TIL gets big­ger… and big­ger again

New Zealand Truck & Driver - - News -

THE SEC­OND BIG TRANS­PORT AND LO­GIS­TICS com­pany ac­qui­si­tion in three months has seen Taranaki-based Trans­port In­vest­ments ex­pand into what’s be­lieved to be New Zealand’s largest pri­vately-owned truck­ing op­er­a­tion.

TIL’s pur­chase of NZL, only a few days af­ter it com­pleted the pur­chase of Christchurch-head­quar­tered Move Lo­gis­tics, has brought to­tal TIL Group truck num­bers (in­clud­ing ex­clu­sively-con­tracted owner-driver units) to al­most 900.

Prior to the buy­outs, NZL ran around 120 units, with the Move eet num­ber­ing 100. Move em­ploys over 300 peo­ple, and NZL a com­pa­ra­ble num­ber.

In line with its prac­tice af­ter ear­lier ac­qui­si­tions, TIL in­tends to main­tain NZL and Move as stand­alone di­vi­sions within the Group, join­ing the ex­ist­ing freight op­er­a­tions Hooker Paci c, TNL, Road­star, Paci c Fuel­haul, ATL Haulage and McAuley’s Trans­port.

TIL chair­man and man­ag­ing di­rec­tor Jim Ram­say ac­knowl­edges a cer­tain amount of over­lap be­tween NZL’s ac­tiv­i­ties – pri­mar­ily con­tainer and line­haul trans­port – and some of the TIL Group’s ex­ist­ing com­pa­nies, but says that’s al­ready the case: “ ere’s some cross­over in a lot of the busi­nesses within the Group, but they work in to­gether...

“And the same will ap­ply to NZL. From an op­er­a­tional point of view it will re­main to­tally in­de­pen­dent.”

e deal was re­port­edly prompted by the de­sire of NZL Group owner Ken Har­ris to nance fur­ther ex­pan­sion of con­tainer de­pot op­er­a­tor Con­tain­erCo, which he owns in part­ner­ship with the NZ arm of Chi­nese ship­ping group COSCO. Con­tain­erCo was formed four years ago from the merger of NZL’s con­tainer de­pot op­er­a­tions with United Con­tain­ers and the pur­chase of CENTREPORT Welling­ton’s con­tainer hire and sales busi­ness, and has op­er­a­tions in Tau­ranga, Auck­land, Napier and Christchurch.

Welling­ton busi­ness­man Har­ris had led a man­age­ment buy­out of NZL in 2006 and the com­pany re­port­edly was turn­ing over more than $100mil­lion within three years.

Nei­ther Ram­say nor Har­ris have been pre­pared to di­vulge the sale price of NZL, but Har­ris was re­ported as say­ing he was happy with the deal: “It was a fair price for both par­ties, I didn’t try tak­ing the last dol­lar out of the busi­ness.”

Ram­say con­curs: “We thought it was fair as well. We’ve known Ken for many years, and have a very good re­la­tion­ship with him – as also we have with Bren­dan Pren­der­gast from Move, so th­ese long­stand­ing as­so­ci­a­tions made for the ba­sis of good trans­ac­tions.”

e Move pur­chase, he says, sprang from the TIL Group’s medi­umterm strate­gic di­rec­tion: “We’ve had a small ware­house op­er­a­tion be­fore this, and the ac­qui­si­tion of Move, which is one of the top ware­hous­ing com­pa­nies in NZ, is part of a plan to be­come more in­volved in that sec­tor. Like NZL, Move will con­tinue to op­er­ate in­de­pen­dently.”

ough NZL is also in­volved ex­ten­sively in ware­hous­ing, Ram­say doesn’t see a con ict with Move, ex­plain­ing that NZL’s ware­hous­ing is more of a bulk stor­age na­ture, while Move’s Em­pha­sis is very much on 3PL ser­vices.

T&D

NZL (be­low right) and Move Lo­gis­tics (be­low left) are the lat­est ad­di­tions to the lineup of brands in the TIL group eet – some of them on show in the photo above. e com­bined eet is now close to 900-strong

Newspapers in English

Newspapers from New Zealand

© PressReader. All rights reserved.