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Issue 1 2015 - Freight Business Journal


///NEWS


City Link goes into


Parcels delivery company City Link went


administration into administration


on 24 December. The company, sold by previous owners Rentokil Initial to restructuring specialist Better Capital in April 2013, called in administrators Ernst & Young on Christmas Eve in the face of “substantial losses”. The timing of the


announcement was widely criticised by trade unions and some sections of the media. City Link stopped accepting


parcels at its 56 UK depots and, on 31 December, a total of 2,356 job losses were announced, with just over 370 staff retained to deal with parcels still in depots and help run down the business. The administrators added


that an unnamed consortium’s offer to buy the company was not acceptable, as it offered no money up front and significantly undervalued the assets. Although primarily involved in


the UK domestic parcels market, City Link had been developing its international services through a partnership with bpost international, the Belgian post office’s international arm.


UPN makes space for growth


United Pallet Network (UPN) has begun work on extending its central hub facility at Fradley Park, Lichfield from 120,000 to 170,000s ſt, to cater for a 30% increase in traffic. Director, Andrew Lowe, commented: “The investment in the hub, staff and equipment is essential to


the whole network and


demonstrates our commitment, not only to our members, but also our customers in delivering a first class service as pallet numbers increase. Staff numbers have also increased by 10% to compliment the team


we already have in place. We are also investing in our forkliſt fleet and now have more than 40 available for the transhipment of pallets.” As part of its new network


development strategy, which will see further investments in people, technology and network infrastructure, Jayne Lowndes joins UPN as regional director aſter spending 12 years with UK Pallets. Andrew Knowles, also joins


as regional director aſter eight years with Fortec Distribution Network.


New look for Europa in Newcastle


Europa Worldwide Logistics has opened a 1,500sq ſt office for its Newcastle operation at Monkton Business Park, Hebburn. It will allow the business to double in size


UK Pallets to close


Private postal operator UK Mail Group is to close down its UK Pallets arm, citing poor performance and falling profits. The operation is seen as non- core, accounting for around 6% of the parent company’s total revenues.


UK Mail had warned investors


in November that it would need to take action to address the problems at the Lichfield-based pallets operation. Fellow network operator Pall-


Pallet Networks report p.23


Ex said it was offering assistance to the 73 UK Pallets hauliers affected, as well as customers affected by the closure. Pall- Ex said it would meet with all members and customers, and will be officially recommended as the palletised freight network of choice by UK Mail Group.


within the next 12 months. Branch manager Mat Jobson,


who has worked for Europa for 15 years, said: “We used to be in a that building that really wasn’t very inspiring which we’d outgrown; this move to a contemporary space is much more in keeping with our business. We’ve always loved working at Europa but now we’ve got a new home, it’s even


better.” Exports from the north east


have risen by 2.32%, the highest of all English regions, he added. “Traditionally the North East has been only been linked with Europe on an infrequent basis but our investment in improved services enables us to deliver the following day in key European destinations.”


DB Schenker Rail to open London car hub


DB Schenker Rail UK is to develop a Euro-hub for the import and export of finished vehicles at Barking, East London. Expected to open in March 2015, it will be connected to the High Speed 1 rail link to the Channel Tunnel and will be the only rail linked facility of its type in the country, says the train operator.


The company has taken a 20


year lease on a 34 acre site in Barking, East London, and will initially construct a rail connected facility to accommodate the unloading, storage, preparation and distribution of imported and exported finished vehicles. Initial capacity will be up to 150,000 finished vehicles per year.


FTA chooses new chief


David Wells will become the Freight Transport Association’s chief executive officer from 1 May, taking over from Theo de Pencier who is retiring aſter eight years.


Mr Wells joined FTA in 2009 as finance and IT director. He has successfully


implemented


number of important financial and operational programmes.


a


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