News 83
Phillips 66 has further strengthened its commitment to UK fuel sales, appointing Tony Reddington as national sales manager for its UK & Ireland marketing division.
In his new role, Tony will be 100% customer-focused, targeting new customers and strengthening existing relationships with supermarkets and high volume resellers and dealers throughout the UK and Ireland. He will take responsibility for the development of the company’s speciality fuel businesses – marine, aviation and LPG.
Since joining the company in 1987, Tony has held a number of roles across its upstream, downstream and corporate divisions, with a particular specialism in finance.
Pete George, the company’s managing director UK & Ireland marketing, commented: “Tony has extensive experience of our business and our brand, as well as an in-depth understanding of the UK and Ireland’s fuel market. He is well-placed to take on the challenge of increasing our market share, identifying new opportunities and developing our customer base across all of our fuel products.” www.phillips66.co.uk
Valero has extended and expanded its partnership with Wincanton.
The partnership, which has spanned almost 20 years, will now continue for at least another five years. Wincanton has also been awarded a new, five year contract to take over the scheduling and planning of its deliveries, including taking and managing customer orders.
Under the new terms Wincanton will operate out of Valero’s network of UK terminals, transporting more than two billion litres of fuel a year for the business. The logistics provider will operate a 24/7 service on behalf of Valero, taking up to 600 customer orders a day before scheduling and planning delivery to more than 1,000 UK locations.
Commenting on the announcement, Wincanton’s CEO, Eric Born, commented: “We are delighted to be expanding our relationship with Valero and are looking forward to finding further opportunities to develop new and innovative ways of adding value to our partnership.
“Today’s announcement confirms Wincanton’s position as a market leader in the sector, with a proven capability to deliver value added services that are usually out of scope within a traditional fuels distribution model.”
The Federation of Petroleum Suppliers (FPS) has produced a Code of Practice and Customer Charter in a bid to raise standards within the oil distribution industry.
Since the 2011 Office of Fair Trading (OFT) investigation, the FPS and its members have worked closely with the OFT, Citizens Advice Bureau, Consumer Focus, Advisory Committee on Releases to the Environment and Department of Energy and Climate Change to form the new documents.
Launched earlier this month, the Code of Practice is designed to ensure all members adhere to high standards and contribute towards the professionalism of the industry. Together with the Customer Charter, the new code should ensure that the best service is offered by FPS members and that customers are fully supported when ordering heating oil.
Chief executive, Mark Askew, said: “The Code of Practice has taken time to implement but we have ensured that we have consulted with consumer groups so the consumer has their say as well as ensuring DECC and the OFT are happy with the proposed Code.
“The FPS will act as guardians of standards for the oil distribution industry and through this Code of Practice we will set those standards and show we take them seriously. Having a Code of Practice in place for FPS members will give the public reassurance that they are dealing with companies who are adhering to best practice.
“Every FPS member should offer clear pricing and delivery guidance to customers at the time of ordering, and the new charter explains all this. As well as providing information on the different ways to place an order, members should advise on matters such as the right to cancel and what to do when something goes wrong. We are doing everything we can to ensure the customer experience is a positive one.”
Brian Worrall, DODF chair and Marisa Ferguson, contracts manager, SQA, at the signing of the PDP agreement
The UK’s first Petroleum Driver Passport (PDP) has moved a step closer to completion with hauliers and training providers being invited to gain approval to deliver the necessary training and assessment.
Hauliers and training providers are now able to apply to Scottish Qualifications Authority (SQA) to become PDP approved centres, enabling them to carry out some or all of the required training and assessment.
The scheme will be open for driver training from January 2014. During 2014 all drivers must be trained and pass the associated assessments before being issued with the PDP card. Terminals will begin mandating the scheme from January 2015.
Training providers can register to undertake all activities, classroom and practical, on a five year and annual refresher basis whilst others may opt to conduct their own annual refresher, practical or classroom training. Some operators may choose to undertake the practical assessments for themselves and others, leaving the classroom elements to third party providers.
Brian Worrall, Downstream Oil Distribution Forum (DODF) independent chair, said: “The implementation of the PDP is progressing well and we are inviting companies to register with SQA as training providers so that we are in a position to begin driver training in January 2014. By implementing PDP, the industry can have confidence that drivers have been trained to a consistently high, externally verified standard in all aspects of tanker driving, from pre-vehicle checks to loading, driving and discharging.”
Secretary of state, Ed Davey added: “Government is supporting the PDP scheme which will improve standards and the quality of training across the industry. We would encourage all training providers to sign up to delivering this new qualification.”
