We've got it covered

Express operator Nightline's partnership with FedEx, which began in August, is already bearing fruit. "Over 1,000 Nightline customers now have seamless access to the FedEx network, " says MD John Tuohy.
Customers across the republic are now connected to the integrator 's EuroOne network and can expect two-day delivery across Asia and nextday or second-morning delivery to the US.

Tuohy says FedEx traffic now accounts for 8% of his business, and Nightline has taken on 60 new staff. The FedEx brand is being added to Nightline's fleet of 200 vehicles and to its depots.

Founded in 1992, Nightline began as an international express specialist and ventured into the domestic Irish marketplace only four years ago, targeting the highvalue sector. It operates a national distribution centre in Portlaoise and has nine depots across the country. FedEx covers the counties of Dublin and Wicklow direct – together they account for 40% of Ireland's GDP – and Nightline looks after the rest.

Additional branches in Dundalk and Donegal are planned in the next two years.

"From a distribution point of view, we have already got Ireland covered. But the new locations would help us better serve and develop local markets, " Tuohy says.

The relatively small depot network allows Nightline to make timed deliveries to each one. Its coverage of 82% of Ireland by noon has enabled FedEx to bring major corporate accounts on board, explains David Canavan, MD of operations and customer service for FedEx Express in Ireland, Scotland and the Nordics.

Afternoon collections go straight back to the Portlaoise hub in a point-to-point system which differs from the "loops" operated by most Irish parcel companies, he says.

"Nightline had been an export customer of FedEx and effectively a wholesaler for us since 1992, " Canavan says.

The company has invested heavily in security and IT systems to support its domestic network, and claims to lead the Irish market in web-based track-and-trace technology. "They were already doing a lot of the things we pride ourselves on, " Canavan says.

"Twelve to 18 months ago they first came to us and we began to look at how our operations and systems could meld. We did a 'soft launch' on 1 August and service levels have been outstanding." FedEx was first represented at domestic level in Ireland by TNT and then signed a sevenyear agreement with Securicor in 1996. Securicor 's acquisition by DHL coincided with the end of this deal.

Additional air capacity underpins the new partnership. At the end of September, FedEx introduced a 30-tonne payload A300 aircraft, leaving Dublin at 6.30pm en route to Stansted, Paris and Memphis. It replaced two much smaller aircraft and the load factor has been "in the high 60s, " says Canavan.

Exports exceed imports, but inbound services arrive at 11pm, connecting with Nightline's night sort, and at 5.30am, bringing EuroOne traffic from Paris.

He reports good business intra-Europe, and says another plus point, following the increase in aircraft size, is a one-day time saving on International Priority Freight shipments, which used to take two to three days to the US, for example. Canavan says this sector has seen "tremendous growth", citing pharmaceutical and medical shipments where freight charges are a low proportion of the value of the goods and the customer needs full tracking and tracing.

Integration of the companies' IT systems means customers worldwide can go online and follow delivery to any location in Ireland – and vice versa.

The controversial break-up of Aer Rianta will be "positive, in terms of competition, " says Canavan, although he believes Dublin is already competitively priced against European airports and its charges will, in any case, remain capped.

He remains upbeat about Ireland's future, despite the relocation of many production plants to eastern Europe and Asia. Intel, for one, remains committed to its Leixlip facility, which further expands next year.

"Ireland still has benefits in terms of the calibre of people you can employ. Infrastructure continues to improve under Ireland's national development plan and there are many reasons still to invest. We have seen a positive trend in the last three or four quarters, although US outbound is still slow moving, " Canavan says.

Part of the rationale behind the tie-up with Nightline and the introduction of the Airbus is "to be well positioned for the upturn", he adds. Ireland/Asia traffic is still growing, though not at the previous rate, for example. "Where we can react is through the expansion of our portfolio – for example the move into export freight." n

Posted: 08/12/2003