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NZL Group Secures Carter Holt Harvey Domestic Freight Contract

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, July 1 NZPA - NZL Group, the logistics company seeking to operate a container terminal at Port of Tauranga, has won a big Carter Holt Harvey contract.

NZL Group said it has been selected as preferred manager of domestic road freight activities for Carter Holt Harvey. This effectively puts it in charge of 1000 loads a day within New Zealand.

NZL Group declined to put a value on the contract but in 2005 Carter Holt said it spent $100 million a year on freight movements within New Zealand.

"We set up and manage a network of freight options for them. Then we select what freight will move on the day on the best available option," NZL Group managing director Ken Harris said.

The contract was previously held by Matrix Logistics Ltd, a joint venture between NZL Group and Provincial Freighters Ltd, which has become part of Australian company Linfox.

In 2005 it was the largest single managed freight contract in New Zealand. The contract covers pulp, paper, wood products and wood residues but not logs.

Carter Holt, which is owned by Graeme Hart's Rank Group, owns 13 manufacturing plants in New Zealand, including four pulp mills.

It has a logistics arm called Lodestar which managed the contract selection process and will work with NZL Group, including on decisions on which modes of transport to use.

The contract does not have a set term.

The company would employ nine to 14 people as a result of gaining the contract. It currently employs more than 325 people, Mr Harris said.

NZL Group was purchased from P&O in 2006 and is wholly New Zealand owned. Directors include Mr Harris and Mike Pohio.

The company used 60 contractors and was looking forward to talking KiwiRail, which carried freight for Carter Holt, Mr Harris said.

"A lot of the cargo moves on rail already," Mr Harris said.

NZL Group also part owns Dairy Transport Logistics, which was selected to manage domestic road transport networks for Fonterra from June 2008.

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