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Market Report: Green Zone Efficiency drive Nigel Strickland considers measures that hirers can take to reduce transport fleet fuel bills and lower their carbon footprint. The sharp increases in diesel and petrol costs during the last year have shown how, in the long term, the price of finite fossil fuels will inexorably rise upwards. When combined with the other costs of running a fleet of delivery vehicles and cars, the Transport or Motor Expenses column will probably be the fastest growing area of expenditure in your accounts each month. Add to the equation the need for reduced vehicle carbon emissions, and the importance of having an effective transport policy will become paramount for all businesses, regardless of size. One immediate response to rising transport costs is to increase delivery and collection charges to customers. This is never an easy option, and even then, this will probably not be enough to recoup your increased overheads. Forward-thinking businesses will look for alternative methods of managing their costs and maximising the efficiency of their transport assets. Greener transport fleets Perhaps one of the best ways to improve transport policy is to 'green' your existing fleet of vehicles. A good place to start would be with the Department for Transport's (DfT) SAFED scheme (www.safed.org.uk). SAFED (Safe and Fuel Efficient Driving) initially focused on truck drivers and proved extremely effective at improving the fuel efficiency and safety of those who took the one-day training course. The DfT was keen to build on this success, and developed a training course specifically for van drivers in consultation with experts including training providers, fleet operators, trade associations, manufacturers and Government agencies. The SAFED vans scheme was piloted in 2005 and rolled out during 2006 and 2007. Up to a 17% improvement in fuel consumption is reported on the day of training, and drivers say they feel more in control of their vehicles and less stressed at the end of the day, and this is achieved with little or no increase in driving time. From an operator's point of view, increased safety awareness can lead to a 60% reduction in driver 'faults', and a 33% reduction in gear changes has an obvious positive effect on maintenance costs. So far, over 8,000 drivers have undertaken the SAFED van training course, made up of classroom and on-the-road tuition. Part-funding is also available, with details on the web site. Sustainable use of energy Another extensive source of advice is the Energy Savings Trust (EST) (www.energysavingtrust.org.uk), a non-profit organisation funded by government and the private sector. It aims to cut CO2 emissions and encourage the sustainable use of energy. EST provides free advice, with an opportunity for all businesses running a fleet of 50 or more vehicles to sign up for a Green Fleet Review (in Scotland the service is available for companies with fleets of 20 vehicles). After an initial meeting and a successful application, the Trust will allocate your company an independent consultant who has fleet management experience and an understanding of the commercial pressures businesses face. Their review culminates in a comprehensive report identifying ways of reducing fleet costs, cutting vehicle emissions, and minimising local traffic and parking problems. This can highlight better fleet management measures, leading to lower costs, greater productivity and an enhanced reputation for your business. Companies with smaller fleets can benefit from free telephone advice on company-specific queries covering cars and vans up to 3.5 tonne. Alternative fuels However, do high energy prices call for a more radical approach, representing a strong case for alternative fuels? LPG has been around for years without ever gaining the widespread acceptance its advocates claim it deserves. With the price now roughly 50% that of petrol, and about 40% the cost of diesel, is it worth reviewing the use of so-called 'dual-fuel' vehicles? The cost of converting a petrol vehicle to dual-fuel use ranges from £1,600- £2,200. The Liquid Petroleum Gas Association (LPGA) claims the benefits include greatly reduced engine wear and tear, lower vehicle tax, exemption from congestion charges (see www.powershift.org.uk) and greatly reduced emissions. Historically, one negative aspect of LPG was the lack of refuelling facilities. However, there are now over 1,300 Autogas filling stations in the UK, with an average of 15 more opening every week. The option also exists to install your own bulk LPG fuel tanks at your premises, leading to cost discounts. Incidentally, in May this year, Kier Building Maintenance, part of Kier Support Services, launched a new fleet of 22 Transit vans running on LPG to deliver housing maintenance services in the London Borough of Hammersmith and Fulham. Choosing a hybrid car could be an option for companies deploying sales teams driving in congested cities, rural settings or in hilly countryside. Here, vehicles like the Toyota Prius can outperform a conventional rival in terms of fuel use. However, the potential savings will depend on the way the vehicles are driven, so driving patterns need to be assessed. Equally, if most of your driving is at constant speeds on motorways, you will not gain a great deal and a fuel-efficient diesel vehicle is probably a better option. The development of commercial hybrid vehicles is still in its infancy, but in January this year, Daimler AG announced that its Fuso Canter Eco Hybrid truck was to be trialled by the courier DHL. This has involved two 7.5 tonne vehicles with hybrid diesel-electric engines, and Daimler claims they will use up to 20% less fuel than conventional petrol or diesel counterparts, with a reduction in CO2 emissions. With Volvo and other commercial vehicles exploring the hybrid vehicle market, this is an area to watch. Electric commercial vehicles Hirers operating in congested urban areas with low-mileage, multi drop/collection operations could find advantages in operating electric commercial vehicles, following in the tyre tracks of both Speedy Hire and A-Plant. The latter currently has a Smith Edison model on trial that has a 90kW motor, fast acceleration and a top speed of 50mph. Power is provided by two suitcase-sized sodium nickel-chloride batteries that give a range of up to 100 miles on one charge. With a gross vehicle weight of under 3,500kg, any of A-Plant's drivers can get behind the wheel. Meanwhile, Speedy has purchased four vehicles manufactured by Coventry-based Modec, for deliveries in the London area, and it plans to introduce more into its fleet. Mike McGrath, Speedy's Commercial Director, adds, "We have introduced initiatives that have enabled us to reduce our average CO2 emissions by 14% over the last five years." The need to reduce carbon emissions, coupled with rising fuel prices, are two powerful incentives that are driving the development of new technologies and the enhancement of existing fuel systems. Inevitably the high cost of investing in some of the developments will prohibit all but the largest companies from being at the forefront of change. However, it is clear that all hire companies can take advantage of other practical and inexpensive opportunities, such as those promoted by SAFED and the EST, as well as alternative fuels like LPG, to save money in what are, undoubtedly challenging times. Executive Hire News › Archives › September 2008 › Market Report › Efficiency drive
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