Chillout An Oxford Cold Storage publication

Message from Management Issue 17 – December 2012 ______

In this issue : As 2012 comes to a close, it is time to reflect on the year just gone. After many years of drought which resulted in lower volumes of meat, dairy & vegetables, this year has seen  Message from Management a bumper season. Over the past few months, all stores have been running at capacity.  RTS & Peters Ice Cream Last year we were dealing with product shortages. This year, we have dealt with  Transport Manager report excessive volumes. The large volumes of storage and throughput have created a hard  Achievements road to Christmas this year and everybody has done exceptionally well to get us there.  ATA, VicRoads & Us The pace of change within our business has continued unabated. We have  OH&S & Staff News welcomed Frews, Wagstaff, United Dairy Products and Stones Bakeries as new  Beginnings, Arrivals & Returns customers this year. We have also started providing services for Warrnambool Cheese &  List of Years of Service Butter and Murray Goulbourn Co-Op again. Management thanks all our staff and our clients’ staff for making the transition of this new business so smooth and efficient. In the last few years, we have had the challenge of managing the changing ordering patterns by the retailers. This has continued this year. The move away from our suppliers / manufacturers branded products has led to some extremely uneven ordering patterns. There has been a move back to locally produced product and we have had to manage large volume shifts as the major retailers change their house brand suppliers. We would now expect to see this as a regular occurrence. It has been a credit to the hard work and ingenuity of our staff that we have been able to meet these challenges and continue to deliver the high standard of service that we pride ourselves on. We have undertaken a number of major projects this year. One of the biggest was the SAP implementation. Our IT team, in conjunction with Fonterra staff, have done an excellent job in managing the implementation and transition. Anthony Walshe and Tim Black were instrumental in ensuring the changeover in Fonterra’s IT systems resulted in minimal disruption to our operations and service delivery. Drago & Vlado Pandurevic did a fantastic job in managing the operational transition. Feedback received from transport companies complementing our performance during the transition has been excellent. Well done to all. Another major project that we have undertaken was the establishment of a dry warehouse for the storage of Fonterra milk powder. This was done extremely professionally and successfully. Craig Russell and his team have done a great job in what is essentially a new business for Oxford. There will be a number of new challenges over the next 12 months. The first will be the SAP roll out for Fonterra Ingredients. This will be closely followed by McCain’s SAP implementation. Earlier this year, Nestlé sold its Peters Ice Cream business to the Australian Food Group. After a settling-in period, we expect to see some big changes in how this business is run. One of the first changes will be the implementation of new computer systems as Peters exits the Nestlé IT environment. We will also expect to see a change in how the new management will run the business. We wish the new team all the best and will endeavour to help make the transition very successful. The biggest news for next year will is the planned construction of the extension to Freezer 13. The new extension will hold approximately 20,000 pallets which should see site capacity increase to in excess of 170,000 pallet spaces. This should help alleviate the capacity issues experienced this year. Construction is expected to commence in early 2013 (see plan on page 6). We have also had a number of financial challenges this year. The Carbon Tax was introduced in July which has led to a significant increase in our electricity bills. The increase has been so significant that we have had to pass this onto our customers in the form of levy. Electricity is one of Oxford’s largest expenses and we have been hit very hard by this new tax. Gabor Hilton and his team have continued to implement a number of projects to reduce our energy consumption. The LED lighting roll out has continued, as has the implementation of variable speed drives to run our compressors. Unfortunately we have also seen other costs continue to rise. We will need to continue to vigorously pursue cost reduction opportunities where-ever possible. Radio Terminal Systems (RTS) has been transformed under the management of Justin Anderson. The business has refocused on what it does best, which is to provide IT services with a clear operator focus. This can be seen in the results for the year. Projects are being completed on time and on budget and customer satisfaction has improved dramatically. Well done to Justin and his team. Management thank all staff for their continued efforts and loyalty. It is a credit to all our staff that Oxford is able to maintain the high levels of service we provide. We can all be confident that by maintaining this level of effort and pride, we will continue to succeed in meeting and even exceeding our clients’ expectations. On behalf of the Fleiszig & Stern families, we wish all staff and customers a safe & happy festive season and look forward to a fantastic 2013. Paul Fleiszig - Director Chillout Oxford Logistics Group Newsletter – December 2012 1

