulage subsidiary of Eurotunnel, will carry 30

chilled containers of fruit and vegetables from Spain to supermarkets and retailers in the UK. The journey takes just over 50 hours with the service passing through Spain, France and the Channel Tunnel. It saves 60 cross-continent truck journeys each week – slashing

vehicle carbon emissions, and reducing road congestion on Spanish, French and UK motorways. In an innovative move, Europorte Channel and Network Rail have also utilised the international rail lines at Folkestone, removing the need for an extra stop on the northbound leg of the journey – reducing both cost and journey time.


Low-carbon European rail freight service commences

FREIGHT

FUNDING

Communities across England will benefit from £854m worth of investment in 21 local transport schemes, Transport Secretary Justine Greening has said. This is in addition to the 20 schemes, worth £574m, which were announced in the 2011 Autumn Statement. Transport Secretary Justine Greening said: “Transport infrastructure is central to growth, and I am announcing funding for a further 21 local major transport schemes. Along with the schemes announced last month we’ve supported investment of over £1.4bn that will strengthen local economies and improve local transport links for communities across the country. “Almost all journeys begin and end on local

authority networks, which provide the crucial links that allow people and businesses to prosper. We are investing in schemes that will provide better access to jobs and services, reduce congestion and enable more goods to move more easily around our country. This will be £1.4bn invested in local communities to build the transport system we need to get the economy back on track.” In total the recently announced schemes are worth over £854m with an overall DfT contribution of £586m. They include park and ride site expansions, bus priority lanes, construction of new roads, railway bridges and improvements to roundabouts.

21 local transport schemes to benefit from £854m worth of investment, announces Transport Secretary





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Road Maintenance N

ews

Further funding is still required to repair local roads across England and Wales, particularly those damaged by recent severe winters, according to a survey by the Asphalt Industry Alliance. Over half of councillors who participated in the survey said the £200m injection of emergency funding from central government in early 2011 had allowed some additional short-term repair work to be carried out, but was not enough to cover all the winter damage to roads. A further third said it had made no significant difference. 44 per cent of those polled called for increased funding from government to help maintain local roads, whilst a third, recognising that this is unlikely, said alternative means of funding should be made available. The majority of councillors surveyed (78 per cent) stated they were not satisfied with

the condition of their local road network and 90 per cent said road condition remained an issue in their area following the severe winter weather. Alan Mackenzie, Chairman of the Asphalt Industry Alliance, said: “The AIA is calling on government to find new approaches to fund sustained road maintenance through long-term preventative programmes. Investing now will save huge sums in the future.”

www.asphaltuk.org

More money needed for roads repairs, according to ALARM survey

FUNDING

With the repair bill for cars damaged by the nation’s potholes estimated to hit £1bn this year, researchers from Nottingham Trent University and the University of Nottingham have been awarded initial funding from the Institution of Civil Engineers (ICE) Research and Development Enabling Fund to undertake a six month research project into the performance of repair work on potholes. The research will evaluate the current approaches and design guidance for repairs, investigate the suitability of easily deployable non-destructive testing devices to examine patch performance, and improve existing design guidance. This will, in turn, enable a performance-based approach to repair specification, which will make them more reliable. Dr Mujib Rahman, senior lecturer in civil engineering at

Nottingham Trent University, commented: “Generally, potholes and other types of distress, such as rutting and cracking, appearing on the road surface are a sign of major underlying problems that require structural rehabilitation. However, budgeting constraints often lead to patch repair and pothole filling in order to maintain the road in a safe and serviceable condition. “It is anticipated that this project will be the first stage in a much larger programme of research, generating early data to enable the key features of pothole deterioration to be identified, and allowing initial comparison of repair materials. This research will produce a number of recommendations concerning the quality of road surface repair work.”

www.ntu.ac.uk

Nottingham Trent University receives funding for pothole research

RESEARCH

Up to 25 per cent more potholes in Scotland, says AAROAD REPAIRS

Scotland has the highest level of potholes in the UK and the second worst rate of road deterioration, according to an AA report. The motoring organisation’s members has found Scottish neighbourhoods had 20 potholes compared to a UK average of 15. The survey, conducted in October, involved around 1,000 AA members walking around their neighbourhoods for an hour observing how many potholes of at least six inches in diameter and at least two inches deep. Road conditions in Scotland were significantly worse than last year, when fewer than 16 potholes were reported on average. The report said councils have been ‘overwhelmed’ by the number of potholes that have emerged following last year’s prolonged sub-zero temperatures and have struggled to repair them ahead of this winter. However, Scottish roads authorities appeared to have repaired a slightly higher number of potholes than their counterparts south of the Border, with 14 potholes filled per neighbourhood compared to a UK average of 12.8. Though anecdotal, the evidence chimes with research undertaken by Scottish councils and public spending watchdog Audit Scotland, which earlier this year found the maintenance backlog in Scotland was 43 per cent higher

per mile of road than in England and Wales and that more than a third of the network was in an ‘unacceptable’ condition. A national summit convened by Transport Minister Keith Brown to discuss the crisis was held in private earlier this month and concluded without any agreement on increasing funding. A final report on measures to improve the efficiency of road repairs carried out by Scottish councils and Transport Scotland, which is responsible for trunk roads and motorways, is due to be published by next spring. It will also look at introducing

minimum standards for road conditions. However, Edmund King, president of the AA, claimed more urgent action was needed to address drivers’ concerns about the state of the roads. “The AA Streetwatch volunteers have once again shown the UK has a pothole plague which has not gone away despite extra repairs this year. Highways authorities need to get to grips with the pothole problem, as compensation claims will soar when cold weather strikes and roads start breaking up again placing greater burdens on already strained budgets,” he said.

