METS

On the move

A WESTERN Australian logistics company is making some major upgrades to its regional branches as it turns its sights to the resource sector. By <b>Sam Jordan Jones</b>

MiningNews.Net
On the move

In a move to prepare for the expected resources boom in Western Australia’s North West region logistics provider Centurion has relocated its Broome division into a 20,000 square metre depot – twice the size of its former site.

Centurion executive general manager Mark Doig said the company had developed and was utilising half of the facility with the aim of expanding to use 100% of the site in the next few years.

“It puts us in a really good space where we have 10,000 square metres that we are going to use and 10,000 square metres which we are going to develop,” Doig said.

“I think that will take place over the next two to three years.”

For Doig, the facility is a sign of the company’s commitment to the Kimberly, where he expects to see a huge spike in activity as a number of resource and energy projects move from feasibility to production.

“There is a lot of talk about activity up there and there is an enormous amount of tendering on at the moment,” he said.

“We are in a space where we are fairly committed to that North West region and we need to acquire more to develop more with our business partners and trading relationships and that’s what we will do.”

The privately owned company, which has more than 750 trucks servicing WA, is celebrating its 40th birthday this year after opening in 1971.

Today, two sons of the original founders operate the business.

While the full extent of the northwest’s resources boom is yet to be seen, Doig acknowledged the risks involved with the expansion.

“You run the gauntlet of do you wait to get the business and then develop or do you develop and hope that your partners are going to come with you? We decided to make the investment now.”

Doig said the resource sector made up about 35% of the company’s business, which includes a lucrative contract for Rio Tinto.

Anything that goes to a Rio Tinto mine site, whether it is a cupcake, a tyre for a haul truck, or anything in between, is delivered by Centurion.

Indeed, Centurion is responsible forstoring the haul truck tyres for Rio Tinto’s operations. It also won the special award for Innovation and Improvement in the Rio Tinto Iron Ore Suppliers Recognition Program.

The company is also in the midst of upgrading its Port Hedland facility to support the resource sector in the Pilbara.

This will include up to $10 million for a new warehouse, offices, dock facility and sealed lay down area.

“These new developments improve our capability to support the regional communities in the Kimberley and Pilbara whilst also providing much needed investment to sustain the increase in infrastructure projects through the region,” Doig said.

Centurion’s investment in its Port Hedland and Broome facilities also incorporates logistics technologies that allow clients to monitor the progress of deliveries at every stage through an online portal.

These two projects come on the back of the opening of Centurion’s $40 million supply base in the outskirts of Perth.

As well as offering end-to-end logistical solutions Centurion also provides warehousing, refrigerated services, retail distribution, logistics support, over-dimensional transport, heavy haulage, and time-critical services.

“Obviously with the recent growth that the state is enjoying – and we are part of that – it was important for us to make that investment here locally to support that growth,” Doig said.

The company is also looking to develop a 103,000 square metre facility near Dampier and upgrade some of its other branches, including Carnarvon and Kalgoorlie.

“Our strategy has been to maintain a strong company presence in all our major areas of operation no matter the economic environment,” Doig said.

“With the price of gold picking up over recent times, the mines are beginning to open back up again in Kalgoorlie.”

This article first appeared in the May 2011 edition of Australia's Mining Monthly magazine

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