Rail spurs Malcolm's push into logistics
Transport and construction company the Malcolm Group has vowed to increase logistics operations as its customers cut down on transport suppliers.
Jim Clarke, MD of the group’s logistics division, told IFW: “The business is moving on from being merely a straight road transport provider. We are going to become more and more involved in customers’ supply chains.” Last week the Glasgowbased group announced an 18% increase in operating profits in logistics to reach £7.9m (€12.9m) for 2001, compared with £6.5m (€10.6m) in the previous year. Turnover grew 4.1%, from £51.3m (€83.3m) in 2000 to £55.4m (€90.1m) last year.
Announcing the results, CEO Andrew Malcolm said: “Our customer profile is blue chip, with the top 20 clients representing 90% of turnover. Our objective is to service customers using a majority of our own fleet.” The announcement followed the official opening of the group’s new intermodal terminal in Grangemouth.
In co-operation with Carlislebased Direct Rail Services (DRS), Malcolm is currently running three freight trains a week between Grangemouth and its southern rail hub at Crick.
Clark said: “We will be moving up to six trains a week in each direction starting on 19 May.
Initially we contributed non-time-sensitive cargo to the route, but DRS achieved 96% reliability and we now feel confident enough to commit just-in-time traffic.” Malcolm has signed a fiveyear deal with DRS to run guaranteed 10-wagon trains.
Rail freight turnover for the year came in at £1m (€1.63m), representing just under 2% of the logistics division’s total turnover.
“Every unit that we move by rail is new to the mode, ” said Clarke. “It all comes off the road.
“If you take the traditional volume growth of our business – conservatively 10% – we’re looking to take about 7.5m lorry miles a year to rail by 2003.”
He added that the group would continue to stay focused on the UK market.
“We do operate into Europe, but only to certain customers.
I’ll never say never, but most of the big logistics companies that go full tilt into Europe get their fingers burned.” The company’s year-on-year truck and trailer £4m (€6.5m) fleet replacement programme will continue this year, and Clark said that there were options to extend Malcolm’s road depot network.
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He added: “We’re always evaluating opportunities, but there’s nothing definite. Some come to fruition quicker than others.”