POTHOLESTory candidate conducts pothole counting exercise in Feltham and HestonIn the recent Feltham and Heston by-election, Conservative candidate Mark Bowen took pavement politics to a whole new level by publishing a detailed account of his bid to become an MP – with pictures of every piece of graffiti and each pothole he has found on his travels. The former leader of the Conservative group on Hounslow council also used his online diary to record such trivia as a visit to the barber and a sighting of a sports commentator, alongside details of campaigning visits by David Cameron and other senior ministers.





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09

Rail industry buyers have a responsibility to manage risk imported from suppliers. Supplier assurance is one of the tools used by such a buyer to establish that suppliers are suitably competent, adequately resourced, financially sound, and can consistently deliver their products and services to a customer’s specification. However, this presents many varied and challenging issues. Supplier assurance can mean different things to different people, and many find the processes difficult to understand and use cost-effectively. History’s legacy has been the development of many different types of supplier assurance arrangements in an unstructured way. Making sense of them isn’t easy. Trying to highlight just how urgent this is as an issue is not easy either. Procurement

is not traditionally perceived as a ‘sexy’ part of any business. Its links to the safety-criticality of the running railway are not always clear to everyone. Procurement does have an increasingly important role, particularly in influencing the bottom line, and yet if supplier assurance is inadequate, the consequences are serious; not least to the safety of workforce and passengers, but also in terms of money wasted.

GETTING IT RIGHTGet supplier assurance right and it should actually work in the interests of the GB mainline railway, with a view to continuously improving the level of safety, driving out unnecessary cost and improving business performance. It can contribute to better competence, better corporate memory

and even better sustainability. What’s more it can have a transformational effect on the supply base, which can generate more exportability by demonstrating its world class assurance profile. Now the rail industry is backing RSSB in running a new project to design new arrangements for supplier assurance, enabling estimated annual time-cost savings for the industry of £35million – or 375 person-years of effort.

HISTORY So what’s the problem? During the 1980s British Rail started to adopt modern quality management principles to the business, which included its supply chain. Purchased products were allocated QA ratings according to criticality and supplier inspection teams were replaced with the requirement for suppliers to demonstrate management capability and systems. The approach was common-sense and any of us can relate to it. As consumers we will pay much more attention and want more confidence if we’re buying services that have a bearing on our personal safety and wellbeing (electricians, car maintenance), compared to generic low-risk products (office stationery). However, by the time of privatisation in the E

The rail industry is backing RSSB in running a new project to design new arrangements for supplier assurance, enabling estimated annual time-cost savings for the industry of £35million – or 375 person-years of effort.

PROCUREMENT

Moving to a contemporary, risk-based process for supplier assurance would make for an even safer and more cost-effective railway and world class supply base, says RSSB’s director of national programmes, John Abbott

Rail Managem

ent

MAKING SENSE OF RAIL SUPPLIER ASSURANCE


Volume 25 | TRANSPORT BUSINESS INTERNATIONAL



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PROCUREMENT

the first outputs of the project was the publication of an agreed supplier assurance vocabulary. Now project technical experts are engaging with the industry to devise one, universal categorisation for all the products and services that industry buys. A further part of the work involves removing the duplication of supplier data amongst existing schemes, but more ambitiously, creating that single web-based hub as the authoritative repository for all supplier assurance related information.

FUTUREIt’s still early days, but the last two years has seen a big shift in industry’s interest in supplier assurance. Initial work, and the allure of better all-round business and industry performance, has generated some passion and vision in the industry – and it’s got people talking and interested in playing their part in designing a set of smart integrated arrangements which are effective, efficient and easy to understand. However, there is still a long way to go to realise the vision. Understanding the sheer level of safety criticality at stake is imperative and this will rely on industry upping its competence and building a corporate memory to fully appreciate the role of assurance. This is a system-wide initiative and will require railway supply chain support in order to succeed. The carrot for the rail industry is improved safety at less cost, the carrot for suppliers is better support from its customers, and potentially world class assurance credentials, breaking down barriers to market and generating new export markets. It’s a long journey, designed to establish industry consensus on its supplier assurance framework alongside a common understanding of existing arrangements, so it can decide the optimum set-up for the future – driven by the industry’s customer base – principally Network Rail and the train operating companies. The conversations we’re having with industry reveal a desire to forge better connections that do not leave the procurement function isolated from the business of operating the railway system. Improvements in supplier assurance rely on, and in turn improve, a business’s all-round capability in terms of competence, culture, safety and performance. Recognising these relationships is an important step in grabbing attention in GB rail. The Supplier Assurance Framework Project is managed by RSSB on behalf of the GB rail industry, including Network Rail, the Association of Train Operating Companies, Freight Technical Committee, rolling stock leasing companies, the Railway Industry Association, scheme providers and suppliers. L

