Subscribe to RSS feedLittle bullish on airfreight and global expansion
Toll Group chief executive Paul Little has confirmed reports from other market sources that airfreight was leading seafreight as the global economic recovery got underway.
Smooth landing: Toll sees airfreight as growth area in global expansion
Speaking on the ABC's Inside Business program yesterday, Mr Little also signalled that the company was preparing several relatively modest global forwarding acquisitions, with an eye to building a substantial position in the European and US markets.
"Interestingly we've probably seen more interest in airfreight than seafreight," Mr Little said.
"Airfreight, of course, is a direct result of people trying to thin down their inventory levels and needing to get goods to their destination more quickly, but seafreight numbers are starting to come back too.
"So, again, we're cautiously optimistic about that."
This rebound had been bolstered by "continued steady improvement" in the domestic economy as the logistics sector headed towards its Christmas peak, with the retail, defence and mining and resource sectors "all very strong and generating good returns for us".
On global forwarding expansion in Asia, Mr Little said Toll needed to lift turnover from $1bn to $3bn and, more broadly, had a "war chest" which could fund international acquisitions totalling $500m-$700m in the next six months.
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