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Smart solutions

Keen to grow in the fuel distribution sector, managing director Steve Spelman says MHT has products for everyone right down to the smallest depot Keen to find out more about MHT Technology, the terminal automation and tank gauging solutions specialist, deputy editor Liz Boardman travelled to the company’s base in Melsonby near Richmond to meet managing director Steve Spelman and product manager Judith Brown 2014 is a big year for the company as it celebrates 20 years in business. From just five members of staff in 1994, the company has grown almost five fold and now employs 24 people, including Steve who joined the company in June 2013. “MHT has built up a strong team with many loyal and committed staff,” said Steve. “There’s a huge amount of knowledge and experience here and we’re in a strong position to continue the growth of the company.” In September 2013 the company became a wholly owned subsidiary of Endress+Hauser. “It’s a win-win situation for us,” explained Steve. “Although we have the backing of a large, well known company and access to international markets, we are still MHT. We have retained the brand – the company name and logo remains unchanged and we maintain our independence within the market place when it comes to recommending gauges and instrumentation.”Scalable software Having carved a niche as a supplier of tank and inventory management solutions which can interface to field devices from all leading manufacturers, MHT offers a range of software and hardware solutions designed to lower operating costs and improve safety. One of the company’s first products, Visual Tank for Windows (VTW) was launched in 1994 and still remains one of its most popular. “As well as providing real time stock monitoring, the software also increases safety by reducing the need for manual dips,” explains Judith. “It enables fuel distributors to optimise deliveries and can also provide leak and theft detection. By working with all the main gauge manufacturers, we’re able to provide a complete service.” Launched in 2011, smartTAS terminal automation software is a scalable solution which can communicate directly with a single loading skid at a typical depot or multiple gantries at larger oil terminals. “Not only does smartTAS increase security through controlled loading but it also helps to reduce costs by increasing efficiency and quickly identifying any losses incurred,“ said Judith. “By working closely with a number of loading skid manufacturers and suppliers we can offer a complete solution. “Additionally there’s a link between the two software products, so physical stocks displayed in VTW can be compared against the transactional data in smartTAS. This means any losses can be identified and the cause investigated.” “Whilst a typical depot would have smartTAS, VTW and an ATEX approved Field Display, which provides level, temperature and volume data for multiple tanks, our systems are completely scalable and depots may opt to have just one element rather than the full package,” added Steve.Size doesn’t matter Although MHT’s main market is the terminals and storage sector and the company can boast an impressive client portfolio, Steve was keen to stress that it offers products which are suitable for even the smallest depot. “We have products for every market – both big and small – all of which are tailored to meet specific site and customer requirements. The fuel distribution sector is an extremely important market for us and one which we are keen to grow.” Carrs Billington is one of MHT’s biggest fuel distribution customers. The company is benefiting from increased efficiency and cost savings following the successful rollout of a programme of depot automation solutions across eight sites (five in England and three in Scotland.)“I can remotely monitor stock 24-7 across all of our sites, either from the office or at home. This is particularly useful at our unmanned sites, giving me both visibility and peace of mind.”Robert Young, operations manager for Carrs Billington’s five English sitesAdded support In addition to its range of products, site surveys, installation and commissioning are all part of the company’s standard service offering and are tailored on a site by site basis, as Judith explained: “We offer a free site survey as part of our pre-sales process where we can demonstrate the system and get a real understanding of the customer’s requirements. “Following installation, our support team provides a selection of maintenance and support packages. These range from remote support whereby we set up a remote login and can be on hand to support customers within office hours, to complete 24/7 support for some of our bigger customers. We have a helpdesk which is manned during office hours and out of hours there is always an engineer on call.” The company also offers face to face training and e-learning, both of which are proving popular with customers.An exciting new development Ensuring continuity of software systems is an essential requirement for most of MHT’s customers. With this in mind, the company has just launched a redundant solution for its smartTAS software, which enables a vehicle to load without interruption, even if the primary server has a hardware or software failure. In this instance a secondary server would automatically take over in a matter of seconds. “This gives our customers ultimate piece of mind and eradicates costly downtime,” said Steve. “It also means that routine IT maintenance can be done in office hours – again passing a cost saving onto our customers. With customers throughout the UK and across the world already using our redundancy offering for VTW and LMS (our LNG management system), we’re pleased to complete our portfolio with the new redundancy offering for smartTAS.”
4 min read