Sue Macfarlane, head of specialist awards and services at SQA, said: “We are delighted to be working with the DODF. I believe SQA’s considerable experience of developing, assessing and quality assuring qualifications relating to the transport of dangerous goods means we can be trusted by the industry to help demonstrate drivers’ skills and knowledge of relevant safety procedures to terminal operators, customers and the public.”
The vice lord lieutenant of Lancashire presents Edward Fort OBE with the Queen’s Award for Enterprise:International Trade
Fort Vale recently celebrated its fourth Queen’s Award for Enterprise: International Trade.
Vice lord lieutenant of Lancashire, Colonel Alan Jolly, visited the company’s headquarters in Burnley to present the trophy on behalf of the Queen, to company founder and chairman, Edward Fort OBE.
Edward Fort said: “I am extremely proud of our company and what we have all achieved together. Such an endorsement means that customers can be confident that they are dealing with the best in our field.”
The company has just released a new video on YouTube, showcasing the company’s latest developments. In an interview Ian Wilson, the company’s managing director, explains the company’s philosophy on continual improvement and innovation.
“We are a team of engineers and innovators and firmly believe that adapting to constant change is the only way to move the business forward. Our customers are demanding shorter and shorter lead times and it is only by having our own dedicated foundry that we can control the quality of components and the rate of supply to achieve these demands.
“We have recently constructed a 1,000 m2 research and development unit together with a test facility which will enable Fort Vale to continue to improve and develop its product range and keep the business in its current position in the market.”
The new range
Maxol Lubricants has unveiled a new motor oil range for the retail market.
The range reflects the new look of the Maxol brand and introduces new labels and symbols to make it easier to choose the correct motor oil. The symbols on each product indicate whether the motor oil is for petrol or diesel engines, or both and that it meets European Automobile Manufacturers’ Association standards. The label also displays a list of vehicles for which use of the oil is recommended.
At the beginning of the year Maxol unveiled a new brand and forecourt identity and the new range marks the company’s continued rejuvenation of the brand. Maxol Lubricants worked closely with leading brand consultants Neworld Associates to incorporate the aesthetics of the new retail forecourt brand in the motor oil range. Research showed that consumers were largely confused by technical data on traditional packaging and were averse to buying from forecourts where specialist advice was unavailable.
Commenting on the new look motor oil range, general manager, Owen O’Neill commented: “We have always been known as the pioneers of the industry and believe that we have again set a new higher standard by being the first to introduce clear and simple labelling as part of our new look motor oil range.
“Our primary focus was to make the purchasing process easier for consumers and we feel the non-technical language, new symbols and clever design achieve this.
“This has been an exciting project and one which we feel will help Maxol to win new customers. It is also important that the Maxol Group’s new brand identity is adopted across all facets of the business to guarantee consistency for all stakeholders.”
The new look range will be fully rolled out by the end of 2013.www.maxol.ie
Andrew Bentley of Chester Performs with Ian Cotton of Essar Energy
Stanlow-based Essar Oil UK is sponsoring The 2013 Essar Chester Literature Festival.
The autumn festival, which is produced by city arts organisation, Chester Performs, will run from 13-27th October.
Ian Cotton, Essar’s head of communications and community, said: “We are delighted to be sponsoring the festival for another year. The event has become an integral part of the city’s cultural calendar and this year, there really is something for everybody.”
Festival manager, Paul Lavin, added: “We’re pleased to have Essar on board. We’ve developed a great relationship with the company, and through their continued support, we can ensure the festival continues to grow.”
Among the authors starring at the festival are broadcaster, Clive James, comedian, Tim Vine, war correspondent, Kate Adie and actor, Sir Derek Jacobi. Other big names on the bill include BBC Radio 5 Live’s, Richard Bacon, Beatles historian, Mark Lewisohn and TV personality, Kate Humble.www.chesterliteraturefestival.co.uk
Greg Garland, chief executive of Phillips 66, has revealed that a number potential buyers have expressed interest in acquiring Ireland’s only refinery, possibly saving it from closure.
“We do have people interested in Whitegate,” he said of the Cork-based plant which employs 200 staff.
The refinery, which has operated in east Cork for nearly 55 years and supplies approximately a third of the country’s oil, requires extensive modernisation and closure looked likely if it was not sold.
Michael Martin, Fianna Fail leader earlier this summer, commented: “The threat to its future has serious implications for Ireland’s energy supply and consequently for our economy.”
Phillips 66 is pulling out of Ireland completely, selling its wholesale marketing business and a storage terminal in Bantry Bay.
