IOC Heads of Industry Round Table - May 2021

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Big online audience for IOC Heads of industry Round Table May

Brexit van O Licence – EMG Freeport expanding e-retail freight.

BFPO – Welsh transport policy – theft codes for mail and parcel.



IOC fellows joined the virtual round table this week, while many more fellows chose to download and watch in the evening. It was a heads of industry event playback with keynotes from East Midlands Airport to Welsh Govt Transport policy.

At the real table IOC hon fellow TC Sarah Bell handing over to Traffic Commissioner for the NW, Kevin Rooney explained van O licence Brexit implications. ‘the need for van O licence to cross borders including N Ireland.’ The big operator question, ‘How will owner van operators deal with O Licence?’ It was a wake-up call for what looks well over quarter of a million parcels a night crossing the borders in what looks like the a majority of owner van operator vehicles.

Tracey Worth raced through a varied and energetic agenda. Last on the agenda but not least was IOC security group briefing the sector on latest actions to report parcel crime and get a sector win with the correct policing codes to be sure we get national resource allocation for theft of parcel in our sector.

The keynotes were virtual with a quarter of a million vans represented at the table. The keynotes deliver a breadth of UK-wide knowledge - from the pending European van O licence to Welsh Govt transport policy - home collection and delivery driving rural economy and depots popping up in the southern Welsh cities. Claire James, East Midlands airport boss was on top keynote to talk latest Freeport govt bid win for the East Midlands logistics hot-spot focused on Jnct 24 of the M1 - big UPS and DHL sheds with a lot more space to come. Kam McKinley spoke military mail and parcel out of BFPO HQ Northolt. History, future and vision for post and parcel.

Fellows briefing for the keynote detail sent.

Fellows can play back the heads of industry round table to be back at the event.

Tracey Worth, CEO IOC opened

Monday hugs exiting lockdown, this looks like the last fully virtual heads of industry. The next heads of industry is likely to be hybrid, with fellows back at a real table in the IoD. I wish to remind you the Fellows' Gowning date looks very robust for the House of Lords, July 16th, we have a services to industry gown for Michael Holt, for post lockdown it’s a Who's Who of sector. And, from today, this may be our last full IOC Zoom as the world changes, next heads of Industry will be Sept 21st and it's very likely to be back at the table at the IoD in Pall Mall. Please don’t forget the sector recognition of excellence, National Courier Awards Oct 26th will be the twenty fifth year of the event.


Carl Lomas IOC chairman, introduced the keynotes

2019, 25 billion items delivered from mail & parcels to food and meals, the number almost doubled for lockdown, rising to 40 billion items in 2020. Key worker status and seen as critical infrastructure as we deliver to the door, an acceleration in retail shift from High Street to home delivery that is here to stay.’ We had great feedback on the worker status keynotes from last heads of industry and that will feature in our next round table Sept 21st.

Not just COVID, but BREXIT too! The next key challenge of BREXIT for express is the introduction in Europe of van O licence regulations, keynotes organised by our Hon Fellow, Traffic Commissioner Sarah Bell will open today's IOC fellows heads of industry round table.

We see a substantial number of UK couriers moving vans into Europe, but the key border seems closer to home. IOC have been working with Northern Ireland Govt to review figures and this looks set to be the highest-impact border for UK express delivery for the new van O licence - from an early review of parcel numbers IOC have mapped 350 thousand parcels a day moving south of the border to a population of five million individuals. The majority of parcels in owner vans, fellows are asking, ‘How will these individuals deal with O Licence?’


The keynotes began with BREXIT van O licence

It was double-bubble with two transport commissioners at the IOC table.

Next year larger vans will need an O licence to cross Brexit borders, the van is likely to work inside the existing truck fleet o-licence of the larger operator, but for owner van drivers the challenge looks to be a huge wall to climb alongside worker status. Fellows are asking how will single van owner drivers deal with o-licence?


Traffic Commissioner Sarah Bell - BREXIT 'O licence' for vans heading to Europe May 2022

IOC hon fellow, Traffic Commissioner Sarah Bell. A focus on the new van 'O licence' - required for vans crossing Brexit border. Letter to the IOC from Office of the Traffic Commissioner. ‘The changes to the European legislation will be incorporated into UK law and the licensing of light goods vehicles on international journeys will be introduced in May 2022. So, businesses, which have not required an operator’s licence to date, will be required to apply to a traffic commissioner to obtain a licence before that date, to continue with international operations. Whilst the extension of operator licensing to light goods vehicles is limited to those involved in international transport, they will be required to have an establishment within the UK, to demonstrate good repute, show professional competence by appointing a qualified transport manager and to have financial standing, although at a lower rate to HGV operators.’


Sarah Bell introduced Steve Oliver from the DfT to talk van O Licence detail

From 21st May 2022, Goods vehicles with a weight over 2.5 tonnes that travel abroad will need an operator licence. The recording of the keynote was embargoed, but fellows got a detailed narrative form Traffic Commissioner for the North West, Kevin Rooney.

Fellow Traffic Commissioner Kevin Rooney, ‘Ministerial clearance Is ongoing so we are not recording this session, but we are keen to get feedback from operators as we build the procedures. The project is complex as it runs across DfT, DVSA, TCs, and the Northern Ireland transport office. For the lighter vehicles we are still looking at parking facility requirements. For trucks you must have off-road space for walk-around checks, this is not presently being asked for at van size.

Grandfather rights for O licence ask for a ten-year management history, but for vans this may come in a lot shorter. We are looking at van fleets that may have a hundred vans, but only ten vans crossing a border and considering how to deal with recognition of the O licence numbers.


