The External Transport Manager and What You Need to Know

The External Transport Manager, also known as ETM and often abbreviated as ETM, is an indispensable figure when it comes to ensuring compliance with legal obligations and upholding safety standards in the transportation industry. In this comprehensive blog post, we will delve into everything you need to know about the role of an ETM and the essential factors to consider before employing one.

What is an External Transport Manager?

An External Transport Manager is a designated contracted competent qualified professional who works part-time, usually for small to mid-sized operators. They ensure that your vehicles are roadworthy and your drivers comply with traffic and drivers’ hours rules. They must hold a Transport Manager Certificate of Professional Competence (CPC). The Transport Manager CPC is a Level 3 Qualification and is the minimum qualification required for holding an Operator’s Licence. This qualification requires the ETM to pass examinations and can cover both National and International operations.

ETMs are responsible to the wider public, through the Traffic Commissioner, to ensure that an operator is compliant. That is to say, if the Operator is not doing what the External Transport Manager is asking of them, they have a responsibility to inform the Office of the Traffic Commissioner (OtC).

What are the requirements for an External Transport Manager?

Let’s have a look at what the Senior Traffic Commissioner has to say in Statutory document no. 3: Transport Managers. “A designated transport manager must meet the requirements of Article 4 i.e; be of good repute, be professionally competent, and is not prohibited from acting as a transport manager by a traffic commissioner.

An ETM of ‘good repute’ is someone who is with a good reputation and is known to be honest, true, and forthright. The Goods Vehicles (Licensing of Operators) Act 1995, Schedule 3, states that “before an individual can be nominated as a transport manager on an operator’s licence they* themselves must be of good repute”. Traffic Commissioners have the power to remove an individual’s repute, so they can no longer fulfil the role of an ETM. Under paragraph 17B(2) of Schedule 3 (as amended by the Road Transport Operator Regulations 2011), “where a traffic commissioner determines that a transport manager has lost their good repute, the traffic commissioner must order the person to be disqualified from acting as a transport manager”. However, under certain circumstances, a traffic commissioner can also reinvoke a transport manager’s good repute.

Always check, when employing the services of an ETM their ‘good repute’ is still intact!

How many operators can an ETM work for?

The Senior Traffic Commissioner in Statutory document no. 3: Transport Managers states that “an individual is not designated to act in that capacity for more than 4 operators or be responsible for more than 50 vehicles or such smaller number as the traffic commissioner considers appropriate”.

Always check with your prospective ETM that they have enough margin to manage your operator licence. Further, the Traffic Commissioner will need to be satisfied the ETM can carry out their duties

Availability

The guidelines refer to starting points only and give indicative weekly hours of work which might be specified by a transport manager, but the traffic commissioner will consider all relevant factors in determining whether the starting points should be departed from. The level of hours required for any other employment, self-employment, or activities in which the proposed transport manager is engaged must also be taken into account as they may restrict their ability to devote sufficient time to the duties of a transport manager on any operator’s licence. The suggested amounts of time are a starting point as to what traffic commissioners might expect in terms of hours worked. They are intended as a prompt to operators/applicants and the nominated CPC holder to discuss what time is actually required.

TM1G statutory guidelines for the number of hours transport managers should work

Further, the Traffic Commissioner may also require information about the location of the operating centres for which a Transport Manager has responsibility, and whether travelling time will have an impact on thier ability to provide effective management. External Transport Managers should therefore include a breakdown of their working week at the point of application, including details of visits to the operating centres and of travelling time, as this may be requested.

How does employment work?

The operator and the ETM will have an initial meeting to discuss each other’s requirements. Once they reach an agreement, the operator will fill out a form on the online application. Subsequently, an email containing a link to the operator’s application will be sent to the ETM. The ETM must then complete the TM1 form, upload their TMCPC qualification, and, if required, provide evidence of their two-day refresher course. Additionally, at this point, the ETM must upload a cover letter explaining their other employment commitments and travel time to the operating centre.

TMs typically operate as independent contractors, and their services are billed on a monthly basis. Once both parties sign the agreement contract, their employment will commence.

Your ETM is expected to conduct site visits at least once a month to fulfil their responsibilities, especially during the initial stages of employment or if your Operator Compliance Risk Score is unfavourable. It is essential to maintain regular communication to ensure smooth operations, so keep the lines of communication open at all times. Additionally, you should have someone designated to handle day-to-day transport-related tasks.

Can an ETM be a volunteer?

