The Team's Board Report - Mainfreight

3AustraliaMainfreight Distribution – Rodd MorganWe are pleased to be able to report a final full yearprofit result this year that was 15% stronger thanlast year. We have also seen our revenue grow bymore than 17%.This result is due to the great efforts of our tirelessteams around Australia who have held strongduring what was a particularly tough summerperiod.Whilst we still have much work to do and areas toimprove, we would like to thank all of our team foryour persistence and dedication which is the onlyreason for our improved result.Below are some of the many highlights that ourbusiness enjoyed over the last financial year:-Sydney Metro has had significant sales growthand now is home to three team members and 16drivers. The rapid growth has been a struggle attimes, but now we have survived a frantic summer,we are in a much stronger position to carry thisgrowth on and see some of the service benefitsthat extra vehicles on the road can bring.We have also made the move into the newcombined Sydney site which means the wholeteam can work in the same office at once asopposed to squeezing one at a time into our oldatco hut!Melbourne Metro has also experienced rapidfreight sales growth thanks mainly to the arrivalof two blue chip supply chain customers. Thishas changed our business from mainly doingbulk pallet deliveries to also now specialisingin concentrated carton deliveries to service therestaurant industry within Melbourne.Importantly, we would also like to welcomeback our key team member, Aladin, from hisadventurous journey to New Zealand. Aladin alsorecently completed the famed Outward Boundcourse and reports that it was very definitely a lifechanging and memorable experience.The Brisbane Metro owner drivers have againdone us proud this year recording the bestdelivery performance in the country for one ofour major customers. If it wasn’t for the ownerdrivers’ efficiency and their excellent relationshipwith our customer’s frontline people, we would nothave serviced our customers during the difficultpre-Christmas period so well.We have had another year of substantial growthin terms of fleet size and sales at Brisbane Metro.The profit margins were not as good as previousyears but with an injection of two permanent teammembers into the office and introducing a fleet ofvans to service our premium accounts, an end ofyear profit result not much behind our previousyear was still a good effort by the team.The coming year will see Brisbane Metro focuson bringing new customers to the group to ensurethat we continue to widen our service capability.In Townsville, we moved into a new depot lastyear to help deal with our strong growth. Moreexciting than this is the wide variety of non-rentpaying snakes (Taipans and Pythons) that seemto also like the new shed!

6Mainfreight Canberra ConvoyAdelaide continues the strong upward profit trendthat started two years ago. We lost money then,made a small profit last year and this year wehave improved that result by 170%.This improved profit has meant that the extravolume of outgoing freight has allowed us toprovide Adelaide-based customers with a betterservice. We now have more outgoing linehaulmovements which helps us to provide customerswith some of the best service available out ofAdelaide.Melbourne has also seen a lot of changes overthe last six months. We welcomed Ashley Taylorinto our family as our new operationsmanager and we promoted SimonRavi-Pinto and Jenny Paterakis intonew leadership roles.and will help to provide us with some of our futureleaders.As we now own our premises we will be able tomake some changes in the depot over the comingmonths which will help to improve our operationalefficiency significantly.Wow, what an exciting year this has been so farfor our Sydney branch... and it’s only just begun!On Saturday 29 March we moved into our newpremises “50 Yarrawa Street Prestons”, and oursite is impressive (and in this instance size doesmatter!)We have added another five ownerdrivers to our fleet with three moredue to start in the next few weeks.An initiative we have recentlyinstigated is the appointment ofour first “operations cadet”. Thisdevelopment should see us bringingquality young people into thebusiness with an operational focus

7Area Old Building New Building – YarrawaTotal Site 9,952m2 48,000m2Warehouse 2,766m2 14,000m2Hardstand /Canopy1,500m2 13,000m2Office 500m2 1000m2The positives about this tin shed are many:• Better, cleaner working conditions – mothernature is not an issue anymore• Cross dock – better loading efficiency and lesshandling of freight• Canteen – our cooks (Mary, Mairie and Jo) havea spanking new canteen – as our expandingwaistlines can testify to!• Office team together on the same floor givingthe “one family” atmosphere• Parking – parking fines are a thing of the past –at last• Logistics – it’s great to have our brothers andsisters from Logistics on site.Of course the expectation now is to fill the shed,and the sales team are ready to step up and makeit happen. We have several recently signed newcustomers with many more in the negotiationstage.Our focus at this time is back to basics andquality – the main principles that made us whatwe are today.We have really beefed up our investment in thetraining and development aspect of our businesswith the very experienced Shona Taylor nowworking exclusively with our training team in thisimportant area. We have been focussing heavilyon ensuring that our operation and owner driverteams are in no doubt about the expectation thatour business has in relation to our depot systemsand the need to improve the quality of ouroperational service.Looking ahead, all over Australia we must allcontinue to strive to improve the level of servicewe provide our customers. The next year maywell prove to be a very tough one for businessesin lots of industries. One thing we are certainof though is that because of the leading level ofquality that we provide, all challenges presentedto us here at Mainfreight will be overcome.Quality and growth are our focus and with ourfantastic team and with many new servicesto offer, we are more excited than ever at ourprospects for the coming year.

8Mainfreight International / CaroTrans OceaniaAustralia - Steve ThorogoodThe Australian Mainfreight International andCaroTrans Oceania teams continue to look forgreater efficiencies, opportunities and improvedperformances; continually striving to improve ourperformance in all aspects of our business andservice to our existing and potential customers.Although not fully meeting our pledged target asa business across the board there were somepleasing aspects in this past financial year. We stillhave to improve our sales growth overall in thiscoming year.In the past couple of months a couple of eventsare worth mentioning.James Hartigan was appointed Branch Managerof our CaroTrans Oceania Sydney site in February2008. James has been part of our Sydneyoperation and has had varying roles during thattime and this is a great opportunity for James tolead our operation in Sydney.Congratulations also to Grant Joyce who, at theNational Sales Conference held in March, was therecipient of the “Australian Sales Person of theYear”. The challenge now for Grant is to continuethat strong form in the coming years.Grant Joyce – Australian Sales Person of the YearCongratulations also to the Melbourneand Sydney teams who were thefinal two competitors in the race forthe “Australian Branch of the Year”honours at the National BranchManagers Conference held in March.In the end the Victorian operationswere successful, being the first timean Australian Mainfreight Internationaloperation has been successful in beingpresented this prestigious award. Thepressure is on for our Internationalteams around the country to continue togrow and develop and repeat the feat.Rob Cotter – with Australian Branch of the Year Award

9Mainfreight PerishablesMainfreight International Perishables is now in its5th year of being the exclusive handling Agent forOZFRESH Australia Pty Ltd.OZFRESH is the leading supply chain / growerfor fresh strawberries in Australia. When it is offseason, and production is very low and qualityis not at the best, Ozfresh begins to importstrawberries from the United States.Perishable cargo is time sensitive and every hourcounts; when we talk about strawberries – assoon as they are picked from the PADDOCK, it isa race to get them on the PLATE.The strawberries are handpicked, placed into thepunnets and fumigated at origin and then broughtdown to 2ºC.Prior to despatch for air freight, a Tectrol bag isplaced over the skid and oxygen is then replacedby carbon dioxide which places the plant intoa dormant stage. The key here is to maintain asuitable temperature to allow for the internationalairfreight journey along with the unexpectedchallenges we face in the air freight industry.Mainfreight International Perishables plays avery important role in the Logistics chain.Skids are placed onto a PMC ULD and flown toAustralia. The ULDs are completely insulated withfoil and then frozen gel packs are placed onto theskids to maintain temperature.From this moment on the clock starts ticking;every hour counts and handling is crucial.If temperatures increase the plant startsrespiration, which causes condensation toform within the punnets and can result in thestrawberries having a poor out turn.Mainfreight International Perishables kicks intogear and beats down the clock.Cargo is pre-cleared and AQIS is on standby for a600 unit piece count inspection (600 strawberries).The clock ticks faster as the product is in fullsunlight awaiting the AQIS inspection to befinalised.Upon arrival at Springbank Street the Warehouseteam swings into full operation, breaking downthe unit and immediately removing the Tectrolbags from the skids which then allows the oxygeninto the strawberries and stops any furthercondensation occurring. The skids are takenback to the consignee’s depot where timeslotshave already been made with supermarket chainsand interstate transport already waiting for thestrawberries to start the overnight journey.Early next morning strawberries are on thesupermarket shelves and in the local VictoriaMarket ready for the finest strawberries to beplaced onto the PLATE.72 hours from PADDOCK to PLATE – MainfreightInternational Perishables makes it happen!