PETERS ICE CREAM

HAS A NEW OWNER

Peters Ice Cream is set to greet the warmer months with Radio Terminal Systems (RTS) design and manufacture a fresh approach and the promise of novel tastes after a data capture devices for the Cold Storage and Rugged new Chief Executive took over the helm. Warehouse market place. Our products are designed to work continuously down to -30 degrees C. These Stephen Audsley, who built up some of ’s best- products are manufactured in our own production facility loved labels from King Gee and Dunlop to Breville, is located in Laverton North, , Australia. settling in after Nestle sold the company to private equity

firm Pacific Equity Partners in August. Our product line-up includes Forklift Mounted Data

Terminals, Rugged Scanners, handheld battery-operated Mr Audsley, who ran Breville Group for four years after 16 wireless barcode scanning terminals (Tracers) and our years at Pacific Brands, says that Peters is well-positioned range of Impact Management Systems (IMS). RTS also for growth. specialise in unique – harsh environment product design and manufacture, and have developed unique product “Peters has a world class, cost competitive production solutions for our customer base. facility at Mulgrave, but the plant is under-utilised and

there is much scope to increase production”. Mr Audsley We deploy wireless networks in mission critical - harsh also sees scope to expand overseas. environments and point to point wireless bridge solutions. We also offer consultancy services to “There are opportunities as we see the development of customers who are looking at technology deployments in the Asian markets and there is also a big focus on both Cold Storage and ambient temperature warehouses. encouraging the team to develop new products and

ideas”. RTS has a dedicated team of Service Technicians and

Engineers who are capable of supporting our own range of products in the field, as well as third party products such as printer and barcode scanners. Our Service Technicians also perform installation and rectification works as required.

RTS is not considered as being just another “Box Mover” in the data capture industry. RTS takes pride in being a value adding solutions provider and a skilled technology services company.

Please call or email us for more information on how we may be able to assist your business.

Got’em licked: New Peters chief Stephen Audsley Phone: 1800 RTS RTS (1800 787 787) Email: [email protected] Mr Audsley replaces Nestle veteran, Juan Reyes, who ran Website: www.radterm.com.au Peters for four years and will return to Nestle.

Nestle put Peters up for sale late last year as part of a global plan to exit its food businesses and focus on a core range of multi-national brands.

Oxford Cold Storage Enterprise Bargaining Agreement 2011 – 2013 was approved and registered by Fair Work Australia on June 28, 2012.

CONGRATULATIONS go to all the negotiating parties for the outcome achieved.

RTS Production Facility – Pipe Road, Laverton North Chillout Oxford Logistics Group Newsletter – December 2012 2

In July, Oxford hosted a group from the Supply Chain Logistics Association Australia (Vic) to a site visit to Here and there further their education in the cold chain industry.

with our Transport Manager In August, the transport industry welcomed the news that the Heavy Vehicle National Law Bill, which will

establish the NHVR and consolidate various state and Jacquelene Brotherton Transport Manager, Oxford territory transport laws into one body of law, had been passed in Queensland Parliament.

During the year, I have been involved in a number of The transport industry started the year with committees on behalf of Oxford – the DECA Industry some tragic accidents that led to a major crackdown on Consultative Committee, the Western Transport Alliance the industry especially in New South Wales where the (made up of western area councils), the T&L Workforce accidents occurred. The RMS and NSW police launched a Advisory Group and most importantly the WILD campaign under Chain of Responsibility laws that committee whose major project is the upgrade of extended into Victoria and South Australia. The campaign Dohertys Road and especially the intersection at Hume gathered momentum during March and April and by Road. May, over 1000 charges had been laid against four companies’ including charges against the Directors of the companies. The regulators are determined to target the small minority of trucking companies and drivers who continue to flout the law. It is of major importance that we do everything we can to meet our obligations under the Chain of Responsibility and to report any suspected breaches so that we can prevent them from happening. This is one of the major reasons that Oxford Cold Storage has been instrumental in developing the RWTA Chain of

