The temperature-controlled supply chain company that recently purchased Swire Cold Storage, Emergent Cold, has signed a Heads of Agreement with technology company irexchange, to support the next phase of growth for both businesses.
The Agreement outlines a collaboration between Emergent Cold and irexchange that will provide temperature-controlled flow-through distribution-centre transport and fulfilment capability to irexchange, initially within Victoria and then nationally. irexchange is to provide technology and analytical capabilities to facilitate the creation of a next-generation temperature-controlled supply chain capability.
The Agreement with Emergent Cold will support irexchange’s growth into fresh and perishable products and enable irexchange to broaden its customer base.
“We are pleased to partner with irexchange to develop the next generation of supply-chain capability in the temperature-controlled market, especially for smaller independent retailers,” said Greg Holt, Managing Director, Emergent Cold Australia. “There are great synergies between Emergent Cold’s capability and the irexchange platform and technology which we look forward to realising.”
Clive Yoxall, CEO, irexchange, added: “We are continuing to build our efficient world-class network and national footprint. With this agreement, we will deepen our support capabilities across the independent grocery and smaller retailer sectors. Our new relationship with Emergent Cold is a significant and important milestone and we are confident that both our organisations will generate strong and sustained value through the partnership.”
Cold storage service provider Laverton Cold Storage has committed to doubling the size of its recently completed facility located in Truganina in Melbourne’s west, an expansion that will increase the building area of the first-stage development to over 12,000m2.
Laverton Cold Storage completed a 5,920m2 state-of-the-art, temperature-controlled warehouse and blast freezer building in 2015. The expansion, set to be complete in November 2017, will increase its area by 6,520m2.
The expansion will provide additional storage capabilities and expand the facility’s range of temperature-controlled zones for separate product types.
“This most recent expansion highlights our growth and is a testament to the level of service we have been able to provide our existing customer base from our new site,” said Richard Ralph, Managing Director, Laverton Cold Storage. “It has also provided us the opportunity to attract new clients, and we are looking forward to having the fully completed site operational as we amp up for the Christmas period.”
This expansion will focus on environmentally sustainable design, in particular, the use of significant solar power to reduce Laverton Cold Storage’s operating costs and footprint over the term of its lease.
Consultancy firm TM Insight partnered with Laverton Cold Storage in the design and delivery of both stages of developing the purpose-built cold logistics facility.
“The developments have been specifically designed to allow Laverton Cold Storage to offer greater storage capacities in an efficient and optimal manner, while also adhering to the lean principles and cold-chain compliance,” said Nathan Bingham, Director, TM Insight.
“Due to the service Laverton Cold Storage provides, it was also imperative that we focused on sustainable design to ensure operational and energy efficiencies. These cost saving will no doubt provide a competitive advantage.”
Companies leasing warehouse facilities in Victoria may be entitled to a refund from their landlords thanks to a recent decision made by the Victorian Supreme Court of Appeal.
Essentially, the Court held that the lease of premises used to provide cold storage and logistics services was a ‘retail lease’ for the purposes of the Retail Leases Act 2003 (Vic), Hunt & Hunt lawyers has shared.
Hunt & Hunt noted that the decision has practical implications for warehouse operators and freight forwarders, making many entitled to repayment of expenses including land tax and repair costs going back six years.
The Retail Leases Act impacts all aspects of the formation, operation and ending of covered leases. In terms of costs for tenants, landlords are not able to pass on land tax liability or legal costs associated with the preparation of leases, and
landlord are responsible for maintaining premises in the same condition as at the beginning of the lease, this includes equipment, appliances and fittings provided on the premises under the lease.
For the case that brought about the decision, IMCC Group (Australia) Pty Ltd v CB Cold Storage Pty Ltd , the Court had to consider whether a lease of premises used to operate cool storage facilities would be classed as a retail lease.
“The landlord argued it was not due largely to the nature of the services provided and the fact that almost all of the tenant’s customers were businesses,” Hunt & Hunt shared. “The Court of Appeal held that the lease was a retail lease and took the following factors into account: any person could purchase the storage services if the appropriate fee was paid; the tenant’s business was open during normal business hours; and the tenants customers were the actual consumers of the storage service.”
The Court was reportedly not concerned that the premises were acquired for a business purpose.
Hunt & Hunt advises that the criteria for ascertaining whether a warehousing and logistics business’ lease is eligible to be classified as retail will include the rental amount, the size of the premises, whether customers can attend the premises, the hours of operation, the services provided and the permitted use of the premises under the lease.
“Every tenant that provides warehousing and logistics services should have their lease reviewed to determine whether it is potentially a retail lease,” Hunt & Hunt noted. “If it is a retail lease under the law, but the tenant has been paying land tax and maintenance and essential safety maintenance costs, there may be a very strong case to demand repayment of those costs from the landlord.”
Temperature-controlled storage company NewCold Advanced Cold Logistics is building two new facilities in Truganina, near Melbourne – including a chilled one for the first time.
The chilled and ambient storage facility will handle product for dairy company Fonterra Australia which is consolidating its distribution network and six warehouses into the one facility. Opening in July, the 12-storey site will be capable of holding up to 110,000 pallets.
“The first of its kind in Australia, the facility is highly automated and, because of its technology, we can be more agile and responsive to our customers’ needs, deliver smaller and more frequent orders and importantly, improve our service delivery,” said René Dedoncker, Australia Managing Director, Fonterra.
The frozen storage facility will stock products for McCain Foods, Australia, as previously reported, and Peters Ice Cream Australia, part of the Froneri group.
It is being built by storage equipment manufacturer Dematic, and will comprise of an integrated system combining automated pallet handling systems using in-house warehouse and control software developed in-house by NewCold.
“The storage and handling of McCain’s frozen products in the new automated facility will give us a more stable temperature regime and highly accurate stock control,” said McCain Foods ANZ Supply Chain Director Taso Kourou.
“We have years and years of experience in automation and that gives us the edge over someone who is building an automated warehouse for the first time,” said Jon Miles, Country Manager, UK, NewCold adding that NewCold is a “truly international temperature-controlled business.”