10Outward Bound Course –New ZealandDuring the first six months of this year wehave had members of our team take part inthe Outward Bound Courses in New Zealand.Feedback has again been extremely positiveand the participants got a great deal out ofthe course both personally and professionally.Congratulations must go to our Training Teamin New Zealand for continuing to provide andmanage this very worthwhile and important coursefor our global teams.Mainfreight is very heavily involved with thedevelopment of trade with New Zealand and Fiji.We are members of the Trans-Tasman BusinessCircle, a senior executive business networkthat works very closely with Australian and NewZealand Government Trade organisations.Brian Anderson has also recently been appointedPresident of the Australia Fiji Business Council.The Council’s main aim is to advance the interestsof Australian business in Fiji. It does this throughGovernment and business networking.Australian Customs Service regularly conductsaudits regarding all facets of our businessdealings with them. One area that is heavilyaudited is the sea cargo and air cargo reporting.Failure to meet reporting requirements can resultin fines, suspension and removal of licence to act.The Australian Customs service recently advisedus that Mainfreight International / CaroTransOceania Australia is the number one seafreightreporter (by volume) in the country. This takes intoaccount shipping lines and forwarders.The Melbourne seafreight import team wasalso presented with an award in recognition oftheir performance as the number one reportingbusiness by representatives of the AustralianCustoms Service. The Melbourne team’s reportingof cargo manifest information to AustralianCustoms is timely and accurate, and based on thevolume put through this was a great achievementby the team.The ongoing continual strengthening of therelationships between our group brands inAustralia continues to drive a team in Australiathat is creating a strong force in the market.The Mainfreight International and CaroTransOceania team’s commitment, passion andteamwork embracing continual change andimprovements in the business is the strength ofwhat continues to make our business grow. Wecontinue to revisit the “basics” on a regular basis.Looking ahead the Mainfreight International andCaroTrans Oceania teams in Australia have someexciting challenges ahead. A challenge we willagain embrace with open arms.There are no limits to what we can achieve aslong as we continue to set goals, strive to achievethem and work as a team.Melbourne Seafreight Import Team

11International Division – John HepworthInternational Goals andStatisticsLast financial year was another good year for theInternational team as a whole. Listed below ourannual statistics that show we have got somegood momentum going.Seafreight: HB/L handled last year -253,000 up 12.22%TEU’s handled last year -142,000 up 5.26%Airfreight: HAWB handled last year -54,000 up 7.42%Kilos handled last year -44,000,000 up 1.64%With the start of another financial year we mustset our goals early to ensure we are going toreach them by year’s end. Our volumes statshave started strong with Target (Mainfreight Incfrom 1 July 2008) bringing on board good kilovolumes globally. Airfreight growth is our focusfor this year and we must all strive to get a largerfoot hold in your particular market.We have interesting trends in various markets withUSA booming in exports and giving CaroTransa great start to the year. Mainfreight Australiahas started well with strong growth in manyareas. But we have Mainfreight International NewZealand struggling due to the high NZ$ and thathas affected our export volumes.We can find many good and bad examples for ourposition right now BUT we must take ownershipof our division to ensure the targets we havepledged for this year are met. We must now getour KPI’s in line, if you start worrying about themin December it is too late. We saw too manyexamples last year where we got across the linewith our profit pledges but did not have our KPI’sup to scratch. Start reviewing them now and getthe trend moving in the right direction today.We must get our sales over 15% revenuegrowth this year. Measure your sales peopleand challenge them to achieve their sales callnumbers. It is possible in International to do 20plus calls per week with territory management,strong inside support, and an uncompromisingsales manager who is determined to achieve15% revenue growth. We need to invest in salescadets in all International divisions. They canstart inside and then into sales support whilst theyawait their chance to get out on the road. Wemust have our own “home grown” sales people.We have many challenges this year with theseparation of Mainfreight International andCaroTrans in Australia and New Zealand. Let’s notallow ourselves to get distracted. Also rememberwe are the same company and do not need tocomplicate things by trying to outsmart eachother. We have separated CaroTrans for onereason and that is to develop a strong neutralwholesale/NVOCC player in Australia and NewZealand that will complement our success storyin the USA.David Shiau’s 60th BirthdayIt was a great pleasure to be part of a smallgroup that gave David a surprise 60th birthday.Michael Lofaro and I have worked with Davidfor over 25 years. David does not celebrate hisbirthday so it was a complete surprise for him tofind a few of us at a resort in Asia to greet him.It has been a pleasure to work alongside Davidfor half my life, and in him we have a trusted friendand team member who has served us proudly inthe Taiwan, Hong Kong, and China markets.You would think David was turning six not sixtyby the look on his face

12Mainfreight Flag is Raised in the USAWith the initial phase of the Target LogisticServices acquisition now behind us, we areexcited to be expanding the Mainfreight name andservices to the USA. With a recent Board meetingin Los Angeles, the Target team is keen to showthe Mainfreight Board that they are part of theMainfreight family.From 1 July we have renamed Target LogisticServices to Mainfreight, Inc. The team here isbusy planning logo changes on buildings andtrucks along with stationery needs.We will have over 36 offices and warehouses,and 70-odd trucks across the country all proudlydisplaying the Mainfreight brand.The Mainfreight fl ag at our new Los Angeles facility

13United StatesMainfreight USA (formerly Target Logistic Services)Chris CoppersmithNew Full Service FacilityOpened in Salt Lake City(SLC)The business is expanding once again with theopening of a full service facility in Salt Lake City,Utah.moving freight through Salt Lake City. Onetelephone call to Target opens the door to accessmarkets worldwide. The Salt Lake City terminal isequipped to handle every type of freight includinghi-tech components, equipment for aerospace,automobile parts, trade show material, retailset-ups and even nutritional beverage companies.The new Salt Lake City facility is linked to thecompany’s network of domestic and internationaloffices through an advanced IT system thatprovides almost instantaneous tracking andretrieval information for our customers.Visits to Shanghai and HongKongWe are responding to shippers in the Salt LakeCity area seeking expert, competitively pricedcargo services, and offering a complete rangeof varied international and domestic optionsincluding air, ocean and surface transportation,3PL inventory control, warehousing, reverselogistics and cargo management. We are alsoutilising the new Salt Lake City facility as a centrefor a network of distribution services to all regionsof the US in addition to all major internationaldestinations.The new facility, just minutes away from the SaltLake City Airport, is managed by Travis Lambros,a ten-year industry veteran whose professionalcareer has centred in the city by the Great SaltLake. He is aided by a team of experiencedsales and operational professionals who arefully knowledgeable in the cargo demands ofbusinesses throughout Utah.This past May George Frey, Vice PresidentSales & Marketing visited Mainfreight officesin Shanghai and Hong Kong to meet and greeteveryone to continue to establish excellentsales communications between the Mainfreightgroups. The goal during these meetings wasto discuss the transportation strengths as onecompany then moves forward capitalising onsales leads from both continents ultimatelycapturing new exciting business. George advised“I was very impressed with both the Shanghai andHong Kong organisations and could not wait toget back to the US and advise our team of theirexcellence”. Immediately we have exchangedsales leads for both air and ocean shipments, andgrowth will be a reality in these markets inboundand outbound.The new facility offers the entire range ofMainfreight supply chain services to customers

14Involvement in the LongBeach Grand PrixIn time for the Long Beach Grand Prix racein California, Target and MFI arranged for theimportation of an Aston Martin race car.The car arrived into Los Angeles on aTuesday. Its departure had been delayedat Heathrow by three days, and with thestart of the race just hours away, MarkNeumann (Director of Customs for MFIUSA) ensured a successful after-hours“overtime” customs release at LAX. Lessthan one hour after flight arrival, he walkedthe entry documentation through USCustoms and the release was complete.Once the Aston Martin was offloaded fromthe plane, a careful inspection ensued.The car, worth more than US$500,000,had made the journey from London to LosAngeles with nary a scratch. Then, following theinspection, the Aston Martin was loaded into itstrailer, awaiting transport to the paddock toprepare for the upcoming Grand Prix and a top 20finish!Mark Neumann handled the Clearance and Delivery to the Grand PrixAnnual Meeting in San DiegoWith managers and the top 25 account executivesfrom offices all over the United States, wecelebrated our fifth year of annual meetings atthe beautiful Rancho Bernardo in San Diego,California from April 3-5, 2008.Holding educational meetings on sales,operations, and company progress under theMainfreight banner; the more than 180 attendeesgot a chance to exchange ideas on how tosucceed in fiscal year 2009. Representatives fromseveral overseas offices, including New Zealand,Australia, Italy, and Asia came to mix it up withtheir fellow USA managers. Awards for quality,revenue, new account growth, and profitabilitywere handed out during the course of meeting.The Board of Directors for Mainfreight Ltd stoppedin during our meeting for a meet and greet beforeadjourning to the boardroom in Carson, Californiafor their weekend board meeting.Happy, motivated, and united, the team enjoyedtheir time together and left ready to make this anoutstanding fiscal year.Target Logistics Team – now Mainfreight USA!

15CaroTrans – Greg HowardThe CaroTrans team continues to “raise the bar”by delivering another record breaking performancefor the 2008 financial year. Total sales increased25.6% and broke through the $100 million markreaching US$106 million.Gross margin % remained consistent with lastyear and ROR improved to 6.7%. Profit before taxincreased 38% to over US$7 million.These improved results are due to the fantasticefforts of our entire team throughout theCaroTrans network branches and underscoresthe team’s commitment to ensuring exceptionalservice is provided to our customers throughoutthe world.During a time when the economic indicators arepointing to a sluggish US economy, we are off toa strong start in the New Year. The momentumbuilding from the past couple of years has helpedset the pace for another record performance inwhat will be the 10 year anniversary since joiningthe Mainfreight family and 30 year anniversary ofcontinued international NVO operations.Thank you to all of our team for delivering resultswhich exceed expectations and for driving forwardwith passion and enthusiasm.Several highlights of the year include:• Our belief that we promote from within helpeddeliver new branch managers in Atlanta andCharleston. Pascal Grunder moved from theChicago branch (where he was the ImportManager) to lead the team in Atlanta. GrantMorrison moved from our Los Angeles branch(where he was Customer Service Manager) tolead the team in Charleston.• The success of our sales cadet and graduateprograms has helped introduce someoutstanding young people into our teamsand strengthens the pool of talent for futureleaders.• Launched a direct groupage service to JakartaIndonesia; previously this was transshippedthru our agents hub in Singapore for rehandlingand on forwarding.• Since establishing a branch in San Franciscotwo years ago, the team delivered a profitimprovement of 164%. A strong focus on theseeds / agriculture industry and the PacificIsland services contributed to this fantasticperformance.• In partnership with our Asia colleagues, weinitiated weekly groupage services ex HongKong and Shanghai to Chicago, Los Angelesand New York.• Our continued support of “Books inHomes” has helped move closer to properlyestablishing the program in the USA andexpanding coverage to additional schooldistricts.• Outstanding cash collections on the partof our A/R team lead the group in debtorspercentages.• We moved to new office facilities in Clevelandand Baltimore and are undergoing a majorexpansion project in our Chicago branch.• Our new sales rep in Houston, DeanRuffel, recently relocated from MainfreightInternational Melbourne; highlighting the factthat opportunities within Mainfreight can befound elsewhere than only your local branch orcountry.

