Sugar Beet Transport Efficiency Study

1. Sugar Beet Transport Efficiency Study Chris Douglas, Transport & Travel Research Ltd March, 2010

2. Overview • Background to the Study • Project Aims and Objectives • Work Completed • Project Findings and Key Themes • Recommendations

3. Introduction to TTR • Specialist Sustainable Transport Consultancy founded in 1991 – 25 technical consultancy staff in UK • Specialisms – Freight and Fleet Efficiency, Energy and Environment • Haulage Industry, Freight Transport Association and Manager of DfT’s Freight Best Practice Programme

4. Project Background • NFU and British Sugar appointed WSP and TTR in April 2009 to undertake an independent study • Study ran from April until August 2009 • Funding was provided by East of England and East Midlands Development Agencies

5. Project Objectives • Identify the most efficient way to move 7 million tonnes of beet from 4,500 growers into 4 processing sites • Consider all options for change, ultimately leading to a more strategic approach to managing the beet supply chain for improved efficiency and cost effectiveness

6. Project Aims and Tasks • Understand and carry out an efficiency assessment of current arrangements • Undertake consultation with those involved • Identify costs associated with current operations • Identify areas for efficiency improvements • Recommend a strategy (with Action Plans) to improve operational efficiency and reduce associated costs • Report findings and recommendations • Disseminate recommendations

7. Work Completed • Desk Based Review (France, Germany, Denmark, Netherlands, Finland, Turkey, North America) • Face-to-Face Strategic Stakeholder Meetings (NFU, British Sugar, EMDA, DEFRA and Road Haulage Association) • Face-to-Face Grower, Grower/Haulier and Haulier Meetings

8. Work Completed • 5 weeks of Telephone Consultation • 229 consultations (41 hauliers, 129 growers, 59 grower/hauliers) – representative sample • Consultation Events • 2 x Growers and 2 x Hauliers • Views on existing beet transport • Costs associated (operating costs and haulage rates paid) • Perceived benefits of current operation • Perceived drawbacks of current operation • Willingness to consider alternatives • Identify best practice examples

9. Work Completed • Full Response Analysis • Measure/Model Development • Impact/Acceptability Matrix • Consultants’ Recommendations • Final Report

10. Key Themes • Haulier role – dominant, with significant control over the operation once campaign underway • Contracts – few formal contracts exist • Grower and Haulier relationships – often long-established and static – may be a positive but transparency of costs?

11. Key Themes • Haulage Rates • Vary significantly for comparable jobs • Lack of transparency in decoupling haulage rate from cleaning & loading rate • Annual negotiation in most cases but without formal contracts • Some cases no negotiation and haulier decides rate at end of campaign

12. Key Themes • Planning – lack of detailed plans used throughout campaign by beet hauliers • Co-ordination – both haulage and haulage/harvesting to minimise beet left in clamp • British Sugar Co-ordination – already happens to a degree through Area Managers and some large growers and hauliers indicated preference

13. Key Themes • Receiving hours, Queuing and Delivery Profile • 24/7 – issue of night loading decoupled from night hauling • 7 day week – short Saturday and short Sunday to smooth ramping (which requires extra vehicles currently) • 7 day week – raises issues about willingness to operate on Sundays

14. Key Themes • Queuing at sites – inefficient use of resource. Potential for extended receiving hours (am or pm) • Zones – general feeling that 1 & 2 needed but not those later in the day • Peaks in delivery demand – ramping calls for extra vehicle demand – smooth flow through week is required

15. Key Themes • Vehicle Fleet Profile, Utilisation & Specification • Use of smaller vehicles (4 axle rigid tippers) increases trip numbers • Vehicle utilisation during and outside of campaign – other crops and commodities or park-up? (33% vehicles deliver less than 50 loads during campaign) • Limited backloading • Age of fleet – only 10% less than 2 years old (25% pre-2000) – impact on fuel efficiency

16. Key Themes • Efficient vehicles are light vehicles – no sleeper cabs, bull bars, horns, no need to run with full tanks – minimise kerbside weight • Use of sheeting equipment on empty tipper bodies over longer distances – fuel saving when fitted and used

17. Key Themes • Call-up System – information to be provided as early as possible (08.30) to allow forward planning • Transport Allowance – Growers keen to get higher but widely unclear level of shortfall • Tendering for British Sugar Haulage Contracts – welcomed by larger or by consortia of smaller hauliers

18. Key Themes • Pads • Limited size at selected processing sites • Grower investment in own pads in recent years – meaning preference for conventional cleaning/loading equipment

19. Key Themes • Cleaning & Loading • In most cases equipment provided and co-ordinated by the haulier but some growers using own, under-utilised equipment. Also criss-crossing of haulier equipment • Maus – field size and proximity of adjacent road may dictate effectiveness

20. Key Themes • Despite general support for the current situation, growers, hauliers and grower/hauliers all expressed a willingness to at least consider alternatives

21. Areas for Improvements • Key is minimising mileage run and number of vehicles within the operation • Views expressed that number of vehicles and separate operations allow flexibility at peak • Also mean excess during normal operating times

22. Areas for Improvements • Over 700 of total 2,000 vehicles transport less than 2 loads per week • 10% of loads are transported by vehicles with payloads 26 Tonnes or less • 550 vehicles are greater than 9 years old • Only 200 are less than 2 years old

23. Objectives for Improvements • Use fewer vehicles, which are newer, cleaner and more fuel efficient • Offer more competitive, standardised rates • Have extended operating hours • Involve less queuing at peak periods at factory sites • Have more level, ‘flatlined’ delivery profiles through the week

24. Measures and Models • Three main headings: • Best Practice Guidance • Extended Servicing Hours at Processing Sites • New Operational Structures

25. Best Practice Guidance • Guidance on haulage rate negotiation for Growers • Guidance on efficient vehicle specification for grower/hauliers and hauliers • General operational efficiency guidance for grower/hauliers and hauliers • Guidance on grower partnerships • Guidance on haulier consortia building

26. Extended Servicing Hours • Evenings • Mornings • Weekends, including Sundays • Relaxing later time zones

27. New Operational Structures • Co-ordination of Harvesting and Haulage • Improved cleaning and loading efficiency – co-ordination of conventional equipment • Improved cleaning and loading efficiency – use of Maus • Formal planning and co-ordination of collection days • British Sugar formal planning and co-ordination of collection days

28. New Operational Structures • Ex-farm grower contracts • Haulage contracts with British Sugar • Service agreements within haulage contracts (haulier performance levels, vehicle specification) • Standardised haulage rates negotiated by British Sugar and made available to growers

29. New Operational Structures • Tendering for haulage territories by hauliers or haulage consortia • Increasing quality standards for hauliers (minimum tonnages, certification scheme)

30. Consultants’ Recommendations • Ultimate Efficiency Model • Ex-Farm Contracts for ‘Local’ Growers • Tendering for British Sugar Haulage ‘Territories’ (negotiated rates, quality standards and service agreements) • Improved co-ordination of harvesting and haulage activity • British Sugar planning/co-ordination of beet collection • Extended delivery time windows throughout 24hr period and 7 day week

31. Consultants’ Recommendations Ultimate Efficiency Model - Interim • Trialling of haulage ‘territory’ contract and British Sugar planning and co-ordination • Interim measure – British Sugar negotiated standardised haulage rates and contract templates • Best Practice Guidance for Growers, Hauliers and Grower/Hauliers • Fleet Efficiency & Quality Improvement Scheme

32. What happens next? ? British Sugar to present Next Steps