World Fuel Services barge Cap Mejean, bunkering the Seven Seas Voyager
Like many other industries, shipping was a casualty of the economic downturn in 2008. Liz Boardman looks at how the distributors supplying the marine market were affected, how the industry has bounced back and concerns over new legislationA downturn in volume
“The shipping industry was booming before the summer of 2008, but freight rates like the price of oil crashed,” explains Nikki Jessop the Rix Group’s director, Maritime Bunkering. “Following this, ship owners and operators resorted to slow steaming and bunkering at locations offshore on passage at lower levels to keep their costs under control. Marine fuel volumes and margins are down significantly and credit risk management is more important than ever.”
Peter Hunt, who handles Falmouth marine sales for World Fuel Services, agrees. “We saw a peak in terms of volumes in 2007/8. Total UK bunkerage in 2007 was between 2.5-3 million tonnes; now it’s down to approximately 2.2 million tonnes.”
World Fuel Services is one of the biggest suppliers of bunkers to the UK market. Its UK-based subsidiaries (Henty Oil, Falmouth Petroleum and Tramp Oil) supply over 750,000 metric tons of bunkers each year in UK ports (HSFO, LSFO and LSMGO). The company has storage and blending facilities at Immingham, Falmouth, Liverpool and Holyhead and a resident barge at Dover.Recovery
“As with most UK industries, the marine fuel industry has not escaped the downturn unscathed,” says GB Oils’ marine national sales manager, Gary Byers. “However we have experienced an increase in demand for marine fuel oil throughout the UK due to factors such as increased brand awareness and establishment of close, trusting relationships between the company, international traders, ship owners and the UK and international government bodies.”
Since it was formed some years ago, GB Oils’ marine division has become a key player in the industry and is continuing to grow. The company’s marine team is a trusted supplier to some of the UK’s main marine companies including the Royal National Lifeboat Institution and Ministry of Defence.
The company is the only bunkering supplier able to distribute nationwide and is one of just a handful of companies permitted to supply fuel on the Thames. Another specialist service provided by GB Oils is the transportation of IFO grades from Eastham to every port in the UK, Northern and Southern Ireland, allowing the company to not only maintain business, but to continue to grow.
The Rix group currently owns three coastal tankers plus three estuarial barges, all suitable to load from the major oil companies. The marine department charters three/four of the tankers for bunkering activities ECUK, whilst the other two are on charter to third parties.
“The Humber, like most ports saw a significant reduction in bunker volumes by early 2009,” explains Nikki. During 2008 Maritime Bunkering operated two coastal tankers plus two estuarial barges. As a result of pressure from the major oil companies over age and vetting, the Rix group had already entered into a phase of new builds to maintain its market position.
“We (Rix/Maritime Bunkering) have managed to keep our heads above water during challenging economic times through a conservative approach to the creditworthiness of our clients, securing product availability from our business partners and also investing a substantial amount of capital into our barge fleet, providing a good service.”
In order to ensure that it maintains its barge fleet, Rix’s marine department also offers a barge hire service to other local suppliers, maintaining continuity to the area with regular barges.”Marine legislation
From 1st January 2015, legislation will come in to force, further reducing the content of sulphur in marine fuel from 1% to 0.1%. “The use of low-sulphur fuels is a hot topic within the industry,” says Gary Byers. “The ECA regulations are designed to limit the harmful impact sulphur can have on the environment, but there is some debate on how effective this will be and the potential impact it could have on the marine industry.
“Long-term, the regulations will have clear environmental benefits, however in the short-term, the treatment process required to convert fuel so that it contains 0.1% sulphur results in large scale carbon emissions, the impact of which negates the benefits of using a low-sulphur fuel.
“There is concern that the ECA Directive may lead to increased bunkering costs, which could push cargo towards non-ECA zones, and also that there may be a rise in the use of alternative transport, including land, causing more congestion and emissions from those modes of transport, therefore counteracting the planned benefits of marine vessels using low sulphur fuels.”
Nikki Jessop echoes these concerns; “It’s not known if sufficient 0.1% fuel oil will be readily available or if some ships will switch over to 0.1% MGO further increasing demand for MGO.”
Melanie Noel, WP Group’s fuel sales manager agrees: “Legislation changes will only see more marine customers switching to gas oil 10ppm which will open the market up to more competition. It will also see increasing issues with fuel specification as FAME is present in most gas oil 10ppm and this causes microbial growth between fuel and water interface. This will in turn accelerate degradation in fuel quality causing efficiency problems.”
WP Group purchases gas oil 10ppm direct from Esso’s Fawley refinery. Melanie explains: “Our fuel supplier, Esso, has taken the decision to produce gas oil with no added bio content by meeting its RTFO obligations elsewhere. As a result, WP Group can guarantee to supply gas oil containing less than 1% biofuel.”
