Servicing the north and beyond - TOLL Group

Servicing the north
and beyond
Today, Carpentaria
generates a revenue of over
$300 million per year from a
population of approximately
500,000 people, or around
$600 per person per annum.
This is equivalent to a
Sydney to Melbourne carrier
generating $4.5 billion
per annum.
Above: Terry Mallon, Divisional
Director, Carpentaria.
Far right: QRX’s dual rail gauge
facility in Brisbane enables minimal
delays in the transfer of northbound
and southbound rail freight.
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CARPENTARIA
Australia’s north has unique challenges, which Carpentaria
excels in overcoming...outback terrain, remoteness and
vast distances.
We pride ourselves on delivering specialised services to
a variety of customers and contributing to the economic
development of the regions in which we operate.
Around the clock coverage
NQX, Carpentaria’s specialist road operator
in Queensland and the Northern Territory,
recorded strong growth over many years,
predominantly because of a focus on high
quality services to the cities and towns
in regional Queensland.
Since the acquisition of TNT, NQX has
secured additional contracts for major
resource projects, such as the Century
Zinc mine near Cloncurry in North Central
Queensland. Carpentaria also recently
acquired the operations of MIM’s transport
subsidiary, Universal Transport Operations
(UTO), with long-term contracts for MIM
operations in Queensland and the
Northern Territory.
We’re well placed to capitalise
on the infrastructure development
opportunities in regional Queensland and
the Northern Territory. As new mining and
processing operations start, our strategy
is to win contracts at the construction
stage, grow with the project by developing
services to the site that are then constantly
improved during the operational phase.
The consolidation of NQX and Toll Express
operations in Darwin is already providing a
more effective use of resources enabling us
to better service our customers in the region.
NQX has performed strongly since
acquisition, exceeding plan. As we
introduce enhanced technology and
vehicle design to optimise loads and
reduce costs, we will see increased
earnings in line with forecasts.
Keeping it cool in the tropics
QRX is the largest general freight rail carrier
in Queensland. It handles over 600,000
tonnes of freight each year for more than
3,200 customers.
Operating over long distances to service
many relatively small population centres,
QRX runs about twenty dedicated trains
each week into North Queensland, from
Gladstone north to Cairns and west
to Mt Isa.
QRX, with our long and proud record of
servicing major customers, such as Coles
Myer Ltd, Woolworths Ltd, Franklins Ltd,
BHP and Coca-Cola Amatil, is building
on this base with strategic alliances with
major businesses and offering solutions
to meet the ever changing needs of
the marketplace.

KEY FACTS
Revenue to June 1998 $181 million
Estimated revenue to June 1999 $300 million
Employees 1,400
Operations Australia and International
Branches/terminals 86
% Group revenue 1999 26%
The brands that are Carpentaria
NQX
The provision of time-sensitive and time-certain road services
to, from and within Queensland and the Northern Territory,
as well as time-certain full container loads services by rail,
road and sea to the Northern Territory.
QRX Railfast
Provision of time-certain rail transport services to regional
Queensland and Brisbane.
QRX Refrigeration
Northbound and southbound distribution of refrigerated food
products by road and rail.
Local contracts to deliver fruit and vegetables.
Carpentaria International
Expedition, purchase and collection of goods, along with provision
of export documentation and shipment services to international
ports by air and sea.
Customs clearance, freight management and delivery of goods.
Specialised packaging and transport, warehousing and general
freight forwarding for selected clients.
W&M Meat Transport
Distribution of meat, fruit and vegetables across Queensland
and northern NSW.
R&H Transport
Specialised service provider to mining sectors in NSW and
Queensland.
Bulk handling transport services from Newcastle.
Think distribution
capabilities
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CARPENTARIA continued
By offering a fully integrated service,
including temperature controlled services,
and with access to the extensive Toll
network throughout Australia, QRX is
already expanding beyond Queensland.
QRX is in line with performance
expectations since acquisition. A capital
expenditure program is under way to further
reduce costs and improve margins.
Delivering meat in the best
condition possible
W&M provides niche refrigerated transport
services to the fresh and frozen meat
industry, using state-of-the-art equipment
R&H Transport is an important partner in the development of activities in the Newcastle
port. Our joint development of the Port of Newcastle’s Eastern Basin facilities will
substantially increase business in the port.
and full compliance to HACCP ISO9002
and WVQMS cold chain management
disciplines.
We distribute meat throughout Queensland
and Northern NSW to retail stores. We also
transport meat from regional NSW and
Southern Queensland for export through
the Port of Brisbane.
While our earnings are in line with forecast,
a selective capital replacement program
is under way to enhance returns.
Chemicals and alumina to mine
and port
Newcastle based R&H Transport provides
specialised transport for mining. A major
carrier of mining chemicals, R&H recently
won contracts to transport Orica products,
such as explosives, to Queensland and
Northern Territory mine sites by road, rail
and sea.
The standards for transporting and
storing meat are constantly rising,
with W&M recognised as one of the
country’s leading and most highly
specialised meat transporters.
Woolworths is using Toll’s cold
chain management expertise
to pilot an innovative home
order and fresh food delivery
in Brisbane.

R&H is also a leading transporter of
bulk alumina and finished aluminium. In
partnership with Toll Port Logistics, R&H
is enlarging its bulk handling capacity
at the Port of Newcastle.
As a partly owned subsidiary, R&H is
upgrading its technology and building on
its presence in the Newcastle area. Since
the TNT acquisition, R&H results have been
pleasing, with revenues and earnings ahead
of expectations.
Revelling in remote areas
Carpentaria International, together
with its partly owned joint venture, Kimtrans
Singapore, provides specialised logistics
services for mining and construction
operations, predominantly in South
East Asia.
Its marketing is focused on large-scale,
difficult and/or remote development
projects.
Unusual weather conditions have hampered
access to some mines within the region, but
the overall trading volumes were still strong.
Strong performance can be bettered
The division, which was identified
as a strong performer at the time of its
acquisition from TNT, has been effective in
achieving planned results and integrating
with the Toll Group. A capital program
has been actioned with emphasis on
maximising returns and securing strategic
opportunities for the division. These
developments are expected to further
improve earnings during the 1999 financial
year, notwithstanding the tight domestic
economic conditions and low worldwide
commodity prices that persist.
NQX connects the far north with the rest of Australia using triple road trains –
the best way to connect.
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