Interview

Holding steady in challenging times

Since Drury Oils was set up 12 years ago, the company has grown into a stronghold business in the Roscommon town of Ballaghaderreen writes Irish correspondent Aine Faherty. Its formula is arguably a simple one – an independent, authorised Texaco Oil distributor providing a top of the range oil service along with ancillary products that complement the business perfectly.   Small beginnings When owner Adrian Drury started the business in 2002, a skeleton staff operated from a small yard with just two 40 foot storage tanks. Adrian drove the company’s sole delivery truck and took orders out on the road whilst wife Fiona looked after the administration. As the business grew Adrian employed additional staff and a new depot was built with storage capacity for 110,000 litres of kerosene, 75,000 litres of gas oil, 75,000 litres of derv and two 70,000 underground petrol storage tanks.   Sales from the forecourt and making deliveries Today the company operates a pump service for road diesel, petrol and kerosene, which is sold in 20 litre drums. “This is an important arm of the business which has grown over the last few years,” said Adrian. “We also sell solid fuel in the form of coal and briquettes which has proved to be a good addition.” The Drury Oils forecourt does not have a convenience store. “Our location in an industrial park doesn’t have the passing trade to allow for it,” explained Adrian. The company also sells fully bunded and single skin Platinum Tanks and tank locks – a big seller in recessionary times. “Customers want locks as a deterrent to a would-be thief,” says Adrian. Drury Oils also stocks a range of lubes and engine oils. Although depot sales are important, the company’s home heating delivery service accounts for most of the business. Over the winter months and at other busy times, Drury Oils operates four delivery trucks – one that Adrian drives, another driven by a full-time operator and two others with seasonal drivers behind the wheel. “This market is still buoyant, but the commercial side isn’t as big as it once was,” said Adrian. “I pulled away from filling stations when an increasingly dodgier element began creeping in. I’m holding my own in these challenging times and still have good customers and a strong pool of suppliers. “We should all be talking to each other, and we should make sure that if we’re owed a lot of money, we tell others about it so they don’t get their fingers burned too”    Sharing information and not selling yourself short “I would advise anyone in the distributor market to ensure that they get paid for product. We should all be talking to each other, and we should make sure that if we’re owed a lot of money, we tell others about it so they don’t get their fingers burned too. “I also think distributors should have a minimum delivery – one that they can actually make money on, and stick to it,” added Adrian. “For me a drop of €150 is only feasible in the local town – it wouldn’t be worth travelling 10 miles for a drop of that size. “We’d all love to get the 1,000 litre drops but it isn’t happening at the moment. It’s a price conscious and cut throat industry right now but people should remember that they also need to survive.”   In the summertime In the summer months, Drury focuses on a strong agricultural market where it has a number of loyal, local customers, and despite the slowdown in the sector, the company has a select band of hauliers that remain on its books. Marketing and promotional plans are also put in place – marketing the Drury Oils brand and product both locally and online is never underestimated. “We’ve recently invested in freshening up our website, the revamped site now has a very modern feel and is easily navigable,” explains Adrian. Having tried to grow the business further in bad times, when conditions are better and the time is right, this amicable businessman wants to steer his business in an upward direction once again.
3 min read