On the positive side, Peter Hunt believes that the new legislation could be a good opportunity for Falmouth. “World Fuel Services expects Falmouth volumes to benefit from the reduction in maximum sulphur content for bunkers used in the European and USA/Canada ECAs when it comes into force. Ships approaching the European ECA from the Atlantic will not always be able to secure ‘ECA-compliant’ bunkers before entering; Falmouth’s location (just outside the western border of the ECA) makes it the last opportunity for ships to secure compliant fuel before entering the ECA.On the horizon
“While there are areas of uncertainty, the marine industry continues to be a strong business sector with opportunities for expansion. Marine fuel suppliers such as GB Oils have a key role to play in supporting the industry and for us, the focus remains on helping our customers to comply with legislation and working hard to ensure their needs are met,” says Gary.
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HSFO – High Sulphur Fuel Oil
LSFO – Low Sulphur Fuel Oil
LSMGO – Low Sulphur Marine Gas Oil
IFO – Intermediate Fuel Oil
ECUK – East Coast UK
ECA – Emission Control Area
MGO – Marine Gas Oil
FAME – Fatty Acid Methyl Ether
CDS managing director, Bill Lea (l) with product director, Paul Willis at the company’s Salford office
Started in 1973 by a group of construction industry professionals and academics including Bill Lea, a building engineering graduate from the University of Liverpool, CDS Computer Design Systems celebrated its 40th birthday in January. Buying a mini computer, CDS set about producing software for architects and quantity surveyors. However, in 1974 a local fuel distributor’s request for a system to capture orders and produce delivery tickets was to introduce CDS to another software market.
When Shell issued a specification for software to assist its 35 UK distributors, armed with the aforementioned experience, CDS put in its proposal. With the addition of programmer Dan Townsend – still on the team today – CDS competed alongside big names for what was a very substantial project; the contract to design a pilot scheme was won in 1975.
Run with Pilot Fuels and Fuel Services Garstang, the pilot scheme was successful and rolled out to all Shell’s distributors by the late 70s. Bill explained: “We put everything together here – hardware and software – packed it up and put it in a van. I would then meet the van at the distributor’s office, install the equipment and ensure all was working before Shell started training. I got to see a lot of the UK.” By the end of the decade, CDS had 15 staff and contracts with Esso and BP followed.Creating, maintaining and developing the CODAS product
Having garnered much information about the industry, CDS created its own CODAS product, putting in the first system for an independent distributor in 1982. “Although people knew of us, when we needed to get really serious about marketing, Rob Bowran, formerly with Shell, joined us. His marketing expertise and commercial nous really drove our marketing activity.”
How CODAS looks and is developed is the responsibility of product director, Paul Willis who joined in September 1979.
“In the 80s, every single system was different, indeed tailor made, with all maintenance done on site,” said Paul. “Now there’s a seamless system that works for everyone from just two to hundreds of users. Everything can be done in house whether it’s installing a complete system, loading a licence or providing monthly updates.
“Substantial investment has created a product that stands out. With everyone used to systems like Windows, we follow leading standards to create intuitive systems that people of all ages and abilities can quickly get to grips with. We don’t reinvent wheels – we like to use existing pieces of software under licence where we can. We also pay attention to what’s below the surface so that in five year’s time, the distributor has a system that’s current.
“We’re a team of technology-loving people who always want to learn about the next bright thing,” added Paul. CDS now has 36 staff, a quarter of who have 25 years service. The company’s graduate recruitment programme has seen six graduates join in recent years.Providing an aspirational business information system
A modular system, CODAS enables distributors to enter orders, arrange delivery, send confirmation, update the sales ledger, generate invoices, produce statements and collect and process cash. It can also take care of RDCO and other legislative matters. Plus offer computer telephone integration and schedule and route vehicles.
“We’re not the cheapest but we do set out to be the best,” said Bill. “CODAS is a great product with the scope to embrace everything today’s distributor – from the largest operator to the two-man business where dad still does the coal deliveries – needs. There’s nothing cheap about it and nothing that says you’re only a fuel distributor so this is good enough for you – our standards are aspirational.”
When it comes to improving efficiency, more and more distributors are realising the value of technology. Making use of the fact that the exact location and amount of fuel on each of 10 tankers was known in real time, one distributor regularly rescheduled orders to ensure all customers were satisfied in the depths of last winter. Delighted by the efficiency improvements, the distributor told CDS that ‘everytime we buy something from you, we make money out of it.’
Paul is baffled by those who spend hundreds of thousands on trucks, but operate without technology. “I wonder if they know just how much margin is being made at any given time and exactly where it came from?”
Today over 400 depots use CODAS. With a high level of dependence on the information generated, it is sometimes hard to get people to turn it off.
