Scott's expands dangerous goods presence with Allfreight takeover

Transport giant Scott Corporation has acquired the assets of Melbourne-based transport business Allfreight

By Anna Game-Lopata | February 21, 2012

In a further bid to develop its dangerous goods capability within the resources sector, transport giant Scott Corporation has acquired the assets of Melbourne-based transport business Allfreight.

Alongside the agreement, Allfreight founder Ron Skidmore has been appointed manager of Scott Corporation's high explosives unit and will be responsible its ongoing leadership and development.

With a background in explosives and a long career in transport, Skidmore founded Allfreight in 1992.

While he was unable to comment in detail, Skidmore says the deal to sell his business to Scott Corporation had been "ticking over for some time".

Specialising in the supply of high explosive capabilities to the mining, quarry and defence services sectors, Allfreight has a turnover of over $3.5 million per annum.

Scott Corporation Managing Director Dave Keane says the acquisition will allow the company to widen its service offering to the Australian dangerous goods industry, as well as open up new growth opportunities for its Chemtrans division.

Keane also announced Scott Corporation’s Bulktran division has retained a key contract in the Hunter Valley of NSW to generate about $8 million in revenue per annum.

The original off-road heavy haulage mining contract commenced in March 2009 and will now continue for another three years from March 2012.

Scott Corporation will invest about $8 million into new plant and equipment for the next phase of the relationship and establish a seven-day operation as opposed to the current five-day base scenario.

"This new business model will double the historical revenue of that contract and is an important step in building market awareness of our credentials in the segment," Keane says.

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