Keynote - Freeport win in the logistics heartland of central England

East Midlands Airport boss Claire James MBE talks Freeport win.

East Midlands airport EMA, ‘The UK's express hub’

Big space is coming available for express in the East Midlands.

Claire James explained her arrival in the top job during the pandemic, owned by Manchester Airport group, little East Midlands was actually the tenth largest airport in Europe by weight of cargo, we are a global gateway for trade.

Historically East Midlands grew from the location on the M1, bringing 80% of the UK within four driving hours. 1979 saw Royal Mail operate and 1989 DHL arrived at East Midlands. 2018 UPS were granted planning permission for new 180 million pound facility that has gone live this month. Today over 400 thousand tonnes of cargo - from letters to all sorts of household goods for home delivery.

16 million feet of new space on the SEGRO shed area adjacent to the airport. Ratcliffe Power site will decomision in 2025 and likely open up a vast space of opportunity.

East Midlands Airport logistics hotspot. D2N2 LEP working together with the Leicester and Leicestershire LEP submitted a bid to the government for an East Midlands Freeport. Friday Feb 5th. The successful bid delivered a unique inland Freeport at the heart of the UK with unrivalled rail connectivity to all UK ports and bring significant investment to develop and drive innovation, alternative energy sources and green technologies, creating close to 60,000 new skilled jobs to areas of deprivation in the East Midlands.

The proposed location is based around the SEGRO EMG park, East Midlands Airport and Gateway Industrial Cluster (EMAGIC), Uniper's Ratcliffe-on-Soar Power Station site and the East Midlands Intermodal Park (EMIP) in South Derbyshire with M1 jnct 24 access and strong link to East West A50. At the heart of the bid is the opportunity to accelerate the region's commitment to decarbonisation and boost the area's status as a leading innovation hub for green energy.

Claire James, East Midlands Airport’s Managing Director and LLEP Board Director, said: ‘We’re delighted to part of a successful regional Freeport bid that could create thousands of jobs for local people. East Midlands Airport (EMA) is a key regional and national gateway for Britain’s exports and imports. “Assets like EMA will have a key role to play in helping the Government fulfil its ambition of a ‘global Britain’ especially as the country strikes trade deals around the world. As the port of entry and exit, we bring to the Freeport bid, along with our road and rail operating partners, the connectivity that is one of this region’s unique strengths.’ This is about levelling up opportunity for logistics at the heart of the UK. Freeport will bring global incentives.


Keynote - British forces military postal logistics

Kam McKinley showcase on BFPO military postal update.

‘Nothing can ever go missing’

Former Royal Mail, like Claire James at East Midlands I joined my new role at the start of lockdown. Defence couriers, history of the BFPO, a military beginning, recent numbers of military falling we have become a more private sector organisation. BFPO operations still serves a global audience, two thousand tonnes a year 650 plus locations including 97 ships at sea. 237 embassies

DCS the Defence Courier Service; diplomatic, visas and passports, delivering secret and top secret items. DCS customer base from MI5 to NATO makes for a challenging group of clients, nothing can ever go missing.

Operational update, EU transition has been about dealing with labelling. Getting the labels correct and compliant. Retailer labels for goods has been the greatest challenge. COVID 19 impacts saw early drop in numbers, but numbers then grew with lockdown.

Looking forward – we are very much about embracing technology ITMATT – meeting routes and patterns. Customer focus and comms, efficiencies and defence demands.



Keynote - Welsh Transport policy

Parcels to Wales have often been driven from depot zones in Bristol, but as numbers in e-retail rise we have been seeing a growing number of depots emerging around the southern Welsh cities. Parcel numbers in the northern rural areas have also grown strongly as home collection and delivery has built business in harder to reach areas. Matt Edwards was on IOC keynote to talk latest Welsh transport policy under the newly elected government.

Matt Edwards on future Welsh Transport Plan for govt.

Matt Edwards introduced a Welsh vision, a draft for a new Welsh transport plan,

I am head of ports and freight for Wales, following consultation we have a new Welsh transport policy launched March this year. From Welsh election of Labour Govt we move to delivery, getting the transport balance with clean air and integration for all freight.

We are looking at modal shift, distribution centres, terminals and ports for an overall approach. We recognise many networks are shared between people and goods. Enhancing grid for charge infrastructure to electric vehicles is on the agenda. We are looking to support growth in logistics and recognise transport connectivity is changing.

We are looking to develop a dedicated freight and logistics plan, the key point is engagement



Keynote - Theft of mail and parcel report update

IOC security group co-chaired by Adrian Sherratt DPD and Andy Magromallis Rico delivered an excellent final key note.

A full update of the latest parcel theft reporting codes. 40 billion deliveries a year to the door, 400 thousand vans at final mile for door delivering parcels.

‘It's massively important you take the time to report parcel theft on the new crime code.’ Talking about the new measure of theft in parcel. ‘Theft of parcel has been recorded in theft of motor-vehicle, it's been hard to extract knowledge of parcel crime from general motor-vehicle theft. During lockdown we saw an increase in parcel crime, so with some lobbying, the new crime code has been made live. I believe 90% of parcel crime is likely to be business related. It's massively important for you to take the time to report parcel and mail theft on the new code. When you call the parcel crime in, be sure to mention this is parcel, not motor-vehicle. Talking about the latest IOC drive for safety at door with the Children’s Society on recognising vulnerable young adults, it's time to look at other relationships ’