“The level of stability we maintain for our customers is vital so upgrades are done in the evening and we’re always there to help at month end,” said Bill. “We’re committed to the fuel distribution industry, we won’t let our customers down and we’re honest about what can be achieved. We make mistakes like anyone else; sometimes a fault may not get attended to immediately but we can always be relied on to do everything it takes to see things through.”
The Petroleum Driver Passport is an excellent example of what government says is industry itself taking responsibility for setting and monitoring standards says Brian Worrall
Fuel Oil News spoke to Brian Worrall of the Downstream Oil Distribution Forum (DODF) which has been instrumental in driving forwards the new Petroleum Driver Passport (PDP) initiative
The DODF works with BP, GB Oils, Greenergy and Murco, logistics companies – DHL, Hoyer, Norbert Dentressangle, Suckling, Suttons, Turners and Wincanton, the Unite and URTU unions, several trade associations including UKPIA, FPS, the Downstream Fuel Association and the Tank Storage Association plus government and regulatory bodies and Sector Skills Councils.What was the background to the Petroleum Driver Passport initiative?
In 2011, the ACAS agreement between Unite and the major hauliers agreed that they would put together an industry body, the DODF, to act as a forum for health and safety issues within the industry. The PDP was born from the industry group that was put together, with all parties agreeing that the petroleum tanker driver sector needed a consistent level of training to a high standard across the whole industry. The DODF created the training standard that underpins the PDP and ensures no duplication with existing ADR training. Whilst there is a lot of good training practice in the industry already, there is no mechanism to ensure that the training standard is specified and adhered to, and this is what the PDP does.In addition to DODF, who was instrumental in setting up PDP?
DECC was the government department that ACAS requested take the lead in re-establishing the DODF, which had existed some six years prior. DECC enlisted the help of the two Sector Skills Councils in the industry, Skills for Logistics (haulage) and Cogent (downstream petroleum) to make this happen. The DODF has subsequently appointed Scottish Qualifications Authority (SQA) to manage the scheme. SQA already manage the ADR programme in the UK.Is the industry receptive to another level of training?
For most operators in the industry, who already operate to a high standard, this standard will not necessarily require any more than they currently do, though it would help to identify any gaps against the defined training standard. Operators who do not have these standards already in place will need to do so, and they will be able to turn to training providers as well as their own resources to make this happen. We have devised the PDP to fit in with existing industry training. The PDP is on a 5-year renewal cycle, aligned to the driver’s ADR renewal date, and the annual refresher element is aligned to JAUPT and driver CPC; training which has to happen anyway. Importantly for such a hands-on role, the PDP has both classroom and practical elements. This initiative is the result of wide industry consultation and the detail of the scheme has been put together with representatives right across the sector, from industry associations through haulage and distributor companies to unions and to tanker drivers. We have taken into account comments we have received as we have developed the scheme and so we are confident that we have pitched PDP for the industry.How much will it cost an operator?
The costs are still being finalised – some of the cost is annual, some is incurred at the 5-year renewal point. To give some indication, the scheme costs will be in the region of £25 per driver per year. In addition to this, there may be training provider and/or assessor costs depending on how companies train and assess. For those who already train to the PDP standard, many of these costs will already be in the businessWhat are the key benefits of PDP?
The PDP sets a benchmark training standard to which everyone in the industry will train. As it has a practical as well as a classroom element, and a 5-year renewal cycle with an annual refresher element, it works well with existing industry training. It has been designed for the industry by the industry. It gives terminal operators, in exercising their duty of care, confidence that they are allowing rack access only to drivers who are fully trained. Drivers can have a confidence that they are fully trained to do what is an important and complex job and hauliers and distributors can point to an externally verified standard to which they are training their drivers. As far as government is concerned, this is an excellent example of what ministers refer to as a “better regulation” where industry itself takes responsibility for setting and monitoring standards. It will give the whole petroleum tanker driver sector a confidence that training is taking place to an externally verified standard and the PDP will help maintain standards across all operators into the future.
In front of the WP Racing Fuels and Lubricants truck – Darren Borras (l) and WP Group managing director, David Fairchild
With the motor racing season in full swing, FON looks at some of the key participants from within the fuel oil distribution industry
The WP Group has unveiled a new look for its motorsport division – WP Racing. New branding now encompasses the entire motorsport, automobile, corporate and circuit/venue aspect of racing in both the UK and across Europe.
“Combining quality of product with the highest level of trackside expertise and onsite fuel testing, WP Racing is rapidly becoming the name to be associated with this season and beyond,” said commercial director, Darren Borras.
