Freightways profit lifts

2 MinutesBy NZ Trucking magazineAugust 14, 2017

Despite a year that included the North Canterbury earthquake and the completion of a number of significant capacity-related projects, Freightways‘ profit after tax for the year to June 30 was $60.9 million, up more than 22 percent on last year‘s figure.

Managing director Dean Bracewell said the result came from the express package, business mail and information management businesses, which all performed strongly.

“I‘d like to acknowledge the outstanding work and ongoing dedication of our team throughout New Zealand and Australia.”

In February the Christchurch businesses relocated from four independent sites to one purpose-built airside facility at Christchurch Airport.

“This project was completed on time and within budget,” said Bracewell. “The benefits from being in the one modern and automated facility will be seen throughout 2018 and beyond.”

Strong growth throughout the year peaked in December, putting pressure on the company at a time when it was transitioning to the use of Boeing 737 freighters and also relocating its primary South Island freight hub.

“All this in the aftermath of the North Canterbury earthquake, which resulted in significant network disruption and required the implementation of contingencies to ensure the least possible disruption to customers,” said Bracewell. “Modest price increases were implemented to offset rising costs and disruption surcharges were introduced to offset the earthquake-related contingency costs.”

Freightways expects to spend about $17 million on projects this year, down on last year‘s figure of $24 million. The company sees growth potential in Auckland‘s north and west and plans to increase their capacity in these areas.

Bracewell said volume growth and activity levels experienced throughout 2017, driven by both existing and new customers, were expected to increase during 2018.