Highland Rates Are a Problem for the Small Hauliers
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Little Hope of a Halt in the Steady Fall Caused by Competition from "Foreign" Operators and Low Rail Quotations
By
G. Duncan Jewell
TRANSPORT to and from the Highlands, particularly north of Inverness, is becoming increasingly difficult for the small operator. Contrary to the position in 1951, when the Committee on Highland Transport Costs considered there was a need for more transport, the Dounreay atomic project has brought large numbers of foreign-based vehicles to the area.
Although there seems to be no shortage of traffic, rates, so far as the -matter independent hauliers are con.::erned, are unsatisfactory. One 15vehicle operator told me the position was steadily worsening. He quoted average 1953 rates from Inverness to Glasgow and Aberdeen as 45s. and 30s. respectively. Today, he considers himself lucky to obtain 37s. 6d. and 22s. 6d.
During the same period his costs have risen by 25 per cent., and only the provision of larger and more efficient vehicles has enabled him partially to restore the balance.
Mr. R. P. Mitchell, secretary of the Inverness branch of Scottish AgriculUral Industries, Ltd., said Highland armers, with Treasury help, were prohieing more than ever before. But [here was a tendency for bulk traffic, Involving thousands'of tons of grain. potatoes and fertilizers, to transfer to British. Railways. who were now quot ing keen rates. He favoured road transport for smaller and more local hauls, particularly croft-to-croft collection.
Hauliers' difficulties in the crofter counties, where the effective main-road width is 7 ft. (doubled at intervals to provide passing places), include the impossibility of loading to capacity because of bad road surfaces and weight restrictions, and the excessive maintenance required.
Mr. C. H. Taylor, secretary of Aberdeen Chamber of Commerce, considered it doubtful whether British Railways' new charges scheme would be of much benefit to north-east Scot land. Although competition would benefit traders generally, he thought road haulage in the area offered cheaper rates and speedier service, and was well able to hold its own.
The opinion among traders as a whole appears to be that, with the present railway set-up, there is little likelihood of any radical improvement in their service. Shippers of small lots have received notice of substantial increases under the new charges scheme and are turning to road .haulage.
Figures show that outward rail traffic from Aberdeen between 1951 and 1955 decreased from more than 200,000 tons to just over 100,000 tons. Even with bulk and long-distance traffic, the time factor is in favour of road transport.
Because ships to many foreign destinations finish loading at Liverpool, London, Southampton and other southern ports, rapid transport of urgent deliveries is essential. This is a service which the railways cannot provide.
British Road Services arc handicapped by the general reduction of their services in the area since denationalization_ Only four vehicles are based at Inverness, although foreignbased vehicles coming into the area can be utilized. Collection and delivery in the Highlands are carried out for B.R.S. (Parcels), Ltd., who run a daily service between Aberdeen and Inverness. The Inverness depot runs a regular service to Dounreay, and there is a nightly trunk vehicle between Glasgow and Inverness.
A tribute to B.R.S. was, however, paid by one trader to whom I spoke, Mr. C. Maclennan, of Resistance Welders, Ltd., Inverness, an oldestablished engineering concern. He told me they had, since their inception. carried his goods all over the country. and had given every satisfaction.
More Interworking The tendency towards amalgamation and interworking among the bigger companies is apparent in this area, where the 60-vehicle fleet of Highland Haulage, Ltd., Inverness, is associated with Sntherlands of Peterhead (Road Transport), Ltd. They, in turn, have connections with Charles Alexander. and Partners (Transport), Ltd., and these companies form by far the largest group in the area. At a recent application by Highland Haulage for additional vehicles, fear of .a monopoly, if further expansion were allowed, was expressed to the Licensing Authority by 13 hauliers from the
r24 crofter counties, who were among the objectors.
Highland Haulage was formed in 1955, when the present managing director, Mr. W. H. Maclennan— formerly in business at Conan Bridge as D. J. Maclennan (Transport), Ltd., and later group manager of B.R.S.. Inverness—and his associates acquired the group's vehicles and depots, with the exception of Elgin. This group was originally the Inverness branch of W. Wordie and Co., Ltd., pre-nationallzation railway carriers, and the biggest hauliers in Scotland.
The company's vehicles are all on A or special A licence, and there are now additional depots at Wick, Conan Bridge and Edinburgh. Brands Road
Services, Newhaven,• are a wholly owned subsidiary at Edinburgh.
