Sugar Beet Transport Efficiency Study

Chris Douglas, Transport & Travel Research Ltd

March, 2010

• Background to the Study

• Project Aims and Objectives

• Work Completed

• Project Findings and Key Themes

• Recommendations

Overview

• 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

Introduction to TTR

• 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

Project Background

• 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

Project Objectives

• 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

Project Aims and Tasks

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

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 transportCosts associated (operating costs and haulage rates paid)Perceived benefits of current operationPerceived drawbacks of current operationWillingness to consider alternativesIdentify best practice examples

• Full Response Analysis

• Measure/Model Development

• Impact/Acceptability Matrix

• Consultants’ Recommendations

• Final Report

Work Completed

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?

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

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

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

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

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

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

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

Key Themes

• Pads– Limited size at selected processing sites– Grower investment in own pads in recent

years – meaning preference for conventional cleaning/loading equipment

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

Key Themes

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

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

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

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

Measures and Models

• Three main headings:

– Best Practice Guidance– Extended Servicing Hours at Processing

Sites– New Operational Structures

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

Extended Servicing Hours

• Evenings

• Mornings

• Weekends, including Sundays

• Relaxing later time zones

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

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

New Operational Structures

• Tendering for haulage territories by hauliers or haulage consortia

• Increasing quality standards for hauliers (minimum tonnages, certification scheme)

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

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

What happens next?

?British Sugar to present

Next Steps