16“Suds Time” In a CaroTransBucketBath time is a happy time for little 5 month oldGiovanni, son of Olga Cazares from our Chicagoteam. Olga writes “My lil’ one loves it when Iput him in the bucket after his bath, he’s only 5months old and is able to sit up and play in thebucket, he splashes water everywhere but lovesit – so do I!”Branch of The YearWe had fantastic, but frosty, Branch of the Yearawards dinner as part of our annual branchmanagers meeting held in the “windy city” –Chicago. Based on the wind blowing from thepresentations and acceptance speeches….it surelived up to its name!It was a privilege to present the branch of theyear award (for the second time in three years)to Jason Braid on behalf of the Chicago branch.Our second and third place finishers were theCharlotte and San Francisco branches.Chicago stood out as the clear choice for anumber of reasons:• Revenue growthacross all servicesincreased nearly37%• Gross margin wasup 35%• Record pre taxprofits of US$2.5million – an 86 %increase• Team memberdevelopment• Exceptional KPIperformances• Improved branchadministrationCongratulations to Jason and his team on a well deserved award!

17Pickles of The YearIn addition to the Branch of the Year presentationmade at the recent Branch Managers awarddinner, we also had the honor of presenting thePickle of the Year award for exceptional customerservice.Given the fact that we failed topresent the Pickle of the Year awardfor the 06/07 year, we had theprivilege of presenting two awards this year.The Pickle of the Year Award - 07/08This came as a result of correspondence receivedfrom a delighted customer praising an entiredepartment for going the extra mile to ensure hisshipment was delivered on time. This customerhad a 40th wedding anniversary planned and hadorganised for his wife, a special surprise gift whichhe had shipped from Europe to New York.Unfortunately, the shipment was caught upin a customs exam due to discrepanciesin documentation issued at the overseas origin.The situation was grim and the party with his 70guests was in danger of being cancelled.At the time when it appeared all was lost, the teampulled out all the stops and rallied with theshipping company, AZ warehouse, our customer’sbroker, the trucker and even US Customs toget the shipment released and delivered in timefor the celebration. We only wish we could haveseen the look on his wife’s face when she receivedher gift in front of 70 special guests.Now this is what we call “special delivery”.Congratulations to the Jersey import team forwinning the 07/08 Pickle of the Year award!Rosa Veloso, Nicole Salcedo, Damian Vieira, Gary Dreuer & Nancy Silva

18The Pickle of the Year award - 06/07This award was presented to Renee Basnetwho received a “hospital pass” just byanswering the phone at 6:00pm after the restof the team had gone home. The customerwas part of a group of motorcyclists fromNew Zealand planning to tour Americaon their motorcycles which had beenshipped from New Zealand. This personwas in desperate need of help because hismotorcycle was “M.I.A.”Unaware of the customs regulations in theUS and assuming they could simply show upto our office and ride off on their motorbikeslike Peter Fonda in Easy Rider, this shipmentwas doomed from the start.While waiting for the correctdocumentation to be dispatched from NewZealand, Renee was hard at work trying tolocate the cargo and getting it re-directed to theproper city for clearance and handling. Talk abouttrying to find a needle in a haystack!Once the correct documentation was received, theRenee accompanied the paperwork through USCustoms to ensure prompt clearance and deliveryof the motorbikes to the anxiously awaitingmotorcyclists. Never once did Renee stop to findout who to blame or what excuse could be usedto pass off to someone else. Instead, she got onThe 06/07 Pickle of the Year award was presented toRenee Basnett for going beyond the call of duty!to it, sorted it out so the group could get on theirway without further delay.When the motorcyclists returned home to NewZealand, an article about their USA travelswas published in the local newspaper. Thearticle highlighted the exceptional serviceprovided by CaroTrans International and howinstrumental Renee was to helping make the trip acomplete success. What a way to be recognizedfor outstanding customer service!CaroTrans Going GlobalThe announcement following the April Boardmeeting in Los Angeles regarding CaroTrans, haspaved the way for changes and new opportunitiesas we intend to strengthen the CaroTrans brandand network around the world. It is a realcompliment for the CaroTrans teams to receivethe Board’s commitment to the growth anddevelopment of our global NVOCC brand.During the past year we have establishedCaroTrans operations in Australia, New Zealand,Hong Kong and China. We will exploreopportunities in other parts of the world as weexpand the CaroTrans network around the world.As I step into my new role, we have appointedleaders in Australia, New Zealand and USA tolead the teams and to ensure CaroTrans continueson our strong growth plane while gaining theindependence, respect and attention it deservesas a global NVOCC. Tony Naumoff will lead theCaroTrans team in Australia and Steve Hendry willlead the New Zealand CaroTrans team.In the USA, several changes have occurred as wesolidify the new management team.

19Michael Forkenbrock has been appointedPresident of CaroTrans and as you can see fromhis photo, he is ready to the lead the charge.Alongside Michael will be Richard Burke to headup sales / marketing and Matt Spartz will head upoperations and network development.This is an excellent opportunity to expand on thefirm foundation we have built and will be essentialto our continued growth. It is fantastic to onceagain see “home grown” talent move into thesenew positions.The following contributions are from the teams inNew Zealand and AustraliaCaroTrans New Zealand – Steve HendryRecently CaroTrans participated in the 8th AnnualAuckland Mainfreight International Awards Night.This was a black tie event and certainly thehighlight of the year where we join together andcelebrate the individuals who have contributed tothe success of the business.The importance of the Awards night cannotbe overstated… it’s part of our culture, historyand provides a real opportunity to recogniseand reward some of our top performing teammembers.• Claire Patterson – Most Improved TeamMember• Wayne Zhu – Nickname of the Year• Steve Hendry – Sales AwardThank you to Dianne Clemens and Todd Chandlerfor all your efforts in making this a very successfulnight.The awards are a mixture of comical through tothe more revered awards - Player of the Year andTeam of the Year; it is important to note that therecipients are nominated by their peers.The night started with a minute of silence inrespect to the Mangatepopo River tragedy whichdirectly affected several members of the branch.Whilst a sombre start to the night, the mood wasquickly lifted by the band and the night kicked offwith some of the less serious awards.For CaroTrans, the Awards night was verysuccessful with three team members receivingawards:With guest appearances from “Mildred, Wilfreda, and Freda”the latest NZ pop sensation, the night reached new levels.

20CaroTrans Australia – Tony NaumoffSydney BranchCaroTrans has been in existence in Australia fornearly two years, servicing the wholesale Importand Export markets to all corners of the globe.In our last newsletter, we included a summary oftrade lanes covered and the similarity in agencynetwork with that of CaroTrans USA and NewZealand.Our independent position strengthened when werelocated to offices adjoining our CFS unpackdepot. We managed to clear out the kangaroosand wombats from an unused office, give theplace a fresh coat of paint, some new furniture,and a revitalised CaroTrans has taken shape.We have a Team of nine, with Josephine, Alicia,and Jana in Exports, Kate, Jade, and James inImports, Marika and Nick looking after the Sales,and James Hartigan who heads up the team.We receive our Exports and unpack our Importboxes on site, handling more than 50 containersper week.Our facility has 3,500m 2 of Customs Bondedwarehouse space, with a further 15000m 2 ofhardstand, as well as container forklifts, andgeneral 2.5 tonne and 5 tonne standard cargoforklifts. We have full Quarantine handling onsite, including a full time officer who can carryout inspections on FCL or LCL shipments at anytime that the warehouse is open.We would like to thank those offices that haveactively supported our sales drives, and wouldwelcome any enquiries or visits to our GreatSouthern Land - we promise we will shout youa schooner and a pie (... or buy you a beer anda meat-filled pastry, for those that aren’t familiarwith our unique Australian language or cuisine!!).

21ASIAMainfreight Asia – Michael LofaroWithin Mainfreight we like to use the phrase, “Wemove at pace”.... Well nothing could be truerwhen it comes to the activities of our teams inMainfreight Asia. This area is constantly on themove and with a population of 1.3 billion people inChina, you can imagine the incredible number ofopportunities that exist.We are particularly excited about the introductionof the Mainfreight International USA team(formerly Target Logistics Services) ... the newmembers of our Mainfreight family. The Asia/USA trade is still one of the largest in the world,and to have the infrastructure that comes withMainfreight International USA joining the team isa very positive development, not only to Asia butour whole global family.this process, China has grown “Mega Cities”.China has over 50 cities with more than 1 millionpeople in them... now that’s not to say it’s justone million!! Many cities are home to tens ofmillions of people. Many cities have populationsthat exceed the populations of New Zealandand Australia. Try to visualise the population ofNew Zealand (at just over 4 million) and Australia(at just over 20 million), hopefully you can thenvisualise the sheer mass of humanity that lives inthese cities.Despite this dynamic growth over the past 30years, China is still a long way from achievingits ultimate goal of a total restructuring of itseconomy and social structure … affording us, asMainfreight, still much opportunity for growth.To all our new team mates in the USA,welcome from your Asian counterparts. Welook forward to the opportunity to work withyou to truly stamp Mainfreight’s presence inthis trade.Sustaining our continued success andgrowth in this region will require us tolook quickly at opening new branches andoffering new services to a multiple of tradesoutside of our original core activities. Eachof these new ventures presents us withsome exciting challenges, but with thesupport of our global network and a strongfocus on core Mainfreight principles andculture, we are very confident of achievinghigh levels of profitable growth in thecoming years.It’s difficult to talk about this areawithout documenting some of the uniquedemographics of the region.The process of re-engineering China’seconomy from a rural based one toan industrial/financial one essentiallycommenced in 1978. As a direct result of

