Shakeup of fleet and asset management and other reforms may total $20 million
Transpacific expects its fleet grounding following the August 19 Adelaide tragedy to cost it between $18 million and $20 million.
The waste services firm put its nearly 300 heavy duty trucks into inspection after a heavy rigid lost control on the South Eastern Freeway, killing two people and injuring the driver badly.
The incident led to trucking industry calls for analysis of truck accidents and speed and freeway conditions in South Australia.
Following the incident, Transpacific retired a range of older vehicles that “were either surplus to current operational requirements, being kept solely as spares, or whose age makes them no longer operationally viable”, during its audit and review process.
About $7 million of the hit relate to vehicle repairs, with the rest down to roadworthy inspections, subcontracting costs, lost revenue and vehicle write-offs.
“As part of our process to return the fleet to service, we are addressing our policies and procedures in relation to vehicle maintenance and road safety and are focused on improvements in the key areas of fleet maintenance, driver training and asset management, which will improve the durability of our operations,” CEO Robert Boucher states.