Driven by the purchase of the already well-established Atol Fuel, the racing division began in 2008. “Brand exposure is a key benefit of our involvement with the sport. As the brand develops at a rapid pace, this area presents almost limitless opportunities,” added marketing coordinator, Harriet Phillips.Racing partnerships
The company is the official fuel and lubricant partner to some well-known European championships including British Formula 3, British GT and the Renault Clio Cup.
WP Group also partners race experience centres and high profile circuits including Donington Park Racing. A recent partnership agreement at Thruxton Motorsport Centre now sees the brands of WP Group and its operating divisions – WP Racing, Mobil Service Centre and WP Heating – displayed on the main grandstand, karting tracks and driving experience cars.On track with deliveries
Located just ten miles from Silverstone, Nolan Oils provides fuel and lubricants to many of the UK’s major motor sport companies including Formula 1 and British Super Bike teams.
“With our depot central for many teams, over time we’ve probably served most,” said owner and motor sport fan, Mark Nolan. “For 13 years, we supplied Mercedes GP at Brackley until they changed to air source heat pumps. We’ve also supplied the Silverstone circuit directly and many of the contractors based there throughout the racing season.
“We count many ex-racers among our customers; Jackie Stewart is probably our most regular domestic customer; although the other week we helped Red Bull team principal Christian Horner out when he’d been let down by his usual supplier. Current ones include Tim Harvey, British GT championship competitor and FI driver Mark Webber, who we saved from a cold house last year.”
Motor sport is an area Mark would like to develop: “These companies use large volumes of oil and lubricants and are very loyal customers. We talk most weeks and, with the volumes they use, we keep a keen eye on price. We never let them down – one missed delivery can mean thousands of pounds in disruption to production.”More entertaining in the FAST lane
Wishing to enter new markets, Shropshire-based Fuel Additive Science Technologies (FAST) is sponsoring Rob Austin, a driver in the British Touring Cars Championship.
Televised on ITV4, the 2013 season commenced at the end of March. In the line up, Rob’s car is one of only two with rear wheel drive and FAST’s cleverly placed and eye-catching logo ensures good exposure.
Chairman Bob Hall explained the thinking behind this sponsorship: “For us, it was a threefold decision. We wanted to continue to elevate our existing brand image, access new markets including professional garages and have the opportunity to entertain our customers.”
Four and a half stone lighter – the newly slimmed down Trevor and Andrew
Keeping busy
Eighteen months on from making its first deliveries of kerosene, the company has a real stronghold in the Wellington area of Somerset, is “very, very busy” and has grown considerably in size.
“We now have approximately 2,000 regular customers in the domestic, agricultural and commercial sectors,” said Trevor. “Although we operate within a 25 mile radius, encompassing west and south Somerset and east and north Devon, we are now trying to fine-tune it a little for ease and convenience. We have a good, loyal domestic base and pride ourselves on offering a good service.”
“We’re pretty much always on call and regularly have customers wandering in to the yard on Sundays wanting fuel. Our business cards say talk to us at any time but people assume this means we’re on site 24-7.”
Although Trevor and co-owner, Andrew Hewitt are happy to turn their hands to pretty much anything, they have found their own niche areas within the business. “I’m a bit more hands on and prefer being out on the road, making deliveries whilst Andrew’s happier in the depot doing the more administrative tasks,” explained Trevor.Family affair
It’s a real family affair for Trevor and Andrew. Trevor’s wife, Daryl, does the accounts whilst Andrew’s father, Keith, who is retired, is in charge of marketing and regularly pounds the streets, handing out leaflets. Although Trevor’s children are too young to join the business, his 12 year old son is already showing signs of having inherited his father’s entrepreneurial skills. “He’s a real wheeler dealer and has a good grip on cash flow,” Trevor joked. “Having children has had a positive effect on the business – it’s amazing how many sales we’ve had through word of mouth from scouts and cubs and various kids groups.”
In addition to family members, Monument also employs one full-time and one part-time (casual) driver and has a relief driver for when they need a little extra help.Equipment expansion
With three tankers on the books, Monument is looking to further expand the fleet. “We already have 18, 14 and 7 ½ tonne tankers but are on the lookout for another second hand 14 tonne tanker, so if anyone has one that they’d like to sell, please get in touch!!”
The company recently invested in an Alpeco loading arm for its gas oil. “It’s marvellous – it’s made a huge difference to operations.”
Although Trevor describes Monument as “an analogue rather than a digital business”, the company is looking to install some Cloud based software and expects to have Fuelsoft up and running by July 2013. The company also has a website and a Twitter account, “although we don’t tweet as much as we should,” added Trevor.Reaping the rewards
Setting up a company has also had another, rather unexpected effect. “We’ve lost four and a half stone between us,” beamed Trevor. “We’re working non-stop and eating much better than when we were working for other companies. Regular hotel trips and company meals meant that we piled on the pounds over the years.”
