Network Rail saves millions with road haulage
By: David Howells
01 July 2011
Network Rail's managed road haulage scheme has reportedly saved the company £2.9 million in one year alone.
The scheme, which has only been in operation for two years, was put into place in order to transport the ten per cent of its heavy haulage that cannot travel by train.
In moving this haulage onto the roads, it has saved the company millions of pounds and created much logistics work in the process.
Now, with its integrated platform which uses load consolidation and route planning software to ensure high efficiency levels, National Rail is beginning to see a huge return on the venture.
The fleet, run by DHL, boasts 22 vehicles - each with their own loading cranes. There is also a seven-man control tower where individuals with specialities in particular categories plan routes and loads, as well as negotiate the best prices. This is aimed at achieving a much greater level of productivity and has already saved a total of 550,000 miles.
Speaking to logisticsmanager.com about why the scheme was implemented in the first place, business support manager at Network Rail, Wayne Gould, explained: "It's fair to say that there was little awareness of how much was being paid and it's put a lid on those exorbitant costs."
There is still scope to grow the venture, however, with DHL's business director Dean Partington telling logistics-partners.com: "We have more categories coming on board each month."
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