Amtrak collapse unravelled
A breakdown of the dramatic events following parcel carrier Amtrak’s collapse on 22 August have been revealed for the first time by the firm’s administrators.
Read MoreTag: Nightspeed
Nightspeed integration boosts Amtrak’s turnover to £100m mark
Amtrak Express Parcels has completed the integration of overnight parcel carrier, Nightspeed, which Amtrak acquired in 2005. The move has seen Amtrak’s turnover increase to £100 million, and its customer base increase to 8,500 customer accounts.
The expanded Amtrak business now incorporates 25 former Nightspeed locations with a network of 100 depots.
Amtrak has retained the Nightspeed name for specialist services not previously offered by Amtrak, including the high security overnight delivery service – Nightspeed Secure Express.
The integration has enabled Amtrak to re-structure its network to improve regional coverage, with a number of new regional depots and a new North West of England hub to handle extra capacity. The Amtrak commercial vehicle fleet has also been expanded, and now includes 2,000 delivery vans.
The Nightspeed acquisition has boosted Amtrak’s presence in a number of key B2B sectors, providing additional volumes that compliment Amtrak’s home delivery services.
According to Amtrak CEO Jonathan Smith, this is the first time two UK parcel networks have been fully integrated.
“We could have taken an easier route but we wanted to create a bigger and stronger business by building on Nightspeed’s strengths,” said Smith. “Now that the integration is complete, we can capitalise on the business potential that was so evident at acquisition. The integration has not only given us a boost in capacity and an increase in volumes, but also entry into some appealing new markets such as high security express services and government mail.”
Read MoreNew Amtrak bosses start efficiency drive
The new owners of UK parcel company Amtrak claim they can make significant cost savings without wholesale redundancies.
But the linehaul and hub operations had to become “a lot slicker”, said new MD Alan Jones.
“It’s all about making sure costs are in alignment with revenues, ” he told IFW. “Clearly we cannot leave things exactly as they are. We have got to take costs out of the business, because you can’t just put GBP 1 on a parcel.
“But a couple of million off our trunking costs would go straight to the bottom line.” Amtrak has 14 double-deck trailers out of a total linehaul fleet of 120, and more will be added. “We carry a lot of fresh air around.
Double-deckers help to reduce that, ” Jones said.
Funding for re-investment in the business has been secured from Lloyds TSB, but it has taken no equity. Netfold, a five-man consortium, now wholly owns Amtrak.
Netfold comprises Ron Series, former executive chairman of Tuffnells Parcels Express, plus four former directors of the Seawheel shortsea business: Jones, Gerry Ruffell, Tom Naylor and David Bardsley.
Read MoreUK Amtrak Boosts Turnover to the GBP100 Million Mark With Nightspeed Integration
Amtrak Express Parcels has completed the integration of Nightspeed, the overnight parcel carrier that it acquired in 2005. With the amalgamation of all of Nightspeed’s depots into an expanded Amtrak network, it is the first time in the UK that two parcel networks have been integrated. The move has seen Amtrak increase its turnover to GBP100 million, add 8500 customer accounts and secure jobs within the industry.
Read MoreAmtrak wins majestic home delivery deal.
Majestic Wine Warehouses has launched a nationwide delivery service, called Gift Solutions, using Amtrak’s specialist wine service.
Majestic has only made deliveries in-house to addresses near its shops, which it will continue to do. Distribution will be from Majestic’s centre in Enfield to destinations across the UK.
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