Liz asked Trevor what advice he had for anyone wanting to set up a fuel distribution business: “Don’t do it,” he laughed. “No seriously, be brutal with your overheads to keep them under control and be realistic with your cash flow predictions – it’s the heartbeat of the business. It’s also important to find a supplier that you can work with and luckily we have that with Inver Energy who has been very supportive. We’re working harder than we’ve ever done but we’re enjoying it! It’s like a very expensive business course – if we pass, we get to stay in business.”
Earlier this year, Par Petroleum took the FPS Depot of the Year title for a fifth time.
Road Tankers Northern (RTN) has opened a second factory in Barnsley.
Founded in 1991, RTN is growing steadily and has now expanded its Barnsley headquarters and built a new specialist manufacturing facility at nearby Birdwell. RTN, which counts Shell, DHL, Tesco and Morrisons among its customers, can now offer tankers to the chemical, pharmaceutical, dairy and brewery industries.
RTN, which also has factories in Birmingham, Sheffield and Northern Ireland, now has a share of around 80-90% of the UK petroleum semi-trailers market.
Positive news for UK manufacturing
“Foreign competition has dramatically reduced due to our expanding production which is very positive news for UK manufacturing,” said operations director Don Mckelvie. “We’re now supplying most of the fuel distribution companies and we supply all four major supermarkets.”
Owned by the NWT Group, which was founded by South Yorkshire-based businessmen Paul Wright and Frank Newell, RTN is recording year on year growth and is set to turnover £11.2m in 2013. The company has increased its workforce from 88 to126 in two years with a number of apprentices now learning specialist trades on both the tanker manufacture side and in RTN’s five bay-service and repair centre. RTN plans to recruit a further 15-20 staff this summer.
Regional support
RTN is supported by Barnsley Business and Innovation Centre (BBIC) through the Enterprising Barnsley programme with funding assistance from Barnsley Council. Additional support has been received from Barnsley Development Agency to access funding from the Regional Growth Fund.
“The growth of RTN has been exceptional in the past two years and we owe a debt of gratitude to Enterprising Barnsley and BBIC who have been pillars of support, particularly with regards to lean manufacturing and expansion,” added Don.
Kevin Steel, BBIC business development manager said: “RTN not only manufactures tankers to the highest quality, it’s also creating skilled jobs and training the next generation through its apprenticeship scheme. We are delighted to provide business support to RTN.”
www.rtnltd.co.uk
Royal warrant holder, Linton Fuel Oils recently took part in the Coronation Festival at Buckingham Palace.
Marking the 60th anniversary of the Queen’s Coronation, the event, which took place from 11th-14th July, was an opportunity for royal warrant holders to showcase their business and its products and for the country to celebrate its ‘tradition, innovation and excellence.’
“We were obviously very proud to be involved in the Coronation Festival,” said Russell Mortimer, marketing manager. “Although it wasn’t very easy for Linton to display and demonstrate its products, we were very pleased to take part in the hub area, where we were able to have a display.”
Following the recent acquisition by World Fuel Services, both the previous owners and directors of Linton, along with members of the World Fuel Services management team attended an evening gala. Several other members of staff attended the Coronation Festival in the day time.
www.coronationfestival.com
According to DCC plc’s interim management statement, its energy division is trading ‘significantly ahead of both the prior year and budget’.
Backed by an encouraging performance in the first quarter of 2013, due to colder than normal weather conditions which drove up demand for kerosene and LPG, DCC now expects operating profits to be 15%, 3% ahead of last year.
According to Investors Intelligence, DCC ‘has experienced some impressive growth figures since the beginning of last year, ranging from a share price of 1467p to a 52-week high figure of 2725p’. “We can expect the uptrend demonstrated by DCC to continue with signals that further deals could be on the cards.”
During the first quarter, DCC Energy completed the planned integration of the former BP LPG business in Britain with DCC’s existing LPG distribution business and of the former Total oil distribution business in Britain with its existing oil distribution business.
The Interim Management Statement released last Friday also stated that ‘the group remains in a very strong financial position to pursue a range of development opportunities.’
The group also operates in the IT, healthcare, environmental services and food & beverage sectors,
www.dcc.ie
Another Royal Warrant holder, Worcester, Bosch Group has honoured this week’s royal birth by creating a one-off baby blue boiler.
