Mail growth delivers for Freightways

Freightways expects the strength of the New Zealand and Australian markets will keep delivering it growth after a ‘‘really strong’’ year.

The company’s profit after tax for the year to June 30 was $60.9 million, up by more than 22 per cent on last year.

This was despite what it called ‘‘significant disruption’’ caused by last November’s Kaikoura earthquake.

Each of its three key business divisions – express package, business mail, and information management – performed strongly, managing director Dean Bracewell said.

‘‘There’s been a lot going on in the last year but to come out with a result like that is really strong.’’

Freightways has invested $11m in a new facility in Christchurch that automatically sorts and scans parcels while having airside access to its Boeing 737 aircraft, which the company upgraded to for extra capacity.

Bracewell said this major project was completed to budget and on time, and was expected to deliver benefits from this year on. But a particularly strong December peak had put pressure on Freightways’ service, he said.

Bracewell said the company’s two markets in Australia and New Zealand would both remain positive.

As such, volumes and activity were expected to increase from existing and new customers this year.

The company would spend about $17m on projects this year, down from $24m last year. This would include investment in more capacity in Auckland, particularly west Auckland and the North Shore where there was strong growth potential.