Freight prices tipped to grow
Niche tour market growing in popularity
A SUPERMARKET owner has spoken out over concerns the unsuccessful sale of freight company Aurizon will increase transport costs and crush grocery businesses in the Far North.
It is understood the Australian Competition and Consumer Commission is leaning towards blocking the sale of Aurizon to Pacific National.
Pease St’s Piccones Supa IGA owner Peter Piccone said if the sale was approved, Pacific National would operate in partnership with freight forwarders Linfox and Toll and continue to send goods by rail, maintaining more affordable freight charges than by road.
Aurizon has publicly indicated, if it is not acquired by Pacific National, its next cheapest option is to close operations, leaving Pacific National with no capacity to send goods by rail.
Mr Piccone has written to federal government representatives about the situation.
He said the closure of the all-rail transport to northern Queensland will “have a significant effect on my business as well as many other businesses and farmers in the area”.
“The risk of the complete closure of rail transport services to all customers of Aurizon in Northern Queensland, for at least 18 months, is real. There will be empty shelves,” he said.
“Local retailers are calling on the ACCC to allow the sale of Aurizon to Pacific National to go ahead so that rail transport remains open for the supply of groceries and other goods to North Queenslanders.
“Some retailers will close, because the increases in road transport costs will price them out of the market. This will lead to less competition in grocery prices. The damage will also extend to farmers who use the rail network to get produce to Brisbane.”
Master Grocers Australia chief executive Jos de Bruin said the average current blended freight cost per pallet was $155 per pallet (wet and dry groceries).
“If independents are forced to use road freight this could increase by 20 per cent to $185 on average per pallet,” he said.
“The cost increase would be from $50-150 per pallet, as we go further out from centres such as Mackay, Townsville and Cairns, if we go by road.”
Mr Piccone said freight cost increases meant shelf prices could go up by a minimum of 15 per cent, making independent supermarkets uncompetitive and commercially not viable.
“Road transport will increase significantly, which means more trucks on the Bruce Highway. This will cause damage to the roads,” Mr Piccone said.
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THE city’s offerings outside of its popular natural attractions are growing steadily with a boutique tour business expanding its services.
Corrina Jarrad started Cairns High Heeled Tours in 2015 with an eye for catering to the superyacht market but demand for shopping, tours, dinners and adventures around the city in a six-seater Mercedes Benz have ramped up.
The company offers personal, full and half-day tours of Cairns and the surrounding Tablelands areas.
Ms Jarrad said the new Bubbles and Bling Mystery Shopping Tour had attracted plenty of interest.
“We’ve got local, progressive food and wine walking tours, but this is the only shopping tour in town and it is all high end,” she said.
“There are lots of discounts and lunch included and guests are driven around in a Mercedes – we cater for six ladies at a time.
“When we start to get more of the bigger groups, we will expand to cater for them too.
“If you’ve got a 50th birthday, a special occasion we can also offer private dining. At the end of the day we’ll cater to whatever the needs are.
“This is definitely a niche market and you’re really pampered from the minute you hop into the car.”
With a background in hospitality, Mrs Jarrad saw a gap in the Far North tourism market.
“The list of activities has grown due to demand and people are letting us know what they want which is really fantastic,” she said.
“We also do a brewery tour for the boys. We try and use all small businesses in town.
“We’re all of the same mindset and there are some great products in town, too.”