News

Cold calling

With more than 200 million Americans in the icy grip of a polar vortex, FON spoke to US fuel distributors Loud Fuel and Porco Energy to find out how they were coping. Well seasoned Working in and around the Cape Cod area of Massachusetts, Loud Fuel’s managing director, Kabraul Tasha said that the company was finding it tough: “Cold weather is tough on the fuel in the trucks – trying to keep them running is difficult and, with the ice and snow staying around for longer, driving conditions are slowing down output. “We were prepared for the last cold spell – I was way ahead on degree days with my autos, so it’s a little more comfortable not worrying about autos on the brink of running out. The best thing I have on my side is seasoned people both in the office and out in the field.” www.loudfuel.com   Crunch time Porco Energy, based at Marlboro, New York may not have had the snow that others have experienced, yet demand for product has increased by 10%. Porco Energy, which has 10,000 customers and covers a 40-mile radius from two different locations, delivers kerosene, fuel oil and propane. “We’re normally busy at this time of year but when it gets really cold like this it’s crunch time,” said owner Joe Porco. “The extreme cold weather has put added pressure on us with increased deliveries and we do need to carry methyl alcohol in case we get frozen on a tank and fuel oil additive to stop gelling. Plus, due to several factors there’ve also been supply disruptions. “In the north east our main propane supply is from the Teppco pipeline. Two pipelines start at Mont Belvieu, Texas to Todd Hunter, Ohio, with one continuing to Selkirk, NY from where we get most of our supply. This year Teppco has decided to reverse the flow of one line from Todd Hunter to Texas to export propane and shale gas. This puts an immediate strain on the amount of propane coming north. “We supplement this with a contract for propane by rail, however, extreme cold out west and in Canada has at times affected pumps, compressors and valves, delaying delivery. Of course, all this supply and demand has increased costs.”www.porcoenergy.com  
2 min read

News

A Wild Wednesday at the Fuel Oil News Distributor Debate

The latest Fuel Oil News Distributor Debate took place last month on a day now referred to as Wild Wednesday. As the wind and rain began to whip up a storm, more than 80 people gathered at the Ramada Hotel in Solihull. Our first speaker was Andrew Owens (1), co-founder of Greenergy in the early 1990s, a company which now supplies over a quarter of all the road fuels in Britain. To better support the country’s growing import demand, Greenergy has both acquired, and made significant investment in, GB terminals. With the prospect of two thirds of our diesel needing to be imported in the future, Andrew asked the pertinent question Can the UK survive without refineries? With its Lindsey refinery, Total UK operates one of the UK’s 7 remaining refineries. Networking with a rather rain soaked David Hodge (6) of Lancashire-based Ribble Fuel Oils was Total UK commercial sales manager, Dominic Hewitt who found the day ‘very interesting.’ Phillips 66 still operates the Humber refinery, Pete George, managing director of the company’s UK & Ireland marketing, reported this Distributor Debate to have been ‘very informative’. With Pete George (3) are on his right, Janet Kettlewell of Kettlewell Fuels, one of the more recent distributors to join the Jet branded fold, and Karen McBride and Richard Billington from Certas Energy. Instructing the audience on the impact of issues in the wider oil world was Mystic Mog the Portland cat. James Spencer’s (4) entertaining presentation was much appreciated by the audience and particularly ‘thought provoking’ for Rod Prowse of Marathon Associates. Distributors and speakers had travelled far and wide to attend the event, among them Marcus Jones (5) from Anglesey-based TR Jones and Sandra Morris from Chester-based Wirral Fuels, pictured with Ken Taylor, OAMPS. By 2015 it is possible that oil heating could be eradicated – OFTEC director general, Jeremy Hawksley (2) made a plea for distributors to get behind the Oilsave campaign, a joint initiative with the FPS. FPS president Mark Nolan (7) of Nolan Oils, seen among many familiar faces, was spurred on by Jeremy’s call to fight for oil heating and is actively promoting the campaign in the distributor community. Julia Mansfield of Fuel Additive Science Technologies provided a highly informative insight into kerosene supply and quality. Taking a look at the impact of the imminent launch of the Renewable Heat Incentive, Paul Stephen, editor of Renewable Energy Installer, explained the challenges and the possibilities for oil heating. Endeavouring to give a business a more competitive edge, Fuelsoft’s David Kingsman and Kan’to’s, Dimitri Papaioannou discussed the benefits of customer relationship management software and enhanced real time tank telemetry respectively. To help better prepare for future events, Fuel Oil News welcomes feedback from those who attended to jane@fueloilnews.co.uk.
2 min read

Opinion

“Do you agree with the Northern Ireland Housing Executive (NIHE) that the Province should have more oil buying clubs?”

