Freightways up for Amazon challenge
The arrival of Amazon in Australia is a big opportunity for the New Zealand transport industry, Freightways’ outgoing managing director, Dean Bracewell, says.
Freightways owns NZ Couriers, Post Haste Couriers, Castle Parcels, Now Couriers and Dx Mail.
Addressing shareholders for the last time, Bracewell said he was leaving the company in ‘‘very capable hands’’ to handle the increasing number of parcels as more customers shop online.
‘‘Amazon will create greater opportunity than anything for our industry; it will increase the online market and attract online shoppers,’’ Bracewell said.
When asked if Amazon would put pressure on the company, Bracewell said Freightways was used to it. ‘‘Our volumes in the next few months leading up to Christmas will jump on any given night by 30 or 40 per cent and you have got to be on your game to be able to handle that pressure.’’
Shoppers could expect their purchases to be delivered by drones or autonomous cars in the future, he said.
Freightways‘ express package and business mail division’s profit after tax for the year to September was up 6.4 per cent to $15 million, almost $1m up on the year prior.
Chairwoman Sue Sheldon asked shareholders to vote in favour of a 7 per cent pay rise for directors to bring their fee up to ‘‘market median levels’’.
Bracewell said the new Government’s regional rail plan would not hurt Freightways’ trucking business in the foreseeable future because rail was not reliable or fast enough. ‘‘Unfortunately [rail] is too slow for what we require. We need trucks and planes.’’
The company spent $11m building a hi-tech sorting facility next to Christchurch Airport and opened a new courier premise on Auckland’s North Shore.
In August it bought Australian waste company State Waste Services for A$6 million (NZ$6.7m) so it could deliver medical waste.
Freightways made $60.9m in profit after tax for the year to June 30, up 22 per cent on the previous year.
Bracewell steps down from Freightways’ helm at the end of this year after a 34-year career with company.
Mark Troughear, who heads Freightways’ information management division, will take over as chief executive on January 1.