TIL Logistics Shareholder Newsletter

1TIL LOGISTICS GROUP SHAREHOLDER NEWS JUNE 2019
EXECUTIVE REVIEW
W
hile the current talk around town may be
around increasing Government investment
into rail, freight by road will always be in
high demand in New Zealand. At TIL, we run our
business to serve our customers, including providing
multi-mode transport options where, for example,
freight may be moved from warehouse to loading
dock by truck, then by rail or ship, and then by truck
again to its final destination.
Traffic flow can tell us a lot about economic conditions, particularly
trucking traffic which is a real time and real-world proxy for economic
activity – and more so in the New Zealand economy, where a large
proportion of freight is moved by road. The ANZ truckometer for May
2019 shows that after a slow start to the year, heavy traffic numbers
have started to lift again of late, consistent with ANZ’s expectation that
economic growth will bottom out around the middle of the year.
Road safety remains a priority for us. We want to keep our people
and other road users safe on the road and technology is playing an
increasingly vital role. We have recently announced an agreement with
Autosense for driver training and in-cab technology (which you can read
more about in this newsletter) and also have strict requirements ensuring
our drivers only work regulated hours and take mandatory breaks. We
provide ongoing training and compensate our drivers well for their
expertise and specialised skills.
Understanding behaviour for our own drivers and the public in general
is our greatest challenge for effective driver management and vehicle
interaction. We see visual and human sensing technology as a key
contributor to improve our safety strategy for our staff and the wider
public. With the European Commission recommending that camera-based
driver monitoring technology be mandated to enhance safety in cars,
vans, trucks and buses from 2022, we may not be far away from similar
considerations here in New Zealand as vehicle manufacturers are moving
to integrate Driver Management Systems as a safety standard.
Our investment into in-cab technology such as Autosense and ERoad
is part of a wider move to ensure we utilise modern technologies which
allow us to better serve our customers and our staff. This includes a new
Warehouse Management System (Paperless) across all TIL’s warehouses,
various support systems in Finance, HR and CRM and most recently, a new
Transport Management System, which will act as the ‘control tower’ for
our business.
Alan Pearson, Chief Executive Officer
IN THIS ISSUE
NEW 3-YEAR ETHANOL
CONTRACT
LEADING THE WAY IN ROAD
SAFETY
MOVING BIG THINGS IS WHAT
WE DO WELL
INVESTMENT IN LEADING
EDGE TMS SYSTEM
EXPANDING WAREHOUSE
CAPACITY
MOVING ESSENTIAL
EQUIPMENT WHERE IT’S
NEEDED
INTRODUCING DWANE
FEEHELY, SAFETY &
ENVIRONMENT MANAGER
CONTACT US
330 Devon Street East
Private Bag 2040
New Plymouth 4342
New Zealand
Tel: 06 755 9990
Email: investorenquiry@til.kiwi
SHAREHOLDER NEWS
JUNE 2019

2TIL LOGISTICS GROUP SHAREHOLDER NEWS JUNE 2019
Each of our Divisions has performed well over
the year. Recent highlights include the expansion
of warehouse capacity to meet demand, and the
signing of a three-year agreement with a large New
Zealand company to service their ethanol transport
needs. We have identified a number of opportunities
to expand our offer and grow demand from both
new and existing customers, including in our Bulk
Liquid division. In line with this, we are introducing a
new brand for this division, “Pacific Liquid Logistics”,
with sub-brands for each of our service areas – Fuel,
Edible, Chemical and Fuel.
We look forward to keeping you updated on our
progress, with our results for the year ended 30 June
2019, due to be announced by the end of August. ¢
PACIFIC LIQUID LOGISTICS
SIGNS THREE YEAR ETHANOL
CONTRACT
Ethanol is a by-product of the dairy industry
and is used for industrial purposes and in
beverages. Lactanol is the world’s leading expert
in producing sustainable, high-quality ethanol
from whey. The quality of the milk it comes from
is important and the whey used by Lactanol
comes from naturally grass-fed New Zealand
cows, world-renowned for unmatched standards
of quality and purity. Approximately half the
ethanol produced by Lactanol is used in New
Zealand and the remainder is sent offshore.
Because it’s a highly flammable liquid, specialist
training and trucks are required to transport
ethanol from the Lactanol plant to storage
facilities, and that’s where Pacific Liquid Logistics
(PLL) expertise comes into play.
In March 2019, PLL was awarded a three-year
contract by Lactanol to service its ethanol
transportation needs. This is the second
significant contract win for PLL in the last
twelve months, following the signing of a long
term, exclusive, strategic supply contract with Z
Energy in July 2018.
PLL will be collecting and carting approximately
15 million litres of ethanol every year from
the Lactanol plants in Edgecombe, Tirau and
Reparoa and transporting it to bulk storage
facilities in Mount Maunganui, Auckland and
the South Island. The containers used to export
ethanol are also provided by TIL, through its
Liquid Logistics business.
¢
LIQUID LOGISTICS EDIBLE