Main operations are a specialized service for the northern agricultural community, including parcels; timber to the coalfields in southern Scotland and northern England; fish from the north-coast ports to cold storage in England; and whisky for Wm. Grigor
and Sons, Ltd., the Inverness distillers. There are regular services to Wick, Thurso and Dounreay in the north;
Tain and district, the Black Isle area, Aviemore and Kingussie in the central Highlands, and a nightly trunk service to Edinburgh and Glasgow.
Mr. N. D. Smith, the company's accountant, denied allegations of deliberate rate-cutting, and pointed out that they were still maintaining the same rate and margin of profit as in 1955. They had achieved this despite increasing costs, by replacing the many small and uneconomic vehicles in the fleet, when it was acquired, with arti culated and modem oil-en,gined vehicles_ This policy gave customers the benefit of stable rates.
He considered re-nationalization a real threat, and for this reason planning is limited to 12 months ahead. However, plans for increasing articula tion have not been shelved, and already a fifth of the fleet is articulated. Specialization in any particular type of vehicle or chassis is impracticable because of the difficult -road conditions in the area.
Ferry Complaint
Mr. W. A. Mackenzie, the company's traffic manager, said there had been no major road improvements since denationalization. Many of the main roads, particularly in the western Highlands, had weight restrictions, which involved the use of two or three vehicles, when normally one trailer outfit could do the work.
Another complaint was of the Kyleakin ferry to the Isle of Skye, where the company transport the annual wool crop to the mainland. The ferry is restricted to one vehicle not more than 27 ft. long and 10 tons gross, so that delays of up to six hours are common.
Mr. Mackenzie's view is that there is not a shortage of transport; but insufficient vehicles of the right type. Most are too old and small to be economic, he maintains. Competition is increasing, and much more traffic is going in than coming out.
The company's workshops are at Inverness, and, as far as circunnStances permit, each vehicle receives a thorough servicing every fortnight. Storage space is provided at Inverness, Wick and Edinburgh, and an example of the service afforded is the storage and delivery of cylinders for the British Oxygen Co., Ltd.
On September 1, the company inaugurated a staff pension and lifeassurance scheme, which contains provision for early retirement of drivers who do not wish to go on to the age of 65. Practically all the eligible staff have joined.
A survey of haulage in the north would be incomplete without mention of the Robertsons, of Inverness. Charles Robertson started with horsed transport in 1875 at premises in George Street, and his grandsons are now responsible for a combined fleet of nearly 40 vehicles.
Donald Robertson and Sons specialize in livestock carrying, whilst John Robertson undertakes general haulage. C. W. Robertson and Co. have garage facilities, besides operating as hauliers.
Largely Livestock • Mr. James Robertson, who, with his brother Charles, runs the fleet of Donald Robertson, has been in livestock transport since 1925, and 65 per cent, of the company's traffic is in this connection. Twelve vehicles are fitted with containers, the latest two additions being A.E.C. three-deck sixwheelers to carry 250 to 300 lambs.
One of their specialities is the collection of young lambs from the Ross and Sutherland hills in the autumn, transporting them to winter quarters in the lowlands around the Moray Firth and Edinburgh, and returning them in the spring. Loads of 600 to 800 animals are typical. Other regular traffic is the carriage of livestock from ighland markets.
Mr. James Robertson considers there is no shortage of transport. He believes the acquisition by Highland Haulage of the B.R.S. Inverness depot greatly increased the vehicle availability in the area, but because of increased production generally, the Dnly sufferers have been British Railways.
Two Bonuses a Year Drivers in this company get two Donuses a year and additional incen.ives to obtain paying back-loads on .ong-distance trips.
The 14-vehicle fleet of John Robertion does 60 per cent. long-distance work. Examples of traffic are herrings from Malliag, west of Fort William, :o Hull and North Shields, and aluminium ingots from the British kluminium Co., Ltd., at Foyres, near Loch Ness, to all parts. All three Robertson companies have recently acquired new depots on the Inverness frading Estate.
One of the main factors in the IeveIopment of transport in North icotland and the Highlands since lenationalization has been the progres
sive modernization and expansion of the fleets controlled by Mr. Charles Alexander, chairman of Charles Alexander and Partners (Transport), Ltd., Aberdeen, and their associated company, Sutherland's of Peterhead (Road Hauliers), Ltd.