No. Richard Turfitt (TC) pointed to a ruling made by the Upper Tribunal in 2015, stating that “a transport manager cannot be a volunteer as they often cannot establish a genuine link to the operator.

Beware of name-only ETMs

This is an ETM that offers their services without doing any of the work.

The Upper Tribunal has emphasised the “need for a proper, active transport manager is not a mere formality but a serious requirement.” 8 It follows that a transport manager should not be one in name only but should actively discharge their duty to exercise continuous and effective management.

If you find an ETM who offers their services in name only, then I would politely decline. Services in name compromise road safety and can also put your Operator’s Licence in jeopardy.

What should you be looking for when employing an ETM?

When selecting an External Transport Manager, several key factors should be considered:

1. Qualifications: Ensure the ETM holds the appropriate TM CPC qualification, and if operating abroad, verify if they possess the International CPC qualification
2. Good Repute: Confirm that the ETM maintains good repute, as it is a critical element of their credibility and trustworthiness
3. Work Ethics and Experience: Consider the ETM’s work ethics and assess the additional value they can bring to your operations.
4. Robust Policies and Procedures: Check if the ETM can provide pre-compiled, robust policies and procedures that can be immediately implemented. If they don’t you can purchase our compliance pack from our shop.
5. Experience with FORS: If relevant, determine if the ETM has experience with the Fleet Operator Recognition Scheme (FORS)
6. Frequency of Visits: Ensure the ETM commits to regular site visits to fulfil their responsibilities
7. Cost: While cost is a factor, prioritise quality and expertise over the cheapest option

The Senior Traffic Commissioner has also identified some general indicators of effective transport management including:

Knowledge and skills – As indicated this requires more than just the formal qualification

Impact – Where the individual CPC holder is recognised as a key person within the organisation so that s/he can influence decisions relevant to compliance and authority to deal with external contractors. Their position should reflect the professional and personal responsibility vested in the individual

Decision making – Where the individual CPC holder is sufficiently close to drivers to be able to influence their behaviours and senior enough to influence the deployment of resources and to inform the decisions of the owner/directors/partners.

How experienced will the ETM need to be?

If you are a new Operator, a new ETM might be just the ticket as you can both grow together. A newly qualified ETM is always really enthusiastic and raring to go. If you are an orange or red operator, however, you will need a more experienced ETM who can offer a tried and tested more robust service.

Will I need someone in place to look after day-to-day duties?

Yes, you will. As your ETM won’t be with you full time you will need to have someone in place for running day-to-day duties on behalf of the External Transport Manager. You will need to work as a team to ensure you are compliant 100% of the time.

What are an External Transport Manager’s responsibilities?

The five key responsibilities include:

1. Compliance: The primary responsibility of an ETM is to ensure that the Operator complies with all relevant laws and regulations. This includes keeping abreast of changes in legislation and implementing necessary adjustments to maintain compliance
2. Driver Training and Management: ETMs are responsible for driver training and ensuring that all drivers are appropriately licensed and qualified. They also monitor driver performance and implement corrective actions when needed
3. Fleet Maintenance and Safety: ETMs ensure that the Operator’s fleet is well-maintained and meets all safety standards
4. Record Keeping: Accurate record-keeping is crucial in transport operations. ETMs maintain records of drivers’ working hours, vehicle inspections, maintenance logs, and other essential documentation
5. Incident Management: In the unfortunate event of accidents or incidents, an ETM will handle the situation promptly and appropriately. This involves conducting investigations, reporting incidents to relevant authorities, and implementing preventive measures.

What are an External Transport Manager’s tasks?

The Senior Traffic Commissioner identified the following non-exhaustive list of the types of activity which would be expected of an External Transport Manager.

General Tasks

• Manage and review compliance systems to ensure that they are effective
• Address any shortcomings such as prohibitions and/or annual test failures
• Ensure that relevant changes are notified to the Traffic Commissioner in accordance with operator licence requirements
• Keep up to date on relevant changes in standards and legislation

Driver Admin

• Ensure that drivers hold the appropriate licence for the vehicle they are driving (including non-GB vocational drivers from EU member states who are required to register their driving licences with DVLA within 12 months of being resident)
• Ensure that regular checks are carried out on the drivers’ licences
• Ensure that vocational drivers hold a valid driver CPC qualification (DQC)
• Ensure that all driver hours records are kept for a period of no less than 12 months
• Ensure that all working time records are kept for a period of no less than 24 months

