New Zealand’s news source for road transport, logistics & heavy equipment industries Digital Review Volume 4 | Issue 11 | June 2017 Another record-breaking Strong run for logistics star demand for ainfreight continues to break “We do like milestones in the records in net profit, sales business but there is always room for new trucks Mrevenue and EBITA figures. improvement,” managing director Don he new truck market is Despite poorer than expected Braid told NBR Radio. booming with more landing results from the Asian and American “We have only a small footprint in Ton New Zealand wharves in operations, the international logistics Australia, the United States, Asia and May than in any other month this operator's net profit after tax (NPAT) Europe and if we get the recipe right in year. to March 31, 2017, was $103.16 mil- those countries they will surpass what New truck arrivals (over 3500 lion, an increase of 17%. we earn here in New Zealand. kg) totalled 370 last month, re- It was all thanks to its “But we still see lots of room for lo- flecting strong market demand. high-performing New cal growth here in New Zealand. Imports of new light commer- Zealand, Australian and “We also see plenty of growth op- cials (under 3500kg) totalled 2819 European operations. portunities in America, Europe and in May, significantly behind the Revenue for the fiscal Australia. We’ve barely scratched the April total of 3878 units. year FY17 rose 2.1% to surface in Asia.” Used trucks and vans (under $2.33 billion while earn- Don Braid 3500kg) saw 614 arrivals in May ings before interest, taxation, deprecia- Growth despite earthquake upheaval while 87 used trucks in the over tion and amortisation (EBITA) improved Despite upheavals after the Kaikoura 3500kg category landed. by 13% to $197.54 million. and Wellington earthquakes, Main- Latest figures from New Zea- The result follows on from the FY16 freight's New Zealand sales revenue land Customs show the booming NPAT which was a record-breaking increased 8.2% to $609.24 million and local car market will also contin- $88 million, a 5.6% increase over the EBITA improved 17.2% to $91.02 mil- ue for the foreseeable future. previous year. In FY16 Mainfreight’s lion. More than 30,337 vehicles revenue rose 11.2% to $2.28 billion. “We had an increase in costs due to arrived on Kiwi soil in May, the The company says FY17 sales reve- Kaikoura but I think our team reacted second highest number since nue improved across all regions other superbly to the devastation of the March when 33,304 vehicles came than the Americas, where the Caro- earthquake,” Braid says. off the ships. Trans business reported a decline. “We were able to place an earth- Total arrivals of new and used Sales revenue earned outside of quake levy on our charges to cover cars hit 26,321 in May, the second New Zealand now exceeds $1.72 billion those costs.” highest number recorded this and Mainfreight says it expects the mo- Braid says despite a fall in interisland year but behind the March total of mentum created in achieving that will freight, intra-island freight grew which 28,779 units. continue in the next fiscal year. Continued on page 17 There were 16,666 used car arrivals in May, down from 19,579 INSIDE in March. Big transition ahead 3 But new car arrivals reached Fieldays Fiesta 9 9655 units in May, eclipsing this Classier licence 16 year's previous highest tally of Black pack RAM 38 16 38 9200 in March. EROAD Leaderboard Promote healthy competition eroad.co.nz/leaderboard foundationsponsors DIESELtalk acknowledges the support of our foundation sponsors and industry supporters: Industry supporters 2 | DIESELTALK.CO.NZ | JUNE 2017 The way to reach the entire heavy vehicle and contractors’ equipment industries Big transition ahead www.DIESELtalk.co.nz EDITOR Robert Barry for family company 022 0180 998 [email protected] family-owned company through four global suppliers. has nabbed the lion's The new buses will all be BUSINESS MANAGER Ashare of bus services fitted with ergonomic seating Ian Ferguson for the Greater Wellington and air-conditioning for pas- 027 530 5194 Regional Council (GWRC). senger comfort. [email protected] Masterton-based Tranzit “We’ll fill up the order Group, which is owned and book for Kiwi Bus Builders managed by the Snelgrove but they won’t be able to OPERATIONS family, won the tender for meet all our needs in time MANAGER Paul Snelgrove eight of the council's con- for the new contracts, hence Deborah Baxter tracts, representing 60% of we are speaking with four drivers as well as new ones 027 530 5016 its bus services under the other global suppliers,” Snel- for the contracts which start [email protected] new