3TIL LOGISTICS GROUP SHAREHOLDER NEWS JUNE 2019
TIL LEADING THE WAY IN ROAD
SAFETY
Ensuring safety on the road for TIL’s drivers and
other road users is a priority for TIL Logistics Group.
We invest significantly in technology and training to
support our road safety culture and have recently
signed an agreement with driver safety solutions
provider, AutoSense.
The agreement will see AutoSense providing
induction, ongoing online driver training and in-cab
simulator training to TIL drivers as well as installing
Seeing Machines’ Guardian technology in over 1,000
of TIL’s fleet vehicles.
Distraction and fatigue are human factors – everyone
at some point suffers from this but when you
are driving this could have tragic consequences.
Guardian is a real-time driver fatigue and distraction
solution that is scientifically proven to reduce
fatigue events by upwards of 90% (click to view the
demonstration video).
Guardian is often referred to as having a “buddy
in the cab”. The technology monitors driver
behaviour and eye patterns and provides immediate
intervention to the driver when fatigue or distraction
starts to take hold. Audio alarms and seat vibration
alerts are activated instantaneously to warn the
driver to re-focus their attention to the road.
Footage is only ever recorded if an ‘event’, such
as prolonged eye-closure or unacceptable head
movement, is detected and it is then sent to
the business’ fleet manager for them to action
if required. This allows for additional training or
support to be put in place for the driver, and in a
world where the driver is often wrong until proven
otherwise, the technology takes the ambiguity away,
allowing a quick and clear investigation.
We are also investing in continuous driver
professional development. Utilising the AutoSense
mobile truck simulator, we are able to evaluate all
our drivers on an annual basis and offer targeted
coaching and professional development where
required.
AutoSense Ambassador, Greg Murphy, has
applauded TIL’s focus on road safety, saying “The
transport industry is the lifeblood of the economy
and the Guardian technology is designed and proven
to support the industry and the drivers by lowering
the chances of a crash. I really commend TIL for
getting on board and making such a commitment
to driver training and driver safety within their
organisation. This ultimately improves road safety for
all road users.”
¢
TIL Logistics Group CEO, Alan Pearson, with Autosense CEO, Charles Dawson
“With more than 860 drivers on the road
around New Zealand, having the best
possible training, health and safety culture
and systems is an imperative for TIL. We
welcome new technologies, such as those
provided by Autosense, which allow for
better training, greater efficiencies, reporting
and oversight. Our priority is to ensure
our drivers get home safely and keep the
communities in which they drive safe as well
and our investment is a small price to pay to
ensure safer roads.”
Alan Pearson, TIL Group CEO

4TIL LOGISTICS GROUP SHAREHOLDER NEWS JUNE 2019
SLTG: MOVING BIG THINGS IS WHAT
WE DO WELL
Moving big things is what the Specialist Lifting
and Transport Group (SLTG) does best. Earlier this
year, SLTG was contracted to move a 330 tonne
gas turbine from the decommissioned Contact
Energy power station in Otahuhu, Auckland to the
Port. Following eight weeks of planning, including
gaining NZTA permits for road closures and traffic
diversions, the gas turbine made the journey
overnight, taking seven hours to make the 15km
journey.
Eighteen crew were involved in the job which
required roads and bridges to be temporarily
strengthened with steel plates as the truck rolled
over them. The mammoth move was successfully
completed, with the gas turbine delivered to the Port
of Auckland and offloaded into the hull of the ship
using trailer hydraulics. The turbine is now safely on
its way to Germany.
¢
NEW TECHNOLOGY
PLATFORM TO PROVIDE
COMPLETE VISIBILITY FOR
STAFF AND CUSTOMERS
In a world where supply chains have
become increasingly complex, freighting
companies need a robust, always-available
transportation management system (TMS)
that not only handles the orchestration
of freight but also optimises activity in a
way that reduces costs and meets delivery
targets.
Following the acquisition of multiple
businesses with their own TMS systems, TIL
is now moving its Freight businesses to a
single TMS platform. The solution, provided
by BluJay, a global leader in logistics
software, will give TIL staff and customers
complete visibility of freight movements
through the logistics chain.
The TMS is akin a control tower in an airport,
and harnesses everything in the business
together. It will allow the company to realise
tremendous synergies in customer service,
route optimisation, load planning, real time
delivery confirmation and automatic billing,
along with electronic logbook and driver
fatigue management and a range of other
benefits. Staff will benefit from improved
management tools for enhancing delivery
performance, cost control, revenue capture,
driver welfare, improved safety and the
establishment of an overall ‘control tower’
for our 1000 odd trucks and trailers across
New Zealand.
We are excited about this next phase
in our technological advancement. This
modern transport system will create a
step change from what has been our past
very dependable and reliable inhouse TMS
system, which has supported some parts
of our company very well. However, being
a technology owner and developer had to
come to end as it became more challenging
to support systems that compete with those
systems arising from large scale, specialised
IT companies. We look forward to our new
era.
¢