FOR MORE INFORMATIONGo to www.rssb.co.uk to read more information about the research and guidance produced (search ‘Supplier Assurance Framework Project’), or contact RSSB on [email protected]

makers on RSSB’s Board – and in particular Network Rail and the train operating companies – were keen to see findings taken forward. This led to further work which broke supplier assurance down to first principles, fully documented and mapped out existing arrangements – including the production of a guidance document Securing supplier assurance – and paved the way for a new framework, built in an elementary, risk-based way. This is the work that industry is now focussed on, and has asked RSSB to progress, in the Supplier Assurance Framework Project. The drive to improve supplier assurance arrangements has since gathered some momentum. Basic, shared principles of procurement management, as represented by the ‘assurance generator’, have caught people’s attention. In essence, each stage of the procurement lifecycle represents an opportunity to send and receive assurance information to and from a single information hub, across the lifecycle of a buyer-supplier relationship. This is an increasingly popular concept, but it does represent the theory not the practice. There is currently no set of single assurance arrangements that cover the whole cycle and no such single information hub exists. But the government’s Rail Value for Money report by Sir Roy McNulty has acknowledged the saving potential identified by the work and has listed the Supplier Assurance Framework Project as a recommendation of its own, suggesting that introduction of new arrangements be accelerated. The rail industry has also called on RSSB to align governance of all third party supplier assurance arrangements. Schemes like RISAS were already set up with industry-owned constitutions and principles, but the operation of other third party arrangements has not always been as accessible to the rail industry. RSSB now plays an active role on behalf of the industry to the future development of supplier assurance and how it might best serve industry as part of improved arrangements, whilst the schemes still retain a level of independent governance.

FINDING BETTER WAYS OF WORKINGMore regular, focused discussion within the industry has taken place, leading to most companies nominating specific ‘champions’ to represent them and take part in a broader debate about what future assurance arrangements should look and feel like. This engagement has revealed a previously hidden craving for better ways of working. Workshops are encouraging more frank and open discussion of the issues. Suppliers find it difficult to engage with industry on requirements. Customers find it difficult to understand what levels of assurance are required by whom and where. Working together on arrangements that can genuinely be owned by the industry should lead to better understanding on all sides. Another barrier is the existence of different, conflicting terms and definitions. One of

E 1990s, the issue was becoming more complex. European legislation that liberalised the trade of products and services across the continent took effect, and responsibility for obtaining assurance passed – not unambiguously – to newly created individual companies within the rail industry as well as other third parties. To make matters worse, buyer-supplier relationships were still largely adversarial, each blaming the other for poor performance. In 1999, the train accident at Ladbroke Grove led to a public inquiry chaired by Lord Cullen. His report revealed a wide range of shortcomings in the way industry addressed safety, and amongst these was a deficiency in assurance of safety-critical products and services. Lord Cullen’s subsequent report led to wide-ranging changes to the way the rail industry managed safety, and this included a recommendation to look again at the risk and assurance of its most critical supply chains. Industry’s response was to create RISAS (Railway Industry Supplier Approval Scheme) which is initially aimed at the high-risk, safety-critical, train maintenance products and services, which by necessity is a rigorous, process based, third party assessment which provides the means to eliminate the need for separate individual assessments and audits. RSSB manages the RISAS scheme on industry’s behalf, and the benefit being derived is such that train operating companies are effectively relying on RISAS certification as an essential requirement for providing maintenance on these critical areas. But for today’s railway, the broader supplier assurance issue has simply become too confusing. There are many different arrangements, different companies providing those arrangements, on top of an array of changing legislative and regulatory drivers, including the Health and Safety at Work Act, the Utilities Contract Regulations, ROGS, and there is also a Railway Group Standard, GM/RT2450. It’s a red tape nightmare which many find insensitive to risk management, developing mature relationships, safety, sustainability and cost reduction.

RESEARCHThe rail industry wanted to establish the scale of the problem, so asked RSSB to undertake some research. The results were stark. It was estimated that, altogether, current supplier assurance arrangements cost the GB rail industry over £100 million per annum. However, the opportunity to help suppliers to readily understand the mainline railway industry’s needs and demonstrate compliance through universally recognised evidence and processes, could save over a third of this – the equivalent in time and cost of about £35 million every year (A review of potential efficiency and effectiveness improvements in rail industry supplier assurance). To realise this saving and reinvestment into better things, senior rail industry decision





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The last few months have told us that all bets are off when it comes to predicting where the UK or even world economy is likely to go in 2012. Fortunately, like most UK businesses, the vehicle rental and leasing industry is now a veteran of this sort of uncertain environment, and has adapted well. If you take the statistics about fewer new cars and less fuel being sold in 2011 at face value, you might assume that the UK car industry was in slow decline. Well, part of it might be, but a more measured look beyond the headline figures tells a different story. The leasing industry and the wider fleet sector it serves has taken an ever more crucial role in the UK economy. By taking an increasing share of the new car market, contributing an increasingly large portion of motoring tax revenues to Treasury coffers and providing affordable finance to cash-strapped businesses – the fleet industry has helped sustain the fragile recovery in the UK economy.

