Pall-Ex close to euro-deal

Leicestershire-based network changes tack over European expansion and seeks link up with single operator covering all of continent. Existing partnerships unaffected.

Pall-Ex is to drive volume growth with a new Pan-European service and parcels alliance.
The network, which has 90 member depots, says it is a couple of weeks away from cementing an alliance with a European consortium of “like-minded” operators.
The partnership will enable Pall-Ex members to offer customers a full European service with a nightly truck, five nights a week, from the hub in Ellistown, Leicestershire- opened a year ago at a cost put at £12m.
“an alliance is the best strategy for Pall-Ex. We cold spend huge amounts of time and money finding several different partners, which would be better of spent focusing on the UK operation. This strategy is low cost and Low risk,” says Pall-Ex managing director Hilary Devey.
Pall-Ex says currently European Partnerships with Transco sud, combifragt, trans European transport SA and Uk member Cranleigh Freight services will continue unaffected by the planned new alliance.
Pall-Ex will also secure an alliance with a UK parcels carrier to cross-sell services and is holding discussions with several players. “we are conscious you cant be all things to all men. A one-stop-shop is a nice idea but in practice, as Hellmanns Overnight logistics demonstrated, it does not work,” says Devey.
Pall-=Ex says volumes continue to grow at 35% month on month. It currently moves 8,500 pallets a night and predicts this will rise to 10,000 in peak periods.
“There is an increasing importance on how we differentiate between ourselves and other networks,” says executive director Steve Hayward. An example is the logistics package it offers Topps Tiles, for which Pall-Ex receives, de-stuffs and stores container-loads of ceramic tiles at the hub for onward distribution through the network.