SCT issues blunt warning to industry: specialist carriers and those who under depreciate beware
By Michael House | and Jason Whittaker | October 28, 2009
Specialist trucking operators and those who under depreciate their equipment face potential problems in the current economic climate, one of Australia’s leading logistics companies says.
SCT Logistics Chief Executive Geoffrey Smith has issued a blunt warning to particular carriers in the wake of the collapse of Mannway, urging them to be extra cautious.
“The ones [companies] that might have been aggressively quoting and under depreciating their assets are probably the types of companies that may get them selves into trouble,” Smith says.
“They [Mannway] obviously have fairly specialist equipment and it would have been very difficult to shed.”
Smith says SCT is confident with its position and does not expect to follow Mannway in the receivership pile.
“Under depreciation is something we are pretty mindful of and I don’t think we have fallen into that trap,” he says.
“We have been fairly aggressively cost cutting for a couple of years now and it’s put us in good stead.
But while saying the company is pleased with its current position, Smith adds that it has been hard and has taken two years to achieve.
During his interview with ATN, Smith declined to comment on whether SCT is looking at buying any of Mannway’s assets or making a play for some of its contracts.
Transport titan Toll Holdings has confirmed an interest in Mannway, however, with a spokesperson saying “we’ll have a look at it” without commenting further.
Toll boss Paul Little has recently boasted of a $700 million war chest to chase new acquisitions in Australia and overseas.
Expressions of interest in the company have closed, with receivers hopeful of appointing new managers in early December.