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Added value services boost AV Dawson in a tough market


AV Dawson is one of the most diverse businesses in the freight and logistics arena. As well as transport services per se, it has for example, developed a sub-sea cluster involved in marine cables, companies that fabricate structures like North Sea accommodation platforms and its Millserve steel processing business, which will soon be going onto a shiſt system as its business expands. Managing director Gary Dawson’s philosophy is: “If you handle and store goods, why not also process them or add value to them as well?” It’s a concept that has long been understood in the consumer logistics sector, where it has become commonplace for companies to configure computers or pack and label goods – but there’s no reason why it shouldn’t work at the heavy end of the spectrum too. Meanwhile,


the project to


extend the North Sea Supply Base and create a new deepwater quay is proceeding, although there have been some hiccups, as Dawson explains. “The development has been delayed by the discovery of some contaminated riverbed silt, which is frustrating because, under the old regulations, which were tightened up only two years ago, it wouldn’t have been a problem. But I’m sure the issues can be overcome and the project should be complete by the end of the year, or possibly, the first quarter of 2014.” When it opens, the new berth


will also allow larger coke ships to be handled - 12,000 tonnes as against the current 8-9,000t maximum. The company recently obtained an environmental permit to handle coal and coke traffic, primarily for the benefit of SSI, which recently reopened the local steel slab plant. Another project AV Dawson is


pursuing is installing renewable energy – solar and wind – for its own purposes. It’s not just a matter of being seen to be green – Gary Dawson estimates that it will slice the company’s current £500,000-a-year energy bill in half. He points out; “We have some huge sheds on our site, which are ideal for arrays of solar panels.” Yet another plan under


investigation is whether to apply for a COMAH hazardous chemical


storage licence for the new TRIP intermodal terminal. AV Dawson appears to be ahead of the field here – until now, registration has not been deemed for companies


that


necessary transport


as opposed to store hazardous goods in tanks or containers, but this could well change soon as the dividing line between transport and storage is becoming increasingly blurred. “I think HSE will be taking a view on this soon and we’d like to be ahead of the game,” Gary Dawson explains. Also on the environmental


front, AV Dawson is in the process of obtaining ISO Health & Safety and Environmental certification and has appointed a new manager to oversee the process. “We see it very much as a commercial tool. It will help us get onto tender lists and more customers are demanding it,” Gary Dawson explains. One project recently completed few months ago was


a the


extension of the TRIP intermodal terminal, with the addition of a further storage area. A third expansion phase is also in the plan, which would include a new automotive steel store, but this is still awaiting the green light.


“If you handle and


store goods, why not also process them or add value to them as well? ”


The facility is developing quite well, although


another


frustration is the lack of progress in developing an intermodal rail service (the terminal is already regularly used by conventional train services, however). “We’re particularly keen to establish a service to the Liverpool area, and we’ve been exploring the possibilities with shipping lines. I think there is a desire, and potential traffic there, but the rail companies are risk averse and are unwilling to lay on a service on unless they can be absolutely certain that there will be traffic to fill it.” He is convinced though, that once a regular train is running, many other companies would “emerge from the woodwork” and provide regular business. One factor that could make a


difference is the expected influx of low-liner freight wagons onto the market – at the moment, only one rail operator, DRS has them, but that is expected to change soon. This could in turn instil a greater


degree of competition among the rail operators and encourage a more risk-taking, entrepreneurial approach. In the longer term, gauge- enhancement work on the


Issue 6 2013


direct transpennine rail route to Liverpool should allow high cube boxes to be carried without recourse to special wagons, but that is some way off. By diversifying and developing


niche areas, AV Dawson has remained a profitable company, but that does not mean that it isn’t under intense price pressure, like the rest of the freight industry. “There’s still a lot of pressure on prices, and freight is identified by many companies as an external


21


cost,” explains Gary Dawson. “So while turnover is up, the pressure on prices is incredible, and in some areas margins are under so much pressure now that we may have to make some harsh decisions as to whether we can continue to handle some business. We’re doing everything we can to control our costs, for example


through our green


energy scheme, but we’re already very lean. No one can accuse us of being overstaffed.”


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