Maritime targets retail distribution market
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dominic.perryOrhi.co.uk MARITIME TRANSPORT, the country's leading container haulier, will launch a new distribution operation in the new year as it looks to diversify away from its traditional market.
The Felixstowe operator has already ordered 50 new eurtainsided trailers from SDC to support the new venture, which it expects to generate turnover of around £10m in its first year.
MD John Williams says that as retailers become increasingly involved in their own supply chains, for example, through the use of port-centric import centres, it will generate opportunities for the firm, "At the moment, we are eliminating ourselves from that market, so we have to put the company in a position where we can compete for that business," he says.
Williams feels that the company can offer retailers something different from the logistics providers that have gone the other way and ventured into the container market, not least its "deep knowledge of the international supply chain".
He also reveals that Maritime may look to acquire scale in the distribution business. He adds: "We are determined to develop this distribution strategy. It will grow, partly organically, but we will consider an acquisition if the right opportunity comes along."
However, he stresses that the container transport operation will remain the core product for the firm.
Meanwhile, the company has revealed a 19% fall in turnover to £69.3m in its accounts for the year to 27 December 2009, which it blames on the massive fall in container volumes and haulage rates caused by the recession. Pre-tax profit was also dented; down to 1502231 from £3.9m in 2008.
Williams says the firm has had to work hard to improve productivity in order to counter the effects of the turnover drop — it is the first time that sales have fallen since the management buyout that created the present business in 2001.
He feels that this, alongside the acquisition of DHL Container Logistics late last year, plus some £35m of capital investment in the
business this year as it spent on new depots and vehicles, leaves it in a strong position to benefit from the economic recovery.
It anticipates turnover in 2010 of around El lOrn. Williams adds: "[The DHL acquisition] will propel Maritime to a completely different league and will give us the substance to take on the next 10 years with a lot of confidence."
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