NEW VEHICLE MARKETAs 2011 draws to a close, we have a new vehicle market that is being propped up by business registrations and this state of affairs is not going to change anytime soon. The traditional car market consists of a sustainable blend of fleet and retail customers, with the rental sector available to take up any excess production when the retail market slumps. The prospect of all these manufacturers competing for the fleet market is great news for the vehicle rental and leasing industry. Fleet managers have never had such a variety of safe, reliable, fuel-efficient and stylish vehicles to choose from. Many of the more traditional fleet-suppliers have discovered that to their cost this year as they watched customers go elsewhere when confronted with unacceptably extended lead times or inflexible pricing.

ALTERNATIVELY FUELED VEHICLES

Pricing is definitely hindering the move to

electric vehicles. Take-up of the government’s £5,000 Plug-

In-Car Grant has been woeful, mainly because manufacturers seem determined to make a profit from every vehicle from day one. While they can rely on a small group of enthusiastic early adopters who are attracted by the direct benefits, fleet buyers can do their sums, and most will walk away until prices are more realistic. Having said that, some fleets are prepared to ignore the maths and blaze a trail. A large number of BVRLA members have already ordered or taken delivery of i-MiEVs, Leafs, C-Zeros, Kangoo Z.E.s and Transit Connect EVs. The next twelve months will see them continuing to work with their customers, testing out this exciting new technology and establishing the most relevant transport application. One of the most obvious applications appears to be for well-defined urban delivery purposes. The BVRLA believes that electric vans have a lot of potential in this area and will continue to lobby for government EV incentives to be extended to vans. Many leasing companies will argue that E

Rental & Leasing

A RESILIENT INDUSTRYJohn Lewis, chief executive of the

BVRLA, reviews the year gone by for the leasing industry and the wider fleet sector it serves, and predicts what the industry will look like in

the year ahead

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Rental & Leasing

the services that are delivered via the DVLA and VOSA. There is still a great deal of work to be done in extricating them from their reliance on paper-based systems and pushing them towards delivering efficient, electronic services. The government has been bold in taking the first steps towards this goal, and our industry will offer all the support it can.

HIGH LEVELS OF INTERESTMarket consolidation was a large theme in 2011, with significant mergers in both the leasing (Alphabet and ING Car Lease) and commercial vehicle (Ryder and Hill Hire) sectors. During 2012 speculation will continue to surround a number of major UK vehicle leasing companies, not least because the sector is increasingly seen as a low-risk, good-return investment. Following an unprecedented exodus by more than half of the sector’s key funders during the Credit Crunch, the industry is now witnessing unprecedented levels of interest from financial institutions seeking an exposure to this particular type of asset finance. With interest rates continuing at historically low levels, potential funders are attracted to the healthy margins available on vehicle finance as well as the positive outlook for car and van residual values in the short to medium term.

The slump in new vehicle registrations seen over the past few years means that high quality used cars, vans and trucks are in short-supply, which is helping to maintain values for ex-rental and leasing stock. We expect this vital stability in residual values to continue through 2012, helping to underpin the reliable, fixed-cost, low-risk access to motoring that BVRLA members provide to businesses across the country. With growing economic uncertainty and an ever-increasing cost of motoring, demand for these services is likely to increase in the months ahead. L

FINANCE

E EVs are a currently a distraction, pointing to the tremendous role company car and van fleets have played in helping to reduce road transport emissions. BVRLA-member fleets, dominated as they are by highly-efficient diesel engine vehicles, continue to lead the way in cutting average CO2 emissions.

A VIRTUOUS CIRCLEWe currently have a very effective virtuous circle, with manufacturers continuing to cut the emissions of their vehicles and the government providing the tax incentives that encourage fleets to choose them. The BVRLA will be working hard to try and maintain this status quo in 2012, by lobbying the government to ensure that it publishes rolling company car tax bands that enable fleets to make an informed decision when leasing new vehicles on four or five year cycles. We will also continue to push for the removal of the ridiculous three per cent surcharge on diesel engine vehicles. This glaring anomaly of the tax regime will seem even more bizarre when it is applied to the new generation of diesel-hybrid vehicles that emit well under 100g p/km of CO2 or reach Euro 6 standards for particulate emissions. As well as HM Revenue and Customs, the Department for Transport will also be under pressure to continue modernising

About the BVRLA

The BVRLA is the UK trade body for companies engaged in the leasing and rental of cars and commercial vehicles. Its members provide short-term rental, contract hire and fleet management services to corporate users and consumers. They operate a combined fleet of around 2.5 million cars, vans and trucks, buying nearly half of all new vehicles sold in the UK. Through its members and their customers, the BVRLA represents the interests of more than two million business car drivers and the millions of people who use a rental vehicle each year. As well as lobbying the government on key issues affecting the sector, the BVRLA regulates its members through a mandatory code of conduct. www.bvrla.co.uk

The prospect of all these manufacturers competing for the fleet market is great news for the vehicle rental and leasing industry. Fleet managers have never had such a variety of safe, reliable, fuel-efficient and stylish vehicles to choose from.



