North London Gas Alliance
Key contact: Ian Law, Plant and Transportation Manager
Fleet profile: 50 company cars, 100 LCVs, 20 grey fleet cars and 75 sub-contractors’ vehicles
Business: Replacing all metal gas mains in North London and into Hertfordshire, Essex, Bedfordshire and Cambridgeshire.

The potential to cut fleet operating costs by at least 10 per cent, while also reducing its carbon footprint was a timely offer for the North London Gas Alliance (NLGA).

The Energy Saving Trust approached the NLGA with the offer of a free Green Fleet Review just as it was set up to run an eight-year contract to replace all metal mains pipes across North London, Hertfordshire, Essex, Bedfordshire and Cambridgeshire.

The Energy Saving Trust’s consultant looked at the NLGA’s fleet operation and came up with a range of cost-saving measures, including: fuel cards to manage and monitor fuel usage, a complete ban on private mileage in company vans, the introduction of ultra-efficient Euro5 vans (where fit-forpurpose) and equipping all commercial vehicles with GPS tracking equipment.

In addition, a focus on managing occupational road risk resulted in recommendations for driver training.

Fuel management recommended
The NLGA was established as a joint venture between National Grid and construction and infrastructure services companies Skanska and McNicholas plc.

Subsequently, Skanska acquired McNicholas and Skanska’s fleet policy formed the foundation for the NLGA vehicle funding and policy strategy.

LGA’s fleet comprises 50 diesel and petrol company cars, 100 light commercial vehicles and 20 grey fleet cars (private cars used for business purposes). The Alliance also has responsibility for 75 vehicles driven by sub-contractors and daily rental cars are frequently used by short term contract staff.

The Green Fleet Review identified that the biggest wins would come from efficiently managing vehicle use. To achieve this, managing journeys effectively and controlling fuel expenditure was recommended.

“Saving fuel translates into saving money and means the business is cutting its carbon
footprint. We started with a blank sheet of paper and the Green Fleet Review helped to
focus our minds.” Ian Law, Plant and Transportation Manager

A suite of recommendations implemented
The first change to be implemented was the introduction of a sophisticated fuel monitoring system which, coupled with the introduction of fuel cards, now provides detailed management reporting. Vehicles were also fitted with a GPS-based tracking system to provide a complete record of usage to meet HM Revenue & Customs requirements. This helps to improve journey planning, increase efficiency and prevent speeding – all of which contribute to reducing mileage and vehicle emissions. Subcontractors are also given the opportunity to fit GPS tracking systems.

Training to encourage smarter-driving techniques was identified as a priority and the Department for Transport’s Safe and Fuel Efficient Driving (SaFED) programme will be rolled out following a successful pilot training commercial drivers.

Meanwhile, the April 2007 budget increase in benefit-in-kind tax provided the catalyst for banning the private use of vans.

Alternative-fuelled vehicles on the agenda
Electric vans as well as vehicles running on liquefied petroleum gas are a future possibility as NLGA looks to maximise an environmentally-friendly fleet. NLGA is also looking at introducing a hi-tech excavating machine that will help the organisation reduce the number of journeys trucks make carrying waste to disposal sites.

Green Fleet Review focused minds
Mr Law, NLGA’s Plant and Transportation Manager, said: “The aim was to reduce the environmental impact of the fleet and increase efficiency while taking account of the uniqueness of the contract and the involvement of, initially, three separate companies. We started with a blank sheet of paper and the Green Fleet Review helped us focus our minds.

“With the Energy Saving Trust’s help we were able to estimate potential cost savings as a result of green fleet measures being implemented. While we were advised savings of 10 per cent were possible, we believe actual savings may be closer to 20 per cent.

“Saving fuel translates into saving money and also means the overall business is cutting its carbon footprint. Money winning initiatives always win support from directors and when those ideas come with the backing of experts from the Energy Saving Trust, it focuses their minds even more. With an increasing global focus on reducing vehicle
usage and transport emissions I expect further fuel and energy-saving initiatives
to be adopted by NLGA in the future.”

Source : Energy Saving Trust