Responsibility Code of Practice which was registered by VicRoads in February this year. It is also the reason we have ongoing training in Chain of Responsibility and in August, undertook a voluntary audit to ensure we comply with the regulations. The WILD committee and Wyndham City Councillors are mounting a campaign to bring public attention to In other news, we started the year with a site visit from the badly needed duplication of Dohertys Roads and an the VicRoads Technical Team for a training day. Due to upgrade of the intersection at Hume Road, preferably the success of this day and a subsequent visit by by the addition of traffic lights. This is a project where Gippsland TSS officers, we will be welcoming more everyone can assist us by reporting any near misses, VicRoads visitors as they believe a greater understanding incidents and accidents to support our application to of the role of other parties in the transport chain will be the Minister for an upgrade. There will be a website beneficial to all. launched in January 2013 for this purpose. Please In March, I headed off to the USA and Canada. I attended access and add comments: www.fixdohertysrd.com.au. the Mid America Truck Show in Louisville, Kentucky along with just over 88,000 others. I attended the Women in Trucking “Salute to Women behind the Wheel” and checked out new trucks and safety technology. I also travelled to Columbus, Ohio to meet with Battelle and a refrigerated transport company, FST Logistics, before going to Washington, DC for the serious part of my trip. I had meetings with the American Trucking Association, National Tank Truck Carriers Inc. and Truckload Carriers Association to speak about the Australian Chain of Responsibility laws and what was happening here. I also met with the Global Cold Chain Alliance to learn more about their projects. Halls Corp Warehouse again hosted me at their cold store in New Jersey, where we discussed their various energy saving programmes and later I Jacquelene was named as a Finalist in the National Trucking Industry travelled to Montreal to look at PowerChocks™. Women of the Year at the ATA Convention held in Sydney in May 2012

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Nathan Roylance Nathan Roylance represented Oxford Cold Frank Vale Nominee 2012 Storage and Victoria in the RWTA Frank Vale Award for the best young professional in the Australian cold storage industry.

Nathan was selected to represent Victoria at the RWTA conference in Kingscliff, northern NSW. As part of the selection process, each candidate had to deliver a speech to approx. 120 delegates from all the major cold storage companies in Australia (including Oxford, Americold, Swire, Rand and

Montague). Nathan did a brilliant job! An interview Paul Fleiszig as Chairman of the was also conducted of representatives from the Refrigerated Warehouse and senior management of Swire, Montague & Rand. Transport Association addresses Nathan represented both Oxford & Victoria with the audience at the RWTA great professionalism and honour. conference at Kingscliff, NSW.

Gabor Hilton , Oxford Cold Storage’s Engineering Manager, was invited to South Africa by the Southern African Refrigerated Great Leaps in Energy and Resource Distribution Association . Gabor met with the SARDA Cold Store Efficiency at Hume Road Energy benchmarking group and the Energy Intensive User Group of

Southern Africa. He also visited several cold stores in different sectors Since 2009, the Hume Road storage capacity was expanded by 37% and addressed two SARDA meetings, one in Cape Town and another in Johannesburg. from 721,701m³ to 858,776m³.

During 2011, we managed to reduce the electricity consumption by 12.89% below the 2009 levels. This current year, 2012, the electricity use is trending at 2009 levels. The increased electricity use for the current year over last year is caused by much higher turnover as well as a much increased amount of blast freezing.

The energy savings have been achieved by massive investments in energy efficiency technologies, such as retrofitting energy efficient LED lighting and Variable Frequency Drives on compressors and condenser fans. The rollout of these energy efficiency measures is continuing.

Energy efficiency also reduces the water used in our refrigeration condensers. Since 2009, we reduced our total water use by 23% from 81,019kL to 62,541kL. Potable water use was reduced by 20.6% from 56,173kL in 2009 to 44,624kL during 2011. 17,916kL of rain water

Pictured : Gabor Hilton , Ebrahim Sallie – Etlin CS, was harvested during 2011. James Cunningham – Barpro Storage With the huge increases in electricity and water costs over the past three years, these savings in energy and water helped to mitigate the additional operating costs. SCLAA visit in July We wish to thank our operational staff for helping us to save energy “Tim Black and Kevin Lancer , Client Managers at Oxford, led by keeping chamber doors shut and by turning off lights when they us through the different facilities explaining the warehouse are not required. operations in the low temperature environment. Despite the freezing conditions, both leaders were most patient with Ian Spence , deputy to SCLAA members’ questions. We were overwhelmed by the Maintenance Dept – Maintenance Manager closeness of the family despite its global successes. Oxford Quiet Achiever Frank Verzaci, has been Cold Storage is truly a world class organization!” - Elsie Hooi with us for 2 years. In a Supply Chain Logistics Association Australia Vic Committee role which requires constant attention to detail to maintain a high plant efficiency level, Ian has filled the role with quiet competence. His cheerful outlook is an added asset in a sometimes difficult job. He enjoyed stepping up Tim Black Kevin Lancer to cover for Frank’s Long Service Leave.

