Annual Report 2013 - Mainfreight

Continued investment in facilities
to meet the ever-increasing
demands and opportunities we see
in the food and beverage sector.
9.8%
Increase in New Zealand
EBITDA over 2012.
All our New Zealand operations performed
satisfactorily over the year, improving both
revenue and EBITDA compared to the
prior year.
Importantly our three divisions, Transport,
Logistics (Warehousing) and Air & Ocean,
are increasingly aligned in terms of customer
service, with more customers benefiting
from our full suite of supply chain logistics
services than ever before. This has also
occurred for our trans-Tasman customers,
creating a stronger Australasian logistics
service.
The New Zealand domestic transport
market is increasingly dynamic, with
shorter lead times (just in time delivery)
and a requirement for more certainty and
transparency across the supply chain.
Ongoing investment into our Transport and
Warehousing facilities has created the most
intensive freight network in the country,
capable of fulfilling the varied individual
requirements of our customers.
The advantages of being able to move more
freight from road to rail are increasingly
evident. The synergies of improved service
from KiwiRail coupled with our investment
in new rail-served depots, benefits our
customers, the economy and our country,
through reduced carbon emissions and
removing freight from congested roads.
Our Warehousing operations are almost
at full utilisation as we focus on improving
our ability to service the food and beverage
industry. We expect to continue investing
in more facilities across the network to
meet the ever-increasing demands and
opportunities we see in this sector.
Our Air & Ocean business, whilst improving
revenues only slightly as air and ocean
freight rates fluctuate, is operating in an
increasingly competitive global market and
has done well to improve EBITDA by 7.5%
over the prior year, primarily through better
utilisation and with an expanded range of
services.
More importantly, trade within our own
air and ocean network here and offshore
has increased to 65% of all New Zealand
revenue, thus improving profitability across
the network and providing seamless, valueadded
services for our customers.
It is our ambition to provide more import
and export services for New Zealand
customers across the globe, becoming
the pre-eminent preferred supplier for
New Zealand businesses to rely on as
they find their way through complex
international markets.
Establishing Mainfreight 2Home as a
door-to-door service for both business to
customer and customer to customer, no
matter where the product is sourced around
the world, continues to differentiate us
from the competition. Mainfreight 2Home
complements the range of logistics services
offered to our customers, and is increasingly
important as internet trade challenges the
dominance of traditional bricks and mortar
retail trade.
We are well placed in New Zealand to
provide logistics services second to none,
and continue to invest in our network,
services and people to do so.
12 Mainfreight | Annual Report 2013