Donall O’Connor, Value Oils “As Northern Irish oil distributors, we are part of a saturated supply market where consistent pressure on margins exists for all but a few high demand months o the year. Buying groups typically thrive where distributor numbers and supply options are low and where healthy margins are traditionally achieved – Northern Ireland is no longer such a place – even in periods of decent demand, the number of distributors far outstrips demand. In Northern Ireland many small distributors work off margins which barely cover variable costs for most of the year. A quick check on the Northern Ireland/UK price checker websites will verify that Platts-plus with a pathetic margin of 3ppl is not uncommon on 500 litres. Nowhere else in the UK mainland would such margins be tolerated by any worthy distributor. Buying groups, propped up with local government and council financial support, are not really a welcome addition to the current melting pot. The NIHE, which has a switch them to gas policy, has deemed fit to select the oil distributor trade for special attention. Where is the government support for gas, electricity, meat, milk and bread buying clubs? Oil buying clubs will continue to pop up, come and go and remain in existence across Northern Ireland. But, when government and local council funding runs out, the effort will ease for the simple reason that there’s not a decent margin to work with in the first place. In the long term buying groups will lead to more damage in an already fragile and fragmented market. Whilst I do not agree with the NIHE view on more oil buying clubs, there will inevitably be more – batten down the hatches!” For further comment see the Value Oils blog – www.valueoils.com/blog/home-heating/heating-oil-buying-groups-2/ Joe Bradley, Bradley Fuels “I don’t understand how any supplier could make any money from oil buying groups. I did it once and it was a waste of time and money. I just about covered my costs but some guy from 30 miles away saw fit to undercut me – never again!!” David Blevings, Northern Ireland Oil Federation (NIOF) “Oil buying clubs have their place – assuming they’re set up correctly, members have realistic expectations of savings and delivery addresses are centred around a local village or cluster of homes that offers logistical savings to the distributor. “We need to be careful that consumers are given the correct information: the leaflet prepared by the NIHE is both supportive and informative. Prior to this guidance document many oil clubs made savings comparisons based on the cost of heating oil supplied in 20 litre drums – which included the cost of the drum – something in the region of £1 per litre! “Rather than join a club many consumers are now filling drums they’ve acquired over the last few years at kerosene pumps at their local petrol station. This is big business in Northern Ireland and is now seen by many oil users as a viable ‘budgeting’ method. “NIOF is concerned at the growth of the drum business as there are clear health & safety issues when carrying drums of flammable liquid in cars and, the potential for environmental contamination from drips/spillages. Small oil drums should be for emergency use only. “While we accept that clubs do have a role to play by offering savings to clients buying small drops, we’re convinced that the future for oil consumers is a viable payment plan or Pay as you Go system similar to that for gas and electricity. “We’re not against oil clubs per se, but think consumers should be given the correct information on actual savings. As a responsible industry NIOF members already offer numerous products to assist consumers to budget for their annual fuel requirements.”  
3 min read

News

Fuelling the partnership

Working in ‘a highly competitive market’ DHL keeps deliveries on track for Morrisons with 56 new Scania Euro V tractor units Morrisons has strengthened its relationship with DHL, extending its national fuel distribution agreement for a further six years. In the new contract DHL retains responsibility for the scheduling and delivery of fuel from its fuel planning centre in Whitwood, West Yorkshire to Morrisons’ network of 335 forecourts and regional distribution centres across the UK. Speaking to Fuel Oil News’ Liz Boardman, Stuart Carlyon, DHL’s vice president fuels and chemicals explained: “Morrisons’ decision to renew the contract demonstrates its confidence in our partnership and the closeness of our relationship. We see ourselves as one big team and work hard to ensure that customers get the supply chain they deserve.”
2 min read

Insight

A vertically challenged market

BP, Esso and Shell were supplying approximately 70% of the UK’s total requirements at the end of the 80s. Of the three only Esso now has a refinery presence in the UK – Fawley pictured here. Major reassessment of the market since 1980 has led to the three companies closing six of their UK refineries. Since the late 80s, the UK oil market has seen a gradual shift away from domination by the oil majors and mini majors.
3 min read

Opinion

“Do you have any qualms about independence in Scotland or would you welcome it?”

