Transport managers – What’s in a name?

29 September 2023

The title of ‘transport manager’ to those outside of the world of transport would seem to be a straightforward job title conveying exactly what the title holder is expected to do in their day-to-day role. In any business where the transport of goods or people has a major part to play it would make sense to have someone with the specific responsibility of managing that aspect of the business. However, once the Operator Licensing regime is engaged, the title takes on a much deeper significance. Signing up to be the transport manager as part of an O Licence is more than simply a job with certain responsibilities, it is a regulated statutory role with conditions that must be fulfilled. The full requirements are listed in both the Good Vehicles (Licensing of Operators) Act 1995 and the Public Passenger Vehicles Act 1981. In short, they are:

(i) be a resident of the United Kingdom.
(ii) be of good repute.
(iii) be professionally competent.
(iv) effectively and continuously manages the transport activities of the undertaking.
(v) is not prohibited from acting as a transport manager by a traffic commissioner.
(vi) in the case of an external transport manager, is not designated to act in that capacity for more than 4 operators or be responsible for more than 50 motor vehicles or such smaller number as the traffic commissioner considers appropriate.

In practice it is the requirements listed in (ii)-(iv) that usually provide the most headaches for operators. When it comes to public inquiries, the requirements to be of good repute, be professionally competence and exert effective and continuous management are the ones that transport managers fall foul of. The language of the statute may be arcane by todays standards but modern business practices that function well from an efficiency point of view can often lead to unexpected consequences for the licence holder.

Much attention is often paid to the requirements of good repute and professional competence, probably because to lose repute or be labelled professionally incompetent by the traffic commissioner is career-ending for a transport manager and a highly embarrassing outcome for any operator. However, even the most upstanding and competent of transport managers can fall foul of the rules by failing to pay sufficient attention to the context in which they work. The requirement that a transport manager should exercise “continuous and effective management” is a simple sounding phrase that can trip up even the most outwardly compliant of operators.

A rose by any other name

In a basic set up within a generic operator, the transport manager will be called just that. It will be clear to all the staff that they are the statutory transport manager and responsible for all the elements of that defined role. The director(s) will understand this role and ensure that the transport manager has the tools to do all the elements of the role and is accountable for them. In larger organisations, or those where transport is ancillary to the business, the waters can be muddied by splitting of roles or systems which interfere with the core responsibilities of the statutory transport manager. The question posed in Statutory Document Number 3 issued by the Senior Traffic Commissioner is whether there are effective systems in place so that the transport manager “either alone or jointly with one or more persons, has continuous and effective responsibility for the management of the transport operations of the business”. The key word here is ‘jointly’, as in many businesses if there are multiple transport managers then they may be looking after different aspects of the transport operation or may report into the named transport manager in a management structure. No matter the type or structure of the business in question the key point is that every transport manager named on the licence is equally responsible in the eyes of the traffic commissioner.

A common issue in public inquiries is where a single staff member is named on the licence but in reality, the day-to-day job is done by other staff members with different titles such as ‘Transport Coordinator’ or ‘Workshop Manager’. There is nothing inherently wrong with a structure like this, and it is perfectly possible to run a compliant operation in this way. The key is in the accountability of the transport manager for all the different elements – and this is where the director(s) of the business needs to be alive to the reporting structure and the oversight afforded to the statutory transport manager. As roles and people change within the business there should be constant evaluation of the accuracy of the face of the licence in terms of reflecting who is actually in charge and who is responsible for the transport manager function. The licence is the only window that the traffic commissioner has into the structure of the operation, and it is incumbent on the operator to ensure that it reflects reality and complies with the requirements of the licensing regime.

Words have meaning, names have power

The second scenario in which operators often run into problems, whether at application stage or public inquiry, is the use of an external transport manager. Again, there is nothing wrong with the concept, but the key is in the execution by the operator. The application form for a transport manager requires a declaration that the transport manager (whether internal or external) has a genuine link to the undertaking. With an internal transport manager, the fact of employment is usually sufficient to demonstrate the link, but with external transport managers the position can be more complex and may be subject to more scrutiny. Whether a transport manager meets the definition of being external or internal is itself a matter for determination by the traffic commissioner. This difference in status can be of significance because an external transport manager is only permitted to work for a maximum of four operators (not licences) with sole responsibility for a combined total fleet of 50 authorised vehicles.

The overriding concern for the traffic commissioner is to ensure that a transport manager is not acting in ‘name only’ and does not have the continuous and effective management required by the legislation. Red flags may include a history of short-term appointments or a lack of evidence that the proposed transport manager has actually met with the applicant operator. Large group company structures may prompt the traffic commissioner to examine contracts and terms of employment, or ask for further information on the structure of the organisation. One iron clad rule is that a transport manager cannot be employed through a transport consultancy, nor should any consultancy offer one as part of an arrangement with an operator – any attempt to do this is an automatic referral to the traffic commissioner.

The principal consideration is to ensure that as an operator your O Licence reflects what actually happens in the business. The transport manager role should not be treated as a box-ticking exercise or a figurehead only role. In terms of legal advice, the priority for any operator should be to ensure that the transport manager has a properly drafted contract in place which is specific to their role and sets out their responsibilities. This is something Backhouse Jones specialises in and a fully compliant transport manager contract can be provided for under £1000 – a prudent investment when costs in a public inquiry can easily top £10,000. In a public inquiry situation, a transport manager will be expected to answer for any failings that come within their remit, and if the organisation is not allowing thy transport manager to work effectively then the licence holder should not expect to be excused from responsibility.

If you would like any advice on your role as a transport manager please contact our Regulatory Team here.