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PALLET NETWORKS


Having conquered the UK with a 23% market share, Europe could be a huge development for Palletways, says the recently appointed managing director for the group, Martyn Young. At


the time of writing, the


company was on the point of opening what it claims is the first domestic network in Germany based on the same concept as the UK model. Germany will in fact be the eleventh national market for Palletways, the others being Benelux, Denmark, Iberia, France, the UK and Ireland. The Palletways network in Europe now comprises 280 depots and covers virtually the whole of western Europe.


“Europe is a natural next step step for us, and we have been developing it over the past decade,” Martyn Young explains. Germany – previously served via the Netherlands - is the last major piece in the jigsaw – and represents a €5m investment. There is a lot of competition among pallet networks in what they offer their members and a comprehensive European service is a major selling point, Young believes. At the same time, growth in many European


next step step for us, and we have been developing it over the past decade


“Europe is a natural Martyn Young


markets is potentially much higher as the pallet network concept is only just getting off the ground in many countries. “Competition in the UK is fierce, whereas in some other countries we are virtually running solo,” Young explains.


The pallet network may be a relatively new concept in Germany but that didn’t deter around 100 potential members coming forward in that country, he continues. “As soon as they see the model, they immediately switch on to it.”


The hub for the country is in Homburg, virtually the geographical centre, and as in other markets Palletways will supply its standard IT platform and 24-hour coverage will be offered. With Germany currently taking advantage of the weak Euro, the export potential from this market could be “phenomenal”, Young adds. While there are existing nationwide freight networks of various types in Germany, no one has yet attempted anything on the Palletways model before, he believes. Palletways has not simply licensed the concept but has retained ownership and used the same model as in the UK. The fact that it is the last country to be added is a historical accident, Young


says. The Palletways


concept was first replicated in Italy – whose geography roughly resembles that of the UK – and the Italian connection then led to openings in Iberia.


Further expansion will come in Europe, probably in Eastern Europe, but it’s “unlikely to happen this side of Christmas,” Young says.


Palletways also offers international connections between all the countries it


Norbert Dentressangle turns Europe red


French-owned European logistics giant Norbert Dentressangle now has its ‘Red Europe’ pallet system up and running across almost the entire EU and other parts of Europe, says development and marketing director Jerome Burtin.


between the different countries and at the same time expanded the network of ‘correspondents’ in other countries – there are 65 platforms in Germany alone, for


instance. The network is


now being marketed as a single, integrated whole all of the EU (apart from Greece where there is a slightly more limited service), Switzerland, Norway and also the western half of Turkey as far east as about Ankara.


The network originated in


ND’s purchase of British-based logistics operator Christian Salvesen in 2007, he explains. “We found that we had acquired a pallet distribution network in the UK, France, Spain and Portugal, though at the time each domestic network was not interconnected.” ND then added the international connections


The system will handle full and half pallets along with some other unit load devices such as the bins and stillages used in the motor industry. It is not a hub and spoke network, but as far as the customer is concerned there is little if any difference, says Burtin. It offers an easy to understand tariff, standard 24/48 delivery times and full traceability, but it has been set up with few of the overhead costs often associated with hub-


The latter is extensive, he adds, with 500 nightly shuttles across France, for instance.


Future developments of the network could include adding the


Jérôme Burtin


based operations as it uses ND’s existing capacity. International traffic is concentrated at specific gateway hubs – Rochester and Leighton Buzzard in the UK, for example.


The ND approach, says Burtin, “is a much more incremental process than filling a network. It’s infill on our existing network.”


Balkan countries, and discussions are going on to cover initially Croatia – soon to become part of the EU. Discussions are ongoing with potential partners who could also cover Serbia, Bosnia and Montenegro. Greece is the one remaining missing piece of the jigsaw as far as the EU is concerned. It is already served, but via a shuttle with Spain. However, the current situation in Greece at the time of writing is hardly ideal for drawing up long-term business plans.


Other markets in Europe such as Ukraine, Belarus and Russia itself can also be served, though there is the complication of potentially


slow customs


clearance times. Thus far, Burtin concludes,


“we are very satisfied with Red Europe in terms of new customers and we’ve gained


1800 new accounts across Europe. Turnover is ahead of our plans.”


serves, some by co-loading but all links are offered on a daily basis and offered on the basis of a standard service concept. As such, it can plug a useful gap between the traditional road groupage operators with often less frequent services and the higher-priced express parcels companies most of whom have relatively restricted maximum shipment sizes. Again, growth in this sector is “significant” says Young.


ISSUE 4 2011


Palletways all set to conquer Germany ”


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