The Border Watch, Thursday, February 9, 2012 - 3www.borderwatch.com.au

MOUNT Gambier trucking giant Scott’s Transport has secured a multi-million-dollar contract with a national retail powerhouse, prompting a major addition to the company’s truck fl eet and helping secure jobs into the long-term.

The company will transport goods for Big W in metropolitan Sydney, which is considered a major national coup for the transport business.

The new business deal is expected to create new employment oppor-tunities for truck drivers and will also underpin current employment throughout the business and drive new growth.

Announcing the new contract this week, Scott’s Transport spokes-person Ashley Scott said the Big W contract was a major win for the company and would continue to cement the business as a major national transport carrier.

While explaining the company already transported goods for Big W out of its Monarto distribution centre near Murray Bridge, he said the Sydney contract presented new major opportunities for the com-pany.

“This is extremely goods news for

the company, it is a sign of continued growth within our business,” Mr Scott said.

He said the new contract also demonstrated Big W had confi dence in Scott’s Transport because of its involvement in transporting goods to the Monarto distribution centre.

The Monarto Big W southern distribution centre is one of the biggest warehouse and distribution centres in Australia.

Describing Big W as a major national client, he said Scott’s Transport won the contract despite strong competition from other trans-port companies.

“This is an injection of confi dence

for us and it strengthens our busi-ness moving into the future,” Mr Scott said.

He said the company also chose to purchase 14 new trucks from a local truck dealer so the benefi ts of the new contract would also fl ow through the Mount Gambier economy.

“It is great that the Scott Group of Companies can support local businesses - we buy all our trucks locally,” Mr Scott said.

He said the 14 new trucks were purchased from Barry Maney Group specifi cally for the new Big W contract.

Barry Maney Group truck

dealer principal Jim Cornolo said the bulk truck purchase was one of the largest the local dealership had secured.

“It is defi nitely one of our biggest orders,” Mr Cornolo said.

He said the multi-million-dollar bulk purchase in Mount Gambier was “fantastic” for the local economy and demonstrated confi dence in the truck retail sector.

“It is great to see the Scott Group of Companies purchasing locally - it helps to support local businesses and jobs,” Mr Cornolo said.

“It is a fantastic sign of our local economy and it demonstrates the crucial role trucks and the transport industry play in supporting the Australian economy.”

He said DAF CF85 trucks were imported from the United Kingdom and met the application criteria from both Big W and their client.

Mr Cornolo said the trucks - fi tted with state-of-the-art safety additions - also had automatic transmissions so they could be driven economically and safely around the busy central business district of Sydney.

He said the new trucks would also provide fl exibility within the Scott’s fl eet.

“With a 70,000kg gross combi-nation rating, the DAF FTTCF85 trucks can be used in various applications throughout the Scott’s fl eet,” Mr Cornolo said.

ALL SMILES: Barry Maney Group’s Jim Cornolo and Scott’s Transport’s Ashley Scott pictured in front of the string of new trucks purchased from the local dealership. Picture: SANDRA MORELLO.

MORELLOMORELLOSANDRASANDRA

Email: sandra@tbw.com.au

3NEWS

AN IMPRESSIVE SHOWCASE: These new trucks have been purchased following Scotts’ Transport securing a major interstate contract.

Growth drives investment

AUSTRALIAN timber giant Gunns Limited has signed an agreement with New Zealand billionaire Richard Chandler in a move to raise capital to secure its proposed $2b Tasmanian pulp mill project.

The company - which owns the Tarpeena Auspine operation and manages extensive hardwood plantations in the Green Triangle - will see an investment of around $150m poured into the company.

Gunns Limited is moving to divest its softwood milling opera-tions in the South East to focus on hardwood chipping operations in the Green Triangle, which will help feed its proposed new pulp mill.

In combination with the company’s current asset sales program, the proposed recapi-talisation will facilitate a further signifi cant reduction in the company’s debt.

In a media statement yester-day, Gunns Limited said the recapitalisation aimed to raise up to $280m for the company.

“The recapitalisation, combined with the ongoing asset sale proc-ess, will leave Gunns effectively debt free, providing stability for the fi nalisation of the fi nancing structure for the Bell Bay Pulp Mill,” the statement said.

Under the proposed recapi-talisation, the Richard Chandler Capital Corporation (RCC) will invest $150m in Gunns through a share placement and bond issue.

“A further $130m is proposed to be raised in a pro-rata renounceable rights issue to existing shareholders, offering 1.3 new shares for every one share at $0.12 per share,” the statement said.

“Gunns will seek shareholder approval at an extraordinary general meeting for the transac-tion, which will see RCC hold approximately 39pc of Gunns shares following the recapitalisa-tion, if all shareholders take up their entitlement.”

Alan Kelly, a senior advi-sor to the Richard Chandler Corporation, said Gunns had been restructured over the past few years into a world-scale plantation forestry company.

“We see its future as building a foundation for sustainable development and economic growth, which will provide a future for the Tasmanian forestry industry,” Mr Kelly said.

Billionaire investorsigns Gunns deal

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