22Where we, as a company, can benefitfrom this region, lies within our ownGroup activities. The growth of ourAsian operations is intrinsically linkedto the activities of our Group operationsin countries like New Zealand, Australiaand the USA. Working with the Group,and for the Group, is critical to ourfuture success. China, Hong Kongand Taiwan service all countries, themanufacturing base in this region isgrowing, and as such, we all needto be looking for international tradeopportunities.A simple challenge to you all is to lookwithin the Warehouses and Distributioncentres we currently operate aroundour business. Look for how much ofthe valuable freight that feeds throughour system is either imports or export cargo?This may help you appreciate the scope of theopportunities that sit before us each day.This region is also a very large import market.So it is very important not to close your mind tothe opportunity of looking for export cargoes fromyour respective countries to this region.There is a lot of potential cargo out there thatwould fall neatly into our Global Supply Chainmodel.To help our teams get a better understandingof our activities in Asia, we constantly hostteam members from various parts of our Globalbusiness on sales and development trips. Thesesales campaigns are an essential investment innot only the growth of our business, but also ourpeople. The more we can move team memberswithin our sphere of influence, the more we canexchange cultural knowledge, and the morewe will spread the passion and culture of theMainfreight Family.Sales campaigns normally last for two weeks, andthey involve a gruelling schedule of early morningsand late nights … catching numerous flights,trains, buses and taxis, and attending many salescalls … it’s no picnic, but it is a most rewardingexperience for both individual and company.Ben Fitts (MFI Christchurch) & Michael Hood (MFT IT, Australia) enjoying thecultural experience of learning to use chop sticks in Hong KongPlease try and have a chat with one of the teammembers that has been able to experience ourAsian operations. Talk with them and encouragethem to pass on their experiences and new-foundknowledge.This year we are again sending Asian teammembers to Auckland, New Zealand to attendthe Emerging Branch Managers course. Thisis a great opportunity for our “up and coming”managers to learn about our Group, the principlesof management, and also to mingle with fellow“Mainfreighters” from around the world.Again, these cross cultural exchanges areessential as we grow our Global family and ourGlobal product. These team members will be thefuture ambassadors of our culture as we drive intonew regions around the world. Good luck to allthose who are attending.On the home front, a personal note of thanks to allthe team in Asia. You have all embraced the manychanges that we have made in the business overthe last seven months, and your acceptance andpositive contribution to these changes have set usup for a very dynamic and bright future.To the rest of the Mainfreight family, thanks foryour support, and if you are ever in this part of theworld, make sure you drop in to say hello.Best regards from Hong Kong, Taiwan & China!

23Owens Transport – Bryan CurtisWelcome to the new team members from aroundthe world, who, for the first time, are reading thisnewsletter. You have joined an ever growing teamthat believes in the ethos of family and workingtogether to achieve our 100-year vision.We closed the 2007/2008 financial year 12.4%ahead of the previous year. A great effort team,we thank you for your effort and commitment.This year we face big challenges as the economytightens.In past newsletters we have warned of toughertimes ahead and certainly this has been signaledin the media and by way of results from retailcompanies, who are seeing a drop in sales.The economy over the winter months is predictedto be tight which will mean tougher times ahead.Whenever we have faced these challenges wehave:1: Reviewed our costs to cut out any waste thathas crept in:• Direct costs eg claims, electricity, forklifts,stationery, telephones• Indirect costs eg linehaul, local cartage.2: Increased the load efficiency of our linehaulunits by monitoring each unit every night.3: Maximised our revenue by ensuring thatour rates are being correctly applied and inspecific cases these rates reviewed.4: Ensured that our operations are as tight asthey can be with:A total of 237 years as part of the Mainfreight family.

24• Linehaul units are departing on time.• Depot Systems being religiously followed.• Freight being remeasured• Deliveries being done on the day of receipt.And on every occasion we have emerged fromthese tough times as a leaner, stronger and moreprofitable business ready to take the next greatleap forward.In early April, a New Zealand OperationsManagers meeting was held in Auckland andattended by twenty of our most crucial people.It was the first time in seven years that wehave gathered this team together and will nowbecome an annual event. As you can see fromthe attached photo New Zealand DomesticForwarding is in good hands.Special People, Special CompanyEddie Tuhakaraina (Eddie T) and wife Christinejoined the FTL (Full Truck Load) team in 2002.Eddie has recently lost 45 kilograms and isadamant that all team members should look atreducing weight for the sake of their familiesand the company image.Eddie & Christine’s new rig: “This is my last one” ... yeah right.

25ProjectsOur Special Projects team, based in Christchurch,has moved a number of challenging consignmentsover the last months.With further specialised equipment about to beadded to the fleet we will be able to move evenmore difficult items.24.50 meter long power poles. This photograph was taken at the Port of Lyttleton, Christchurch.Cooling tower - 4.80 metres wide and 4.78 metres high.The pilot cars are driven by Adrian Fergusson and Ken Bryce, our in-house experts.

26Owens Transport Australia – Cameron ClodeIt has been another six months of hard workfrom our team since the last newsletter. We haveachieved some significant milestones within thelast six months but sadly these have not flowedon to any significant profit growth.In what has been the most exciting milestonein the last six months, our Brisbane branch hasopened its own site. This is a significant stepforward for our Brisbane team, positioning thebusiness in line with our competitors. There arenow high profit expectations from this branch withthe work only just beginning to rebuild the Owensbrand in Brisbane. The team has performedtremendously in very difficult circumstances.You should all feel very proud of your new ‘home’.Our new Brisbane branch with our team – Dean, Niki, Mick, Paula, Melvene, Bob, Sandra & DarrenIn other areas Melbourne continues to grow at asteady rate. With the stability of a team of threein the office as well as a great bunch of ownerdrivers, we are ready to grow our business anddeliver fantastic service to not only our own groupcompanies but to actively sell to the externalmarket.Sydney has had its difficulties and has had toabsorb significant extra costs in maintainingour customer service levels. The cost pressuresare slowly subsiding and following some toughdecisions the branch is now placed to get backon the rails and start significantly improving thebottom line.We are proactively looking for another home inSydney. Whether it is a joint site with another

27Mainfreight business or by ourselves, we will seesignificant improvement on site design and layout,equating to efficiency gains for all aspects of thebusiness.We are also in the middle of rolling out GPSunits to all of our owner drivers. This will seemany positives for our customers in terms ofcommunication as well as improving our ability tomanage our fleet in a way that will benefit both thecompany and owner drivers.It is hard to believe that six months has passedsince Christmas. The Mainfreight family Christmasparty was enjoyed by all, and we look forward tothis year’s festivities.It has been exciting to feel a growing confidenceand positive attitude from all team members.We have all come along way in the past four yearsin terms of a building a great working team, aprofitable business and a part of a great group inMainfreight.We must now remain focused on what lies aheadof us. Whether it is the economy, the cost ofdiesel, or the ability to attract key team members,we must overcome barriers and continue toinvestigate new markets, keep a lid on our costsand always improve our bottom line.Owens would like to thank all group companiesfor their continued support. We would also liketo thank all team members for their supportand contributions to what is becoming a greatcompany.Sydney OD Goran with daughters, Malinka, Mare & Monica

28Human Resources and Training Team – Chris MeyerIn the December newsletter our final note wasto remind you all about Mainfreight Scholarshipsavailable for tertiary study. The response wasunprecedented resulting in 19 young peoplebeing awarded Mainfreight Scholarships to begintheir studies in New Zealand and Australia. Thisis along with 13 previous recipients in 2006 and2007 who are now in their 2nd and 3rd year of thescholarship.The 2008 recipients are;Hayleigh Bryers, Craig Baird , Shamal Singh,Steven Blackmore, Lee Purvis, Danielle Polgar,Danielle Tetai, Natasha Oakden, Ashley McDougal,Xanthe Derbyshire, Cassandra Hunt, VanessaBelk, Simon Cleary, Blair Kippenberger, SonnyTuhi, Presley Purcell, Mathew Prideaux, BradleyWilliams, Joshua SprottOur Driving Force meetings have been a greatsuccess with graduates from throughout thebusiness in New Zealand meeting on a regularbasis. These meetings provide graduates withthe opportunity to network with each other andalso to meet various managers in the business.We have been delighted with the response frommembers of the senior team who have taken upthe invitation to share their experiences with theGrads. Other speakers have been directors fromthe Mainfreight Board, along with a customergiving his view on what makes great service.However our personal highlight (sorry Don, Emmetand Bryan) was Mahe Drysdale, the kiwi Olympicrower. It was a great thrill to have him join us as hewas able to give the team a good insight into whatit takes to get to the top.New Zealand recipients who were able to attend the Auckland presentation with Don Braid and Chris Meyer

29Somehow juggling balls found their way onto theagenda.The concept of juggling was designed to takethe team out of their comfort zone and to learn anew skill. Whilst juggling is an individual activity,the process of learning and developing the skillwas channelled through teamwork resulting inthe team learning the importance of individualsuccess/progress from a team effort.Debi Fitzpatrick and Mahe DrysdaleThe big message was that anything is achievablewith the right attitude and a lot of commitmentand hard work. Watching him at the BeijingOlympics will be extra special knowing hispersonal story.Similarly to New Zealand, Australia have also beenholding Driving Force meetings. Due to the size ofAustralia and the geographical spread of the teamwe bring all the graduates to Melbourne to spendthe day together learning about the businessalong with networking and discovering about eachother’s careers, roles and backgrounds.The latest meeting took place in April inMelbourne. The focus was on leadership stylesand learning how to manage their careers.Grads with their balls in the air!Our first school leaver programme is now wellunderway after forming a relationship withPakuranga College in 2007. We found that a lot ofyoung people knew very little about our industryand the services we provide. Our target audiencewas those that didn’t know exactly what theywanted to do at the completion of their schooling,or those that wanted a break before embarking ontertiary study. The School Leaver Programme issimilar to the Graduate Programme in that schoolleavers must start in an entry level position andwork their way through the different areas withintheir branch.We have taken on seven school leavers inAuckland and have already identified some realpotential in these young team members. We hopeto put together a similar programme around NewZealand and further develop the scheme alreadyin place in Australia.Cure Kids Adventure race in April of this year sawMainfreight enter a team for the fifth consecutiveyear. This annual event follows hours and hoursof running, cycling and navigation training thatthe team does to be competitive during the sixmonths leading up to the event.The Mainfreight Mavericks (Trudy Burt – MFIWestney Rd, Carl George – National team,Cameron Hill – MFI Tauranga , Rowan Cooke –MFT Tauranga ) raced a very strong race. Thedifficulty of navigating through swampy terrain ledthem up the wrong tributary for about 30 minutes.However the “never say die” Mainfreighters puttheir heads down and defied all odds to come ineventually in 4th place out of a field of 42 teams.Anyone interested in joining this band of sickpeople is welcome to make contact with the team.