Starting in 1926 with one used lorry in an Aberdeen back street, Mr. Alexander built up a 120-vehicle business which was taken over by B.R.S. In 1955 he returned with renewed zest, when the present company acquired two large units in Aberdeen.
Developments since then include the opening of depots at Elgin and Macduff, serving the Highlands, and at Glasgow, Leith, Liverpool and Manchester. Regular services and trunk runs are operated to these areas, including a specialized fish service from north Scottish ports and Aberdeen. Collection and delivery in Sutherland and Caithness is smoothly accomplished by interworking with Johnston and MacKenzie, Inverness.
A large amount of general traffic is which consists of three-deckers. A subsidiary company, James Paterson, Ltd., handles local Aberdeen traffic.
The present fleet of Charles Alexander and Partners (Transport), Ltd., consists of more than 120 vehicles on A and special A licence, with BIicensed vehicles for collection and delivery in Glasgow, Manchester, Liverpool and Aberdeen. Company policy is towards complete articulation north of Glasgow arid Edinburgh, and to that end 42 tractors, with interchangeable semi-trailers, are' now in operation.
Because of the credit squeeze, much former bulk traffic now conies in smaller lots, and faster delivery is required as traders are no longer carrying large stocks.
On the subject of rates, Mr. Alexander said that before nationalization, a rate agreement between Aberdeen hauliers worked reasonably well. Since the return to private enterprise this arrangement had not been continued, but he had found that a fair rate could still be obtained for top service. Customers who were lost to rate-cuttersin some cases quoting 50 per cent, less than existing rates—were back within two or three months, and business on the whole was steadily increasing.
A major undertaking since 1955 has been a complete overhaul of office routine by an accountant, Mr. G. H. Scott, formerly with B.R.S. Modern office equipment has been installed, and because of night trunking with fish, operation is on a 24-hour basis. Parttime women clerks work between 6 p.m. and 10 p.m., and male staff is employed for night duties.
The new vehicle operations board displays coloured discs, representing vehicles and carrying capacity. and shows destinations, road positions, vehicle availability and repairs. It gives an instant overall picture of operations, enabling important decisions to be made without loss of time.
A new depot, covering 75,000 sq. ft., was opened in November, 1956, on the B.R.S. site at Rodgers Walk, Aberdeen. The 225-ft.-long maintenance block, complete with paint, bodybuilding, machine, electricians' and pump shops. is rapidly reaching peak efficiency, enabling the company to undertake complete overhauls.
With a fleet average of 105,000 miles per week, maintenance policy is to refit and repair vehicles only as and when required. A number of unlicensed vehicles is kept for temporary substitution.
A two-storey warehouse has been built, and storage is undertaken for Beechams Foods, Ltd.. Rowntree and Co., Ltd., the Southern Oil Co., Ltd., G. Wakefield and Co., Ltd., Jas. Pascall, Ltd., Cerebos, Ltd., the English Electric Co., Ltd. and J. Bibby and Co., Ltd. Far-reaching plans for development on this site will eventually make it one of the most up to date in the country.
A recent transport development was an experimental pioneering trip by an articulated refrigerated vehicle from Aberdeen to Milan, via Tilbury, with quick-frozen fish. In conjunction with the wholesale fish merchants, Allan and Dey, Ltd., Aberdeen, who want to eliminate handling in their fish export business by using direct transport. Alexander's carried a load of fish on the 1,250-mile journey by road.
Mr. J. Anderson, chairman of the Aberdeen Area of the Road Haulage Association, is manager of the local branch of the Atlas Express Co., Ltd..
who have provided a parcels service in the area since 1906. Two horse-drawn vehicles are maintained, the last in the company's service, and co-operate satisfactorily on local delivery with Aand B-licensed vans.
Although Mr. Anderson thought it unlikely that renationalization would affect his own company, he deplored the tendency of certain large operators in Scotland to withdraw from the Association at a time when a united front might well be the only hope for private enterprise.
In common with everyone else I visited, he agreed that the operator who provided good service, including having adequate storage facilities and modern vehicles, had little to fear from rate-cutters. This applied to general as well as specialist traffic, he said.
Future prospects were brightest for those operators who, by modernization and generally increased efficiency, had been able to absorb rising costs without increasing rates. The position of many small operators forced to compete uneconomically was likely to become untenable, particularly in the Highlands.