Former Linfox exec to run operations at Toll Group

Peter Stokes, former CEO of mining company Barminco, has joined Toll Group as President – Group Operational Services at Toll Group, the Australian Financial Review has reported.
Stokes was Chief Operating Officer at transport and logistics company Linfox from 2006 until 2013, while current Toll CEO Michael Byrne worked there as CEO.
“He will play a key role in delivering the next generation of Toll’s operational capability so we can support our customers and drive significant improvements in safety and productivity,” said Byrne, according to the AFR.
Stokes assumed the role on 1 November.

The drinks are now on Linfox

Linfox has acquired full ownership of BevChain after purchasing 50 per cent of the company from Lion.
This acquisition will provide Linfox with a direct inroad to the multi-billion dollar beverage industry and will enable the business to meet the needs of a wide range of customers in the alcoholic and non-alcoholic beverage sector.
“BevChain began in 2006 to provide a specialised service to the alcoholic beverage industry. We plan to grow the business further by expanding into new sectors within the broader beverage industry,” said Linfox CEO Annette Carey. “The acquisition is aligned to Linfox’s growth strategy and we will continue to invest in sectors where we see an opportunity for growth.”
Since 2011, BevChain has doubled in size generating $250 million dollars in revenue in FY17.
Under sole Linfox ownership, BevChain will leverage Linfox’s scale, expertise and logistics capabilities. BevChain will continue to operate as a separate entity to enable its focus on the specialised beverage market.
In exiting the joint venture, Lion will resume its focus on its core beer business.
Linfox and Lion will continue their partnership, with BevChain providing ongoing warehousing and distribution services for Lion’s Australian beer business.
BevChain services major brands in the specialised liquor, beer, wine and energy drink categories, including many leading Australian and international brands.
Linfox has been providing logistics solutions to the beverage industry for more than 60 years, when a 16-year-old Lindsay Fox began delivering soft drinks in Melbourne during summer.

Linfox acquires alcohol specialist BevChain

Linfox has acquired full ownership of BevChain – alcohol supply chain specialist – after purchasing 50 per cent of the business from food and beverage company, Lion.
This strategic acquisition will reportedly provide Linfox with a direct inroad to the multi-billion dollar beverage industry and will enable the business to meet the needs of a wide range of customers in the alcoholic and non-alcoholic beverage sector.
“BevChain began in 2006 to provide a specialised service to the alcoholic beverage industry,” said Linfox CEO Annette Carey. “We plan to grow the business further by expanding into new sectors within the broader beverage industry. The acquisition is aligned to Linfox’s growth strategy and we will continue to invest in sectors where we see an opportunity for growth.”
BevChain has doubled in size, since 2011, generating $250 million dollars in revenue in FY17, according to Linfox.

Linfox Logistics, Pacific National expand capability

Linfox has entered into a consortium with Pacific National to purchase the containerised freight haulage and end-to-end freight forwarding capability on Queensland’s northern freight line. The two companies are purchasing separate parts of the Aurizon rail assets.
Forming a consortium with Pacific National is the first step towards purchasing these strategically significant assets that are currently owned by Aurizon Queensland Intermodal.
Linfox
This acquisition will enable Linfox to improve the scale and scope of the freight forwarding services it offers to national and large Australian freight forwarding customers, including those delivering freight to Northern Queensland.
If the Pacific National transaction is cleared by the ACCC, Linfox will acquire and use the rail haulage capacity supplied by Pacific National to supply intra-state and interstate freight forwarding services to customers in Queensland and Northern Queensland.
The acquisition will also include pick-up and delivery and warehousing services, but exclude standard gauge haulage to and from Acacia Ridge and hook-and-pull contracts for train services.
Pacific National
Pacific National has signed a binding agreement to buy the Aurizon Queensland Intermodal business as part of a consortium with Linfox.
This transaction includes the transfer of approximately 350 Aurizon employees, as well as assets, commercial and operational arrangements to the Linfox and Pacific National consortium.
The parties are aiming to finalise these transaction by the end of FY2018, both transactions are subject to:

  • Approval by the Australian Competition & Consumer Commission
  • Approval by the Foreign Investment & Review Board

Separately from Linfox, Pacific National has also signed a binding agreement with Aurizon to purchase the Acacia Ridge Intermodal Terminal in Brisbane.
This transaction includes the transfer of 30 Aurizon employees, as well as assets, commercial and operational arrangements.
The Acacia Ridge Terminal will supplement Pacific National’s national network of terminals and provides security for Pacific National’s interstate operations out of the terminal for the long term.
 