30Being able to run a half-marathon is a good baseas a starting point for entry into the team. Thereis always the option of joining the support crew ifthe actual event itself is not your cup of tea. Beingable to drink wine and eat ham sandwiches is agood base as a starting point for entry into thisteam.Left to Right Carl George, Trudy Burt, Cameron Hilland Rowan CookeOf course being able to manage the stresslevels when your team can’t find a checkpoint isessential, something team manager John Eshuisfound a little challenging.Cure Kids is the face of the Child Health ResearchFoundation – an organisation established over30 years ago to address the lack of research intolife-threatening childhood illness in New Zealand.Mainfreight has contributed around $60,000 toassist in this research, with half of this moneyfundraised by the team.On a final note we again have been runningdrug education seminars with Mike Sabin. Themethamphetamine problem in our society iseverywhere and across all socio-economicgroups. Educating our team and their families isalerting everyone at Mainfreight to the dangers ofthis insidious drug. You will hear Mike Sabin in themedia alerting us all to what is happening in oursociety and what we can do to prevent it. Take theopportunity to listen to his message; it requires allour support.The Mainfreight Mavericks with Support Crew

31Service AchievementsThe following members of our team have celebrated, or will shortly celebrate 20 years or more with us:Michael Tapper 40 Years Daily Freight AucklandDavid Priestley 35 Years Daily Freight WellingtonKenneth Ganseberg 35 Years Daily Freight ChristchurchBruce Plested 30 Years MainfreightBrian Hurn 25 Years Mainfreight Auckland Wharf Owner DriverIan Garrick 20 Years Mainfreight InvercargillHarry Reynolds 20 Years Mainfreight InvercargillMichelle Simmons 20 Years Mainfreight AucklandBarbara Vincent 20 Years Mainfreight WellingtonAllan Murray 20 Years Chemcouriers AucklandSue Moses 20 Years Daily Freight AucklandAla Aiono 20 Years Mainfreight Metro WellingtonAlan Pluymers 20 Years Mainfreight Napier Owner DriverAlan Allport 20 Years Mainfreight Palmerston NorthJohn Kawau 20 Years Daily Freight AucklandAllan Niethe 20 Years Mainfreight AucklandRobin Jago 20 Years Mainfreight Palmerston North Owner DriverThank you for your loyalty, dedication and hard work.What an achievement!BereavementsMarjorie YamaokaTarget Logistic Services, Carson, LAMarjorie Yamaoka was born in November, 1948and passed away this past April 26th, 2008. Sheis survived by her father, Harry Yamaoka.Marjorie added her professional strengths to ourteam just two years ago, working primarily onthe WinTRACS project. Her creative, ingeniouscontributions were welcomed as were herinvaluable, meticulous skills in documenting thework that the team performed on the project.Professionally, her efforts will be missed greatly.On a personal level, Marjorie had so many greatqualities. As an avid fan of the TV series Babylon5, she idealized Susan Ivanova, a strong womanof leadership with a multi-dimensional, complexcharacter. In many ways, she was very much likeher favorite character displaying loyalty, a greatsense of humor, integrity, honesty and yet, a hottemper when needed.One of her favorite sayings was from her hero onthe Babylon 5 TV show: “Ivanova is always right.I will listen to Ivanova. I will not ignore Ivanova’srecomendations. And, if this ever happens again,Ivanova will personally rip your lungs out!”

32If she could read that quote right now, you wouldsee a bright glowing light in her eyes and abroad smile on her face. Just remember that thiscomplex, gentle soul also loved classical music,took in stray cats, and lovingly cared for herfather. She will be greatly missed.Jan Jones – Mainfreight Distribution PerthUnfortunately we have had a team bereavement in our MainfreightDistribution Perth team. Jan Jones passed away on 5 February2008, after battling cancer for about six months.Jan was our colourful (she loved purple) Data Entry/Rating ladywho worked in our Branch for about three and a half years. Shedid a fantastic job in ensuring that our customers’ consignmentswere always charged out correctly. We all still think of Jan and talkabout her a lot. She is sadly missed, but will never be forgotton.We know she is looking over us to make sure we’re doing our jobs.Our sincere condolences to her family and friends.Dick Moa – Mainfreight DunedinWe were deeply saddened by the sudden loss of GeorgeRichard (Dick) Moa in February this year. Dick was an ex-NavyMaster at Arms and joined Daily Freight in 1987. In his 20 yearswith various branches of the Mainfreight Group he built manyfriendships with team members around the country, and waswell-known and liked as a “hard case” who enjoyed a round ofgolf ... usually followed by a stop at the 19th hole.Dick’s navy training served him well; he always lookedimmaculate right down to his well-shined shoes. In a visit toDunedin a couple of years ago, Don Braid was heard to say thatDick’s truck should be held up as the standard – its conditionwas certainly always a credit to him and the Company.Dick was a hard worker with a great attitude to life. He will be much missed by the team here, and ourthoughts are with his partner Patsy, and his two children Neke & Anaru.David John Lumsden – Mainfreight InvercargillDave passed away on 02 December 2007 aged 43, tragicallytaking his own life. Dave was a much respected and well-likedworkmate and friend to us all and is sadly missed by the teamin Invercargill. He was always cheerful and more than happyto help with any task put before him. Photo attached showshim a few weeks before his death with an award for “Pride ofWorkmanship” from Rotary Invercargill, nominated by AlscoInvercargill one of his regular pick up and delivery customers.

33Technology – Kevin DrinkwaterSoftware Upgrades – MIMS2And WinTRACSThe two highlights of the last six months havebeen the successful implementations of MIMS2for Mainfreight Logistics and WinTRACS for Targetin the USA.MIMS2MIMS2 is now live in all New Zealand branches.The Australian rollout began on May 26 inBrisbane and should be completed by mid-July.Target Logistics will also begin using MIMS2 fortheir warehousing operations in Los Angeles andAtlanta in early June. This will be the first time anymajor Mainfreight operational system has beenimplemented in the USA.Leslie Bivens, Target LA and John Freeman, Target Atlantawith Rachel Hustler, Trainer (centre) during their recent visit toNew Zealand for MIMS trainingThe benefits of MIMS2 over its predecessor aresignificant in many ways. The key ingredients arethe new methodologies, platform and languagesthat have been used by Sandfield, our developers,to create the system. This overall environment willbe a much more stable system that is capable ofhandling the rapid increase in transaction volumethe logistics business is generating.Using internet browser technology as the userinterface means the system has a much smallerbandwidth need, while at the same time allowingusers the convenience of having multiple screensopen simultaneously.Testing of new functionality and bug fixes is alsomuch quicker and more efficient than before.Changes can be quickly implemented without theneed for the entire system to be tested from endto end – only those areas that have changed willrequire testing.Most importantly for the business, and users,it now puts us in a position from which we canbuild, add and implement the new functionalityyou and your customers have been looking for.For example Sandfield are now working on acompletely new and easier way to use scannersfor receiving, unload, put away and picking ofproducts. They will also be working on rewritingthe programs to invoice customers and bills ofmaterials / kitting – where a customer ordersone product that is actually made up of severaldifferent individual parts which we need toaccumulate together as one. Expect to see somegreat functionality added during the next year.WinTRACSAfter 18 months of development by Target’s inhouseprofessional programmers WinTRACS hasgone live. WinTRACS is the Windows version oftheir tried and true software TRACS (Target RealtimeAir Cargo System) which has been runningthe business for the past13 years.It was first released to four stations as a selectbeta grouping in April, to ensure it was as userfriendly as we felt it would be. We then broughtin a group of select users from three key USoffices and the Regional Managers for ‘Train theTrainer’ training on the use of WinTRACS. As theinitial release and training was successful webegan rolling it out to the rest of the offices in Mayand we expect the entire USA team will be usingWinTRACS by the end of June 2008.

34Once the rollout is complete we will begin toadd features to enhance the existing programsto meet user and customer needs. WinTRACSwill provide Target with a great deal of flexibilityas customer and industry needs demand. It isa full service application containing Domestic,Export, Import, and Ocean applications. Manyefficiencies have been built into the program, suchas intuitive shipment data entry, batch updates,automatic milestone notification to customersand sales reps, automated carrier updates,links to industry related websites, automatedAES filings, automated denied party screening,online search for DG classifications, Schedule Bclassifications, etc. It also provides for completedocumentation, to include the ability to scanrelevant shipment documents and store themonline with the shipment for bothelectronic transmissions, as wellas file review online as applicable(no more having to pull filefolders to review documentsassociated with a shipment). Italso provides for plain paperprinting of applicable shipmentdocumentation to networkprinters.Devices on theDockThe rollout of Depot Scanning continues withAustralian branches now beginning to join NewZealand branches in using scanners to outturnfreight. It has been enthusiastically accepted bythe team at Clayton, the first Australian branch togo live. Thanks to Max Muaulu from Railway Lanebranch for helping get the scanners establishedwith the Clayton team. They will be rolled out toall major Australian sites over the next couple ofmonths.GPS RolloutOver 30 owner drivers in Melbourne now havescanners with GPS (Global Positioning System)which enables us to tell where any driver is now orwas previously. Clayton branch is already gettingsome good operational information from GPS datawhich is enabling them to look at ways of beingmore route efficient when giving jobs to drivers. Italso helps us provide proof to our customers thatwe have arrived at the major distribution centreson time – even though often we are forced to waitin a long line to get through the gate. GPS givesus a great technological advantage to marketto our customers and a means of reducing ourcarbon footprint. Roll out to Sydney and Brisbanewill be happening in June and July respectively.Auckland, Christchurch and Melbourne wharfoperations are also now fully operational with ourintegrated PUD (pickup and delivery scheduling)system and GPS technology. We will also berolling it out to Auckland Metro operations laterthis year.Screen shot of GPS locations in MaintrakLegendCircles = Drivers : Colour of circle representsdrivers current statusOrange – Job not accepted within 10 minutesBlack – No jobs allocatedGreen – Job picked upS inside – Swing capableTriangle = Pick Up Location : Colour of Trianglerepresents job status.Red – UnallocatedBlue – AllocatedGreen – Picked upSquare = Delivery Location : Colours as aboveDiamond = Pick up and delivery location

