New Zealand-based global freight operator, Mainfreight, has issued its annual report, stating an increase in revenues and profits over the whole group.
While operations in Europe, where Mainfreight has 26 branches, struggled in the economic climate, the 20 branches in Asia and 66 in the Americas showed some growth. Earnings and profits increased in New Zealand but the star performer, in terms of percentage growth was the Australian operation.
Mainfreight currently has 43 branches in Australia, which showed an increase of 12.4 per cent in revenue and 16.6 percent in earnings before interest and taxes. The company saw a 20 per cent increase in its Australian domestic business, but the organisation admits it struggled to cope with the swift increase freight, resulting in a reduction in the quality of service to some customers.
“As a Board, we have failed to recognise and plan early enough to accommodate the 20 percent per annum growth of our Australian domestic business,” said Mainfreight Chairman, Bruce Plested, in the annual report. “As a result our quality of service to our customers has declined, particularly in the period prior to Christmas, and our people have been put under considerable pressure.”
To cope with the growing freight task, the company has begun site works on a new Brisbane facility, due to be opened in the middle of 2014. Mainfreight has also purchased an 11ha site in Melbourne, and building work will commence later this year. The two sites in Adelaide and Sydney will be extended and the company will operate from temporary sites while the work is being done. Mainfreight is also actively seeking a suitable site to build a multi-brand facility in Perth.
According to Mainfreight, a considerable proportion of its growth has been in the parcel traffic segment.
“Our position in the Australian logistics sector is now well established,” said the annual report. “We have the confidence of our customers and will continue to invest in our network high standards of warehousing and freight facilities, equipment and people as we strengthen service levels to our customers.”
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