5TIL LOGISTICS GROUP SHAREHOLDER NEWS JUNE 2019
LOGISTICS: EXPANDING
WAREHOUSE SPACE TO MEET
CUSTOMER DEMAND
The past months have been very busy for the MOVE
Logistics teams, with a focus on expanding the
national warehouse footprint to meet customer
demand.
In April, stage one of the new Rolleston facility
in Christchurch was opened. This new facility has
10,000sqm of warehousing space as well as office
space for the Christchurch based team. Stage two of
the facility has commenced and another 10,000sqm
of warehousing space will come on line in early
2020.
One of the warehouse’s key benefits is its location
next to the Midland inland port and it is served by a
rail connection directly from the Lyttleton Port. As a
result, a significant amount of container movements
will be taken off the road.
Sustainability was a consideration during the
development. The new site has been equipped with
the latest in smart lighting technology to save on
electricity and LPG forklifts are in the process of
being replaced with electric forklifts. As part of the
stage two development, solar panels will be installed
to further reduce MOVE’s environmental impact.
In Auckland, the extension to the Highbrook
warehouse has been completed, adding another
6,000 sqm to MOVE’s warehousing footprint in
Auckland. Again, all of the lighting has been changed
to LED with an upgraded smart system to ensure
that the lights are only on when needed, conserving
electricity consumption. Like Christchurch, LPG
forklifts are in the process of being replaced with
electric units.
¢
GETTING ESSENTIAL EQUIPMENT
TO WHERE ITS NEEDED
TIL International offers international freight
forwarding services, with a particular
specialisation in the oil and gas industry.
Recently, the teams at TNL International and
Alpha Customs have been busy managing the
freight forwarding, logistics and paperwork for
Tamarind Resources’ development drilling at the
Tui field, located offshore New Zealand.
As well as the mobilisation of over 1,000 cubic
metres seafreight and more than 35 tonnes
airfreight of equipment from Perth, Houston
and Europe in preparation for the Tamarind
programme, Alpha Customs has also been
responsible for all the NZ Customs clearance
for the drilling rig, the COSL “Prospector”, and
support vessels.
The rig is self-propelled and will transit to New
Zealand under its own power. It is currently in
transit from Norway and, following a voyage of
approximately four months, is expected to reach
the well site location shortly.
¢
30 Highbrook Drive, East Tamaki 32 IPort Drive, Rolleston

6TIL LOGISTICS GROUP SHAREHOLDER NEWS JUNE 2019
INTRODUCING DWANE FEEHELY,
GROUP SAFETY AND ENVIRONMENT
MANAGER
Dwane is the newest addition to the TIL Logistics
senior leadership team, taking up his role in June
2019. Safety is a critical part of TIL’s business and
culture, with a goal for ‘every employee to go
home safe’. Likewise, protecting and managing
environmental impact is also important.
Dwane is a senior risk and safety manager with
significant hands-on experience spanning the
logistics, manufacturing, industrial, energy and
related industries. His mantra is ‘Think Safe, Be
Safe, Home Safe” and he believes that all initiatives
should align with the concept of “No Harm to
People, Assets or the Environment.”
It has been shown many times over that
organisations with effective safety programs have
many tangible benefits, such as healthier and
happier teams, more productive employees, better
customer satisfaction, enhanced brand recognition
and perception, reduced cost to the business and
improved quality outcomes.
He holds a view that changing dynamics in the
workforce are very real as automation takes
people out of harsh, hazardous and often difficult
working environments and is progressively taking
over many repetitive, manual tasks. We are seeing
a shift to workers becoming more sedentary in
their jobs and with more interaction with a screen
and keyboard. These challenges will necessitate a
change in approach to workplace health and safety
and environmental management.
Having lived in Australia and Singapore and
worked across Asia Pacific, Dwane has a love of
travel. But his proudest achievement is being a
“foster” parent for a number of years, assisting 12
kids to get a better start for their future.
¢
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UPCOMING KEY DATES
FY19 Financial Year End: 30 June 2019
FY19 Results: By end August 2019
Annual Meeting: 23 October 2019
New Plymouth