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Experiencing ATA, VicRoads and Us the other side

Stephen, Paul & Neso at the wheel

Oxford Managers and Supervisors were invited by the Driver Education Centre of Australia (DECA) to check out their driving Oxford also supported the VicRoads ‘Road to Respect st skills on one of the DECA simulators. The 1 group to attend Roadshow’ by providing sanctuary to the truck and trailer when were Stephen Fleiszig and Paul Fleiszig, Joe Kanzamar, Neso it was not on the road and we were given our own private Vidakovic and Tim Black. They were challenged with a variety of showing. traffic situations, weather and road conditions and different truck and trailer configurations. After they had all completed their time at the wheel, they were given the score from the DECA trainer. While some did much better than others, I am sure that the truck drivers on site have no reason to fear for their jobs. Opportunities for others to take part will be organised in the near future. We were invited to participate in this because Oxford is represented on an Industry Consultative Committee formed by DECA to achieve better understanding of the skills needed in the industry, in addition to driving ability.

VicRoads and

Channel 9

st October 1 2012 saw a group of transport industry We also gave the CEO and National Manager, Corporate representatives and VicRoads gather at Oxford for a Relations a tour of the Oxford site and they were truly presentation of the Heavy Vehicle Rollover Prevention impressed by our business and our staff. Programme which was filmed by Channel 9. This was recorded at Oxford at the request of VicRoads as we An excerpt from their letter follows: “I appreciated the were involved in the making and launch of the DVD in opportunity to view your facilities. It is indeed an impressive

2010 and we are known to have a strong interest in the operation. Two of your staff in particular kindly made ongoing safety of the road transport industry. themselves available to show us the buildings under their care. Maaka Mark and Dragan Pandurevic, both demonstrated a

passion and pride that we thought were great reflections of your family and your business values.”

YouTube: Channel Nine News - Truck Rollover story 2012 -10 -08

Maaka Mark Dragan Pandurevic

Chillout Oxford Logistics Group Newsletter – December 2012 5

Safe Talk National Bandanna Day with with Lee Baulch (Freezer 11C) Maggie Montagnese October 26, 2012 saw OH&S Manager, Oxford several Oxford employees

sporting bandannas to 2012 has been a very busy but productive year, continually support Lee Baulch in his striving to improve safety, reduce LTI’s and cost to property effort to raise funds for damage. LTI’s were reduced compared to 2011 not by much ‘Canteen’. but, we have made a start and will continue to strive down that path. Lee is involved due to a family connection to What have we done in 2012? ‘Canteen’ and was well supported by co-workers • Improved the Incident Form so that it reflects for both and truck drivers who accidents and incidents. were aware of his • Introduced drug and alcohol testing on site and pre-drug commitment. We will be and alcohol testing for new employees prior to sure to be there again for commencing work. him in 2013. • Near Misses in 2011 were on the rise with 57 batteries reported falling out from the BT Reach trucks due to guards being forgotten to be replaced. Congratulations to Carlos Tolentino , the OH&S Rep for F11C afternoon shift, who Getting down and dirty suggested painting the guards a different colour. We painted them yellow and reduced the loss of battery on the Jasonlee Lloyd (Freezer 13) takes part in ‘ The Stampede’

BT truck by 100%. ‘Well done Carlos’.

‘The Stampede’ is an epic challenge that will push you to your limits. You run wild through a gruelling 5km or 10km obstacle • Updated refresher training for all OH&S Reps, both new and course, crawl through thick mud, climb up cargo nets, slide existing. down the giant slip & slide, run through live wires charged with • Updated CPR training and new First Aid Officers and also 10,000 volts on one crazy day. The day raises introduced Hep B injections. money for ‘Kids Off The Kerb’, a charity whose • Improved the positive air flow in freezer 11A battery room. mission is to provide sustainable opportunities • Conducted breathing apparatus training. and practical support for disadvantaged and at risk young people. ‘Kids Off The Kerb’ is especially active in creating enterprises based on recycling and environmental projects.

F13B for construction 2013

• Completed fire drills for all areas in both day and afternoon shift with the aim of completing night shift by the end of 2012.

Conducted various Tool Box Meetings • Chain of Responsibility • Workplace Violence and Harassment • Drug and Alcohol

• Safety Cage procedure.