35Disaster Recovery SiteWe successfully moved our disaster recoverysite from O’Rorke Rd, Penrose during May.This means that we now have our emergencyequipment and systems housed at a moreacceptable location and distance from RailwayLane, Auckland. The equipment is located ata specialised Telecom NZ disaster recoveryfacility. David Hall and his team have fully testedthe operability of the site during May and June.This has meant we have had periods during theweekend where we have had to take all systemsdown, however it is essential that we know thatthis equipment will work when we need it. Testingwill continue to occur on a three-monthly cycle.We will endeavour to give you as much notice aspossible as to when these tests will occur.Special FeatureFocus on Freman WebFreman Web is the newest offering in ourFreman freight management software family.This light-weight version of our full-featuredFreman 3 software runs directly in a web browserfrom any internet connected PC. Being based onthe web offers several advantages to Freman Webcustomers:• No or minimal install needed• Updates automatically• Access from anywhere• Lower hardware requirementsExpand BoxesWe have implemented some new technologyto increase the throughput on our data lines.Branded “Expand” these boxes attach to eachend of our data lines to increase the amount ofdata and the speed at which we can send andreceive data. This should mean a better userexperience and reduce the need for us to upgradedata lines as quickly. They have been installed atmajor Australian branches and at both ends of ourtrans-Tasman lines. The trans-Tasman line showeda very marked reduction in utilisation after theseboxes were turned on.We have also had Michael Hood and GaryHarrington take these boxes to Hong Kong andShanghai to test what improvement they makein terms of working on our Auckland basedinternational system, Enterprise. Their testsshowed the Expand boxes improved the speed atboth locations from unacceptable to acceptable,which is very promising.On this basis we expect to go ahead with movingour Asian branches to a full trial of Enterprise.Despite not being installed on a local workstationor server, we have managed to squeeze in manyof the bells and whistles of the full version.Designed for lower quantity shippers sending10-50 consignments per week Freman Web isintended to replace manual consignment notes,improving accuracy and reducing the amount ofre-entering data.Freman Web allows customers to enter, review,print, manifest, upload and track consignments.A 30 day consignment history linked to trackingand shipment cost information gives users goodbasic review options which can be checked fromany internet connected PC. Advanced optionsinclude the ability to maintain saved receiver(consignee) and product lists; set up returnshipments; and hire pallets [CHEP]transfer capability.

36Feature Comparison TableFeatures Freman Web Freman 3Direct (Fast) and Windows Thermal Labels Windows only YesTrack and trace Yes YesAuto-upload and archiving Basic YesReporting Options Basic GoodConnote review list sorting Basic AdvancedA4 Label Support Yes YesCHEP pallet transfer Yes YesDatabase backup Yes YesAuto update Yes YesCarrier logo branding on connotes Yes YesExport or Email documents as PDF No YesCourier module for Freightways carriers No YesProfile creation & connote template options No AdvancedField customisation and skipping options No AdvancedBulk Import connotes with validation No YesCustom connote number prefix and length No YesDG record maintenance and DG certificates No New FormatOur sales team are trained to advise which version of Freman will suit each customer best, andwith more new features being added constantly, Freman Web is an excellent freight managementsolution for more and more shippers.Michael Hood and Gary Harrington of Mainfreight IT followed the fi bre optic line from China to New Zealandensuring there were no potential inhibitors to its speed!

37New ZealandNew Zealand Forwarding – Mark NewmanThanks to everyone who got us through asurprisingly buoyant Christmas and New Yearperiod.The sustained volumes really put pressure on thenetwork and our people.As our confident sales team continues to out-sellour competitors we must ensure that we get usedto these new volume levels.The perception of our customers, the onlymeasure of our success, will be based on ourdelivery performance, claim incidence, our phonemanner and the professionalism of our drivers,customer service and transport people.Don Braid presents Denis Laws with the award forNZ Branch of the YearYour branch and operations managers have beengiven a clear vision as to what is required for asuccessful result this year in a difficult economy.Please play a positive part in making sure yours isa winning team.High Honours for NewZealand ForwardingThe recent Branch and Sales conferencesenabled us to review our performance and setgoals for the coming year.Jonathan East, Sales Person of the YearPart of both meetings is the much talked aboutawards ceremonies.New Zealand Forwarding achieved a cleansweep of the major awards.Branch of the year- Mainfreight RotoruaSalesperson of the year - Jonathan East,Mainfreight AucklandFranchise of the year- Mainfreight TimaruMark Newman (centre) congratulates Murray Kippenberger andAdrian Fergusson of Mainfreight Timaru, Franchise of the Year

38Branch of the year –Mainfreight RotoruaAfter being pipped at the post for the honour lastyear, the team at Rotorua got back up, wiped theirbloody noses and excelled in 2007.In all the categories measured, from profit, qualityof operations and development of people, thebranch met or in most cases exceeded ourstandards. Well done team, well deserved.Salesperson of the year –Jonathan EastJonathan, or Jono to his mates, was oursuperman in sales last year. His mild mannerand humility disguising a steely resolve that led tooutstanding result for him personally and also theteam he leads at Mainfreight Auckland.Daily Freight ChristchurchNic Kay and the team at Daily Freight Christchurchmoved in to their new shed over the Easter breakin March.The facility follows the new blue print for ourpurpose-built buildings with wide docks and railaccess through the centre of the building.Franchise of the year –TimaruAlthough the competitors were hard at their heels,it was perhaps appropriate that the franchise ofthe year trophy was won yet again by MainfreightTimaru.Adrian and Ingrid Fergusson have grownthis branch from very small beginnings, to adominating force in the town.A growing brood of grandchildren has promoted amove for Adrian and Ingrid to Christchurch whereAdrian now works for us in Special Projects.Well done for a Franchise of the year threepeat!!You leave big shoes for Murray and JulietKippenberger to fill, but we’re sure they’re up tothe challenge.The team is delighted to have the luxury of suchthings as walls on the terminal to keep the crispwinter mornings at bay, and we are pleased tosee the beautiful new lunch room doing a roaringtrade.

39Daily Freight ChristchurchMainfreight WhangareiThe new shed for Whangarei is really takingshape. The short 22-week building programmewill see us move in here in August.Our success in Northland over the last few yearshas put enormous strain on our current buildingand the team in Whangarei is thrilled with theprospect of moving in.Mainfreight Whangarei takes shape

40Claims PerformanceOutward Consignments Per ClaimInwards Consignments Per ClaimBranchTo March2008To Sept2007To March2007BranchTo March2008To Sept2007To March2007Rotorua 1216 1270 1240 Chem Christchurch 2353 2362 2449Chem Auckland 1043 781 2752 Owens Auckland 2199 2667 1274Chem Hamilton 1042 738 2107 Rotorua 1871 2285 900Chem Wellington 883 878 866 Owens Wellington 1772 2028 1608Blenheim 864 781 565 Chem Wellington 1620 1321 8205Dunedin 790 850 960 Invercargill 1616 1635 1478DF Auckland 682 668 465 Chem Auckland 1247 1022 4506Chem Christchurch 658 606 663 DF Christchurch 1214 1097 1252Owens Auckland 657 693 442 Owens Christchurch 1147 1309 1240DF Wellington 566 589 412 Chem Hamilton 1146 948 3168Palmerston North 548 502 638 Blenheim 1070 1004 1593New Plymouth 524 510 443 DF Wellington 1013 1432 1022DF Christchurch 493 550 500 MF Auckland 1011 978 807Owens Wellington 473 407 435 DF Auckland 968 1234 961Total Company 462 463 462 MF Wellington 950 1059 1039Owens Christchurch 452 518 269 Total Company 935 995 1005MF Christchurch 444 439 463 MF Christchurch 927 940 971MF Auckland 432 398 302 Mt Maunganui 907 1212 1114Mt Maunganui 421 579 643 Dunedin 886 964 1134MF Hamilton 412 477 522 Napier 871 804 986MF Wellington 407 428 455 MF Hamilton 865 909 903Whangarei 404 314 389 Nelson 688 885 826Napier 323 288 571 New Plymouth 683 630 530Invercargill 203 242 337 Palmerston North 554 586 638Nelson 196 187 388 Whangarei 441 512 616If your branch is below the Total Company number, then you are below average.Make sure you and your team members work hard this year to be above this line.You should be aware that annual bonuses are affected in the following way:+ 1% For outwards claims, over 450 consignments per claim, and 1,500 inwards consignments per claim+ 2% For outwards claims, over 550 consignments per claim, and 2,000 inwards consignments per claim- 1% For outwards claims under 350 consignments per claim- 1% For inwards claims under 1250 consignments per claim

