Heavy Haulage ‘not travelling well’ in mining downturn
THE collapse of Heavy Haulage Australia (HHA) is probably more of a reflection of a downturn in the mining industry than the state of the trucking industry, says a Clarence trucking company executive.
The CEO of Herb Blanchard Haulage, Robert Blanchard, said his company and other local haulage businesses were not in competition with HHA.
"That business was quite unique in that it concentrated on the really big jobs needed for mining infrastructure, like massive pieces of machinery," Mr Blanchard said.
Administrator Ferrier Hodgson announced on Monday it had been called in a voluntary administrator for the company, which boasts one of the largest haulage fleets in Australia and was the subject of reality TV show Mega Truckers.
The administrators said HHA would continue to operate as normal while a buyer was found and arrangements were made to protect employees, customers, suppliers and creditors.
"This is indicative of the downturn we are seeing in the resources sector and the knock-on effect it has and will continue to have on the transport industry," the head of Ferrier Hodgson's logistics practice, Brendan Richards, said in statement.
"Unfortunately, HHA has a very high cost base and when revenues are challenged, it is left with little room in which to manoeuvre."
Mr Blanchard said the local haulage industry was hardly exposed to the mining industry, but was feeling the effects of the downturn in the economy.
"We're not travelling that well," he said. "There is a drop in the volume of freight and continued downward pressure on the rates we can charge."