Toll Group has been hit by a suspected cyber security breach, causing a shutdown on a number of the company’s IT systems.
Logistics giant Toll group has joined twelve other international freight stakeholders on the latest Australian airport freight precinct project.
LOGOS has exchanged contracts to acquire a 15.3-hectare infill development site in Villawood, Sydney from Toll Group, including a partial sale and leaseback agreement. The acquisition is due to settle in late 2019.
Located at 246 Miller Road, Villawood, the property has good access to Sydney’s key transport network, with five freeway entry points within 10km and existing entry to the South Sydney freight railway line.
The acquisition includes a partial leaseback to Toll over a portion of the site, with LOGOS to undertake upgrading works across the existing facilities. LOGOS plans to redevelop the remaining 11.3 hectares of the site into a logistics and intermodal estate on a speculative basis with an estimated on completion value of circa $200 million.
LOGOS’ head of Australia and New Zealand Darren Searle said: “The Villawood property acquisition is a new strategic infill development opportunity that will greatly benefit both intermodal and logistics operators.
“To capitalise on the property’s strategic location and the future infrastructure development in the area, we will look to develop intermodal and logistic facilities to service the strong demand we are seeing from our existing and new tenants in this area for modern, high quality facilities,” he said.
The NSW Government is investing circa $80 billion in infrastructure across western Sydney over the next four years, including the construction of the WestConnex and NorthConnex Motorways and upgrades to the area’s existing road systems under the $3.6 billion Western Sydney Infrastructure Plan.
The acquisition also strengthens LOGOS’ relationship with Toll, with the Group having developed three facilities for the global logistics provider.
Mr Searle added: “We are pleased to be working with Toll on this strategic acquisition and look forward to enhancing their existing facilities for them within this this key industrial market”.
Toll MD Michael Byrne.
Toll Group, a subsidiary of Japan Post, has reported earnings before interest and tax (EBIT) of $119 million for the year ended 31 March 2018, an improvement of over 70% on financial year 2017.
Today’s result is the first time in three years that Toll reports growth in profit and revenue.
Some impressive numbers:
- Revenue of $8.2 billion, up $309 million compared to last year.
- Global Logistics reported an EBIT of $191 million, up 13%, off the back of strong performances in Asia and in key segments in Australia including government and defence, mining, energy and retail.
- Global Express delivered a $59 million turnaround compared to last year’s result, driven by an improved operating cost structure from transformation activities in network consolidation and productivity.
- Global Forwarding returned to profit, delivering close to a $9 million improvement to EBIT, despite reduced margins. This was delivered through cost improvement initiatives, including exiting unprofitable countries, which have set the business up for future growth. Customer satisfaction reached record levels in FY18.
- A reduction of over 16% in total injuries in FY18 as a result of an increased focus and investment in this area, which the company says will continue to be a priority in the coming year.
- Delivery of 1,000 new fleet and equipment, part of a six-year, $1.6 billion asset investment program. A further 1,500 of the latest in fleet will be added to its network this year. The safety technology and fuel-efficiency of these assets is expected to create new possibilities for the network with improved safety and maintenance costs as well as reduced emissions.
- Close to $600 million investment in capital expenditure on fleet, vessels, infrastructure and technology, which resulted an overall negative cash outflow for the year.
Toll Group managing director Michael Byrne said the performance marks the successful execution of the first year of Toll’s transformation strategy.
“Having successfully delivered on the first year of our overall three year transformation program, we are a leaner business, creating more value for our customers. This turnaround has been driven by the 44,000 strong Toll team who have done an outstanding job of implementing this program of rapid and significant change,” Mr Byrne said.
“While Toll is much stronger than this time last year, we remain vigilant. Our transformation continues, and our results to date show that our strategy is the right one for today’s markets and the long-term opportunities ahead. We will continue to focus on delighting our customers, disciplined cash flow and being smarter with our costs.”
Transport and logistics company Toll Group has expanded its 2018 Graduate Program, broadening its scope for potential applicants to be based in Australia, Japan, New Zealand and Singapore.
According to Toll, the Graduate Program is designed to develop a pool of diverse future leaders across Toll Group and Japan Post, and is structured to give graduates exposure to the company’s three operating divisions: Global Logistics, Global Express and Global forwarding in order to gain a deep insight and understanding of the logistics industry during their tenure.
Ajay Gopal is a 2017 graduate and is currently on rotation at Toll City in Singapore.
“I was looking for an organisation that would provide a great amount of variety throughout its graduate program,” said Gopal.
“Starting my professional career on the right foot was important, and a vital part of that consists of being exposed to a vast array of roles in various sectors. The Toll graduate program has given me opportunity.”
The Graduate Program aims to target graduates with Logistics and Supply Chain, Business and Commerce, and STEM degrees who have recently graduated or are about to graduate, and who are fluent in a second language.