41Owner DriversFuelWith the staggering increases in fuel pricesover the last months we have had to revisit theformulas by which we pass the fuel adjustmentsto our owner drivers.In an environment where our customers are reallyhurting from many cost pressures including fuelwe must be certain that the payments are fair andaccurate. Please work with your branch managerto ensure you understand the changes.ImageWinter has arrived and the task of presentingour trademark immaculate image becomes moredifficult. The presentation of your vehicle iscrucial to our success. As well as being pristineon a Monday, take the time to wash down and tyreblack through the week.New Linehaul UnitsOur brand new 64 pallet, fully mezzanined linehaulB Train capable of carrying 27 tonnes.With the New Zealand dollar at historical highlevels, it is the right time to invest in new truckconfigurations. High tonnage, fully mezzanined,high cubic capacity units will become theminimum requirements in our FTL and fixedlinehaul fleets.Things to do better1: Reduce our claims – careful handling of ourcustomers’ valuable freight is the cornerstoneof our company’s success.2: Take ownership in dealing with our customers,don’t pass the buck, be accountable.3: Think Global, what we achieve in our NewZealand business now has repercussionsaround the world.6. 64 Palleter

42Logistics Overview New Zealand & Australia– Craig EvansEvery Cloud has a BlueLiningLike any economic cycle it’s not the good timesthat test one’s resolve rather a downturn thatdetermines one’s character, both as individualsand as a company.In good times operations can be run by StevieWonder, the occasional economic hurdle healsquicker and bad decisions are often disguisedand offset by good ones.In Mainfreight’s history we have been through anumber of economic challenges and come outmuch stronger; the lessons learnt still stand today.It’s these lessons we can share. Firstly some keyperspectives from previous cycles:• Our business is much more insulated fromthe New Zealand economy with greater globaldiversification.• Don’t fall into the trap of pulling costs at thedetriment to service to our customers• Be more tolerant and accommodating with ourinternal and external customers• The total success of our supply chain is notmeasured by structure, rather the way weinteract with each other. The customers feeland hear unity.Remember without customers we have nobusiness! So focus on this first.An old sporting attitude, never declare whenyou are hurting as the opposition will focus andplay on it, applies to our business too. Withour smart looking trucks, terminals, smilingfaces, and enthusiastic phone mannerisms, thecompetitors will increasingly become demoralisedand financially pained. This will be felt by theircustomers.• Our competition is facing even tougherchallenges• Significant investment has been sunk intoproperty and infrastructure.• Our global reach has greater influence onfreight flows into and out of New Zealand andAustralia• More long service veterans, accustomed totough conditions.So what is our game plan?It’s simple ...• Increase our intensity to service the customer• Clean and maintain our trucks and facilities likenever before• Challenge and remove all unnecessary cost• Employ wisely and manage productivity• Be hungry to increase our levels of cold callingnew businessRemember it’s our character to pick each otherup and march on, that’s what’s made Mainfreightstrong in hard times previously and it stands truetoday.NZ and Australian LogisticsIt’s been a change of trans-Tasman fortunes,with New Zealand reaping the returns of makingchange decisions 12 months ago and Australiahaving to make long-term ones now.Courage under fire is the rule of the day; wehave to apply ourselves to express ourselves inAustralia through these investments. Our team hasheld on in some challenging growth cycles neverseen before in our history.Now is the time to build consistency and lockdown our gains and go again. We can’t do thiswithout our team members believing in oursystems and mission. Our systems are tried andproven to be world class. Our mission is to be thepremier logistics business in Australasia, part ofour global aspirations.

43The next few months will be our hardest and mostrewarding as we look to reap the investments andenergies to solidify our position.This can only be achieved with attitude andenergy to quicken change further. The rewards willbe felt by those that step up to the challenge now!Our New Zealand business can pay testamentto this; you have inspired us all to what can beachieved with such dedication.What’s New?• We have finally opened our new Sydney facility.This is by far our largest operation to dateglobally, with 150,000ft 2 of racked warehousecapable of holding over 20,000 pallet locations.The design is food grade with special designfeatures like an insulated roof to reduce heatinvasion.The new Preston warehouse, it’s large, it’s impressive and fi lling fastThe new logistics offi ces at Preston’sMountains of booze is fi lling the racks

44The new extensions at Railway Lane New Zealand are underway Additional 45,000ft 2• The extension of Railway Lane in Aucklandis underway. Our five-year plan only lasted20 months, and we find ourselves having toextend our 75,000ft 2 operation by another45,000ft 2 .• The launch of Pride Logistics NZ, with a new100,000ft 2 distribution centre in East Tamaki,Auckland. Pride is a joint venture companybetween Mainfreight and NZ’s largest hardwareretailer, the Mitre 10 group.The new reception, for the “Pride green machine”The Pride team at the new Auckland DC

45• Additionally the expansion of Owens Logisticsin Christchurch contracted to Pride to hold4,000 pallets of South Island inventory.• Opening our second operation in Perth,Australia which is a 55,000ft 2 facility to capturemore regional and national opportunities.• The addition of another Mainfreight mobilecrew in Auckland to service ongoing containerunloading growth around the city.• Kevin Bradley moving to Australia to strengthenour operating processes in the Australianlogistics.• Riyaz Jordan relocating to New Jersey, USAfrom Australia and formerly New Zealand tohead up the New Jersey CaroTrans office, andto impress himself on millions of unexpectingAmericans.All others not specifically mentioned wecongratulate you on your new appointments andwillingness to step up and be counted. Like youand others following, the business is posed forgreater thingsNew Melbourne Campbellfi eld manager Hamish Woods,tough as teak!Melbourne Somerton’s new manager ‘Rocky’ Jarrod Lovell

46Mainfreight International – Jon GundyLooking back over the first five months of thecalendar year, we have seen plenty of excitingchange, challenges and opportunity. The needfor our business to be constantly moving andadapting is as evident as it ever has been.Our key achievements in the first half of this yearare:Mainfreight International has expanded to an11 branches in New Zealand inclusive of newbranches in Dunedin, Hamilton and a dedicatedAuckland Airfreight Branch. We see opportunitiesto further grow our regional network.With our combined Perishable airfreight and Dryairfreight tonnages we have retained our Airfreightnumber one IATA ranking from New Zealand.We achieved our National Profit target for the yearending 31 March 2008.The International Forwarding market hasdeveloped from a need to successfully movefreight through a strong worldwide network toalso include the system capability to manageinformation data between multiple parties basedhere and overseas. Mainfreight has developedsystems solutions that deliver strong datamanagement. The front end of this systemdevelopment is our Customer Services teams whoare better placed to provide import customersfull visibility on their shipments whether they beAir/Sea from USA,China, Australia orother origins. Thatsaid, our systemswill only deliver ifwe have a team thatremains committedto producingexcellent source datathrough attention todetail and the desireto offer excellentservice.New Zealand exports of manufactured goodshave continued to decline and we are focussedaggressively on the import retail sector for bothseafreight and airfreight for future revenue growth.We are working with Mainfreight International inAsia, USA and Australia to grow our import supplychain business.New Auckland AirfreightFacilityThe team at Westney Road experienced the firsttangible impact of the new airfreight facility onMonday 26 May, when the new car park opened.All team member and visitors car parks are nowat the northern end of the Mainfreight Logisticsbuilding.The change of car park allowed work tocommence on the new airfreight facility.We are excited about the new facility as it willbring the entire Mainfreight International Aucklandteam to one site for the first time. The new facilitywill have state of the art cargo handling andrefrigeration equipment, generating substantialefficiencies for our customers and for MainfreightInternational.We know the team at Ascot Road is lookingforward to their new home.This year we havesecured two wellknownretailerbrand’s importsupply chainbusiness.

47AucklandThe 2008 year has certainly been very buoyantwith visits from our overseas agents/ partnersto Auckland on dedicated sales campaignsWe have had sales trips this year from USA,Hong Kong, Australia, Japan, and our teammembers have visited Australia, South Africa,and Fiji with a USA visit upcomingThe start of the financial year has been slowerthan we would have liked but there is a hugeamount of prospect/potential business alongwith some great gains that have just been landed(several of these new gains are well-known bluechip accounts) which once fully operational willmarkedly improve our revenue and profitability.The team at Auckland has extensive experiencein all aspects of project work (an example ofwhich follows below). We have a few projectprospects on the horizon and again are alwayslooking for more of this type of work. Our attitudeis always that of “Can do” !In early January, Flaktwoods Australia Pty Ltd inMelbourne shipped across a huge fan for OceaniaGold (NZ) Limited to install at the Macraes GoldMine project in Otago.MAF required the fan to be moved across to theTimaru Wharf for cleaning of tree branches offthe top. A tool box containing used tools anddunnage had to be removed before all quarantineprocedures were met. This was the easy partas we soon realised this huge fan was actuallywelded to the Flatrack base. We had to organisea crane and oxy-acetylene gas cutting equipmenton site at the Macraes Gold Mine Site to removeand dehire the empty Flatrack in one round tripback to the Timaru wharf.This was certainty a challenge but with ourdepth of resources throughout the whole of NewZealand, Murray Kippenberger and the Timarutransport team stepped up to this challenge andworked with our Auckland International teamto overcome every Customs, MAF and RoadCartage requirement so that everything went likeclockwork and the fan was still delivered on time,once again proving Project challenges like this arewhat we do extremely well.Auckland AirfreightAfter a steady start to the year we have noticeda drop off in inbound volumes both in kilogramsand a slight decrease in job counts. This seemsto be reflective of what is being portrayed in themedia with retail being down but the pressure ison to stay ahead of where we were this time lastyear, given the circumstances we are ahead butnot where we need to be. This is positive and isa credit to our Operations and Customer ServiceTeams but we have a lot of work to do.Our key focus is to be aggressive in our salesapproach and also to ensure that our level ofservice and communication is of the higheststandard; this is our point of difference.In light of the above and the economic climate wehave some exciting gains on the horizon and arelooking forward to these accounts kicking off toadd to our current volume.