BOILER SALES FOR THE FIRST HALF OF THIS YEAR ARE UP 23% ON 2012 – A VERY WELCOME OUTCOME FOR KEROSENE DISTRIBUTORS, BOILER MANUFACTURERS AND INSTALLERS
Following on from last winter’s heating season which saw a welcome improvement in boiler sales, this positive trend continued into the spring with oil boiler sales up over 23% on the same quarter in 2012 – the best results for 5 years.
The results underline the continued consumer confidence in oil heating following the cold winter. It is likely that many new boilers have been bought as distress purchases, with homeowners preferring to simply replace their old boiler – which no doubt gave many years of reliable, trouble free service – with a new condensing model.
Sales of gas condensing boilers have also seen significant sales increases.
www.oftec.org
The Basingstoke to Paris team in Airport Energy sponsored shirts
A little saddle sore with a strained Achilles and very tired after his ‘little cycling challenge,’ Airport Energy’s operations manager Craig Heggie got back to work.
Every couple of years Craig sets himself a ‘crazy challenge’ to raise money for the Sebastian’s Action Trust. “It’s an amazing charity that I and some of you have supported since 2006,” said Craig. http://sebastiansactiontrust.org/about_us/our_film.php.
Earlier this month, a team of 10 set out to cycle 700 miles from Basingstoke to Paris and back again in just 5 days. Craig’s bike was fitted with a tracker so supporters, friends and family could follow the team’s progress live online. Using social media to best advantage, the team had a Facebook page and could also be viewed on Youtube at https://www.youtube.com/watch?v=0oSoXOI3TkY.
“The whole week became a bigger challenge then we expected,” Craig told Fuel Oil News. “We had everything thrown at us – head winds, an 8 mile hill, 15 punctures, two broken spokes, thunder and rain.”
Seven out of the 10 completed the challenge in 4 days, 13 hours and 40 minutes with a average of 140 miles a day and to 15 hours a day in the saddle.
“On the plus side cycling down the Champs Elysées from the Arc de Triomphe was an amazing experience and, to date we’ve raised just over £9000, so a massive thanks to all those who supported us.
“If anyone wishes to personally sponsor me post event, please follow the link to my just giving page http://www.justgiving.com/CraigB2P2B
Corrib Oil once again sponsored the annual Tour de Lough Corrib in Connemara with money raised beating last year’s €50,000.
Organised by the heart and stroke charity Croi, this year’s event raised €72,405 for the West of Ireland’s Cardiac Foundation. The event, which is in its 18th year, has been sponsored by Corrib Oil since its inception.
This year saw over 900 cyclists taking part, including cycling legend Sean Kelly who once again completed the tour and rallied his fellow cyclists who followed a 27.5 or 75 mile route.
From its strategically located depot network, Corrib Oil delivers heating oil to Counties Cavan, Clare, Galway, Laois, Leitrim, Limerick, Longford, Offaly, Mayo, Roscommon, Tipperary and Westmeath in a modern fleet of over 60 fuel tankers.
www.corriboil.com
Over 14 tonnes of toxic waste was removed from farm buildings at the end of June after the discovery of a diesel laundering plant in Co Armagh.
Officers from HM Revenue and Customs (HMRC), assisted by the Police Service of Northern Ireland, dismantled the plant, which was capable of producing nearly five million litres of illicit fuel a year, evading over £3 million in excise duty and VAT.
Pat Curtis, HMRC National Oils Co-ordinator, commented: “Every illegal laundering operation typically generates tonnes of toxic waste, which involves significant environmental and safety issues. As taxpayers and local ratepayers, not only are we missing out on the stolen tax going into the pockets of the criminals, we are also paying the substantial clean up and disposal costs.”
Mr Curtis highlighted to consumers and wholesalers that buying illicit fuel only services to fund crime and supports and encourages dangerous activities within communities. “The only winners are the criminals,” he said before urging anyone with information fuel misuse in their area to contact free telephone hotline on 0800 59 5000 and contribute to the fight against this type of criminality.
Pumps, tanks and equipment were removed from the site and a forensic investigation and enquiries into the illegal operation there are underway.
www.hmrc.gov.uk/nircto
Volvo has teamed up with Gasrec
Volvo Trucks has teamed up with biofuel supplier Gasrec to help business customers cut haulage costs and reduce carbon emissions.
Gasrec is Europe’s largest supplier of Bio-LNG; a blend of liquefied natural gas and liquid biomethane (LBM). Volvo Trucks is the first truck manufacturer in the world to produce trucks tailored to run on renewable liquid and gaseous fuels. When substituted for diesel, Bio-LNG can cut fuel costs and CO2 by around 20%.
The EC Wind 55kW wind turbine
UFW, part of the DCC Group, has secured the sole distribution rights in the UK and Ireland for the EC Wind 55kW wind turbine.