$100m DCs, 80 new trucks for National Foods: Linfox


Linfox to buy up to 80 trucks and build specialised distribution centres as part of National Foods deal

$100m DCs, 80 new trucks for National Foods: Linfox
Subbies lose out, but Linfox spends big under National Foods contract
By Samantha Freestone

Linfox will buy up to 80 new trucks and build specialised distribution centres as part of a $2 billion deal with National Foods over 10 years.

Speaking to ATN on the agreement announced yesterday, Linfox Logistics Chief Executive Michael Byrne says 87 sub-contractors will also lose their current contracts with National Foods due to the deal.

The company will invest "in about 50 to 80" trucks including B-doubles, which will be on top of a $100 million investment in two distribution centres.

The first in Erskine Park in Sydney is being used now, with a second purely refrigerated centre to be built at Laverton in Melbourne. Byrne says the second DC will be operational by February 2011.

He says Linfox has already started Sydney to Melbourne linehaul operations and recently began Melbourne to Sydney deliveries.

While sub-contractors will lose their current contracts with National Foods, Byrne says they will be able to apply for new contracts at Linfox in about three years.

He says future opportunities will be available but he and his management team "are not at that stage of development".

"That hasn’t been finally decided yet, especially in the linehaul network," he says.

The deal with National Foods is the culmination of a two-year effort to secure the contract with the food and beverage giant. Linfox was first selected as a "preferred potential partner" to negotiate with 18 months ago.

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