Trans­port equip­ment… fi­nance and in­sur­ance

Australian Forests and Timber - - TRANSPORT -

THE LOG­GING in­dus­try has al­ways been one of the most cap­i­tal in­ten­sive in­dus­tries around and banks have con­tin­u­ally com­plained about high gear­ing lev­els and low re­turn on eq­uity for log­ging clients. The facts re­main that whilst spe­cialised log­ging ma­chines are not get­ting any cheaper even with the strong Aus­tralian dol­lar, the cost of trans­port as­sets have re­mained rel­a­tively steady over the past cou­ple of years. Great news for the log­ging trans­port op­er­a­tor……… per­haps not. There are still many ob­sta­cles to con­tend with on a daily ba­sis that con­tinue to erode profit mar­gins in the log­ging trans­port in­dus­try which is al­ready no­to­ri­ous for its tight mar­gins. Other than the ob­vi­ous fixed costs like fuel, wages, cost of cap­i­tal, it seems the in­creas­ing com­pli­ance is­sues are caus­ing more is­sues for op­er­a­tors.

To en­sure max­i­mum re­turns op­er­a­tors re­quire max­i­mum pay­loads, max­i­mum trips, quick load­ing and un­load­ing of freight and lim­ited down time. Un­for­tu­nately it’s the in­creas­ing com­pli­ance on these op­er­a­tors that is mak­ing these tasks dif­fi­cult to achieve. Some of these com­pli­ance is­sues hin­der­ing the op­er­a­tors in­clude fa­tigue man­age­ment, mass man­age­ment, school bus cur­fews, day­light cur­fews, the use of cen­tral dis­patch sys­tems, and mill open­ing and clos­ing times. Whilst we all want to see the job done safely, these is­sues have im­pacted on the re­turns of the trans­port op­er­a­tor. The in­dus­try has and con­tin­ues to be cut­ting edge with tech­no­log­i­cal ad­vances and adopt­ing best prac­tices where ap­pro­pri­ate. In­tro­duc­tions of op­ti­mi­sa­tion in har­vest­ing ma­chines and emis­sion con­trol sys­tems and cen­tral tyre in­fla­tion sys­tems into the trans­port fleets have been a few such de­vel­op­ments. All of these com­pli­ance and tech­nol­ogy ad­vances have come at a cost to the trans­port op­er­a­tor and in most cases out of their con­trol.

One of the ma­jor ar­eas where an op­er­a­tor can “save money” and en­hance ef­fi­cien­cies, is via the soft prod­ucts as­so­ci­ated with a trans­port fleet, namely fi­nance and in­sur­ance. Hav­ing com­pet­i­tive and well struc­tured fi­nance and in­sur­ance prod­ucts can of­ten be the dif­fer­ence be­tween mak­ing money or los­ing money. It is very im­por­tant your fi­nance and in­sur­ance bro­ker or banker has ac­cess to the most com­pet­i­tive forms of fund­ing, and in­sur­ance mar­kets pos­si­ble. These peo­ple must have an ex­ten­sive in­dus­try and client knowl­edge in order to help ar­tic­u­late a client’s busi­ness to a prospec­tive fun­der/un­der­writer which in turn will en­sure the best prod­ucts are ob­tained, ev­ery time.

Linx Aus­tralia Group, have been heav­ily en­trenched in the log­ging in­dus­try for over 20 years and are well versed with all types of log­ging, dif­fer­ent ma­chine ap­pli­ca­tions, spe­cific tim­ber species and as­so­ci­ated log­ging prac­tices, haul prac­tices and dis­tances, and the many other facets of log­ging. Work­ing closely with the ma­jor in­dus­try bod­ies, ma­chin­ery sup­pli­ers and deal­ing with the spe­cial­ist di­vi­sions within the ma­jor fi­nanciers and un­der­writ­ers, Linx has de­vel­oped the abil­ity to se­cure the “right” fi­nance and in­sur­ance prod­ucts for its clients.

“Whilst the as­set fi­nance prod­ucts are rel­a­tively sim­ple, the dif­fer­ent struc­tures, con­di­tions, rates we ob­tain can make a huge dif­fer­ence. We have in­vested a lot of time into “Lender Ed­u­ca­tion”, tak­ing many of the ap­pro­pri­ate lenders on field trips to bet­ter un­der­stand the in­dus­try, which has ul­ti­mately ben­e­fit­ted our clients enor­mously. ”…..Ro­han Ford.

www.linx­aus­tralia­ | Tele­phone: 1300 732 201

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