New Zealand owned transport and logistics company, NZL Group, has moved its Auckland headquarters, warehouse and loading facilities to East Tamaki to consolidate its operations and cater for future growth.
The company, with 60 years in the transport business, has signed a 7½ year lease for an 8,500 sq metre facility on a site taking in 68 Harris Road and 14 Offenhauser Drive.
Set up in the 1940’s, NZL was owned by P & O Australia and purchased by its Kiwi owners in 2006.
A review of NZL’s premises showed a company’s two Wiri sites, comprising a 15,300 sq m warehouse at 44 Dalgety Drive and a 12,000 sq m truck park at 16 Dalgety Drive, offered good access to local transport, but the premises were not working for the company as efficiently as they might.
“Having our warehouse and truck park in separate locations was costing us time and money,” said NZL’s Finance Manager, Roy Pinto.
NZL contacted Colliers International with a view to making a move that would enable the company to consolidate the firm’s operations and bring its team together.
Colliers found what NZL were looking for at Harris Rd. The new property comprises 651 sq m of offices, 7023 sq m of warehouse space and a 700 sq m working space at the property’s rear.
“Although the new premises are actually smaller than NZL’s previous sites, a total of 8500 sq m versus 12,000 sq m, the configuration of the new space was as important for NZL as the location” said Mike Fraser of Colliers’ Highbrook-based industrial team.
“The new warehouse and truck yard layout is constructed efficiently, which allows a much better interaction between the store, truck and operators,”Pinto said.
“In addition, our truck yard is now next door to the warehouse and loading bays.”
A purpose-built canopy was constructed to cover the rear loading space.
“We can now get up to three trucks in here under cover at any time, as opposed to only one before,” said Pinto.
“It has given a significant boost to our ability to work at all times of the day and night, allowing three times the number of trucks and enabling significantly more efficient operations.”
NZL has also used the move as an opportunity to work out how new technology can increase efficiencies on site and for its customers.
“Our new premises use the latest logistics software and displays, enabling us to manage the supply chain better for our customers,” said NZL chairman, Ken Harris.
“It provides us with an opportunity to relaunch our business. Even though we have an established presence among our customers, the new location gives us a different presence in the market and a cost-effective solution to the problems of being situated on two different properties.
“In addition, the new complex gives us greater flexibility to work more closely with our customers on a location that has motorways on both sides.”
At the heart of NZL’s operation was its ability to manage the supply chain for its customers in a number of different ways.
Harris said the company is looking to develop its range of services, which currently include line haul, container transport, storage and distribution, stevedoring and wharf marshalling.
“We are always driving savings for customers and we are about to launch two new services, including a cross-stock service for containers.”
Seventy percent of NZL’s customers, which include Fonterra and Carter Holt Harvey, were large exporters, so the company had developed strong partnerships with the Port of Tauranga and Ports of Auckland.
“The challenge we face in the current environment is to operate sharper and to focus on adding value through the things we do – along with making changes to create efficiencies,” Harris said.
“Our move to the new premises is an example of this, because for us this is all about growth and planning ahead in difficult times.”
Despite the current economic situation, Harris said he felt “pretty positive” about NZL’s position and growth prospects. “This move to new premises reflects our confidence and positive attitude about New Zealand’s future, particularly in relation to exports.
“We appreciate the importance of forestry and dairying to New Zealand and to the wider world. In these recessionary times we are still seeing growth, and I see a good future for New Zealand exports which we want to be part of. However, when you deal with sizeable infrastructure organisations like the ports, as we do, the focus is always on the longer term.
We don’t do anything alone – we rely on partnerships. Ports of Auckland and the Port of Tauranga are always looking to the future. In particular, we have been heartened to see the energy with which Ports of Auckland has gone about developing its supply chain initiatives.”
NZL Group employs about 350 people. Originally it was based in Auckland, Tauranga and Mt Maunganui, but has expanded throughout the North Island with a turnover of $60 million - $70 million.
It has expansion plans for the South Island.
Through six separate but connected business divisions, the company handles a wide range of commodities, including dairy products; pulp and paper; timber; containers; bulk cargoes such as grain, fertiliser and coal; as well as cars; steel and building materials.
“We know that our company has huge potential but it needed to be better positioned in the local market within premises that could work better for us and help us drive the future growth of the company,” Harris said.
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