De­hired con­tain­ers drive Chalmers loss

Australian Transport News - - Contents -

Firm sees change in empty con­tain­ers prac­tices and the loss of clients

A CHANGE IN HOW EMPTY con­tain­ers are de­hired and the loss of two Bris­bane clients has con­trib­uted to trans­port and lo­gis­tics com­pany Chalmers mak­ing a net profit loss for the six months to De­cem­ber 31.

Chalmers recorded a loss of $ 806,619 af­ter tax for the half, greater than the loss of the $ 101,969 it recorded in the first half of 2016-17, on the back of a fall in rev­enue ($ 31.6 mil­lion in 2017 com­pared to $ 32.7 mil­lion in 2016).

The com­pany recorded a full-year net profit af­ter tax of $ 481,000 in Au­gust last year.

In its an­nounce­ment to the Aus­tralian Se­cu­ri­ties Ex­change ( ASX), Chalmers says the half-year re­sult is was “a sig­nif­i­cant de­te­ri­o­ra­tion” com­pared to the pre­vi­ous year.

Chalmers’ empty con­tainer parks in Bris­bane and Mel­bourne ex­pe­ri­enced the big­gest drops in rev­enue, with turnover re­duc­ing by $ 3 mil­lion and op­er­at­ing profit down $ 2 mil­lion on the 2016 re­sult.

Aside from the loss of the clients, the change in the way that ship­ping lines were hav­ing their con­tain­ers de-hired had been the ma­jor con­trib­u­tor to the loss, the com­pany says: “This change has re­sulted in a high per­cent­age of empty con­tain­ers be­ing de-hired at ship­ping ter­mi­nals, caus­ing re­duc­tion in han­dling and re­pair work be­ing per­formed at the Chalmers empty con­tainer park in Yar­rav­ille.”

The neg­a­tive im­pact of this was slightly off­set by the im­proved per­for­mance of Chalmers’ Queens­land Tank Ser­vice and Queens­land Freight Sta­tion dur­ing the half af­ter the com­pany sub­leased ex­cess ware­house ca­pac­ity and ac­quired new con­tracts last year.

Chalmers an­nounced last year that it had en­gaged con­sul­tants to as­sess the op­tions avail­able for the Yar­rav­ille site into the fu­ture, not­ing that the over­all precinct was chang­ing due to in­creas­ing cur­fews on the Fran­cis Street road link due to the con­struc­tion of the Western Distributer project.

De­spite this, Chalmers said it was ex­pect­ing its Mel­bourne op­er­a­tions to per­form bet­ter in the se­cond half, with im­proved cost con­trol and rev­enue yields in its trans­port and lo­gis­tics di­vi­sion see­ing prof­itabil­ity im­prove by $ 100,000 so far.

“This change has re­sulted in a high per­cent­age of empty con­tain­ers be­ing de-hired at ship­ping ter­mi­nals”

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