New VIC facility for CTI Logistics

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.

Toll launches $160m next-gen e-commerce distribution hub

Toll Group has opened a new, next-generation distribution centre in western Sydney to help e-retailers deliver faster and more efficiently. The $160 million retail and e-commerce fulfilment centre was specifically designed to support the growth of online shopping in Australia. Some statistics:

  • 32,000 square metres in total.
  • Incorporates 15,600 square metres of automation equipment.
  • Capable of picking, processing and packing 375,000 items per day.
  • Said to shortens delivery times from days to hours.

Toll Global Logistics president Chris Pearce said the market is placing aggressive demands on retailers to provide fast fulfilment and delivery, without increasing costs.
“Toll’s investment in the new facility is helping retailers adapt to the new environment. The facility is equipped with $50 million in advanced automation technology so retailers can deliver their e-commerce orders faster and in a much more economical way,” Mr Pearce said.
The facility will be one of the country’s most advanced e-commerce fulfilment centres, transforming the way retail orders are picked, processed, sorted and delivered to customers.
“Retailers will benefit from the ability to deliver goods to their stores and direct to customers faster and more efficiently. And shoppers will enjoy flexible order times and faster processing so they can receive their purchases within hours not days,” Mr Pearce added.
“This advanced automation technology will increase our productivity five-fold – capable of picking, processing and packing 70 million items per year.”
The facility was constructed in collaboration with apparel retailer Specialty Fashion Group (SFG), Toll’s anchor tenant at the new site. Toll and SFG worked closely to design 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, which includes offering faster and more convenient delivery options for online and ‘click and collect’ orders,” said SFG’s general manager logistics Alex Linton.
“We have a highly specialised supply chain, so we needed a customised solution that would meet our ongoing needs as a retailer. We’ve worked with Toll to develop the site – from the initial design and development through to build, operation and delivery – and we’re excited to see the state-of-the-art capability in action,” Mr Linton said.
The facility operates as a shared, multi-user facility, with capacity to support additional retailers and their supply chain operations. It offers complete omni-channel capability to help retailers adapt to the changing needs of their customers in an ever-competitive sector.
The combined Prestons site will provide jobs for around 200 operations workers, technicians and engineers.
The new facility achieves safety and environmental initiatives such as reducing the probability of safety incidents through a 70 per cent reduction in manual handling. The facility also has a four-star NABERS rating, is fully LED lit, uses rainwater harvesting and has a carton recycling machine.
The site is ideally positioned on the corner of the M5 and M7 enabling convenient transport links to deliver at greater speed-to-market.

Toll designs ‘next-gen’ DC around e-commerce

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.

Safer roads require national leadership: ALC

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.”

Toll MD submits truck safety plan to PM

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.”

Toll starts 2018 with strong safety message

Transport and logistics company Toll Group has revealed details of its plan to place safety culture at the centre of its operations.
Michael Byrne, Managing Director of Toll Group, noted that every person has a duty to others to stay safe, in all facets of life.
“Every leader and every individual has an obligation to themselves, their family, their friends, their colleagues and their business, like Toll, to be safe,” he said. “To do this, we need to get uncomfortable and to ask the tough questions about behaviours and processes, and ask again. Life is precious and fragile, and we need to protect our people and communities every day.”
Byrne added that the ‘zero-tolerance’ safety message will be shared across Toll’s various business operations.
“We are a business that spans countries, cultures and climates; we have multiple operations, across diverse sectors, from mining to retail, and we carry large-scale assets including ships and planes, but safety is common to all of us and a non-negotiable,” he said.
Recently appointed Group General Manager – Health, Safety and Environment, Richard Turner, echoed Byrne, noting that each individual in the company is responsible for fostering its safety culture.
“Good leaders are visible and actively demonstrate and lead a strong safety culture,” he said. “Toll leadership is committed to developing a culture that empowers individual ownership of safety at all levels of the organisation.
“Part of my role is to get every single person thinking about how they can embed safety in their daily behaviours, and the help create a high-performance safety culture where people have the courage to speak up when it comes to safety.”

