News

Fortec Pallet Distribution Network plans to double its volume, growing both organically and by acquisition, in the next few years. While loathe to be a hostage to fortune, acting MD Neil Hodgson tells Motor Transport: "We've got great expansion plans. Our parent company [Geodis, and then ultimately SNCF] really  wants to push into the UK.

"We believe there's a major opportunity in the UK, and [the Geodis board in France] is right behind us."

The organic growth will be driven by a combination of generating its own new clients and leveraging off Geodis to carry its European customers' UK-bound freight.

Hodgson explains: "We're positioned now to carry high-value product and bat in the corporate markets.

"We've employed three field sales (all well-experienced in transport) staff and a sales director (Chris Meadowcroft, ex-TNT and Nightfreight) to put our name out in the corporate markets; we've started sales and marketing drives in major vertical markets and with blue-chip clients."

Geodis is reviewing what palletised freight is coming into the UK through its customers that is not being carried by Fortec, with a view to those volumes being carried by its own network.

"That's a massive revenue opportunity for us, in time," Hodgson says.

Fortec  will also make the most of its link to Geodis's Continental European network to sell international movements out of the UK.

Furthermore, Fortec is on the acquisition trail – and not just for transport businesses that share its target client base, but also for relevant firms that will give it a regional hub.

A bespoke IT system is due in September, built around detailed operational management, giving the licensees a lot more visibility of their efficiency.

Fortec has 65 members (as of March), and Hodgson expects targeted growth. "We'll be targeting a very specific type of company [to be members]," he reveals. "We're going after high-quality freight."

He expects membership to grow to the mid-70s mark: "We want to be recognised as the best service provider and the most secure – I don't think it's possible for us to be the biggest as well, as there's a lot of freight we wouldn't want to carry."