48Exports have been steady and have been upon all measures (kilograms, job count) which issatisfying given the current export climate and weare tracking well.A number of airlines have increased their fuelsurcharges recently and expectation is that otherswill follow suit either with fuel or rate increasesparticularly on tighter routes. This is likely to resultin some changes to capacity as the Airlines lookto rationalise services. and a number have alreadyannounced aircraft changes.These rate levels and added costs all add to thepressures on our customers and their ability tocompete globally; our role is to continue with theexcellent and professional service we have beenproviding as it’s hard enough already being aNew Zealand exporter.The Airfreight team has also grown in order tohandle jobs more effectively and also to ensurewe are giving our customers the added servicethat is required.Export DocumentationOn 1 November, Mainfreight entered intonew territory with the start of our exportdocumentation team. Currently this dedicatedteam of five performs the export documentationfor Carter Holt Harvey, New Zealand’s secondlargest exporter. This is an exciting opportunityfor the Mainfreight Group and will provide theplatform to expand our export documentationservice.NapierChris Rodgers was privileged to be invited to aBooks in Homes Assembly on 11 April at WairoaPrimary School (which has a Decile 2 rating).The assembly was focused around a school playwhich was so funny to watch. Our young actorsof tomorrow!Chris said, “At the end of the play I washonoured to help distribute the books to variousclassrooms. The look on the kids’ faces as theywere handed the packages was one of greatTaurangaMovingIn July 2007 construction of our newoffices were completed and we movedin to join our transport and FTL team inTe Maire Street. Having been in the newoffice for only three months, constructionstarted again to accommodate ourExport Documentation team. We are nowlooking to expand the site even furtherby redesigning and developing the wholeoffice site.GraduatesAugust saw us bring on our first graduate,Rowan Cooke and in January, RebeccaTonks started with our import team. Itis great to see our graduate team startin Tauranga as on the one site we havetransport, logistics and internationaloperations. Unfortunately our grad teamwill move on however, we are committed tobring more on as the opportunity arises.

49delight. I honestly believe they were never going tolet those books out of their sight.“From this event I can confirm it has been oneof the highlights of working for the MainfreightGroup. All of those who have attended a schoolassembly will know exactly what I am talkingabout, and for those who have not, I can only saymake it one of your goals for 2008 – you will beoverwhelmed with what Mainfreight is achieving inyour local community“.Mainfreight in Hawkes Bay sponsors three schools• Wairoa Primary School, Wairoa• Peterhead Primary School, Flaxmere• Porangahau School, Porangahau, CHBCheck out the schools you sponsor in your areaand make the local community aware of what wedo.Christchurch Dry Freight –Ben FittsGreetings from China! I couldn’t have picked amore interesting time to come, with the Olympictorch relaying its way from Ningbo to Shanghai(quite an honour that the Olympic committeechose to use Mainfreight offices as the start andfinish points today!)The last four days have been spent knockingdown doors China style with three days of salescalls and a port tour in Hong Kong and todayunder the watchful eye of Hannah in Ningbo ...tomorrow it’ll be Shanghai with Billy.Lastly one thing that has been consistentthroughout so far is the hospitality of the localMainfreight teams...and there’s nothing quite likewalking into a massive office block in the middleof a foreign city and seeing the familiar MainfreightLogo sitting proudly on the wall.Auckland and ChristchurchPerishablesMainfreight Perishables has been busy movingthe regular products we handle of lobster, fish,meat, horticulture and flowers. There has beena downturn in most products due to the toughereconomic conditions, and with things like fishinghaving a huge fuel component it has made lifedifficult for many exporters. It has been a time oflooking at cost savings and thinking outside thesquare to assist the export market where we can.One fishing tale which has been encouraging isthe fishing of Southern Bluefin Tuna out of theSouth Island, which doesn’t happen every yeardue to the movements of the fish.Southern Bluefin Tuna are very valuable and theirprimary market is the Japanese Sashimi market.Because of the high fat content of SouthernBluefin Tuna flesh, premium prices can beobtained in the Japanese market. Therefore it iscritical we maintain the coolchain when exportingthese Southern Bluefin Tuna from New Zealand toJapan. A single Bluefin Tuna can sell for in excessof NZ$10,000 in Japan.There’s been a mixed reaction to thecalls with some shippers open withclient/ consignee information and othersnot willing to play ball at all. I havebeen reminded of how well-known weare back home with almost every callthis week beginning from scratch withan attempt to build a picture of the“Special Company” that we are to peoplethat have never dealt with or heard ofMainfreight.The leads that we get will be fed outto the respective Mainfreight teams forfollow up.

50Outward Bound – AnnetteWebb/Paul Riethmaier‘Only those who risk going too far can possiblyfind out how far they can go’ - Kurt Hahn (cofounderof Outward Bound)Paul and I were truly privileged to be able toattend Outward Bound with 12 other TeamMembers from NZ and Australia in May 2008.We spent eight days in the stunning surroundingsof the Marlbourough Sounds being physically,emotionally and mentally challenged every day -all day, all night!The life lessons we have learnt, the experienceswe have had, the friendships we have made,the goals we have set, the challenges we haveovercome have without a doubt enhanced andchanged both ours and our fellow team mateslives forever.Outward Bound has an amazing ability to bringa group of near strangers together, give us thetools to be able to form the most close-knitteam and to push an individual’s boundaries toits limits. Along this life changing journey eachof us learnt to consistently challenge the statusquo and find that little bit extra in ourselves. Thewhole experience has given us a burning passionto bring our experiences and personal growthback into our everyday lives and our respectivebranches to share with our own teams.‘The future is not some place we are going to, butone we are creating’This year, our focus is strongly on bringing on newbusiness and achieving our profit target. We havea great team, be proud of what you have achievedso far and hang on for the ride for the next eightmonths!Annette Webb and Paul RiethmaierLeft to Right the Christchurch team Annelise Beichter, Alice Macgregor, Karla Gwillim, Gretchen Pirika, Amanda Harris, MelodyGriffi ths, Elaine Wong, Caro Short, Doreen Delahunty and Daniel Rae. I’m sure Dan would be the envy of all the brancheshaving to work with nine females! (Missing in action is Branch Manager Ben Fitts)

Look who received the Shovel Award at the Executive Team meeting in March thisyear, ably presented by Carl Howard-SmithTeam Photo with a difference!

Auckland Dragon Boat Team – with members from Transport, International and Daily FreightGlen McLennan, Mainfreight Dunedin convinced hislovely wife Kathryn that t Mainfreight Invercargill was theright venue for their wedding pics!Toll and the New ZealandGovernment ... come together innegotiations over purchase of Rail

To: Mark NewmanSubject: Re: Mainfreight Fuel AdjustmentImportance: HighGood Morning MarkI would like to take this opportunity to thank & commend your effi cient staff, fromyourself through to Dennis Christmas, our driver, for your good loyal service over thelast seven years. Mainfreight have been a major factor with the success of our BulkWarehouse operation. I suggest a rear door message for one of your vehicles shouldsay ‘NOT A PROBLEM’, as this is a good refl ection of our partnership.Please convey my sincere gratitude to your staff, too many to mention, for all the greatwork over the years. Good luck to you all.Regards ... StanTo: Elaine McCarthySubject: Thank youKia ora Elaine,Thank you for the prompt delivery of our UGs and PGs. Please note that I was veryimpressed with the standard of professionalism from the Mainfreight delivery man[Richard Wichman], and appreciated his methodical and careful placing of all ourboxes. I would appreciate if my feedback could be passed on to Mainfreight, please.Have a wonderful day.Warm regards,LeahTo: Mark NewmanCc: Carl George; Alan Allport (MFT PNH)Subject: Service from Mainfreight.Hi MarkI thought it pertinent that I follow up from my last correspondence with youregarding the service Truck Stops is currently experiencing nationwide. If Iam prepared to complain then I should also be willing to make comments of apositive nature.The service from Mainfreight at the moment is really very good. It hasimproved noticeably over the past 3-4 months and all of the Mainfreightbranches are contributing to produce a great service. We have been throwingsome real challenges at the Palmy team which they have accepted and completedadmirably.On Friday we asked that a diff be freighted to Ch-Ch for Saturday deliveryand a transmission be in Nelson for Monday, both of which were deliveredsuccessfully. Having the ability to take advantage of an extraordinaryservice from time to time is hugely beneficial to Truck Stops and ourcustomers and I’m sure that we have saved at least two of our customers agreat deal of grief by getting vehicles back on the road with minimaldowntime.Please pass on my thanks to the nationwide Mainfreight Team for a greatcombined effort.RegardsMarty

To: Donna Wapp (MFT AKL)Subject: Thankyou\!!/(@ @)------o00-(_)-00o------Looking In To Say…….Hi Donna,Thanks for the copies…….Just as a footnote thought I would tell you that of all the companies that I deal with, you are one ofthe most pleasant people to speak to.Have an awesome weekend.RegardsRosalieYour telephone manner just radiates such a lot of warmth, sort of leaves us feeling that our day hasbeen touched with a rainbow because we had the good fortune of speaking with you.From: Jane McLennanSent: Thursday, 10 April 2008 15:19To: David Tolson [MFT AKL]; Sheree Whitehead [MFT AKL]Hi Dave and ShereeThe tryathlons have been great! Very rewarding in terms of the thousands of children’s smilesI’ve seen. Harold works a charm. We do ‘dance-offs’ with the children and keep thementertained while they wait for the last runner to come over the finish line, and we get all thechildren cheering for the last child coming over the finish line. Pictures attached. Its reallyhelped us raise our profile with families.To: Suzy Zhou [MF Shanghai];Jenny Shui [MF Shanghai]The deliveries have been perfect – there was only ever one mishap, and we coped. The peoplefrom Mainfreight in Palmy were really helpful at putting our gear back on course. Everysingle one of your branches went out of their way to help us, particularly the ones whodelivered on a Saturday night and picked up on Sunday morning, they were amazing and weare really grateful.Thanks again for all your help, and can you please pass on our thanks to the branches involved.Best wishes,JaneCc: Michael Lofaro; Steve ThorogoodSubject: Re: FW: China businessSuzy / Jenny,Mainfreight China has delivered well to my expectations - I congratulateyou on a job well done so far.I will be in Shanghai week of the 26th and have tentatively pencilled tosee you on Tuesday 27th May at your offices.Thanks & RegardsBob

30 years on and still performing!