Port of Tauranga announced its subsidiary Quality Marshalling Limited lost a major log marshalling contract at Mount Maunganui and Murupara in New Zealand. Source: SunLive
The revenue loss represents approximately 60% of Quality Marshalling Limited’s revenue at the time of acquisition, Port of Tauranga chief executive, Mark Cairns told the NZ Stock Exchange.
While the outcome of the competitive tender process is disappointing, Cairns said there remained significant growth opportunities for Quality Marshalling in New Zealand.
The Port of Tauranga announced it was paying NZ$34 million for the second largest log marshalling and handling company in the country on 12 December 2012. The purchase became effective from 1 February 2013.
The port company bought Quality Marshalling from Ken Holmes and Cairns commented at the time that QM has a long serving staff with a can-do approach to customers and a strong focus on innovation.
Holmes recognised the close alignment between the Port of Tauranga and Quality Marshalling and made the choice to sell Quality Marshalling to Port of Tauranga, according to Cairns.
Shayne Jenkins, who has more than 20 years’ experience in the forestry export sector, became general manager of Quality Marshalling upon settlement and took over the leadership of the business from Holmes, who was to remain associated with the company in an advisory capacity.
Quality Marshalling’s revenue for the 2012 year was NZ$18million.
At the time of purchase Quality Marshalling handled about 2.5 million cubic metres of logs at Mount Maunganui and Northport.
It also has operations at Kopuriki Log Yard, Murupara, Waipa Sawmill, Kaingaroa, Napier in Auckland.
Between now and when the contract expires on 1 January 2014 the port will attempt to secure other marshalling contracts locally and nationwide.