“Graduates gain exposure across our core operational business during their rotations, they get to see the end to end process and build their knowledge of how our sites operate from the ground up,” said Toll Graduate Program Manager, Sharon Abbott. “This is critical to develop them as our future leaders across the organisation.”
Western Australia–based company CTI Logistics has moved its Laverton North presence to a new 15,228sqm distribution centre in West Park Industrial Estate in Truganina, west of Melbourne.
The facility comprises a 14,758sqm warehouse and a 470sqm office.
The company’s warehouse was jointly developed alongside a new purpose-built distribution centre for tile and stone importer National Tiles. Frasers Property Australia, the property group behind the West Park Industrial Estate, reports that the combined end value of the facilities is $33.5 million.
Anthony Maugeri, General Manager – Southern Region, Frasers Property Australia, said: “This deal further supports our strategy to create prime A-grade speculative facilities in select undersupplied markets near major infrastructure nodes. We have a strong track record in leasing these types of buildings to blue-chip tenants on long-term leases.
“CTI has been in operation for over 40 years. The new facility will help the business service their growing customer base across Australia and will also offer significant operational efficiencies.”
Companies located in West Park Industrial Estate include CEVA Logistics, Schenker, Toll, Goodyear, Mitre 10 and Australia Post.
The Hon. Melinda Pavey, Minister for Roads, Maritime and Freight, New South Wales, has attended the official opening for Toll Group’s new distribution centre in Western Sydney, a facility the Australian logistics company claims is specially designed to support online retailing.
Pavey performed the ribbon cutting, alongside John Mullen, Chairman of Toll Group, and Alex Linton, General Manger – Logistics of Specialty Fashion Group, the new DC’s inaugural anchor tenant.
The $160 million “retail and e-commerce centre” is set across 32,000sqm, and incorporates 15,600sqm of automation equipment.
According to Toll, the facility is capable of picking, processing and packing 375,000 items per day, shortening delivery times “from days to hours.”
“Staying competitive in a rapidly changing global market requires vision, determination and an appetite for change, and that’s what Toll’s new facility will provide,” said Pavey.
Chris Pearce, Divisional Director – Toll Global Logistics, noted that today’s market is placing aggressive demands on retailers to provide fast fulfilment and delivery, while keeping costs down.
“Toll’s investment in the new facility is helping our customers adapt to the new retail environment,” he said. “The facility is equipped with $50 million in advanced automation technology so retails can deliver their e-commerce orders faster and in a much more economical way.
“This advanced technology will increase our productivity fivefold – capable of picking, processing and packing 70 million items per year.”
Specialty Fashion Group worked with Toll in the design of the facility, with scalability and future growth in mind.
“At Specialty Fashion Group, we’re constantly looking to improve the omni-channel experience for our customers,” said General Manager – Logistics, Linton. “We have a highly specialised supply chain, so we needed a customised solution that would meet our ongoing needs as a retailer.”
Automation of the facility will reportedly reduce manual handling by 70 per cent, expected to lead to a reduction in safety incidents.
The Australian Logistics Council (ALC) has fully endorsed the six-point national heavy vehicle safety plan Michael Byrne, Managing Director of Toll Group, proposed in his recent letter to Prime Minister Malcolm Turnbull.
“The proposals contained in the plan are entirely consistent with longstanding ALC policy, and offer a clear pathway to delivering improved road safety, not only for heavy vehicles, but for all road users,” said Michael Kilgariff, Managing Director, ALC.
“As an industry leader on freight and supply chain policy issues, ALC has continually emphasised that our supply chains do not stop at state borders. Accordingly, regulations which govern heavy vehicles and freight movement need to be nationally consistent, to promote supply chain efficiency and safety, and to provide certainty for industry.”
Kilgariff called for the Federal Government to immediately pursue discussions with the governments of Western Australia and the Northern Territory to encourage them to sign up to the Heavy Vehicle National Law (HVNL). “In a modern national economy, it is not feasible to have inconsistent rules in different states pertaining to the definition of a heavy vehicle, speed limits and regulation of driver’s working hours and mandatory rest times,” he said.
“The Federal Government should also immediately pursue a national operator licensing system, which ALC strongly supports as essential to improving road safety and making certain the nation’s heavy vehicle fleet is operated by competent professionals who understand their safety obligations.”
Kilgariff also welcomed Byrne’s call for mandatory use of telematics. “Industry has consistently told governments that mandating the use of telematics in heavy vehicles is central to driving better safety outcomes and saving lives on our roads,” he said. “Now is the time for decision-makers to heed that advice.”
The ALC’s 2018–19 Commonwealth Budget submission recommended that the Federal Government support measures that encourage the capture and use of technology and data, which is in line with Byrne’s own suggestions.
Kilgariff also praised Byrne’s proposal of discounted registration fees for transport operators that can demonstrate they are investing in telematics, as well as campaigns to improve driver awareness about sharing the road with heavy vehicles.
“Our industry stands ready to work with all governments to enhance heavy vehicle safety,” said Kilgariff. “They should take the opportunity to harness that goodwill and work with transport operators in the interests of saving lives and enhancing safety for all road users.”