Jodie Allan, James D Bilsland “I think if Scotland was to gain independence, it would raise a lot of economic and social problems and damage the relationship between Scotland and the rest of the UK. The VAT rate would most probably have to change, and then you may have the issue of border controls if they joined the Schengen zone and England didn’t. This would all have an effect on the way business is conducted.” George Shand, Highland Fuels “Chaneil cail agam ri abair “ Jonathan Turner, Oilfast “No one has asked the English if we’d like to break from Scotland have they? I have often wondered why not and what the outcome of that may be….”
< 1 min read

News

Billion litre contract goes to Wincanton

Phillips 66 has awarded a new contract to Wincanton for the delivery of over a billion litres of petroleum products per year. Operating from Immingham, Kingsbury and Stockton, a team of 100 Wincanton operational staff will deliver more than a billion litres of fuel and LPG per year to retail forecourts and other commercial premises across the Midlands and north east England. The announcement, which comes off the back of an excellent safety record, including an Energy Institute Award for Safety, is significant as it will take the two companies’ working relationship to the 15-year mark. “The very nature of the industry in which Phillips 66 operates means safety has to be of paramount importance,” said Eric Born, Wincanton CEO. “We’ve worked hard at this aspect of the partnership, underlined by our Energy Institute Award for Safety. READ THE PHILLIPS 66 INTERVIEW IN THE APRIL ISSUE OF FUEL OIL NEWS www.wincanton.co.uk www.phillips66.co.uk  
< 1 min read

News

Devon expansion for Mitchell & Webber

Having acquired a new site in Tiverton, Devon, Mitchell & Webber picked IFC Inflow to install an all new bottom loading skid. The model of choice was the mechanical ADP100-3 4in 3 arm model, due to the positive experience this model has already shown on an existing distribution site. “We commissioned the first IFC skid unit and from then on it worked without fault,” said Robert Weedon, managing director of Mitchell and Webber. “I was so impressed that we had no reservations in placing an order for a second skid – truly a well-built, reliable piece of vital equipment.” Suitable for ATEX zone one hazardous areas, the AD series bottom loading skids are proven designs with the added benefit of optional electronic batch control. The skids also offer 1600 litres per minute flow rates, BLA445 series spring balanced bottom loading arms, 4in Acuflow positive displacement flowmeters, Veeder Root mechanical preset, counter & ticket printer and 11KW ultra high speed pumps. A skid-mounted emergency shutdown button assures that risks are minimized for operators during tanker loading operations. A weather canopy was also supplied for operational convenience. “A top of the range bottom-loading skid unit was supplied and fully installed within budget allowing for distribution to start as soon the Tiverton site opened for business,” added Kiran Shaw. www.inflow.co.uk www.mitweb.co.uk  
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News

UK Fuels signs JET deal

UK Fuels has relaunched its Fleetone fuel card following the signing of a new deal with JET. Under the new deal Fleetone has been adopted as the national fuel card offering for JET’s UK network of 300 plus dealers. Fleetone fuel card holders will also benefit from access to UK Fuels specialist fleet card services, including its Velocity online management tool and its e-route journey planner Velocity is offered as standard to UK Fuels customers and provides fleet managers with complete control of fuel spend with the ability to monitor the fuel usage of individual drivers as well as the entire fleet. Online reporting removes the need for drivers to retain all fuel receipts whilst the e-Route journey planner software can deliver long-term cost savings by helping drivers find convenient refuelling stations and therefore avoid route deviation. “Whether for a fleet of one or 100, the Fleetone fuel card is the ideal way to track fuel spend and take steps to reduce it,” explained Tony Garner, UK Fuels director. “With its extensive nationwide acceptance, the time and fuel often wasted by drivers searching for a suitable filling station is significantly reduced. “This is critical when you consider the UK has the third highest diesel prices in Europe. At UK Fuels we aim to make fleet management as simple as possible, which is why we provide a flexible solution where our customers aren’t tied into a contract. It’s also why we conveniently collect payment by direct debit and send invoices by email. “Our fuel cards can be tailored to a specific vehicle, fleet number and driver, with restrictions placed on what can be purchased on the card. This reduces company driver fraud as well as helping to prevent theft when a fuel card is stolen. “ The card is already accepted at over 2,700 multi-branded fuel stations nationwide, including Texaco, JET, Morrisons and Tesco. www.ukfuels.co.uk
2 min read