16

During the latter months of 2010 the newly appointed coalition government announced spending cuts that were determined as essential to help redress the financial deficit. Substantial cuts were widely predicted for inclusion in the Comprehensive Spending Review however the severity of those cuts is only now becoming evident. In the run-up to the announcement, specific details were not available but there was sufficient speculation to suggest that transport related issues would be amongst the hardest hit. This prediction was realised and subsequently highlighted by Steve Gooding, the then DfT director general, Motoring and Freight Services Group, at the ITS (UK) AGM in June 2010, when he emphasised that future transport funding would be severely limited adding that the lack of public funding for road related matters would have a ‘knock-on’ effect for a diversity of proposals, including road user charging. One apparent concession to this contentious topic was the necessity to address the large influx of foreign HGVs that are either un-roadworthy and/or fail to inject any financial return to the UK’s taxation for their use of the network. As a consequence the UK government announced a review of the options in relation to Lorry Road User Charging and ITS (UK) has contributed to the research to introduce a paper-based vignette scheme that foreign HGV operators/drivers will need prior to their vehicles to be driven on the UK’s roads.

INVESTMENT DURING AUSTERITYSteven Glaister, Professor of Transport and Infrastructure at Imperial College, London, commented at a recent ITS (UK) Freight Interest Group conference that no government could completely disregard ongoing investment and maintenance in the UK’s strategic transport infrastructure, adding that the network routinely operates close to its maximum capacity. This was graphically illustrated recently by several highly-publicised major road incidents on the nation’s motorway and national trunk road networks that have either closed or created extensive residual congestion. Professor Glaister added that historic evidence of traffic

patterns showed a large growth in road transportation once each recession had passed and if this situation were to be repeated across all modal options then there would be justification for a sizeable investment to upgrade transportation across the board. However given the current funding restrictions the chances of this happening are highly unlikely. Therefore ITS has a potentially significant role to play through its ability to deliver informative and critically important traveller information across high-speed data interchanges using enhanced computing capabilities and increased internet speeds. In this age of austerity ITS is increasingly operating within a virtual or stand-alone infrastructure that requires little or no physical structures and is proving to be an enormous bonus whereby traveller benefits can be delivered at a fraction of costs hitherto experienced. Perhaps the true dawn of ITS as a mainstream option is arriving. EU ITS DIRECTIVESimultaneous to this there have been ongoing deliberations regarding the contents of the long-anticipated EU ITS Directive ratified in July 2010. Although the implications have yet to be fully documented there is increasing detail on what will be expected. It is now known that there are six Priority Areas including: • EU-wide multimodal travel information services• EU-wide real-time traffic information services• Data and procedures for the provision, where possible, of road safety related minimum universal traffic information, free of charge to users• Harmonised provision for an interoperable EU-wide eCall• Information services for safe and secure parking places for trucks• Reservation services for safe and secure parking places for trucksThere is no doubt that these priority areas will have a major influence on the UK’s transportation network and effort is currently under way regarding its transposition. The EU Commission has established a European ITS Committee, with Member

States constituting its representation, to monitor the Directive’s implementation; the Committee’s role being to oversee the adoption of work programme, reporting guidelines, standardising the mandates as well as other non-binding measures, consultation for specifications and information exchange. More critically for ITS (UK) is how it can assist the DfT advise the Commission’s European ITS Advisory Group which has been set up to directly advise the Committee. The Advisory Group will advise through ‘high level representatives’ that includes a diverse range of bodies such as service providers, user associations, transport operators, industry, social partners, professional organisations, local authorities and other relevant forums. There is every expectation that the EU’s ITS Directive will have significant influence as pan-European travel becomes increasingly standardised. The maturity of the ITS industry within the UK places it in a strong and robust position which should enable it to adopt a lead position. In particular ITS (UK) has been an active contributor to the DfT’s effort and its role has been recognised; in due course when greater clarity emerges of what is entailed and required from the Priority Areas it is anticipated that this support will prove invaluable.

INTELLIGENT MOBILITYIn association with other organisations, ITS (UK) has been a contributor to the Automotive Council’s ‘Intelligent Mobility’ publication that seeks to realise the effects and influences that ITS have on the UK’s automotive industry. This report, due for imminent publication, has ministerial support and documents the knowledge and understanding of ITS capabilities to enable the UK’s automotive industry to position itself more competitively. Current research indicates that there is a convergence between vehicular systems and associated services and there is no doubt that ITS technologies can significantly facilitate that convergence. This assertion can be reinforced by the predictions that mobile technology will become increasingly embedded in vehicles themselves and this presents the ITS industry with a range of commercial opportunities. The ‘Intelligent Mobility’ report highlights how Intelligent Transport Systems can alleviate congestion and accentuate traveller mobility through modal shifts – either by changing modes or amending travel patterns. Reference is included to the implications that ITS can have on the uptake and acceptance of low carbon, hybrid and electric vehicles and it is useful to make a specific acknowledgment of the continued research into the ‘low carbon’ agenda by ITS (UK)’s Low Carbon Working Group. The Group’s strategy document has proved an influential document in the continuity of efforts in this area. In close association with this the establishment of the Electric Vehicle Infrastructure Working Group E

