Subbies miss out under Linfox's new project

Owner-drivers are likely to miss out under Linfox's new deal with Agility Logistics

Subbies miss out under Linfox's new project
Subbies miss out under Linfox's new project
By Rob McKay | November 8, 2010

Subcontractor work is likely to feature rarely as Linfox’s alliance with Agility ramps up.

The two transport and logistics firms revealed late last week that they would expand their burgeoning relationship into the Queensland resources market.

Asked about how the alliance would work, a Linfox spokesman says the firms will retain their identities and that the road-haulage aspect will remain in-house as far as possible.

The Gorgon project, on which the pair has cooperated for more than a year, may be a guide.

"We have purchased a dedicated fleet to provide a professional and reliable service to the Gorgon project," the spokesman says of the Western Australian undertaking that uses predominantly Western Star prime movers.

"Linfox engages a limited number of subcontractors to deal with the peaks only.

"Linfox heavily favours a full company fleet model."

Linfox expects to expand its fleet in Queensland for the alliance expansion but what form it will take depends on the requirements of new projects.

This held for the farming out of any subcontractor work.

"Linfox prefers to invest in and operate its own fleet," the spokesman says.

The alliance’s Gladstone office will focus mainly on resources projects in the area but the joint venture "has a broader focus".

It appears Linfox hopes to avoid investing in warehousing in Gladstone in favour of its significant warehousing resources in Brisbane.

The story will be similar elsewhere as the alliance looks at other markets.

"We are looking at projects in all states and will leverage our existing infrastructure across Australia to manage projects," the spokesman says.

With the Queensland link the third recent effort between the companies and involving significant national and international supply chains and trade lanes, Linfox appears to have found a kindred spirit.

"We respect Agility’s expertise in managing major resource projects," the spokesman says.

"We all share similar commitments to safety and operational excellence and have established a strong working relationship. Linfox and Agility, in the main, do not compete head to head; with both parties bring complimentary services and skill sets allowing us to offer the market the total transport and logistics solution."

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