News

New director of corporate affairs

Brian Worrall’s new role as director of corporate affairs will enable Certas to develop stronger relations with government and industry Brian Worrall has been appointed as the new director of corporate affairs at Certas Energy. Brian, who has held positions at Chevron and Valero, has built up an extensive knowledge of the commercial, road, aviation and retail forecourt sectors. As the former independent chairman of the Downstream Oil Distribution Forum, he has an excellent understanding of the issues currently affecting the fuel industry and has played a key role in the development of the Petroleum Driver Passport. Joining the company four months after its rebrand from GB Oils, Brian is supporting the team by building and maintaining external relations, as well as developing the brand’s corporate responsibility strategy. Paul Vian, managing director of Certas Energy, commented: “Brian’s knowledge of the fuel industry and relevant experience in our key sectors makes him a valuable addition to our team. “We’re committed to developing stronger relations with government and industry bodies and establishing ourselves as a positive member of the communities we serve. Having Brian on board will enable us to engage in a higher level of dialogue with these groups.” Brian added: “Certas Energy is focused on playing an even greater role in the issues that matter to its customers and the industry as a whole. I look forward to working with the team to help make constructive contributions to policies and debates, while forging closer links with key external parties.”www.certasenergy.co.uk
2 min read

News

Harvest Energy picks innovative solutions

From May 2014, Norbert Dentressangle will provide ‘continuous, intensive and dynamic fuel operations’ for Harvest Energy In a new three-year contract, Harvest Energy has appointed Norbert Dentressangle to distribute road fuels to commercial and retail outlets across the UK. Central to the appointment is Norbert Dentressangle’s proven capability in managing continuous, intensive and dynamic fuel delivery operations on a UK wide basis, which can include handling volume swings in excess of +20% week-on-week. “During the exhaustive review of the provision of our road fuels distribution, Norbert Dentressangle consistently challenged the norm,” said Simon Davis, Harvest Energy’s head of sales and logistics. “The company came up with innovative solutions to improve our supply chain service and deliver cost efficiencies.” The new service agreement which commences on 5th May, will involve a core resource of dedicated vehicles. The operation will be managed by a team based at Norbert Dentressangle’s Thurrock site, and will be supported by the company’s Flexi Fuel Fleet regional management network and central functional specialists. All vehicles will operate with an integrated state of the art tracking and driving style management system, which incorporates an automated reporting function to manage fuel efficiency and safe driving. Ann Dawson, managing director, Norbert Dentressangle Tankers, added: “As a major logistics business already delivering a significant amount of UK motor fuel sales, we’re delighted to add Harvest Energy, which is experiencing rapid year-on-year market growth, to our expanding customer portfolio within this industry sector.”www.harvestenergy.co.ukwww.norbert-dentressangle.co.u
2 min read

News

Clugston Distribution – ambitious growth plans

David Heath is planning for more tankers and double digit growth at Clugston Distribution in 2014 Following a 20% growth in revenue in 2013, a £2.15m fleet expansion and renewal plan has been announced by Clugston Distribution. The investment is part of the company’s strategy to develop its UK customer base by growing services in the fuels, bulk powdered food, intermodal and bulk ash movement markets. Funds are being used to purchase eighteen new Euro6 Renault tractor units and fourteen new trailers, demonstrating the Clugston Group’s commitment to the logistics side of the business. The first two Euro6 Renaults hit the road last month delivering flour and other bulk food products. Three of the vehicles have been earmarked for the fuels fleet, taking it up to 16 vehicles on the Humber and Tees. Clugston Distribution is also looking to employ up to thirteen new employees to support predicted growth. Already on order, the new tractor units will be split 50/50 between fleet replacement and additional fleet capacity. The nine additional vehicles are being split across different areas of the business. David Heath, head of logistics, said: “We’re delighted that the Clugston board has chosen to support us further by backing our ambitious growth plans. 2013 was a great year for us and we’re looking forward to continuing our success in 2014 and beyond. We’re forecasting double digit revenue growth again in 2014.”www.clugstondistribution.co.uk
< 1 min read