Linfox celebrates top employees

Transport and logistics powerhouse, Linfox, has presented two employees with awards at the Senior Leadership Conference in Melbourne.
Each year, two Linfox employees are recognised and rewarded for outstanding performance, consistent demonstration of the Linfox values and potential for growth into a larger leadership role.
At this year’s Conference, Executive Chairman, Peter Fox, presented Andy Gissing with the Chairman’s Award. As Group Manager Consumer in the Retail business unit, Chairman’s Award winner Gissing manages customer contracts across the household brands sector.
“Andy’s hard work and leadership instilled a sense of confidence among stakeholders, while continuously displaying our Linfox values,” Fox said.
“It’s uplifting to receive such an award, but I’m extremely grateful for the support from everyone within the Resources and Industrial division,” Gissing said.
“The entire team and the drivers across the nation all played an integral role. This made my job so much easier, and I thank them all.”
Annette Carey, CEO Australia and New Zealand, presented Clint Terbogt with the CEO’s Award. Terbogt is responsible for Linfox Intermodal’s FMCG customers.
“Clint has been instrumental in driving continuous improvement programs with our customers and has developed some fantastic projects with significant savings,” Carey said.
“Clint has earned our deep respect for his consistent demonstration of the company values, and has been identified as a future leader at Linfox.”
“Congratulations to both our winners for their hard work and dedication to the company.”
The award winners will receive scholarships for personal development of their choice, in areas such as industry expertise, general management and targeted experience-based learning.

Aurizon to shutter intermodal business

Rail operator Aurizon has announced the closure of its intermodal business, following a tough financial year where the company posted a loss of $188 million. A consortium of Pacific National and Linfox will take over its Queensland facility, and Pacific National has purchased its Acacia Ridge terminal, with the transactions bringing in a total of $220 million. Aurizon’s remaining intermodal business, outside of Queensland, will be closed by December.
“The decision to exit Aurizon’s Intermodal business is in response to the continued losses in this business and market dynamics, with sale proceeds and future capital able to be recycled into other profitable parts of the company,” said Tim Poole, Chairman, Aurizon. “The exit will allow Aurizon to focus on creating shareholder value through its core strengths and capabilities of heavy rail haulage operations and rail infrastructure management.”
Andrew Harding, Managing Director and CEO at Aurizon, added: “Following the review of our Freight business, we have made the decision to exit Intermodal by closing down our interstate operations and selling Queensland Intermodal and Acacia Ridge terminal. Initiatives are in place to turn around the performance of our Bulk business following significant impairments in July.
“Going forward, we will leverage our operational and commercial capability in heavy haulage operations and rail infrastructure to create value and certainty for shareholders.”
In a message to employees, Harding explained the decision to close the company’s Intermodal division.
“Unfortunately, over the years we ave continued to see significant financial losses in this part of the business,” he said.
“The reality is that in a market serviced by a number of well established transport providers, we have been unsuccessful in establishing a significant scale and customer base to make it profitable.
“Exiting the Intermodal business is clearly not a decision we have taken lightly but one we had to make if we are to provide certainty and value for our shareholders.”

Linfox appoints new President – Retail

Logistics and supply chain company Linfox has appointed Terry Quinnell President – Retail.
A retail supply chain professional with 40 years’ experience in the logistics industry, Quinnell began his career as a Linfox driver in 1978, where he was quickly appointed Linfox Supervisor for Coca-Cola in Victoria.
In 1993, Quinnell left Linfox to join DTM Business Logistics, where he held several senior leadership positions including State Manager and CEO.
He returned to Linfox as General Manager in 2004, managed some of Linfox’s largest customers as Vice President – Retail, and spent nine years as General Manager – Woolworths. Quinnell recently led the development and implementation of Linfox’s new subcontractor management system, FOXLink.
As President – Retail, Quinnell will be responsible for managing warehousing and distribution for leading retailers in Australia.
“Terry is an accomplished leader with a proven track record in people management and customer relationships,” said CEO Linfox Australia and New Zealand, Annette Carey.