Driver Management

• Ensure compliance with driving hours rules (EU or Domestic Hours rules)
• Ensure that drivers are recording their duty, driving time and rest breaks on the appropriate equipment or in drivers’ hours books and their records are being handed back for inspection as required
• Where appropriate, download and store data from the vehicle digital tachograph unit. This should be at least every 90 days and from the drivers’ tachograph smart cards, at least every 28 days
• Ensure that driver hours records are retained and are available to be produced during the relevant period
• Ensure that records are retained for the purposes of the Working Time Directive (WTD) and that they are available to be produced during the relevant period
• Ensure that drivers are adequately trained and competent to operate all relevant vehicles and equipment
• Contribute to relevant training and subsequent disciplinary processes as required.

Driver Operations

• Ensure that drivers are completing and returning their driver defect reporting sheets and that defects are recorded correctly
• Ensure that all drivers and mobile workers take adequate breaks and periods of daily and weekly rest (as per the relevant regulations which apply).

Vehicle Admin

• Ensure that vehicle maintenance records are retained for a period of no less than 15 months and are made available upon request
• Ensure that vehicles are specified as required and that operator licence discs are current and displayed correctly
• Ensure that vehicle payloads notifications are correct, height indicators are fitted and correct, and tachograph calibrations are up to date and displayed
• Ensure that there are up-to-date certificates of insurance indemnifying company cars, commercial vehicles, and plant
• Ensure a suitable maintenance planner is completed and displayed appropriately, setting preventative maintenance inspection dates at least 6 months in advance. This should include the Annual Test and other testing or calibration dates.

Vehicle Management

• Ensure that vehicles and trailers are kept in a fit and roadworthy condition
• Ensure that reported defects are either recorded in writing or in a format that is readily accessible and repaired promptly
• Ensure that vehicles and trailers that are not roadworthy are taken out of service
• Ensure that vehicles and towed equipment are made available for safety inspections, service, repair, and statutory testing
• Ensure that safety inspections and other statutory testing are carried out within the notified O-licence maintenance intervals (ISO weeks)
• Liaise with maintenance contractors, manufacturers, hire companies, and dealers, as might be appropriate. They also make certain vehicles and trailers are serviced in accordance with manufacturer recommendations

In addition to ensuring your compliance, the External Transport manager plays a vital role in reducing your fuel costs, assessing your current drivers’ Health and Safety policy status, and assisting with implementing training programs.

Where can I find an External Transport Manager?

An internet search is a good start and social media are good resources. You could also try our ETM Finder Service. This service connects External Transport Managers with Operators. We hold a comprehensive database of ETMs across the UK, so it is likely we can find someone near you. We will also ensure your ETM meets all the criteria we have looked at previously.

How much does an External Transport Manager cost?

For most reputable ETM suppliers, the rates start at £450.00 for one vehicle on the licence, plus £100.00 per additional vehicle per month.

Will there need to be a contract in place?

Yes, you will need an External Transport Manager Contract. This is a legally binding agreement between you and the External Transport Manager. The contract outlines the terms and conditions of employment and the roles and responsibilities of the ETM. You and the ETM will need a contract in place when completing the online TM1 form.

The contract should include the following:

• Appointment/Termination
• Duties
• Fees, invoicing, and expenses
• Confidentiality
• Delivery up documents
• Tax liabilities and indemnity
• No employment
• Data protection
• Force majeure
• Survival of causes of action
• Severability
• Waiver
• Notices
• Law and jurisdiction
• The five key transport manager tasks in detail

You can purchase a template External Transport Manager contract from our shop.

How will an ETM implement our systems?

Conclusion 

The External Transport Manager plays a pivotal role in ensuring compliance and safety within the transportation industry. By carefully selecting an ETM who meets the necessary qualifications and exhibits strong work ethics, you can enjoy the benefits of smooth operations and reduced fuel costs. Keep communication lines open and collaborate effectively with your ETM and the designated personnel responsible for day-to-day tasks to maintain full compliance at all times.

Are you looking for an External Transport Manager?

Here at TMconsultant, our ETM Finder Service connects transport managers with operators. Every day external transport managers from all over the country join our database who are looking for work. Our ETM Finder Service takes the hassle out of the search process, connecting you with quality qualified ETMs.

Where can I get more information?

If you have any questions regarding the External Transport Manager, please do get in touch. Here to share the knowledge!

*I have changed the wording here from ‘he or she’ to ‘they’ to reflect the current use of non-binary pronouns.