The newsletter of VTG Rail UK Ltd ISSUE 26 • WINTER 2015 ISSUE More wagons for Mendip Rail

He explained that demand for aggregate wagons is at a high and that VTG’s aggregate wagon fleets are currently fully utilised. “There is plenty of evidence suggesting continued growth in the demand for the movement of construction materials by rail. “Figures published by the ORR in September,” he said, “show the movement by rail rising from 0.97 to 1.04 billion net tonne kilometres. That’s a jump of 7.1% compared to the same period in 2014 and there is little, if any, spare wagon capacity available to meet the sector’s needs. “These state of the art vehicles with their improved speed of operation, track friendly bogies and class leading payload efficiencies will bring numerous advantages for our customers.” Jason Black Mendip Rail’s Managing Director said: “I am very pleased that VTG has signed an agreement with Mendip Rail Limited for the hire of VTG challenged conventional rail industry around 130 new aggregate wagons – a mixture of hoppers and boxes. practices in order to win the tender. “The placement of such a large order is an indication of the optimism shown by both They will be used to move stone from Delivery of the wagons is due to start in Aggregate Industries and Hanson in the the Aggregate Industries and Hanson summer 2016. continued growth from their current and “super-quarries” in to a range of Sales and Marketing Director Ian Shaw future rail supplied depots, coupled with destinations, many in and the South was delighted to have signed the deal with their strive to further reduce road haulage East. Mendip Rail. miles.”

Meeting the Challenges

Meeting the challenges thrown up by the forthcoming demand from a wide range of business can be tricky. Just take large scale building projects such as Cross- a look at the situation the markets have rail, HS2 and Hinckley Point, has placed presented VTG. great importance on the availability of our The UK’s steel industry has been hit by the aggregate wagon fleet, which is currently cooling Chinese economy and its dumping fully utilised. of vast stockpiles of steel into Europe. Coal Booming too is intermodal railfreight, meanwhile is in decline, hit hard by the which has seen growth caused in part, government’s carbon tax policy. ironically, by our thirst for cheap goods from As a result there are, for example, coal China. wagons in the market, some just a few So what do we do? In this edition of years old, standing idle. Online we’ll take a look at what we and our On the other hand the growing construc- customers are doing to manage this growth tion sector, boosted by both current and and decline. www.vtg-rail.co.uk VTG Rail UK Ltd Sir Stanley Clarke House, 7 Ridgeway, Quinton Business Park, Birmingham, B32 1AF Tel: 0121 421 9180, Fax: 0121 421 9192 OnLine issue 26 | winter 2015 Keeping the wheels moving

Can we fix it? Yes we can! With a team of specialists and years of experience, we pull out all of the stops to keep the wheels moving, even when things go wrong.

