New interstate trucking deal for Wiseway


Wiseway to transport China-based carrier’s cargo to Australian cities

New interstate trucking deal for Wiseway
Wiseway became listed on the ASX last year

 

Integrated logistics provider Wiseway is to extend China-based Xiamen Airlines’ cargo services to other major Australian cities from next month through its national road transport network.

The two companies already share a long-term strategic partnership, with Wiseway acting as cargo sales agent (CSA) for the Chinese air carrier since July 2016.

Xiamen Airlines currently operates seven flights weekly to Sydney and five flights per week to Melbourne.

With this new deal, Wiseway’s interstate truck fleet will extend Xiamen Airlines’ existing international cargo services to other major Australian cities including Adelaide, Brisbane, Melbourne, Perth and Sydney.


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The deal is in line with Wiseway’s operational plan to provide air freight clients improved transport services and to utilise air space capacity of different origin airports.

"This agreement further extends our long-term strategic partnership with Xiamen Airlines," Wiseway CEO and co-founder Roger Tong says.

"Through leveraging each company’s core competencies to enhance its competitive advantage, the partnership seeks to increase our share of the expanding Australian import air-cargo market, driven by the rapid growth in e-commerce.

"This agreement demonstrates the success Wiseway is achieving through its strategic approach to managing its expanding pipeline of growth opportunities.

"In the short-to-medium term, the company has a high level of confidence that further agreements will be reached based on the number opportunities at an advanced stage of negotiations."

Wiseway was established in 2005 with the opening of its first warehouse in Sydney.

Currently, it operates 10 warehouses across Australia and New Zealand, including cold storage facilities and a customs bonded warehouse in Sydney.

Wiseway provides services across air freight, sea freight, domestic transport, warehousing, import, scanning, customs clearance and quarantine, with a specialist focus on trade between Australia and China.

Although air freight services have been the biggest revenue-generator for the company for a long time, Wiseway also has a presence within the road transport sector in Australia and New Zealand.

Its road transport arm operates over 83 trucks including B-doubles, roller trucks, semitrailers, and container and rigid trucks, running daily between Melbourne and Sydney, Brisbane and Sydney, and Melbourne and Adelaide.

In October 2018, Wiseway was listed on the Australian Securities Exchange (ASX).

It reported a 17 per cent growth in revenue in the first half of FY2019, reporting strong income across all divisions including dry cargo, transports, perishables, and import.

Its gross profit margin also improved from 18.1 per cent in 1H FY2018 to 21.4 per cent in 1H FY2019.

However, the bottom line was a net $1.7 million loss after tax of $1.7 million after the previous years $1.2 million profit.

Its long-term growth strategy includes increasing efficiency of logistics network, further leverage its nation-wide presence, continue organic growth across all Australian facilities, and investment in digital processes and automation.

With that in mind, the company says that it has recently updated its road transportation online reservation platform interface to include track and trace capability that "will further improve the company’s efficiency as well as efficiency for customers and airline partners".

 

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