Toll commended for warehouse energy efficiency

Toll Group’s custom-built Nike warehouse in Altona North, Melbourne, has been named Best Industrial Energy Efficiency Project at the National Energy Efficiency Awards 2017.
The National Energy Efficiency Awards recognise excellence in energy efficiency across Australia.
Toll won Best Industrial Energy Efficiency Project for its recent upgrade to the Toll-Nike facility, which provides specialised warehousing, picking and dispatch solutions capable of handling more than 27,000 stock keeping units (SKUs) and two million units of stock.
The upgrade, completed in May 2017, included the rewiring and reprogramming of the facility’s 2.5km conveyor system and 145 electric motors and upgrading 1,300 light fittings to high-efficiency LEDs. The re-engineered and streamlined supply-chain processes reportedly removed waste and reduced energy use by 54 per cent.
“We see environmental sustainability as our corporate responsibility and we’re committed to reducing our environmental footprint,” said Mark Jones, Sustainability and Energy Manager, Toll Group. “Through Toll’s Smarter Green program we are introducing smarter, more sustainable solutions across all of our operations.
“Technology has advanced significantly since Toll and Nike embarked on our supply-chain partnership almost 20 years ago. We’ve been working closely with Nike to introduce ‘smarter green’ innovations and this award is a welcome tribute to our lean journey,” said Jones.
The 18,000m2 warehouse and fit-out include energy-efficient lighting systems that improve visibility and safety, translucent roof sheeting, roof insulation, and an optimised conveyor system.
Ian Black, Outbound Manager, Nike Pacific, said, “The change to LED lighting in our warehouse has been a great initiative and a real win-win situation. We have reduced our carbon footprint and our electricity costs while improving the quality of our lighting. We commend Toll for sourcing an effective, efficient solution and driving the result.”
Toll’s Jones added that plans to have the facility certified carbon neutral are now under way.
“As part of the certification process, Toll will look to have the facility certified under the National Carbon Offsets Scheme and rated by the Green Building Councils Green Star rating system,” said Jones. “We’re also keen to replicate the success of this project at other Toll-Nike locations in future.”

Toll MD shares future leadership strategy

Speaking at ‘Developing the Millennial Generation: The Future of Leadership’, a breakfast event held in Melbourne this week, Michael Byrne, Managing Director of transportation and logistics company Toll Group, called for Australia’s senior leaders to rethink the way they approach millennials, training and future planning.
“We break up people into components and say they’re millennials, X Generation, that ethnicity, that religion,” said Byrne. “What I have learnt is – apart from a few outliers at the extremes – everyone is the same, and everyone wants the same things. We want a little bit better life than our parents, we want a little bit better life for our children, we want to eat a little bit better food, we want to drink a little bit better, we want a nice and safer life.”
Byrne noted that over the next decade, businesses will need to embrace and educate their young, “more technologically savvy” workers, as they will soon be at the helm.
“Millennials will make up 75 per cent of the global workforce by 2025 – eight years away,” he said. “If you’re not designing your workplace, product or service around that thinking, you’re failing your business.”
Addressing the senior industry leaders gathered in the room, Byrne advised them to stop focusing solely on priorities for tomorrow, next week and next month, and instead to consider the trajectory of the business over the coming years, and who will support its growth.
“In the next decade, the decisions will start to be made by millennials,” he said. “We need to get with the program and think about that and how we shape our businesses. They are going to have the money, they are going to have the votes, they are going to shape our communities.”
Byrne added that many businesses at present are failing to realise the importance of investing in education. “Education is really one of the most important things we do as leaders,” he said. “We need to be investing in our young people – you can’t afford not to educate, train and develop.
“Education and safety are the two budgets you never cut – in fact, every year you double down because otherwise the pace of the economy, the world economy and GDP will defeat you,” he said. “You can’t hold back the tide.”

Toll Group safety manager joins ANC as CoR lead

Home delivery fleet ANC has announced the appointment of Matthew Wheatley to the newly created senior role of National Chain of Responsibility (CoR) Compliance Manager.
In his new role, Wheatley is responsible for achieving all transport industry safety and CoR legislation, regulations and compliance requirements while developing the company’s safety culture. He reports to ANC Managing Director, James Taylor.
“I’m delighted to welcome Matthew to the ANC team as we continue to build and invest in this priority area of our business,” said Taylor. “Matthew brings extensive experience and knowledge to our growing team dedicated to safety. At ANC, we’re committed to safety, health and environment throughout the supply chain – from our offices to warehouses; on and off the road; and from client sites to customers homes.”
Wheatley has held a range of senior health, safety and compliance roles, most recently as Regional Health and Safety Manager for the IPEC business unit of Toll Group. Prior to Toll Group, he held the position of National Safety Manager – Heavy Haulage and Lifting at Kings Transport.

Toll announces Board of Directors appointment

Logistics company, Toll Group, has appointed Geoff Wilson to its Board of Directors, effective 1 October 2017.
According to Toll, Wilson has over 35 years of executive leadership experience with professional service company, KPMG, in Australia, Hong Kong and the US.
“We are delighted to welcome Geoff to the Toll Board. His deep knowledge and experience across multiple markets, including Japan, and his leadership of large, dynamic workforces will be invaluable to Toll’s transformation, governance and future growth agenda,” said Toll Group Executive Chairman, John Mullen.
“We welcome the skills and knowledge Geoff will bring to our board, and we look forward to his contribution to the future of our business,” he said.
Wilson will reportedly assume the role of Chairman of the Audit Committee with the commencement of his directorship.
Toll has said that Wilson will become the last of eight directors to have been appointed to Toll following the rebuilding of the board this year.
With Wilson’s appointment, the Toll Board now comprises eight Directors: Chairman John Mullen, Managing Director, Michael Byrne, Geoff Wilson, Kunio Yokoyama, Tomohiro Yonezawa, Taneki Ono, Noboru Ichikura and Norio Wakasa.

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