Online talks to Ian Shaw, VTG’s Sales and As well as sometimes needing to work repairs – both to ensure the wagon is Marketing Director about what happens with regulatory authorities and external restored to the required levels of safety, when there’s trouble afoot. specialists, whilst liaising with customers, performance and reliability, and also to “VTG’s determination to make sure its insurers, train operators and repairers, it is protect the value of VTG’s asset, which wagons are always available where and not always a straightforward matter to get may well have another 30 years life ahead when the customer wants them lies at the the wagon to the workshop that will do the of it. This means that VTG’s technical and heart of our business. repairs. After the derailment of a number of operations teams have to work with the We work hard to continuously improve our aluminium bodied “JPA” cement wagons repairers to identify what is needed for each quality and reliability, as well as to innovate, a couple of years ago, a 1200 tonne tel- specific incident and, whilst a significant in order to maintain our position as the escopic crane, the largest of its type in the level of spares are held to support the leading independent provider of rail freight world, had to be brought in simply to lift the fleet, it may well be that the nature of the wagons in the UK. damage, particularly where Numerous highly skilled structural repairs are needed, and experienced profes- means that some parts have sionals throughout the VTG to be made to order. organisation, both in the UK Additionally we have to and abroad, make sure that consider the answers to our wagons are built and questions such as: Cost of maintained to the highest repairs versus the value of standards and that every- the damaged wagon? How thing works as it should. readily available are the However on (hopefully) parts required? Are there rare occasions, factors obsolescence issues? How beyond our control such as long will the wagon be out operational or infrastructure of service? based incidents may cause Unlike the wagon maintain- things to go amiss. When ers and repair workshops, this happens, wagons VTG makes no money from can become derailed or damage repairs – it’s part of damaged meaning repairs the service we provide to our are required. customers. For the majority Whilst built to be robust of “minor” incidents just a and to withstand the day to day toil of small administration charge is made which having 75 tonnes of rock or steel dropped covers part of the cost of arranging repairs, in to them and subsequently “grabbed” back and for major incidents (hopefully few and out, the sheer amount of energy involved in far between) we simply look to recover our even a slow speed collision or derailment of costs, eg the provision of specialist support, a fully loaded train of wagons at over 100 attendance at enquiries, etc – things that will tonnes each, means that damage can and normally be covered by insurance anyway. will occur. Talking of insurance, for a small daily On one level, managing damage repairs to supplement to the wagon hire charge rail wagons might seem very similar to get- wagons from the site of the incident. You VTG can also offer its customers “Wagon ting your car fixed after a shunt. There may may remember seeing the footage on the Damage Waiver Insurance”. In the event be insurance companies involved, photo- BBC’s “Crane Gang” documentary! of a significant damage claim, and subject graphs and repair estimates required, with In the event of a serious incident, VTG’s on- to payment of an excess, this removes the customer approval for the work to begin call team will be alerted and may need to customer’s liability for loss or damage to often necessary. However, if a rail wagon attend the site to advise or oversee recovery. the wagons affected. Depending on the needs a major repair, the actual process will If the Rail Accident Investigation Branch are nature of their wider insurance coverage, inevitably be very different from taking your involved we may need to work with them to many of our customers find this to be a very damaged Ford Mondeo into the local garage assist with enquiries or help ensure that the attractive and reassuring proposition. to be fixed. Due to mass production and necessary lessons are learnt and fed back to At the end of the day VTG does everything a network of dealers and specialist repair the industry in order to improve safety. it can to assist its customers throughout shops, the car can usually be fixed quickly, All wagons involved in any derailment the process of getting their wagons back often with parts available ‘off the shelf’. will be examined by specialists to establish in service. We at VTG believe we are the For a rail wagons, normally built in produc- whether they can safely be recovered by best in the business for making sure the tion runs counted in tens, or occasionally rail or if alternative transport is required. situation is managed with as little disruption hundreds, rather than hundreds of thou- Although the managerial process is similar, as possible. There are a whole lot of sands or even millions, things are different there isn’t a standard formula for wagon things happening behind the scenes that – we usually have a lot of work to do before repairs. Every damage occurrence is different the customer doesn’t need to see or get we can even start repairs. and we often have to provide bespoke involved in and we want to keep it that way. 2 OnLine issue 26 | winter 2015 Transformation for neglected flat wagons

FBAs get working life extension.

VTG has purchased 24 former British Gypsum action for years, VTG had recognised an neglected in sidings being slowly overgrown 40’ flat wagons and is in the process of opportunity to use them in intermodal traffic by vegetation,” he said. “However, these injecting them with a new lease of life. – a significantly buoyant market where there are still relatively young wagons, built in Three of the FBA type wagons have already is demand for 40’ platforms. 1994 by the respected Finnish manufacturer been transformed at Wabtec’s Doncaster “All of the forecasts indicate a continued Rautaruukki to their renowned robust works and the remainder are scheduled to growth in the maritime intermodal sector structural standards. As well as carrying out receive the same treatment early in 2016. and this has been borne out through the a complete overhaul and replacement of any Wagons that were recently in a sorry state level of demand for our Ecofret wagons,” wearing parts, we have changed the original are now back in traffic – to all intents and he said. “These FBAs are in many respects container twistlocks for spigots making them purposes as new vehicles. a prequel to the Ecofret. more “user friendly” to port operators. We Ian Shaw, VTG’s Sales and Marketing Direc- “Clearly they needed a certain amount have extended their working lives, giving tor, said although the wagons hadn’t seen of TLC having been left for some time, them another 15 to 20 years.”

