Trailer Magazine

Mainfreight’s Australian operation performs well

  • Posted on Thursday 30th, May 2013.

New Zealand-based transport company Mainfreight has described the financial performance of its Australian operations as “satisfactory” in a media release accompanying the financial reports for the 12 month period ending March 31 this year. 

Total revenues for the Australian group business units increased 12.4per cent to AU$433.23 million and EBITDA improved 16.6 per cent to AU$30.46 million.

The report acknowledged that the 20 per cent year-on-year growth experienced by Mainfreight’s Australian domestic transport business has also brought with it certain difficulties and has seen margins decline as operational costs increased in the last quarter of the financial year.

The company considered that the growth in the volume of parcel traffic had been to the detriment of its overall service quality and margins with additional labour, facilities and owner-driver costs escalating.

The response has been to provide their customers with a dedicated parcel provider and exiting this parcel freight from its own network and "concentrating on ensuring that Mainfreight can provide its
freight customers with the best possible service levels."

According to the report, Mainfreight will make "considerable investments" into new Australian infrastructure and construction of new facilities in Queensland commences in June with occupation expected in May 2014.

Improvements to the Adelaide facility are imminent, and additional leased facilities in Sydney are currently under construction. Land has also been purchased (conditionally) in Melbourne with the intention of constructing new facilities there.

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