Friday, July 9, 2010

Australian Logistics Group Snaps Up Two UK Freight Forwarders

Toll Continue to Invest in Expansion
Shipping News Feature

AUSTRALIA – UK - Toll Holdings seem intent to continue their drive to be recognised as one of the top players in the global logistics field with the news they have now moved aggressively into the British freight forwarding sector. We reported last month Toll’s movement in the Asian and Australasian air express market with their purchase of Dpex following on from previous purchases which we covered in November with the groups move into the Arabian region.

Now it seems i’s are being dotted and t’s crossed on a contract which will bring two established UK freight companies into the Toll Holdings group as negotiations conclude on a deal estimated by analysts to have cost Toll A$150 million. The forwarders coming under the corporate wing are WT SeaAir established in 1963 and based in Brentwood, Essex and London Heathrow with strong connections in Hong Kong. Also Toll bound is the Genesis Forwarding Group with three English offices and one each in Glasgow, Aberdeen and Dublin and established since 1986.

The two companies have a good range of offices and agents and should provide a springboard into the European market whilst retaining specialist departments. Apparently Toll boss Paul Little is maintaining his bullish attitude with hints that his target for Toll revenue is a rapid 50% increase over the current level of an estimated A$2 billion.

The two new acquisitions are hoped to produce a combined increase in revenue for the group of around A$250 million. Little believes that economy of scale is the way forward and by cutting of incidental parts of the organisation that do not fit the overall plan Toll believe growth is possible, even in difficult times.