public transport oper- grove says. operation in July 2018,” Snel- ating model (PTOM). Another factor in Tran- grove says. That's a huge jump from zit’s successful tender was “We’ll work with the exist- GROUP EDITOR the 1% of GWRC services its promise to improve air ing operators to ensure a AUTOMOTIVE TRADE Tranzit previously held under quality across the region and smooth transition without Scott Morgan its old contracts. reduce emissions of harmful creating any disruption or in- 021 240 2402 The company provides ur- pollutants by at least 84% in convenience to our custom- [email protected] ban and regional bus services, the Hutt Valley. ers, the travelling public. MANAGING EDITOR InterCity bus services, school “We tendered for the “We understand the time- bus runs and specialist vehicle contracts with a totally new frames and practicalities of Richard Edwards hire across the North Island fleet of Euro 6 buses with changes like these so we will 021 556 655 and throughout Christchurch. very low emissions, built to be well prepared come July [email protected] GWRC put its bus ser- the latest standards, which 2018.” vices out to tender under replaces an existing fleet Tranzit human resources PUBLISHER PTOM, which tries to get that has vehicles with a mix- and legal director Renee Vern Whitehead better value for money by ture of emission standards Snelgrove says new drivers 021 831 153 linking payment to growth from Euro 2 to 5,” he says. will be trained in the Tranzit [email protected] in patronage and reduced The company, founded approach, which focuses on reliance on subsidies. by Snelgrove's grandfather smooth and safe driving. Changes to the current in 1924, will be hiring more The company holds a SUBSCRIPTIONS bus operations are scheduled operations and management five-star rating with the NZ Fran Da Silva to take effect by mid-2018. staff later this year to support Transport Agency’s operator 021 933 279 Tranzit managing direc- the business growth. rating system as well as ter- [email protected] tor Paul Snelgrove told That will be followed by tiary education accreditation DIESELtalk the company will driver recruitment from the with ACC. DIESELtalk and dieseltalk.co.nz have to acquire more than 235 first quarter of 2018. “Our success is due to a are published by: new vehicles and all will meet Tranzit will hire another strongly knit team culture Auto Media Group Limited PO Box 105010, Auckland Euro 6 emission standards. 380 drivers and hopes as where drivers and sup- Ph 09 309 2444 Snelgrove says Tranzit’s many as possible will come port team are satisfied and incumbent bus supplier from the Wellington public rewarded in their work,” she Kiwi Bus Builders will build transport Metlink system. says. Auto Media Group Limited makes as many of the new GWRC “There will be an advertis- "We’re keen for driv- every endeavour to ensure information fleet as it can handle but the ing process starting early in ers currently operating the contained in this publication is accurate; company is also investigat- 2018 and we will welcome Metlink services to join our however, we are not liable for any losses or issues resulting from this use. ing other new-build options applications from existing team.” Register for FREE news updates -Receive thrice-weekly news alerts to your email www.dieseltalk.co.nz DIESELTALK.CO.NZ | JUNE 2017 | 3 NEWSTALK Insurance advice saves family business freak accident could ing Pom and she was told to “Our underpinning phi- The insurance cover have cost a husband- go straight to the hospital. losophy is that businesses meant the Edwards could A and-wife team running He was in a critical condi- need to consider protecting afford to employ someone a truck-based food business tion and with his extensive not only their physical as- to step in and take over the their livelihood. injuries, the road ahead was sets like trucks and machin- operational side of the busi- But thanks to Tauranga- unknown. ery but also their human ness – and ultimately keep it based specialist trans- The couple had a lot to capital. going. port insurance brokerage deal with emotionally and "Typically, we think about “The company has contin- O'Connor Warren, they are financially. Pom was unable protecting our assets from ued seamlessly. Our opera- more than adequately cov- to work and there were busi- loss or damage. But too tions manager has done a ered for such an event. ness expenses to meet. often business owners don’t great job of keeping the Pom and Maude Edwards Fortunately, when they consider the impact on the business running,” Maude were excited by the prospect bought the business the business if an accident or in- says.