Gull NZ will continue business as usual despite Caltex’s acquisition.
Australian fuel retailer Caltex is all set to take over New Zealand fuel retail chain Gull, as part of its plans to expand its retail business.
The deal, worth $325 million, is now expected to be completed by July 3, after it received regulatory approval from the New Zealand Overseas Investment Office.
Under the terms of an agreement entered into in December 2016, the transaction will result in Caltex acquiring Gull’s Mount Maunganui import fuel terminal and retail operating assets.
According to Caltex, the acquisition will optimise its infrastructure position, build trading and shipping capability, grow the supply base and enhance the company’s retail fuel offering through low risk entry into a new market.
As part of the agreed terms of the transaction, Caltex will retain Gull’s brand, management and employees across the current newtwork of 78 Gull stores, and the six currently under construction.
A spokesperson for Gull said the company would be running business as usual, without changes or interruption to service.
Gull sells around 300ML of petrol and diesel fuels per year, representing five per cent of the New Zealand market.
Earlier this year Caltex received approval to purchase Victorian petrol and convenience retailer Milemaker and its 46 operating sites.
The $95 million Milemaker deal was finalised in May, with Caltex entering into long-term leases with an opt-out to 30 years.
Caltex chief executive Julian Segal said the Milemaker and Gull acquisitions were part of the company’s plan to mitigate the impact of losing its 13-year alliance with Woolworths, incurred after BP struck a $1.79 billion deal with the supermarket giant.
Mr Segal said the purchases would help transform Caltex from simply being a transport fuels provider, to grow into a larger convenience retail offering.
Port Nelson is celebrating today after winning the coveted Resilience to Climate Change category in the national 2017 Green Ribbon Awards for its QuayConnect freight logistics model. The two other finalists were New Zealand Post and Sustainability Trust.
Motivated to reduce fuel consumption and energy use across the company and provide supply chain improvements for customers in the Marlborough wine industry, Port Nelson worked with trucking company Central Express Ltd (CEL), and primarily two 3PL customers - glass bottle manufacturer O-I New Zealand (NZ) and wine bottler WineWorks Marlborough - to set up QuayConnect in February 2016 as a smarter way of distributing goods.
QuayConnect’s model optimises import and export loads, with four dedicated truck and trailers working 24-hours a day moving dry goods (palletised glass wine bottles) from Port Nelson to Marlborough, and bottled wine back to Port Nelson from Marlborough. This compares with the traditional transport model where trucks travel empty on one leg of the journey from ship to producer and back.
Over its first year of operation QuayConnect has reduced truck journeys by more than half between Nelson and Marlborough, which has cut the time that trucks are on the road by 10,000 hours. In total, this sustainable transport model has saved 348,436 litres of fuel and 1,602 tonnes of CO2 equivalent in its first year.
Environment Minister Hon Dr Nick Smith, who presented the Green Ribbon Awards last night at a prestigious ceremony in Wellington, says he’s proud a Green Ribbon Award in the climate resilience category went to an organisation from the top of the South Island.
“I am hugely proud of Port Nelson’s Green Ribbon Award as both the local MP and Environment Minister. It shows the sort of practical and innovative initiatives that can make a real difference to the difficult problems of climate change.
“This transformative logistics model has made such a positive environmental impact in just its first year of operation,” Smith says. “It will be reassuring for wine producers using this award-winning distribution and storage service to know it aligns with their company’s own sustainable values. It sends a clear message to opponents of climate change initiatives, like President Trump, that such projects can make both business and environmental sense.
“Not only has QuayConnect reduced carbon emission levels, I also commend the team for QuayConnect’s critical role supporting New Zealand’s valuable wine sector following the aftermath of the Kaikoura earthquake,” he says.
Port Nelson CEO Martin Byrne says winning the Green Ribbon Award ahead of two other organisations working equally hard to reduce the impact of climate change is an incredible endorsement of the Port’s work.
“The significant difference QuayConnect has made to the wine transport sector’s energy output is hugely rewarding and we are enormously honoured to have won this award on behalf of the project’s collaborators,” Byrne says.
