Lindsay outfoxed by K&S

K&S pushes Linfox aside to take over Bluescope Steel's transport operations, after declining economy forces Bluescope to re-tender contract

Lindsay outfoxed by K&S
Lindsay outfoxed by K&S
By Brad Gardner

K&S Freighters has pushed aside Linfox to take over Bluescope Steel’s transport operations, after a declining economy forced the steel manufacturer to re-tender its contract.

K&S will take over from Linfox on freight corridors in NSW and Queensland and Victoria to South Australia, while the latter will continue to service Bluescope’s NSW and Victorian needs.

A spokesperson for Bluescope says the decision to re-tender the contract was a mutual decision between the company and Linfox "due to changed road transport market conditions".

"It was further agreed that Linfox, as a valued supply partner, would continue in the contract for the NSW & Victorian interstate corridor," the spokesperson says.

The decision to grant K&S the contract adds to the carrier’s current Bluescope commitment in North Queensland.

K&S Managing Director John Legh Winser confirmed the deal, but declined to comment further, while a spokesman for Linfox says the carrier does not comment on contractual arrangements.

Earlier this year K&S announced a $9.5 million half-yearly net profit, a 3 percent drop on last year’s figures.

The company also increased its operating revenue over the same period by 11 percent to $248.3 million.

Despite a sagging economy Linfox has managed to expand its operations, with Prime Minister Kevin Rudd last month opening a new $20 million head office in Melbourne.

"Our investment in this facility reflects confidence in our strategy to remain a robust business in the current economic climate and to expand the business as economies regain strength," Linfox founder Lindsay Fox told attendees.

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