Toll hints at purchase in New Zealand

Australia's Toll Holdings is hinting at another material acquisition in New Zealand.

The logistics company already controls Tranz Rail, now called Toll NZ, which has its annual meeting today.

At the Toll Holdings' annual meeting in Melbourne yesterday managing director Paul Little said "Whilst supply chain re-engineering will generate future opportunities within New Zealand, acquisitions also present material growth potential".

He declined to comment further.

As well as controlling Tranz Rail, Toll has a joint venture with Port of Tauranga that marshals logs at ports around New Zealand.

It has also purchased other transport companies since arriving, including JD Lyons.

Toll is also an express freight operator and has been seen as a potential buyer in a sector dominated by Freightways and a NZ Post/DHL joint venture.

It is also seen as a buyer of port businesses.

Mr Little said 2006 was the second year the company had owned Tranz Rail.

Revenue remained somewhat flat year on year, with the slow New Zealand economy limiting real growth opportunities. Earnings were flat.

He said new locomotives and rolling stock were scheduled to be introduced in conjunction with the still-to-be-finalised track access agreement with the government.

It is known in New Zealand that Toll has been shopping for new locomotives but has been holding up the decision on purchasing them until it renegotiates long-term track access fees with the Government.

"The company remains committed to working constructively with the New Zealand Crown, to develop a sustainable access regime which can support the level of investment required in new capital," Mr Little said.

New Zealand transport operators who declined to be named said they had noted Mr Little's comments but there wasn't that much left to buy in New Zealand, unless an investment in the port sector had become a possibility.

- NZPA