“CEL, WineWorks Marlborough and O-I NZ also deserve the win as QuayConnect is very much a collaborative service, with all involved investing and changing their processes to create a more efficient and sustainable model for the long-term,” he says.
Following the November 2016 Kaikoura earthquake, QuayConnect enabled Marlborough winemakers (who produce 75% of the country’s wine) with damaged infrastructure to quickly move their valuable wine to secure storage and onto their New Zealand and international customers through Port Nelson.
CEL Director Jason Millar says the reduction of trucks on the road through QuayConnect, despite the increase in freight on the Marlborough to Nelson route post-earthquake, is remarkable.
“To be involved in a logistics service that has reduced truck hours by 10,000 on a busy tourist and freight road in just its first year is fantastic,” Miller says. “It is an innovative approach to transport logistics and we know now that as the number of customers using QuayConnect increases, we will actually be reducing the number of trucks on the road.”
Wine bottler WineWorks’ Business Innovation Manager Jason Gluer says as a QuayConnect foundation customer he feels the Green Ribbon Award win is a well-deserved accolade for a logistics system that is making a radical reduction to the wine transport sector’s carbon emission levels.
“Port Nelson’s QuayConnect service allows us to handle an increased volume for our wine customers within the same physical footprint while reducing the number of vehicles coming into the facility,” Gluer says. “It is a win-win all round.”
Another QuayConnect foundation customer is O-I NZ. Julie Turnbull, Logistics Manager for O-I NZ says her company prioritises sustainable business practices in everything it does.
“As makers of glass, the world's most natural and sustainable packaging, O-I NZ has incorporated sustainability into our business practices for more than a century,” Turnbull says. “We are thrilled to have played a part in the development of a Green Ribbon Award-winning freight and logistics service QuayConnect, which will have ongoing environmental benefits for the transport sector.”
Ports of Auckland has successfully moved two 1,100 tonne cranes to ready Fergusson Container Terminal for bigger ships and automation.
Fergusson Terminal has five cranes. The two older, smaller cranes were lifted off their rails so the three newer, larger cranes could be positioned at the north of the terminal, where they will be able to work bigger ships. This massive job was done in between customers at the busy terminal.
Ports of Auckland's CEO Tony Gibson paid tribute to the company's highly skilled engineering team who worked closely with crane manufacturing company ZPMC to carry out the project. "We run a very busy terminal, so getting this job done quickly and with minimum disruption to shipping was essential. It's a bit like doing knee surgery at half-time and then getting your player back on the field for the second half," he said.
The relocation means that the cranes are now positioned well to work on the bigger ships calling Auckland's port. This means a more efficient container terminal and a port that can cater to Auckland's growing freight demand.
"More people in Auckland means more imports and more shipping. This work is one part of our investment in the automation of our container terminal which will meet that growing demand. This phase of automation gives us enough capacity to handle the freight for an extra million people in Auckland – 30 to 40 years of capacity," says Mr Gibson.
Partial automation of the Fergusson container terminal will be a game-changer for Auckland's port, ensuring extra terminal capacity without reclamation. The technology will allow the port to handle up to 1.7 million TEU each year (1 TEU = 1 20ft container equivalent); enough to support an Auckland population of around 2.7 million. Future technology will give the port additional capacity to serve a regional population of 5 million – more than three times the current population.
Qantas Freight has entered into a one year agreement with Sai Cheng Logistics International (Sai Cheng) to fly airmail weekly out of China to the United States.
Sai Cheng is a joint venture company between Australia Post and China Post, which provides an integrated logistics solution for Chinese customers to overseas markets including Australia, New Zealand, Asia, the US, Europe and South America. The new agreement builds on the longstanding Australia Post and Qantas relationship, which includes contracts for the transport of Australianinternational outbound mail as well as a dedicated domestic air freighter network.
The airmail from China Post will be airlifted from China Post’s hubs of Shanghai and Hong Kong to various points in the United States by Qantas Freight using our Boeing 747-400 freighter network from Shanghai and our belly capacity out of Hong Kong via Australia. Qantas Freight currently operates four freighter services per week from Shanghai to the USA, including stops in Los Angeles, New York City, Chicago and Dallas Fort Worth.