‘Someone’s got to pay’: Toll Group CEO on road charges

Michael Byrne, CEO of logistics company Toll Group, supports the establishment and rise of tolls in Australia’s main cities, so long as operators do not rake in “outrageous” returns, he told The Australian Financial Review (AFR).
When asked whether Toll would consider a similar strategy to that suggested by logistics magnate Lindsay Fox, to have trucks diverted through residential streets in protest over rising toll charges for major routes such as CitiLink, Byrne noted that the company’s 16,000 would not be operating on local roads.
“Someone’s got to pay,” he said. “You can’t say you want this infrastructure to be more efficient and then not pay for it.”
He added that transparency of toll fee revenue and calculations would be key.
“We want to see people have a return on the capital invested in public companies that run toll roads, but we don’t want it to be an outrageous return,” he said.
“That’s up to government to regulate.”

Linfox evolves with e-commerce

Transport giant Linfox has embraced the global e-commerce boom by adding a new array of fulfilment services to its portfolio that range from storage all the way through to product repairs.
Known for taking a proactive approach on new technology and shifts in market demand, Linfox has embraced the global e-commerce boom by adding a comprehensive range of fulfilment services to its portfolio.
“The market is moving towards online retailing and omni-channel systems, which is something traditional supply chains can’t necessarily support in a cost-effective way,” John Pucek, General Manager – Operations Development at Linfox, told Logistics & Material Handling.
“That’s why transport businesses like Linfox are evolving into much more multi-faceted organisations. Our new fulfilment operation in Sydney is the latest example of that evolution.”
The Sydney facility is designed to provide comprehensive fulfilment services for e-commerce operations – ranging from basic storage, ‘pick and pack’ and dispatch services through to product customisation, kitting, reverse logistics, repairs and even order track and trace services.
“We’re also developing our own, enterprise-grade e-commerce solution for the consumer goods market,” he said.
“A company will be able to purchase a fully managed service where we provide the e-commerce platform, a management team and online store management. We even do all the content management, and it will be integrated into our fulfilment.”
The service is designed for small- to medium-sized businesses trading between $120–300 million. “Rather than having to invest in their own e-commerce platform, they can get the complete package from us,” he explained – adding that the company launched the fulfilment and e-commerce projects at a strategy level in January 2016.
“We secured our first customer, consumer electronics company Belkin, in November 2016, and then went live in April this year,” he said.
Initially, Linfox will continue to focus on the consumer electronics market, he added, and it was recently announced that the company’s second confirmed customer is audio company Sennheiser. Next up are health and beauty. “The service offering suits many industries, but they’re the two current strategic targets,” he shared.
“We want to be a real partner of consumer goods organisations and retailers,” Pucek added – highlighting the evolutionary leap Linfox has taken from its beginnings as a transport operation.
“We’re hoping to be more so a partner than a 3PL – we want to be more integrated with them to help them grow their businesses, and now we’re looking at the other channels for which they want to grow their business and how we can support them by investing in the technologies for them.”
Pucek said that as consumers and small businesses demand better choice in how and where they receive their products, the market will continue to see change and innovation when it comes to last mile delivery.
“The challenge for traditional operators will be to bend and flex with consumer demand,” said Pucek.
“Linfox is investing heavily in our systems to provide small businesses and end consumers with greater visibility throughout the fulfilment supply chain.”

Linfox invests in Darwin intermodal facility

Linfox has completed the construction of a new intermodal facility in Darwin.
The logistics provider partnered with Vaughan Constructions to design and construct the facility.
Situated next to the Darwin railhead, the 3,000m2 purpose-built site will create up to 15 ongoing local jobs, the company said.
The site features a chilled storage area to ensure temperature-controlled products can be be safely stored during transit.
“Each year, [our] intermodal team shifts more than 15 million pallets for Australia’s retailers using its multi-modal freight network,” said Linfox CEO, Annette Carey.
“Linfox has an extensive footprint in the Northern Territory, with sites in Darwin, Katherine, Tennant Creek and Alice Springs. This new investment increases our capacity and makes it easier for our customers to move inbound and outbound goods throughout the region.”
Carey said the Darwin facility would complement the capabilities of Linfox’s long distance road, rail and coastal shipping distribution services and followed the recent expansion of its Healthcare and Defence logistics capabilities.
The facility will also deliver on Linfox’s environmental commitment with a 100kW battery ready solar system to reduce the site’s carbon emissions. It also features rain water harvesting and high-efficiency LED lighting.

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