Since acquiring Axle Hire late last year, truck and trailer leasing company TR Group has quickly focused on growing and investing in its fleet based out of WA
Acquisitions tend to mean different things to different companies. For the Perth-based Axle Hire, its acquisition by truck leasing company TR Group in late 2022 has been a positive.
TR Group completed the purchase on December 1 last year, furthering its plans to expand its nationwide footprint out of the WA capital.
The reasoning behind the acquisition was to better connect with Perth local and linehaul operators to provide TR’s short and long-term rental and leasing solutions.
For Axle Hire general manager turned TR Group branch manager Andrew McAdam, the acquisition has resulted in a number of positives for the business, its clients and its team.
“One of the limiting aspects of the Axle Hire business was always our single-state footprint,” McAdam told ATN.
“Although large national clients recognised us for our service in WA, a number of them really needed to partner with suppliers who have operations across Australia. Joining a multi-national company has reopened these opportunities, enabling us to support the largest transport groups in the country.
“From a business development perspective, TR Group’s existing relationships in the eastern states can now be leveraged nationwide.”
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To support this exciting combination of two well-known Australian brands, TR Group moved quickly, immediately delivering seven 200-tonne MACK Titans that were snapped up quickly alongside an initial batch of 16 Volvo FH600 prime movers, FUSO Shogun prime movers, fridge freezers/ Pantec trailers and 14 pallet rigid UD tautliner trucks to support Axle Hire’s fleet of nearly 300 prime movers and trailers based in Welshpool, WA.
From TR Group’s perspective, the acquisition accelerated its national expansion strategy, supplementing its pre-existing branches in Melbourne, Brisbane and Newcastle to open a fourth branch offering heavy commercial vehicle lease and rental solutions.
RELATED ARTICLE: TR Group boosts WA capabilities with Axle Hire acquisition
This has also boosted Axle Hire’s capabilities. McAdam says turning into a TR Group branch has given the existing group a national footprint that also provides back-office support.
“A key change to our Axle Hire business model is a move to contracts, where TR Group manages the maintenance and servicing of our assets, rather than the historic emphasis on self-maintained contracts, where the client was responsible for these aspects,” McAdam says.
“This approach offers real benefits for clients through faster response times, 24-hour coverage via a breakdown hotline and taking the strain out of maintenance management. To provide this service requires a significantly larger team of equipment specialists, which we’re now able to leverage from WA.
“Lastly, having the guidance and attention of an experienced senior management team and strong financial backing has injected real firepower into our WA business – we’re on a path for significant growth.”
So far, the transition has been quite smooth. Considering this involved such a large fleet, it’s testament to all involved in the combined TR Group operations. TR Group has used its learnings from the acquisition of the Semi Skel business in Victoria to good effect, with service to clients remaining uninterrupted as the TR Group ethos was fitted in Perth.
Since starting its Australian operations in 2019, TR Group has been offering fully maintained operating lease (FMOL) options in the Australian market to reduce capital requirements and provide certainty of costs over the lease’s full term.
For the TR Group WA branch, it’s now all about rationalising and standardising its fleet mix while disposing of peripheral brands and older equipment that will be replaced with new models.
It’s also rebranding equipment, buildings and vehicles. Keep an eye out for the black and yellow to continue adorning the new TR Group branch.
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“Our plan is to progressively expand the WA fleet size through investment in new equipment, identifying what our customers are wanting and where additional categories could be beneficial, and to introduce the TR’s leasing service to WA clients,” McAdam says.
“The WA environment and conditions are very different from those in and around Eastern states metropolitan areas, so our leadership team are taking every opportunity to spend time in WA and with our existing clients.
From a personnel perspective, we continue to recruit and expand, adding key skillsets and expertise to support our existing team.
“Like many businesses, recruitment has been challenging, but we continue to attract really high-quality individuals – the environment that TR has created is a credit to everyone involved in the business. I couldn’t recommend it more highly as a place to grow, learn and genuinely enjoy what we do.
“Longer-term, we’d like to establish TR branches in WA regional centres where transport fulfills a critical function including the Pilbara, Goldfields and Great Southern areas.”