INFORMATION TECHNOLOGY

INFRASTRUCTURE INVESTMENT IN AUSTERE TIMESNeal Skelton, head of professional services at ITS United Kingdom, discusses the role of intelligent transport systems during times of transport infrastructure spending cuts

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ms Business Information for Transport Professionals – www.transportbusiness.net


Intelligent Transport Systems

E has been reviewing how ITS interacts with roadside infrastructure installed as part of the ‘Plugged-In Places’ programmes in a number of the UK’s cities. ITS (UK) appreciates the importance of how these vehicles are integrated into the existing localised and national infrastructures and vehicle fleets; in addition uniform, consistent and accurate information needs to be relayed to/from electric vehicles when they are being recharged, irrespective of their location, in a way that does not adversely affect individual travellers’ privacy issues. Interest in this Group has been considerable and the Group has followed-up the activities that came from the road-mapping workshop and is investigating a number of important recommendations that will have a significant impact on how electric vehicles are introduced to the national vehicle fleet. The IET, in conjunction with ITS (UK), has contributed to a major report on the implications of ITS on the requisite standards for the safe installation and operation of electric vehicles and the related infrastructure. The recommendations from this report have global implications and ITS (UK)’s comments on users’ perceptions and ITS benefits will aid widespread acceptance of electric vehicles. ITS (UK) routinely contributes to parliamentary and government departmental consultations where it considers its expertise and knowledge on a diversity of issues may have a particular value. The most important of the recent contributions resulted in an invitation to give verbal evidence to the Transport Select Committee in support of its written submission on the ‘Effective Road and Traffic Management’ consultation. ITS (UK)’s evidence provided expert opinion and comment on a range of interventions and initiatives that were subsequently supported by a supplementary memorandum that included additional detailed explanations and examples. Much of what was documented was incorporated into the Committee’s report ‘Out of the Jam: reducing congestion on our roads’ that sets out how future transport infrastructures should be developed with a significant focus on the inclusion of ITS. INVESTMENTMost recently the Chancellor, George Osborne, updated MPs on the state of the economy and the government’s future plans during his Autumn Statement in response to the Office for Budget Responsibility’s predictions on growth and borrowing forecasts over the next five year period. Osborne outlined details of government proposals to bring forward infrastructure spending to try to boost the UK economy’s growth rate. These included £5bn new spending over three years on thirty five road and rail projects across England, including £1bn for the rail network. The list of projects includes an extension to London Underground’s Northern Line, a new Thames crossing, a major road scheme in Bristol, upgrades to the M1, M4, M6, A14 and A45, upgrading the Tyne and Wear Metro and electrifying the TransPennine rail line from Manchester to Yorkshire. However it will be very revealing, in due course, to see how much recognition had been taken into incorporating the recommendations made in the ‘Out of the Jam: reducing congestion on our roads’ publication into those infrastructure projects. Despite the above initiatives it is evident that many transport initiatives will be severely curtailed as a consequence of the budget deficit reduction measures, a situation further exacerbated by the continuing economic turmoil in the Eurozone as well as the burgeoning predominance of the surging economies of the ‘BRIC’ nations – i.e. Brazil, Russia, India and China. This combined effect has imposed a far stricter regime than first considered – irrespective of commercial and domestic orientation. Notwithstanding those conditions there are strong indications that the value of ITS (UK)’s involvement in issues means that it is highly regarded and, as a result, membership remains robust. ITS (UK)’s capability in providing mature, measured and influential contributions to issues and discussions relating to the management and dissemination of transportation information has further fostered its reputation and augments the organisation’s ongoing effectiveness in the uncertain years that lie ahead. L

17



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We all consider value for money and miles per gallon when we buy a car, but the answer to rising fuel prices is not just in fuel-efficient cars; it’s in the person behind the wheel. It’s time to change our driving habits. My first tip, which may seem odd coming from a driver training organisation, is to get out of your car. It’s the shortest journeys – less than two miles – that cause the most pollution and burn fuel. A straining cold engine produces 60 per cent more pollution than a warm one. These shorter journeys are ideal for walking or cycling. If you do take the car, plan your route to avoid short regular stops. A bit of planning saves time and money. The shortest ‘cut-through’ route is not always the most economic, so experiment. Speed humps can cause ‘slow-down, speed-up’ driving, and they are found most commonly in 20mph zones. Most drivers slow down for the hump, then accelerate, even though it should be possible to drive at a constant speed. You can cross most speed humps safely at 20mph, i.e, if you stick to the speed limit. Sitting in traffic means you are often doing zero miles per hour so, if possible, avoid busy times and, if you are not moving and have a warm engine, turn it off.