New Ecofrets to run in Felixstowe’s newest intermodal train

GB Railfreight has placed an order with VTG Felixstowe to Birmingham Intermodal for the long term lease of 15 triple-platform Freight Terminal (BIFT) at Birch Coppice in Ecofret wagon sets following the award to the West Midlands, a major intermodal the freight operator of the latest train path freight terminal owned by Maritime from the Port of Felixstowe. Transport. It is the first train to serve this The Ecofret platforms are being built by route out of the Port, meaning it will be ability to provide a range of wagon solutions Greenbrier in Poland and will be delivered actively switching freight from road to rail. for UK Intermodal traffic. Whilst we are next summer following final assembly and It is GBRf’s seventh path out of Felixstowe. pleased to be in a position to support the testing in the UK. The train is currently configured with 33 launch of the service with readily available GBRf began operating the new trains on VTG-AAE Megafrets twin platform wagons Megafret wagons, the long term efficiency the 31st path out of the Port of Felixstowe in and upon delivery of the Ecofrets will grow that Ecofrets will bring to this maritime September 2015, having won the right to do to 45 platforms (90 TEUs). intermodal traffic is what really makes the so in a competitive bidding process during Ian Shaw, Sales and Marketing Director difference. It supports our belief that they last summer. of VTG, said: “The acquisition of AAE by are changing the economics of UK maritime This path allows GBRf to run trains from VTG earlier in 2015 gives us an unrivalled intermodal rail freight.” 3 OnLine issue 26 | winter 2015 Chris ponders rail career opportunities

Chris Parker is the latest Year in Industry (YINI) student to join VTG. Currently in the third year of a four year course, Chris is studying Automotive Engineering at Coventry University – at least for now.

“A question I’ll be asking myself through- help Adrian Freely, VTG’s Fleet Engineer, on a out this year is whether I still want to few of the most recent developments within complete an automotive degree or switch to the VTG fleet. a mechanical engineering degree. “I’ll be looking to get out of the office “This is a small change but could broaden more as my projects build and I think by my prospects of employment. the end of the year I will be much better “I never thought about the rail industry prepared to complete my degree with vital before applying for placement but being experience in real world engineering. here has made me realise there is a lot “I think something that is really good and more to engineering than that of large quite unique about VTG is that I will be able automotive companies.” to learn about more than just engineering. Chris has already been out and about. I’ll be able to improve my business knowl- “I have so far managed to visit Long edge as well as having a real understanding Marston to attend a rail safety awareness of the logistics of the railway industry. course plus a number of other sites and “The departments in the office are very workshops with Nigel Day, VTG’s Head of well interconnected so I’ve already learned Engineering, to gain wagon knowledge. a lot by listening to conversations between VTG helps broaden Chris’ horizon. “I’ve also picked up the tail end of a few of colleagues in different departments.” Sam Hunt’s projects, the previous YINI student. So Chris has some questions to ponder. Chris says that his first few weeks have So I have visited Wabtec in Doncaster one of our Tougher, perhaps, than his first encounter opened his eyes to potential employment maintenance contractors on a few occasions.” with VTG. opportunities and made him think again So what does he hope to gain from his “The funny thing about my introduction to about his own future. year in industry? VTG was that neither Nigel nor Sam knew “The VTG UK Office is a really nice place “I feel at the moment I’m still getting my about my interview until moments before. to be and all the staff have been very feet under the table but I have started a few It was quite an experience but I must have welcoming,” he said. new projects myself and have planned to done something right!” John Jagger – “one of life’s gentlemen”

