Expansion on the cards for ACFS, but what’s in it for Patrick parent Asciano?
Asciano’s logistics arm, Patrick Port Logistics, has entered into a new joint venture with ACFS Port Logistics.
The new business – split 50-50 – will bring together the metropolitan operations of both businesses.
Patrick Terminals and Logistics director Alistair Field says the joint venture will improve the competitive position of Patrick’s business – which has dwindled in recent years – while also establishing a platform for growth.
“The joint venture will combine the market leading and competitive strengths of Patrick in Melbourne, and those of ACFS in Sydney, creating a truly national logistics service for existing customers of both companies,” he says.
ACFS chairman Terry Tzaneros says the combined entity will help to fast-track its planned national expansion.
“This will further enhance the services offered to our loyal and strong customer base, and also those potential new customers in the market place,” Tzaneros says.
While the tie-up had been rumoured before the official April 10 announcement, some industry players say they are surprised by the move. The combination of a private family company and publicly listed company will, for example, make decision-making difficult.
“I don’t see what is in it for Asciano,” one observer tells ATN.
“Tzanros has the ambition to be as large as it can, but Asciano already has the business in place.
“It looks as though it is stepping away [from day-to-day management of its logistics business].”
The joint venture will be headquartered in Sydney, and headed up by current ACFS managing director Arthur Tzaneros as CEO.
A wider management team will draw on talents from both ACFS and Asciano.
The union remains subject to review from the Australian Competition and Consumer Commission.