Executive Manager Qantas Freight, Catering and Australia Airports, Alison Webster said the airline was excited to be working with Sai Cheng.
“We’ve been flying freight between China and the US for the past 14 years with a triangular freighter route that operates four times per week between Australia – China – the US – Australia.
“The variety of freight we carry on this freighter network is extensive – including medical equipment, fresh produce, online shopping, mining equipment, racehorses and even the occasional helicopter.
“The uplift of China Post airmail is a welcome addition to our network and reinforces that the routing we operate is aligned to our customer needs,” said Ms Webster.
General Manager of Sai Cheng Jonathan Qiao said he was really pleased to be partnering with Qantas Freight.
“We collect more than fifty tonnes of airmail each week across China bound for the US. Our customers seek a fast and reliable service and Qantas’ service frequency and freight network to the US allows us to deliver just that.
“With thirteen warehouses spread across eight cities in China, this partnership will strengthen our growing network, connecting Chinese consumers with the world.”
Ports of Auckland has bought out its joint venture partner in the Nexus Logistics entity set up just two-and-a-half years ago to provide logistics and distribution services around the country.
The Auckland Council-owned port operator today acquired the 50 percent stake in Nexus owned by the privately held transport and logistics firm Netlogix, it said in a statement. The company didn't disclose the price but the port valued its 50 percent share at $2.6 million as at June 30, 2016, and had extended a $2.7 million loan to the joint venture at the time. The acquisition brings the port operator's Wiri inland port manager Conlinxx back under its control, having poured the division into the joint venture when it was set up.
"We are grateful to Netlogix for working alongside us as we have developed our capability in this area," general manager supply chain Reinhold Goeschl said. "We are now at a point where we can take Nexus forward on our own while continuing to work in partnership with Netlogix to serve our existing joint customers and develop future opportunities."
Ports of Auckland's share of profits from the joint venture was $1.2 million in the 2016 financial year, down from $2 million a year earlier. It received $2.1 million in dividends that year but also recognised a $2.6 million impairment charge on the investment.
Netlogix chief executive Chin Abeywickrama said the sale lets both parties "accelerate the investment and growth in their targeted supply chain strategies" and they will keep working together in a "strategic alliance".
Transport and logistics company, Mainfreight, has ranked at number eight on the New Zealand Annual Corporate Reputation Index, an annual listing produced by research consultancy, AMR.
The Index measures how New Zealanders view the nation’s top 25 companies across seven reputation drivers, and then ranks them according to people’s overall emotional reaction using more than 6,000 ratings.
The 25 companies included in the New Zealand Reputation Index are sourced from the Deloitte Top 200 list, which ranks companies by revenue.
"It is a great achievement for Mainfreight to be listed in the top 10 of the AMR NZ Annual Corporate Reputation Index in our first year of inclusion," Mainfreight said in a statement.
"Our culture has been key to this achievement shaping the way we operate. A 100 Year Vision keeps us focused on the company we want to be now and in the future."
Air New Zealand ranked first, while Toyota ranked second on the listing.
A visit to Auckland’s Contract Warehousing and Logistics Limited (CWL) in East Tamaki sparked a buzz of interest for the Pacific Trade Invest (PTI) Pacific Path to Market delegation.Rod Giles talks about the warehouse process to the visiting delegates of the PTI Pacific Path to Market Programme in Auckland.
Rod Giles, Founder owner of CWL Limited welcomed the 25-member delegation from eight Pacific Island countries to his business. The delegates were on the final day of the PTI Pacific Path to Market four-day programme that included the Pasifika Festival, a Gap Analysis work shop, site visits and Business to Business Speed Dating meetings. The programme provides a structured approach to understanding the New Zealand market.
The group visited CWL to learn more about warehousing and logistics. Mr Giles said demand for his warehousing had ramped up over the past 3-4 years with the rapid growth of online sales and New Zealand’s vibrant economy.