The funeral service was held at St Andrews She said: “I have Church, Barnt Green on Monday 7 September known John for all and was followed by a private cremation at of my working life Redditch Crematorium. having first met him Born in Yorkshire, John trained as a chemi- when I joined his cal engineer who first became involved with sales and market- railfreight whilst working at ICI, who at that ing team at Marcroft time owned and operated their own wagon Engineering in 1988. fleet. John subsequently moved fully into He was like a father the railfreight rolling stock sector, working figure to me and I for Procor. became close friends with both John and During his successful career John went on Judith. As one of life’s gentlemen, he will to become managing director of CAIB UK be greatly missed by us all. As many will by now be aware, John and then, in 2002, VTG Rail UK when CAIB’s “I wanted to do something in John’s Jagger, former managing director of VTG parent, Brambles European Rail Division, was memory so decided to run the Birmingham UK passed away suddenly on 27 August bought by VTG in Germany. half marathon to raise funds for a charity this year. He was 73. John remained in charge at VTG until he of the family’s choice. As John was as John will be sadly missed by his wife retired in 2006. big supporter of children’s causes Judith Judith, his three children Tim, Sarah Maria Connolly, right, VTG’s Service Delivery suggested the Acorns Children’s Hospice.” and Rob, their partners and his six Manager, knew John well and paid tribute to Maria’s JustGiving page can be found at grandchildren. him for the influence he had on her career. www.justgiving.com/JKJ/

4 OnLine issue 26 | winter 2015 State of the art Hope wagons pass the test

and we appreciate the challenges faced by all involved in delivering these vehicles to the UK at this time. We are pleased that the government now appears to be recognising the impact of disruptions to this vital trading link on UK business, not just on deliveries of new wagons, but the ongoing viability of daily rail freight services to and from the UK”. Now that the new wagons are in use they have already started to improve Hope’s ability to consistently transport over a million tonnes of cement per annum from their manufactur- ing plant to depots, for onward road deliver- ies to cement customers across the UK. The new JPAs are built from aluminium, reducing weight and with it, fuel consumption and carbon emissions. The wagons will also be The first new JPA cement wagons delivered A significant part of that delay was caused quieter than older alternatives, utilising track- to Hope Construction Materials underwent by the refugee crisis at Calais, which was friendly bogies, which, in addition attract lower trials at their brand new, partially completed, then at its height. Another contributing track access charges and benefit from longer Dagenham cement depot in early November. factor was the knock on effects of the service intervals. The trial was to ensure that a full length Belgian rail strikes in early October. The new wagons weigh less, so they can train of 24 wagons could fit the sidings in Hot on the heels of the Hope wagons was carry more product – in other words fewer reality – as well as in theory. This having a further set of 19 JPAs for Hanson Cement, trains are needed to achieve the same arrived in the UK, finally, after an arduous which were delivered via the annual volume. journey from their place of construction, in November after experiencing delays, albeit It’s clear that VTG’s investment in the latest Wittenburg in Germany. less severe, for similar reasons. Rob Brook, freight rolling stock and its determination to The Hope wagons left Germany on 1st VTG’s Managing Director commented: “VTG be at the forefront of technological develop- August arriving in Britain at the end of understands the scale of the difficulties faced ment is essential in ensuring its customers October – a journey of almost three months. by all caught up in this humanitarian crisis get the best deal possible. Kevin is the A-Team’s hotshot

