Spring 2009

In a determined move to project confidence in its growth prospects, express delivery company City Link has announced radical plans to overhaul its entire operating model under a scheme valued at £31 million.

The company says it is planning a return to a 'one depot, one general manager' approach, and will be recruiting 20 new general managers. It also plans to expand what it terms its depot footprint by 20 per cent from 2.5 to 3 million sq ft.

It will replace most of its 300-strong fleet of fixed-sided trailers with a new fleet of 280 curtain-sided double-deckers, and will also acquire 12,000 pallet cages.

The Coventry hub will return to its original model, receiving only curtain-sided trailers with pallet cages, and the company's Wednesbury hub will convert to the same model by December.

 

These moves follow the publication of 2008 results by parent Rentokil Initial, which saw group profits fall to £22.8 million from £142 million in 2007. However, despite what City Link admits was 'a difficult trading year', it points out that it experienced record volumes of business in the weeks running up to Christmas. It says the new investment plans will enable it to handle even greater volumes.