Saturday, August 29, 2009

Toll has global ambition to Triple its Freight Traffic

Australian Group looks to grow despite recession
Shipping News Feature

AUSTRALIA – Toll Holdings, the transport and logistics group has declared its intention to triple it’s presence in the freight market in the next three years. After declaring a loss in the region of A$695 million last year Toll returned profit figures of A$270 million this time.

Mr Paul Little, company CEO, stated that the company would pursue an aggressive strategy for growth believing that economy of scale was the way forward. "The ambition we have is to grow our business to give us greater leverage with the airlines and the shipping companies", he said.

"That is because the more you spend the better the price you get and we need more scale and more leverage to buy our space at a better price.”

Toll shares rose by over 5.5% on hearing the news. Despite the downturn Toll has managed to more than double the revenue of its freight forwarding arm to A$907 million. Acquisitions propped up the figures, and presumably this is a strategy that they will continue to follow. Toll relies on its Australian and New Zealand business for 75% of its sales and is plainly looking to extend its influence globally.