VTG’s latest appointment to its Service Deliv- dip Rail operations centre means I’m totally service manager of ery Team is Kevin York who is now working immersed in their business and that means two main dealerships. within Mendip Rail’s base in Merehead, I can adapt wherever possible to fit with any He then moved Somerset as VTG’s fleet controller. last minute changes that happen in opera- successfully into com- Kevin is the second fleet controller recruit- tions. For example, I might get to know that mercial vehicle leasing ed by VTG specifically to be co-located within a particular train can’t run tomorrow due to and workshop management and then on to a customer’s organisation. Kevin follows a network problem or a customer outage. I running a bus company workshop. Martyn Catlin, who works alongside GBRf in can then look at the wagons involved and Whatever spare time Kevin has he seems Peterborough. look for opportunities to bring maintenance determined to fill it – and being a mechani- Working directly with the customer on site forward whilst no trains are running so that cal engineer is clearly more than a career for gives Kevin first-hand knowledge of what availability will be maximised when the Kevin. In his spare time he restores tractors. is happening on a day-to-day basis, which service resumes. Equally, I might hear that a Another hobby is shooting. “I shoot for my means that trouble can be anticipated, particularly intensive work campaign is due county, Somerset and I’m a member of the problems solved and efficiency maximised to start in the next couple of weeks and, local target rifle club,” he said, “where I and as quickly as possible. In the same way using my knowledge of Mendip Rail’s opera- shoot for the A team. We have won the 1st that the layout of VTG’s offices is designed to tions I can suggest how the wagon fleet division for the last three years.” maximise information flow, including “infor- could be rearranged so that the optimal set Kevin goes on to explain what else he mal communication” (e.g. simply overhear- of wagons (e.g. those that won’t need any does with what’s left of his spare time. ing snippets of discussions in the office), the maintenance during the campaign period) “I follow Formula 1 and usually go to a race co-location principle means that VTG works can be in the right place at the right time!” every year. This year I went to the Singapore as closely as possible with its customer, Kevin has a wide range of engineering Grand Prix.” making sure that the efforts and objectives experience. He completed his mechanical Kevin is married with two daughters, now of both organisations are always aligned. apprenticeship in the car industry and pro- 17 and 14. Oh, there’s one other thing – he’s As Kevin relates: “Working within the Men- gressed up through the ranks to become the just finished building his house! 5 OnLine issue 26 | winter 2015 VTG helps young people to make themselves employable

As a company with a conscience and a history of supporting the development of young talent through initiatives such as the Year in Industry scheme, we de- cided recently to become a sponsor of the educational logistics business game – Business on the Move.

Business on the Move aims to inspire and “The pupils’ first excite young people about how business and reaction was to global supply chains work. shout ‘awesome!’” As a sponsor of the initiative VTG has said Caitlin. linked with a local school – the Hillcrest She explained that School in Bartley Green, Birmingham as the Business on the recipient of VTG’s support and a number of Move will provide educational business development tools teachers, trainers including the Business on the Move game. and young people Hillcrest girls give VTG the thumbs up. The basic idea of the game is that players with a variety of run a logistics business moving products exercises to boost learning across the cur- on the Move can now be played at seven from China to the UK market by air or sea riculum and to celebrate the diversity of the different levels, which, at the higher end as quickly, profitably and environmentally logistics sector. include such aspects as palletisation, reverse responsibly as they can. “It is a great way for youngsters of all abili- logistics and cash flow. Once landed, a further stage involving rail ties from the age of nine upwards to begin One of the game’s unique features is that or road transport must be negotiated. to appreciate what business life is all about. real businesses feature as themselves not Players must make the same decisions that The game can help to develop the skills, habits only on the board but also through all aspects real businesses make every day. How do I and attitudes that they need in their future of the game. Familiar names that appear deliver? Will I make a profit? How should I working lives,” said Caitlin. “It’s also ideal for alongside VTG’s include , Potter grow? How can I cut my carbon footprint? use with apprentices, graduates and other Logistics, GB Railfreight and DP World London VTG’S Sales and Marketing Administrator new recruits and I’m sure there are more Gateway, to name a few. and Hillcrest former pupil Caitlin Lippitt went than a few existing staff who would like to Caitlin added: “Having this level of actual along to the school with Sales and Market- play the game too,” she added. company involvement makes the game so ing Director, Ian Shaw to hand over the In fact, so positive has been the response much more real and so much more useful to games. from the logistics industry, that Business young people.”

VTG Rail UK wishes all of its Online readers a very merry Christmas and a prosperous and healthy 2016.

Once again we will be giving to charity the money saved by having an e-card. This year we are supporting: • Retired Greyhound Trust • Muscular Dystrophy • Way of Hope • mnda (motor neurone disease association) • Acorns The company has also made a donation to Acorn Children’s Hospice in memory of John Jagger.

6 www.vtg-rail.co.uk