Kinaxia expansion does not signal plans to launch national pallet network, CEO insists

Kinaxia Logistics is expanding its internal pallet network in January to include its entire stable of haulage companies, chief executive Simon Hobbs (pictured) told motortransport.co.uk this week.

However, the group insists the move does not signal wider plans to launch a national pallet network.

Kinaxia Logistics expanded its K-Link hub operation to include direct trunking between member companies in May last year. The internal network is currently used by Lambert Brothers, David Hathaway, Maidens, Panic, AKW Manchester, Mark Thompson and Fresh Freight Group.

The operation shifts 500 pallets a night via Panic’s hub in Rugby and AKW Manchester’s hub in Trafford Park.

Now the group is planning to extend the internal network to include its remaining five subsidiaries, which are Foulger, Cammack, William Kirk, Bay Freight and AKW Birmingham.

Hobbs said: “On 10 January another five of our businesses will join our internal network. We are currently putting 500 pallets a night through the internal network and our aim is to increase that to 800 pallets a night, leaving around 2,200 pallets a night going through the national pallet networks."

Asked how Mark Thompson Transport would fit in with the expansion, Hobbs said: "Mark Thompson focuses on supporting the e-commerce B2B and B2C market so won't form part of K-Link."

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He was also keen to emphasise that the group had no plans to compete against the national pallet networks.

“This is an internal network and has not been set up to compete with the national networks. That is absolutely not our strategy. K-Link is just a more efficient way of transferring products from one Kinaxia business to another. We will always need the national pallet networks as well.”

Hobbs said he had consulted ahead of the launch of K-Link with the heads of both Palletforce and Palletline, which most of Kinaxia’s pallets go through.

“I have spoken to the CEOs of both Palletforce and Palletline and reassured them that we are not opening up a national pallet network and they totally understand what we are doing and see the logic in that,” he explained.

Turning to the current driver shortage crisis, Hobbs said Kinaxia has a deliberate policy not to poach drivers by offering bonuses, preferring instead to train new drivers and pay for all training costs.

The scheme, launched in October, has attracted 180 applicants who are currently being processed ahead of training, Hobbs said.

“We have 120 vacancies for drivers across the group and have attracted a wide range of applicants, with a lot having no licenses at all,” Hobbs added.