OPTIMISING OUR FREIGHT

NETWORK.

OUR INDUSTRY• Annual sales revenue in 2011/12 of $1.6

billion • New Zealand’s largest horticultural exporter,

with export returns of $1.1 billion in 2011/12 – over twice the export returns of, NZ’s second-largest fruit exporter

• Around a quarter of the Bay of Plenty’s GDP is generated directly and indirectly by the kiwifruit industry

OUR INDUSTRY

• One of the world’s largest kiwifruit exporters, selling in 54 countries

• Growers face immense challenges over the short- to medium-term with beating the effects of PSA

• One of the highest per tonne revenue commodities exported from New Zealand

THE FREIGHT TASK

• 7000 FEU• 54 Chartered Reefer Vessels = 220,000 pallets• 60 trucks on any one day doing multiple trips

(300 loads per day)• 15 different Contracted Transport operators

nationwide• Just in time delivery• Product inspections within the 24 hours prior to

loading

FEATURES OF OUR FREIGHT TASK

• Short haul – Average cart 100 km•District roads and State highways• Just in time delivery to the port

means most product delivered to the port within a 24 hour window• Seasonal April to November (8

Months)

1. Competitiveness2. Utilisation3. Sustainability

WHAT ARE THE THREE THINGS THAT ARE THE FOUNDATION OF OUR

BUSINESS MODEL

COMPETITIVENESS

• Commercial process and Commercial outcomes encourages innovation.

• Price and service are as equally important.

UTILISATION

• Maximum possible payloads for trucks• Maximum amount of loads each day• Shortest possible turn around times• Reliable contractors• Direct communication with trucks by our

dispatchers.• Smart use of the transport pool

SUSTAINABILITY

Means two things to us

1. The service is provided in a sustainable way for both the contractor and TKL.(Long term relationships)

2. We care about our environment. (investment in other types of energy need to be progressed)

HOW DO WE UNLOCK THE

FREIGHT NETWORK

TO PROVIDE OPTIMAL OUTCOMES

• Work with Port companies to minimise turn around times.

• Work with empty container parks to reduce turnaround times and increase opening hours. ( 24 HOURS A DAY ?)

• Get road controlling authorities to plan work on infrastructure when traffic volumes are light. (Road works / maintenance)

• Encourage road controlling authority to develop traffic management plans that minimise disruption when unexpected events occur.

• Continue to develop designated freight corridors into the port and industrial areas.

• Lobby the Government to immediately fix the issues with the new Road user charges legislation.

– 8 % less freight on 80 % of the transport fleet– 8 % increase in freight costs– 8 % more trucks on the road – Lack of recognition of the flexibility that tractor

unit prime movers give to operators and their customers.

• Create long term certainty over infrastructure spending

• Reduce uncertainty around legislative changes which encourages investment by transport operators.

• Extract value buy increasing utilisation• Encourage work on the reduction of

the country’s Carbon Footprint

IN SUMMARY

• We need to stop thinking about the cost of individual components of the task and instead think about the overall outcomes.

• The generators of the freight, The Transport operators, the Port companies and the Road controlling authority's need to work together in a more cohesive way.

THE SAME (OR LESS) NUMBER OF TRUCKS CARTING MORE ON EACH LOAD AND DOING MORE

LOADS IN A LESSER AMOUNT OF TIME.

= IMPROVED COMPETIVENESS FOR OUR EXPORT BUSINESSES.