Pallet firm delivers extra punch with opening of northern hub

Olympic gold medal winning boxer Nicola Adams officially opened the new 60,000 sq ft northern hub for Palletways, Europe’s largest palletised freight network. Six jobs have been created as a result and there are plans to increase the workforce in the future.

Based in Morley, Leeds, the regional hub operation is designed to improve the company’s overnight delivery services to local companies.

Palletways said that the new operation will also enable it to reduce the overall mileage its vehicles travel each year by about 800,000 miles, saving an estimated 1,500 tonnes of carbon dioxide and equating to a £650,000 saving in fuel costs for Palletways per year.

Prior to the establishment of the new hub, Palletways would deliver customer goods in the North via its hub facilities in Lichfield, West Midlands or Livingston, Scotland.

Martyn Young, managing director of Palletways UK Member Network, said: “We’re delighted to be opening the new hub in Leeds and it’s an important part of our strategy for continuously improving our customer experience through shorter order lead times, as well as our environmental performance.

“The city is the UK’s largest centre for business outside London and its excellent transport links make it an ideal location for our northern hub, guaranteeing fast, economical and sustainable distribution for the metropolitan area and beyond.

“We expect that the launch of the hub will yield significant benefits for local businesses by providing a more efficient and environmentally friendly distribution network in the region.”

The Leeds hub is the fourth operated by Palletways in the UK and it will be used mainly by the company’s 18 depots in the northern region for making final deliveries on behalf of the national network.

Mr Young added: “If the pallet doesn’t have to move so far, we can provide later collections and earlier deliveries for our customers and potential customers.”

In addition to Lichfield and Edinburgh, Palletways also has a hub operation in London serving the capital and the South. There are some 100 plus depots in the Palletways UK network, providing a national palletised delivery service for small consignments of freight – from garden hardware to building products – to anywhere in the UK.

The Leeds hub will be managed by Yorkshire firm George Walker Transport, the licensee of the Palletways UK network responsible for serving the city and neighbouring areas. Palletways, in partnership with George Walker Transport, has invested more than £500,000 in the current premises to create the hub operation.

Mr Young said: “We’ve used the premises of George Walker Transport who are busy during the day out there delivering and collecting palletised freight and we utilise their facility at night-time to sort the pallets.” In total Palletways handles up to 25,000 pallets daily across all its operations.

Palletways reported a seven per cent growth in group turnover for the 12 month period to 31 May 2011, from £147.5m to £157.9m. The company did not disclose profit figures. Its results for the year to 31 May 2012 are due to be released early next year.

Mr Young said: “The market conditions are tough. Transport is affected by lots of things, fuel being one, the price of fuel, the competitive nature if the industry, margins are very, very tight, banks are sometimes unhelpful with a number of our network members, and we have to trade within those conditions.

“An investment like this is really, really important to maintain a competitive edge, to provide something new to the market and ensure that we keep growing, because we’ve successfully grown for the last 20 odd years.”

He said the firm’s attractive
offering has helped it expand. “We offer very much a pay as
you go option, there’s not fixed costs with us in that respect, 
customers can use us, we’re
very flexible, you can trade
 tonight but don’t have to trade tomorrow.

“We find that gives our customers greater advantage. Secondly, we continue to invest, we continue to be frankly quite aggressive.”

Palletways, which was founded in the UK in 1994 now has a total of over 300 depots and 10 hubs and provides collection and distribution services across 11 European countries: Belgium, Denmark, France, Germany, Italy, Luxembourg, Netherlands, Portugal, Republic of Ireland, Spain and the UK.