SMOOTHLY DOES ITDrive smoothly. An obvious but often overlooked tip is to get off the throttle. Hurtling down the motorway and stopping and starting abruptly puts a lot of stress on the engine and tyres and drinks petrol. Going easy on the accelerator to maintain a constant speed – with gentler starting and stopping – will save you money. You’ll also use the brakes less often, making for a safer drive. It’s a tip that works for any driver in any vehicle. Try lifting off the accelerator earlier – practice seeing how early you can lift off the accelerator before a stop. The longer you can stay off the accelerator the more fuel you save. And try the same when in flowing traffic: in many situations drivers stay on the accelerator a little because they imagine that this is needed to keep going. You can also experiment with a method I call ‘pulse and glide’ – test how much of a short burst of acceleration you need on a level road to be able to stay off the accelerator for the longest time. This is more efficient than simply accelerating gradually on roads with few steep

uphill gradients. But keep an eye on the traffic behind you – speeding up and slowing down is unnerving for the driver close behind. Choosing the right speed – of course within the limits – improves fuel efficiency and road safety. For example, on a straight road where the national speed limit is in force, 50mph is the optimum speed for fuel efficiency.

ANTICIPATIONYou’ll use more fuel starting off and braking so improving your observation, anticipation and awareness increases your safety, and again reduces the cost of fuel and maintenance. Don’t just check the car in front, check the

road ahead. It helps to keep the car on the move and means you’ll be able to manoeuvre at the right speed. Set yourself a goal to see how far you can drive without stopping. Get into the habit of accelerating gradually to the most fuel-efficient speed while looking ahead. There’s no point accelerating into a red light or traffic queue. Anticipating junctions and lights will also reduce the amount of time you are stopping with the engine still running. Change gear as soon as possible, ideally at around 1,500 – 2,500 revs. You could also try block changing – changing up or down directly into the gear that’s right for your speed, rather than slavishly working your way through the gears.

LOVE YOUR CARCheck your car regularly. Properly inflated tyres alone improve fuel efficiency by between five and 10 per cent. A regular service will keep your car running efficiently. Under-serviced engines can reduce fuel economy by 10 per cent or more. And finally, empty the boot of all that unnecessary junk and take off the roof rack and any other fittings that might create drag. While aircon is fine to use and very economic on a long trip, adding only about 1.3 per cent to fuel consumption, it is much

thirstier if it has to cool a hot, sun-soaked car on a succession of short runs – up to 10 per cent. Try to park out of the sun and open the windows for a few minutes before turning the aircon on. Around town open your windows, but when travelling at 70mph on the motorway, aircon is more efficient than the drag having the windows open creates. And turn the aircon back off if you open the windows – aircon on and windows open is like throwing fivers onto the road. Reversing into parking spaces means you do the fiddly bits with a warm engine rather than manoeuvring for ages with a cold, fuel drinking engine. Driving the car as soon as you start it is the quickest way to warm it up and make it efficient; de-frosting the windows by leaving the engine running is very expensive so buy a cheap scraper and save fuel.

CARRY ON CRUISINGOn a good, straight road, use cruise control – on a motorway, setting it to 70mph can typically save at least 10 per cent. But turn it off on hilly roads – the car will have to use a lot of fuel to maintain the set speed up steep climbs, and control will be reduced going downhill. Change down a gear or two whether climbing or descending

steeply to help the car out and drive safely. This is especially important in automatics, and on the subject of automatics, ensure they’re not on the ‘sport’ setting: this increases the revs and thus fuel usage.

AVOID DANGEROUS DRIVINGSlipstreaming – following a large vehicle closely to benefit from the reduced air resistance – is risky and doesn’t give a significant gain. Similarly, coasting – travelling with the car out of gear (generally rolling downhill) – causes you to lose engine braking and the ability to accelerate out of a situation and with modern fuel systems won’t save you fuel. If you have one, set the in-car coach – the instantaneous fuel reading. This will inform you of how you are getting on with all of the above driving tips. But most importantly keep your attention on the road in front of you – there is nothing less eco-friendly than a collision, and driving safely should be your ultimate aim at all times. Start doing these things today. They are not only good for your pocket, they are good for the environment and good for your safety.

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We all consider value for money and miles per gallon when we buy a car, but the answer to rising fuel prices is not just in fuel-efficient cars; it’s in the person behind the wheel.

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SAVE FUEL WITH GREENER DRIVINGWith petrol prices at record levels and the trend continuing upwards, drivers need to be aware of their impact on fuel consumption and make simple changes to become more fuel-efficient, writes Simon Elstow from IAM Drive & Survive

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Rare Spark 1 Farnham Road, Guildford GU2 4RG, UKTel: +44 (0)1483 549811Fax: +44 (0)1483 [email protected]

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Fueltek is a leading manaufacturer, supplier installer and service provider for a complete range of commercial vehicle re-fuelling products. The product range includes fuel storage tanks, fuel management systems, tank contents management systems, fuel pumps and other ancilleries. Fueltek customers are both large and small and include companies from all sectors of the transport industry.

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Tex Engineering Ltd Unit 35 Claydon Business ParkGipping Road, Great BlakenhamIpswich, Suffolk, IP6 0NLTel: 0870 751 [email protected]: www.bitmen.co.uk

We can supply a wide range of equipment foryour ‘black top’ needs, including: poweredbarrows; pre-coated chipspreaders; bitumenboilers and cauldrons; cold emulsion sprayers;infra ray heaters for asphalt repair; mastic asphalt mixers; ‘Sprider’ asphalt; laying equipment; paver spares; geotextiles; plus spare parts, servicing, hire, refurbished equipment, part exchange.

