TNC expands fleet

Press, 3 August 1985, Page 23

TNC expands fleet

Transport (North Canterbury) Holdings, Ltd, has received approval from the Examiner of Commercial Practices to parchase Service Transport, Ltd, a wholly owned subsidiary of Newmans Group, Ltd.

The net asset value of STL is believed to be only about SIJ>M, despite its having a large fleet of trucks.

“In many respects the move is a merging of interests,” the chairman of TNC, Mr W. H. Scrimgeour, said. “Current conditions in the rural transport sector have forced both companies

to take a long hard look at their operations and the economics prevailing in the industry.” Mr Scrimgeour cited rising costs such as road-user charges, and those for fuel, tyres, and oil as a major factor in requiring rural cartage companies like TNC to operate efficiently. “When you add to this the downturn in farmers’ incomes and the removal of many agricultural subsidies, the necessity to avoid duplication and to economise wherever possible becomes paramount to survival,” he said. "Both parties are convinced that the resulting benefits to

the community of this amalgamation will far outweigh any possible disadvantages.” TNC’s chairman said the move would not adversely affect competition in the region, since there were many other independent operators and the recent deregulation of the industry made it easier for newcomers to set up business against established companies. TNC’s total vehicle fleet of around 200 would increase about 25 per cent. No staff would be laid off as a result of the acquisition, Mr Scrimgeour said. TNC’s shareholders will be asked to ratify the move at a special meeting in about three weeks.