Mr Giles founded Contract Warehousing in 1978. He had a history in both warehousing which followed into freight before starting Contract Warehousing Ltd some 40 years ago. During this time he has been involved in training for industry and also operating in Australia with his company for a number of years and further developing his company to meet the ever increasing demands of online sales, both nationally and internationally.The beauty of third party warehousing is that businesses don’t necessarily require a shopfront or the capital commitment normally required to commence a business.
Prior to Christmas last year the business was processing 40 containers monthly, up from their usual 15 containers monthly at the same time last year. The success of the business comes from the driving passion of the sprightly 70-year old who starts his day at 6:30am and ends about 13 hours later at 7:30pm. It has seen him start a business in warehousing before others and create custom computer programmes after visits to Australia and England failed to find what he wanted. Facing the challenge however put him ahead of the curve and the competition.
And it’s not just about processing the orders and distributing the goods. Mr Giles says he cares about the success of his customers that translates to his own success.
The beauty of third party warehousing is that businesses don’t necessarily require a shopfront or the capital commitment normally required to commence a business. Instead it allows clients the benefits of experienced trained staff and systems in servicing their needs from day one in what Mr Giles described as “an effortless and seamless manner.”
In a nutshell, Contract Warehousing hires out the space for the goods, the orders are picked and packed by warehouse staff and delivered to the customer by courier.
The delegation’s company tour started with an introduction to the frontline team of about 6-8 office staff. They receive the orders, generate the invoices and forward the order to the warehouse where the goods are picked, checked, packed to meet the products requirement and then delivered by courier. The delegation then visited the very large busy warehouse located in a long building behind the office. The warehouse featured rows of floor to ceiling racking designed to accommodate the wide variety of products which total over 10,000 different items of boxed goods from kitchen equipment from the USA, to food from India, to wine bottles from small South American and books sold to the USA.
Throughout the visit Mr Giles repeatedly stressed the importance of keeping a very efficient electronic system and maintaining the traceability of products. From the receipt of the order through to the picking and packing in the warehouse to the date and time of delivery by courier. The operation relied on accurate units of measure, correct product codes and shipping details, a great team of dedicated staff and an in-depth knowledge of freight, insurances and the associated shipping laws. The traceability meant a stock report could be generated and emailed to clients daily.
It’s a straight-forward process Mr Giles suggests, “What’s required in warehousing is you deliver the right product, in the right condition to the right customer at the right time. For this to happen day in and day out the systems must be in place and the staff fully understand and follow the requirements to make this happen,” he said.
However, he also related a sobering story of client’s failed business after they switched to a DIY Warehouse and Distribution option rather than using the specialist warehousing and logistics company. Mr Giles added “It has to be understood that the best marketing in the world fails if the service to deliver every day does not back up the marketing and this is too often taken for granted.”
For the delegates on the Pacific Path to Market programme, third party warehousing was a revelation and provided a clearer understanding of some of the options available when exporting into the New Zealand market.
Automation is rapidly becoming less an option and more a necessity when it comes to machine tools, and just like machine tools, automated handling systems are continually being updated and improved.
Most recently, Makino announced the availability of a new design configuration for its Modular Machining Complex (MMC2) automated pallet-handling system, making it compatible with the company’s a61nx-5E 5-axis horizontal machining center.
The updated MMC2 retains the same modular design and capabilities of its predecessors, but with a new pallet-transfer interface on the system’s rail-guided vehicle (RGV). As a result, manufacturers are able to achieve spindle utilization rates upwards of 95 percent on a61nx-5E machines, according to Makino.
“Based on feedback from current a61nx-5E owners, we’d come to realize that the machine’s productive capabilities were so high that most operators were struggling to keep their machines fed with raw materials,” said David Ward, product marketing manager at Makino. “By providing this optional pallet interface on the MMC2, we’re able to help manufacturers keep up with the productivity rates of the a61nx-5E to get the most value out of their investments.”The MMC2 can integrate up to 15 machining centers and four work-setting stations into a single system. Each system can hold up to 200 pallet stockers—stacked either one, two or three layers high—with a variety of parts and fixtures.
The system’s RGV is supported by a floor rail and upper-guide rail for enhanced stability and high-speed movement. The system’s work-setting stations provide access for operators to load and unload parts either by hand or crane.
The MMC2 can also be equipped with optional workpiece washing guns.
