Northline expects good times in 2010

Trucking operator Northline braces for big 2010, but there are warnings other companies may have a tough year

January 22, 2010

South Australian carrier Northline says it expects strong demand and renewed growth this year after bolstering its logistics network during the economic downturn.

CEO Craige Whitton says the majority of Northline’s customers expected to review their operations and extract extra value from expenditure and outsource logistics and warehouse services.

"I think that as capital expenditure begins to flow again and more major projects take off, there will be significant improvements for us," he says.

"Western Australia was a real bright spot for us in 2009. It has held up during the economic downturn and there are great opportunities there for Northline".

Whitton says the company is confident of picking up on its best ever first half of the year profits in 2009.

However, he says some operators may still face tough years as many try and recover from the effects of the global financial downturn.

"The downturn caused by the global financial crisis meant that companies constrained their expenditure during the past year," Whitton says.

"Although cash flows will improve in 2010, they will still want to make every dollar work for their business- perhaps fearing a second wave of financial disruption".

Whitton says Northline has prepared its self for this influx of work, currently deploying a major radio frequency (RF) scanning system which allows customers to track their freight.

He says the company has already reviewed some of its operational infrastructure.

The review included moving to a new facility in Brisbane and the opening of new branch in Broome to take advantage of a number of major energy projects in the region.

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