HIGHWAY EQUIPMENT

RunYourFleet.com Forward House, High Street, Henley in Arden B95 5AA Tel: 08445 733 111Fax: 08445 576 [email protected]

We purchase for thousands of vehicles, and deliver complimentary RAC cover, incredible savings on servicing, tyres, windscreens, hire cars, risk management, vehicle tracking, contract hire and more. Our on-line fleet management software means you control your fleet and drivers. Visit www.runyourfleet.com to see how you can save time and money.

FLEET MANAGEMENT & BREAKDOWN

SES Ltd boast a wealth of experience within the railway industry with staff, many of whom have in excess of 35 years service in their respective fields. Because our staff has such a vast extensive knowledge, SES can provide innovative solutions to challenging engineering projects through early contractor involvement.

SES House, Harworth Park, Blyth Road, Doncaster, DN118DBTel: 01302 756800 Fax: 01302 [email protected]

Specialist Engineering Services

ENGINEERING

YGT Logistics Jonen House, High Road, Epping, Essex CM16 6LPTel: 0870 7594410 Fax: 0870 [email protected]

We are a logistic company based in Epping, dealing with export/import of commercial goods to/from Turkey. We run a minimum of two groupage trailers per week from Turkey and daily groupage trailers to Turkey Monday to Friday. The full-load trailers can be booked within 24 hours in both ways. We provide meticulous service to our customers.

LOGISTICS

IBI Group Morton House, 12 Appleton Gate, Ne-wark, Nottinghamshire NG24 1JYTel: 01636 675980Fax: 01636 [email protected]

RouteMapper is IBI group’s flagship highway video surveying system. Our market leading design utilises the latest state of the art cameras and positioning technology. This enables our clients to accurately position, measure and digitise highway related features in an efficient and user friendly environment.

HIGHWAY VIDEO SURVEILLANCE



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TDC Systems 30 Lynx Cresent,Weston Super Mare Tel: 01934 644299Fax: 01934 [email protected]

TDC Systems Limited is a leading designer and manufacturer of traffic data collection, traffic monitoring and weigh-in-motion systems. Incorporated in 1998 TDC Systems has supplied high-speed and low-speed weigh-in-motion systems and traffic counter/classifiers all around the world.

TRAFFIC DATA COLLECTION

ADVERTISERS INDEXThe publishers accept no responsibility for errors or omissions in this free service

Cenpart Ltd 14

Coyle Personnel plc 10

Driver Check 12

Enersys Motive Power Ltd 8

Fueltek Ltd 18

Hi-Speed Services 10

Multifleet Vehicle Management 12

Munro Consultants 18

OVL Group IFC

PRV Engineering 6

PTRC 18

QDELL + LHR Express Cars Ltd 12

Ringway Jacobs 6

TDC Systems Ltd 8

TMC 14

Transsol Ltd 8

Uretek 17

Venson Automotive Solutions 14

22

Cosalt Banner House, Greg Street Reddish, Stockport, Cheshire SK5 7BTTel: +44 (0)161 4291100Fax: +44 (0)161 [email protected]

Supplying safety workwear and footwear to thousands of personnel within the transportation industry, Cosalt maintains its reputation as the sector’s leading light through passion, expertise and dedication to workers on the ground. Combining continual product development with constant service improvement, Cosalt keeps workers comfortable, safe and protected.

SAFETY WORKWEAR

nkl automotiveCarmen House, New Potter Grange Road, Goole DN14 6BZTel: 01405 721400 Fax: 01405 [email protected]

nkl automotive's web-based navigation service enables our customers to store their vehicles within the nkl storage and refurbishment service. nkl stores, refurbishes and then reallocates to customers. Our web-based timeline service keeps our customers' vehicles usage at an optimum level. For further details of our vehicle movements service, please contact us as above.

VEHICLE STORAGE & REFURBISHMENT

QDELL + LHR Express CarsTel: 01895 427621www.qdelllhr.co.uk

Established in 1987, we are one of the largest private hire/courier companies in the area. We operate a fleet of over 150 vehicles, 24 hours a day, 365 days a year. Drivers are PCO approved. Using meet and greet uniformed staff we will monitor flights and meet your VIPs at Heathrow and escort them to a vehicle, providing the minimum delay. All our diesel engines run on biofuel made from 100 per cent recycled carbon neutral cooking oil.

VEHICLE HIRE

VensonTel: 08444 99 [email protected] www.venson.com

A fleet management specialist Venson Automotive Solutions provide a wide range of services - vehicle funding and management, accident management, vehicle equip-for-service, workshop and body shop management. All services are delivered through its own operations with a focus on providing high quality service and tangible business benefits to its clients.

VEHICLE FUNDING & MANAGEMENT

CL Roadmarkings178 Hempstead Road, Hempstead, Kent ME7 3QGTel: 01634 230541Fax: 01634 [email protected]

We are a well established road marking company working in London and the South East, providing a comprehensive range of road markings for both major and minor contractors. All employees hold NVQ Level 2 roadmarking accreditation and CSCS cards.

ROAD MARKINGS



Documents

Transport Business Magazine issue 25