Michael Byrne, Managing Director of Australian transport and logistics company Toll Group, has submitted a six-point national truck safety plan to Prime Minister Malcolm Turnbull and all road and road safety ministers across Australia.
“Australia has a dire road safety problem,” Byrne wrote in a letter to Turnbull. “Our approach to heavy vehicles in this country is core to tackling this issue. It’s time for a genuinely national approach to heavy vehicle regulation.”
He noted that, having heard from government and academic experts on improving safety, he wanted to give his own suggestions, as “the leader of Australia’s largest transport and logistics company,” former leader of “the second largest transport company,” Linfox, and a second-generation industry veteran who has worked in the industry since he was 13 years old.
In his letter, Byrne called for Turnbull to address six critical areas.
First, he requested a national rule book, which would provide a common definition for ‘heavy vehicle’, and consistent approaches across states for driver fatigue, speed limits, heavy-vehicle regulation and licensing.
“The National Heavy Vehicle Regulator was supposed to deliver one rule book,” he said. “It hasn’t. Western Australia and the Northern Territory have refused to sign up to the national law. And so today, Australian road freight operators are subject to multiple and overlapping rules at the local council, state and national level.”
Second, Bryne stated the need for the introduction of an operator licensing system to ensure safety and competence, to bring the industry in line with others such as maritime, rail and aviation. “In road transport, virtually anyone with a truck, a driver and an ABN (Australian Business Number) can be a road freight operator,” he said. “Most comparable countries have an operator licensing system for road transport.”
Third, he wrote, road safety won’t be achieved by industry alone, the community, government, enforcement and road safety bodies must also do their parts. “We know that in 93 per cent of fatalities involving a truck, the other party was at fault,” he said. “Yet national and safe road safety strategies are silent on how light vehicle drivers can ‘share the road’ safely with trucks.”
Fourth, he called for government incentive to encourage safe behaviour. “Governments can incentivise and reward safe behaviours from heavy-vehicle operators,” he wrote. “Discounted registration and stamp duty fees could be offered to operators with sound safety records.”
Fifth, Byrne advised the Government to mandate telematics for all new heavy vehicles. “Mandatory telematics on every vehicle will identify operators that systematically and deliberately speed, overload vehicles and push fatigue limits,” he said.
Bryne’s sixth proposal was for the Government to ensure operators such Toll Group are actively engaged in debate and policy development regarding road safety. “Any discussion on heavy-vehicle regulation must draw on private sector expertise to truly understand how we can overcome the obstacles that are holding us back from creating safer roads for our community,” he wrote.
A spokesperson for Barnaby Joyce, the recently appointed Minister for Infrastructure and Transport, told the Sydney Morning Herald that several of Byrne’s points had merit and would be considered.
“Even though there is no general consensus in the industry on some of the proposed initiatives, we will continue to work with industry and stakeholders to improve heavy-vehicle safety,” the spokesperson said.
Toll Group’s call for a national approach to road safety follows the Australian Truck Association’s (ATA) announcement on 12 January of its partnership with the National Road Safety Partnership Program, which aims to spread knowledge and information across all industries about managing risk and reducing the road toll.
The ATA also called for the Federal Government to allocate $12 million in funding to road safety, establish a National Road Safety Commission, and give responsibility for investigating truck accidents to the Australian Transport Safety Bureau.
In late 2017, Toll Group announced its own plans to position safety culture at the centre of its operations, with Byrne saying at the time that safety “is common to all of us and a non-negotiable.”
Anthony Albanese, Shadow Minister for Infrastructure & Transport, is among a number of prominent individuals who will speak at the Australian Logistics Council’s (ALC) national freight and supply chain event, ALC Forum 2018.
Following the successful 2017 event, which was held in the Melbourne Cricket Ground, in 2018, the Forum returns to Sydney’s Royal Randwick, taking place 6-8 March.
Other speakers for ALC Forum 2018 include:
• Brendan Bourke, CEO, Port of Melbourne;
• Chris Bresnahan, Operations Director – E-commerce Delivery, Australia Post;
• Royce Christie, General Manager – Government Relations, Toll Group;
• Paul Graham, Supply Chain – Chief Supply Chain Officer, Woolworths Group;
• Maurice James, Managing Director, Qube Holdings;
• Anthony Jones, CEO, LINX Cargo Care Group;
• Sal Petroccitto, CEO, National Heavy Vehicle Regulator;
• Melinda Pavey, Minister for Roads, Maritime and Freight (New South Wales);
• Paul Retter, CEO and Commissioner, National Transport Commission; and,
• Richard Sellers, Director General, Department of Transport (Western Australia).
The ALC said that ALC Forum 2018 will progress the issues put forward by ALC members in the final submission, focusing on the freight logistics industry’s priorities and expectations for the types of infrastructure investment and policy reform required to enhance national supply chain efficiency and safety.