Hall's & Toll Consider Forging Closer Relationship
Hall’s Refrigerated Transport And Toll NZ Consider Forging Closer Relationship
Hall’s Refrigerated Transport and Toll NZ are considering entering into a strategic relationship to provide a more efficient, upgraded and integrated refrigerated transport service to the country’s food manufacturers.
Hall’s is undertaking due diligence with a view to
Hall’s buying Toll Tranzlink Refrigerated’s (TTLR) business as a going concern and
Toll appointing Hall’s as its exclusive provider of consolidated domestic refrigerated transport services.
The strategic relationship would see Hall’s specialising in all modes of refrigerated transport in New Zealand, utilising Toll’s rail and sea services.
The Chief Executive Officer of Hall’s, Mike Tibbs, said under the agreement Hall’s would continue to grow and evolve to meet the market’s future requirements.
“Increasingly, food manufacturers, distributors and retailers are consolidating, and looking for efficiencies from their service partners, and Hall’s is intent on growing its business to match its clients’ future needs.
“TTLR and Hall’s are already significant, nationwide players, and bringing both businesses together would enable a platform to be built to provide increasingly sophisticated and better services, and the ability to meet ever increasing compliance issues.
“Hall’s specialises in refrigerated road transport and we would work with Toll where opportunities exist to offer an integrated road, rail and Cook Strait solution.
“Acquisition of TTLR’s refrigerated business, including around 65 staff and 80 owner drivers, would enable us to expand our refrigerated truck fleet to more than 200, increasing our capability throughout New Zealand,” said Mr Tibbs.
“We would offer increased services over the main corridors.”
Mr Tibbs said that while food manufacturers and retailers will always demand right place, time and price criteria in relation to transporting perishable food products, increasingly they “require world best practice in terms of food safety, covering hygiene, security and temperature control to meet ever increasing compliance issues”.
“Through increased size and specialisation, we would continue to invest in state-of-the-art transport equipment, storage facilities and infrastructure.
“It would enable us to keep pace with improved information technology platforms.
Toll NZ’s Chief Executive Officer, David Jackson, said divestment of its refrigerated business to Hall’s would create greater efficiencies for customers.
“We believe this potential relationship between Toll NZ and Halls enhances each others transport capabilities and offers a more efficient service offering to customers and stakeholders” said Mr Jackson.
“The relationship between our companies also offers Toll the potential to utilise more rail in the supply of refrigerated transport solutions for customers now and in the future.”
On conclusion of an agreement, it is anticipated that the two nationwide refrigerated businesses would be integrated.