Network Rail has saved £4 million since it launched an environmentally-friendly fleet policy three years ago.

This saving has come as a surprise to head of fleet Chuck Ives, who manages the company’s 8,500 vehicles, with a fleet budget of £65 million a year.

“My perception was that going ‘green’ meant spending more money,” says Ives. “I couldn’t have been more wrong. There is a direct correlation between our fleet strategy, our environmental strategy and cost savings.

“We have saved £4 million in fleet costs since we launched the new fleet programme three years ago.

"No fleet can afford to ignore such savings. We have introduced nothing radical, merely pursued common-sense policies.”

Low-emission vehicles

Those policies have included the phased introduction of low emission cars and vans.
For instance, on the 6,850 van fleet, 1.7-litre and 1.8-litre LCVs have been replaced with 1.3-litre models.

On the 1,500 company car fleet, a diesel Ford Focus-only company car policy has been introduced. CO2 emissions now average 129g/km compared with 146g/km three years ago.

The company also runs Ford Focus estate diesel pool cars.

Network Rail’s new fleet policy has not added low CO2 cars at the expense of performance, according to Ives.

“Engine downsizing has not hampered the efficient and effective operational performance of the fleet,” he says.

“Vehicles are absolutely fit for purpose and we are saving money in many areas, but the big cash saving is on fuel bills.

“Additionally, drivers are motivated to look after vehicles because they are new and modern.”

Zero tolerance approach

Getting ‘buy in’ from the board, as well as from Network Rail’s 13,000 drivers has been key to the programme’s success. Ives believes that savings can only be achieved with the support of drivers and directors.

He has changed driver culture through a range of communications including a ‘drive green’ handbook and fuel-efficiency poster campaigns.

The problem of drivers not checking tyre pressures has been overcome by the fleet-wide introduction of tyre pressure alert valve caps.

This has helped fuel economy as under inflated tyres can increase fuel consumption by as much as 3%, as well as being dangerous.

Ives has also taken a zero tolerance approach to missed and late servicing. Vehicles are banned from the road if drivers have not taken them in for servicing on time.

This approach has seen departments sit up and take notice.

Taking responsibility

“If a hire vehicle is needed because one of our vehicles hasn’t been brought in for servicing and has been taken off the road, then the costs go on the budget of the department responsible,” Ives says. “They soon start taking notice.”

A reduction in the fleet’s fuel bill has been the main financial benefit of Network Rail’s environmentally-friendly policy, accounting for around 75% of the savings.

This is due to improved efficiency being delivered across the fleet.

Other financial savings include: lower lease rates on smaller-engined vehicles, reduced Vehicle Excise Duty paid on lower CO2 emission vehicles, and exemption from the London Congestion Charge for sub-120g/km models.

Company car drivers are saving money as a result of the reduced benefit-in-kind tax bills, owing to the low emission strategy.

Data from fuel management company Arval has highlighted that CO2 emissions across the fleet have been cut by at least 25%.

Network Rail’s fleet emitted 57,069 tonnes of CO2 in the 12 months to April 2008, a reduction of 14,465 tonnes on the previous 12 months.

Network Rail will continue to introduce lower emission diesel vehicles and is also considering introducing speed limiters, with a trial currently taking place. Electric vehicles are also being trialled in London.

In addition, the organisation is working towards having its CO2 reductions audited by the Energy Saving Trust (EST).

This will enable it to join EST’s environmental certification scheme, Motorvate.