Going it alone

John Kenny set up his own transport company in 1990 when the opportunity arose to haul bulk cement for Roadstone Provinces Ltd., in the Galway area. He looked back on an eventful ten years with John Loughran.

In the early nineties many companies involved in the supply of readmix concrete, concrete blocks and associated quarry products looked at the option of sub contracting out their haulage requirements. The Roadstone group were no exception.


Opportunity
John had been working for Roadstone Provinces Ltd. as a readymix driver when the opportunity arose to become an owner driver. He had often toyed with the idea of going out on his own but the right opportunity never materialised. When the Roadstone opportunity arose he seized it with both hands. It was a decision he never regretted. He tendered for the contract of drawing bulk cement from Irish Cement in Limerick to the Galway Roadstone depot. On securing the contract he bought a new ERF tractor unit and a bulk tanker.

It was never John’s ambition to be a single operator. Having established a foothold John began to expand. “I bought a second hand readymix truck from Roadstone and put a driver on it. I have been expanding the fleet every year since.” A decade later John has four tractor units and three bulk tanks, five readymix trucks and a number of tipper trucks working fulltime.

Growth
He feels there is still potential for growth in this specialised area, given our booming economy especially in construction. However, “I’m more interested in updating my fleet than expanding. When I bought new, I didn’t trade in any of the trucks. This allowed me to expand the fleet. Now I want to start replacing some of the older vehicles.”

John is very happy with his current team of drivers and admits that the secret to a harmonious working relationship is “to pay them well and put a good truck under them.”

He added that drivers had a significant part to play in offering a good customer service and he was very happy with the feedback he got from his customers.

Expansion
Conscious not to put all his eggs in one basket John has expanded his customer base over the years. Having started in construction haulage he has branched into other areas and now has work with well known companies such as Whelan’s Limestone Quarries, R. Barrett & Co. Ltd., Ballina, Gouldings, Galway Metal, Galway Co. Co., and Michael Keogh &
Sons. Roadstone however remain his biggest customer.

Rates
The thorny issue of rates is a topic of conversation with practically every haulier. John is no exception. “Obviously I would like the rates to be higher and I’m pushing all the time in that respect.” He added that rate increases are not keeping pace with diesel prices increases and that margins are getting tighter by the week.

I.R.H.A.
John is a long serving member of council for the western region of the I.R.H.A. and admits that poor rates, spiralling diesel prices, and the driver shortage are common topics of conversation at the regular meetings. They also discuss the merits of particular trucks, trailers and practically anything related to the industry.

He feels the Government could do more for hauliers in relation to the price of diesel and added the I.R.H.A. will keep pressure on the Government to come up with solutions. At the time of writing the I.R.H.A. were pushing for the introduction of an essential user rebate scheme.

Business is certainly booming for the affable haulier which he puts down to the Celtic Tiger economy. West of the Shannon the construction industry is in full blossom, which has a positive knock on effect for companies such as Roadstone, and in turn for John Kenny Haulage Ltd..

Maintenance
John’s fleet numbers 15 vehicles and he explained that maintenance is sub contracted out to a number of garages throughout the region. He revealed that the vehicles work out of a number of different depots and it is therefore difficult to centralise his maintenance scheduling.

He feels that the size of the fleet has reached a level where it would be more economical to centralise maintenance at the depot in Menlough, Co. Galway. To facilitate this John would need to establish his own garage and employ a number of plant fitters. However, he feels the time is right for this new departure.

The fleet is split almost equally between Hino and ERF. He feels Hino are ideally suited to the rough and tumble conditions of construction haulage and that ERF tractors units are perfect for artic work. Hino however, has lost some of its price competitive edge as a result of exchange rate of the currency.

Able Assistance
In the day to day running of the business John receives able assistance from Eileen O’Grady, the company administrator. His wife Maura, who is a Company Director, also plays an active role.

He is also fullsome in his praise for his customers and added that he has built up good working relationships with them over the years. Apart from the rates I’m very happy, most of my customers pay on time and are good people to work for.”