The pallet-handling system enables the a61nx-5E to receive a continual flow of parts and can run unattended for extended periods, including over nights and weekends.
The updated MMC2 retains the same Microsoft Windows-based MAS-A5 control software. The MAS-A5 main PC hard drive stores and manages all NC programs, including those that exceed CNC memory.
Tool data, both in and out of the a61nx-5E machines, can be accessed and modified from the MAS-A5 user interface. A variety of file formats for tooling and part information are supported and can be displayed to assist with part loading/unloading and tool-setting operations.The Tool-Life Predict function enables the MAS-A5 to gather tool-life data per NC program. When a request is opened, this function informs the operator of how long a tool will be used in each NC program execution, as well as how many spare tools per machine are required to finish any work that is currently loaded or awaiting processing at the time that the request was placed. The MAS-A5 then schedules work only for the machines that meet tool-life and availability requirements for the desired process sequence.
Interfacing with a tool presetter can also reduce errors by automatically capturing tool-offset data, which can be transferred from the presetter to the MAS-A5 system control.
Standard control features include in-cell production scheduling, equipment status monitoring, NC program management and on-board reporting. These capabilities enable the MMC2 to assign work and initiate operations automatically, based on machine and material availability, using maximum spindle capabilities and monitoring all automated procedures.
New Zealand Post this last week signed an agreement with the Henan Bonded Logistics Centre (HNBLC) and Trademonster that will simplify access for New Zealand companies to one of world’s largest consumer markets.
The signing, at New Zealand Post’s Auckland Operations Centre on Wednesday, was attended by senior representatives of the People’s Government of Henan Province, including Chen Run’er, the Governor of the Province.
HNBLC processes more than 90 million domestic parcels in China, and more than half of all cross border ecommerce trade. Trademonster has a strategic alliance with NZ Post and has strong relationships with the major ecommerce platforms in China, which is key for New Zealand SME businesses looking to enter China.
NZ Post chief executive Brian Roche said the agreement is testament to the trust and loyalty that has been developed between the New Zealand Government and the Henan Government.
“Chief Executive of Henan Imported Materials Public Bonded Center Group Co Ltd Madam Xu Ping brought her senior team to New Zealand to meet with our heads of business and to consolidate the business trading lanes that are now actively open between our two countries.
“This provides New Zealand traders with simplified access to one of the largest consumer markets in the world.”
Dene Green, General Manager of NZ Post International, said the Trademonster relationship, which is headed by Managing Director Gavin Yang, is one of the most exciting and supportive cross-border agreements NZ Post has ever had.
“NZ post carried more than 7 million items between New Zealand and China last year. Supported by strong relationships such as these, this is forecast to grow by up to 15% over the next 12-18 months as more Kiwis shop online and more Kiwi companies grow their ecommerce capability and sell into overseas markets.”
Port Nelson has been a key infrastructure asset for the top of the south for decades but its importance to Marlborough is becoming even more significant, following last year’s 7.8 earthquake.
The port company is undertaking a $60 million, three-year capital expenditure programme that is designed to bring the port operation into the 21st century and ensuring it is fit-for-purpose as a modern port.
In recent years Port Nelson Limited has been gradually expanding the area directly under its control with many businesses that don’t need to be located in the port environment relocating to more appropriate commercial areas.
This has given the company the opportunity to demolish a number of buildings that were built in the 1950’s and ‘60’s and replace them with buildings designed for a modern freight operation.
Taking direct control of more land has also allowed the port company to enlarge its secure-fenced Customs Controlled Area (CCA). An important part of the redevelopment has been driven by very strong support from the wine industry resulting in the construction of a 13,000 square meter, $12m wine store, consolidation and distribution facility that will also be a Customs approved bond store.
Port Nelson CEO, Martin Byrne, says; “the wine volumes have risen dramatically, almost trebled, in the last three to four years and the container volumes have continued to increase so during peak times we’re extremely strapped for space. This facility will help us manage the wine related cargo volumes we handle now and in the future”.
Eugene Beneke, Business Development Manager for Port Nelson owned QuayConnect has been the driving force behind creating the facility.
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