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New Beginnings, Frank’s Journey New Arrivals back in time

“This is part of a six-week road trip that we did in Italy & Returns from coast to coast. We drove 4,700 kms in an 8-seater Fiat van. We took mostly back roads to see as much of the country as possible. We saw some lovely villages

that you would not see from the main highways. Part of Grant (Telecommunications the trip was to catch up with our family in Florence and & Security Systems Manager) Calabria whom we had not seen for 30 years.” & Lisa Keating’s wedding took place on October 21, 2012 at Stones of the Yarra Valley

Nathan (Freezer 11C)

& Marcele Roylance’s wedding took place on November 4, 2012

at the Plaza Ballroom, Collins Street,

Frank Verzaci (Refrigeration and Maintenance Manager)

and family on the Rialto Bridge, Grand Canal, Venice

Duarte is here! “Born and bred in London, of Portuguese background of which I am Oliver Benjamin Wilson very proud, I have been living here born May 17, 2012 - third son of Tom Wilson – with my girlfriend for just over four PM Store Manager Freezer 11A years now and I have been enjoying discovering Australia. Eli John Vin cent born “It has been three months since September 3, 2012 - joining the Oxford family as Systems first grandchild to Trevor Gobbi Administrator and I am very happy to – Pallet Control Manager be part of this great team.

“I have been in the field for over 10 years and have worked in different industries including travel and telecommunications. Paula Sita’s (Hume Rd) grandsons – the Audino brothers - Most of my skills are self-taught and I love a challenge - happy 3yo Matteo with little to be the problem solver.” Marco born November 7, 2012

Frank Zoltan Institoris – born February 4, 2012 - first grandson for Zoltan Denes (Freezer 11D)

Carl Walsh ’s (Freezer 11A) Hrithik Rajish Shanmugam children Alex, Anastasia, born March 5, 2012 - & Rachard with their first son of Rajish Shanmugam new brother Phill (PM Supervisor Freezer 11D) born July19, 2012

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Oxford Employees List of Years of Service – 2012

Employee Years of BECKHAM, Rod 18 ABAZI, Lirim 13 service CHAREWICZ, Tolly 18 BROWNE, Peter 13 Over 30 years ABDOULOSFSKI, Joe 17 FRANKIEWICZ, Adam 12 HILTON, Gabor 38 SOBKOWICZ, Andrzej 17 PAOTAMA, Fred 12 TAVENDALE, Noel 36 PETROSKI, Lupce 16 NYSSEN, Robert 12 NAJDOSKI, Canko 35 VIDANOVIC, Neso 16 NGO, Van Dinh 12 MOODIE, Ian 34 TUI, Julius 16 CAMPBELL, Neil 12 TALEVSKI, Blaga 32 FASTUCA, Sam 16 CASSIDY, Syd 12 Over 25 years GRANGER, Nick 15 AQUILINA, Geoff 12 KANZAMAR, Joe 30 PAUA, Semisi 15 MUSCAT, James 12 VIDANOSKI, Lidiya 29 SELVA, Mauro 15 DENES, Zoltan 11 JUKES, Ian 28 Over 10 years SITA, Paula 11 Over 20 years MANIBO, Mario 14 TOTH, Steven 11 GIACOBBE, Darren 24 REDZEPI, Nizami 14 TALEVSKI, Peter 10 TALEVSKI, Anita 22 GULAN, Les 14 ZSORI, Tibi 10 GLOWICKI, Marek 22 WOOD, Edith 13 CHAJTER, Andrzej 10 NASARENKO, Michael 22 GIDDINGS, Max 13 HERNANDEZ, Jose 10 FA, Sitiveni 22 FATAI, Mateaki 13 TAMARANGI, Ty 10 GIACOBBE, Nick 20 STOJCEVSKI, Cvetkko 13 TEIONA, Taati 10 Over 15 years PAOTAMA, Ivan 13 TEOKOTAI, Tiriamate 10 SHAMAI, Chaim 19 ADONIS, Joven 13 VIDANOSKI, Slobode (Bob) 10 KARCEWSKI, Ryszard 18 KAA, Jason 13

Whilst many employees have never been to Oxford University, they have been coming to Oxford in Laverton North where they have graduated with honours and contributed to the success of the Oxford Logistics Group. We acknowledge the valuable contribution of all emp loyees who have achieved service milestones.

Oxford C old Storage 1 Hume Road, Laverton North Victoria 3026 Australia PO Box 264, Altona North Victoria 3025 Australia T. +61 3 9240 4000 F. +61 3 9240 4100 E. [email protected] W. www.aboxford.com.au

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