Toll’s growth from a home-grown domestic Australian transport company to a global logistics player has been nothing less than awe inspiring. Founded in Australia in 1888 by Albert F. Toll as a coal haulage business, using horse and cart transport, the company’s present day form took shape following a management buyout by Paul Little and Peter Rowsthorn in 1986 followed by a listing on the Australian Stock Exchange (ASX) in 1993. From this point onwards a series of mergers and acquisitions (M&A) created a global player with nearly 40,000 staff in 55 countries and annual revenue of over A$6.5 billion (US$5.8 billion). In the last 20 years the company has carried out over 85 acquisitions.

“In the last few years we have been focused on growing our global forwarding business with recent acquisitions in the US, UK, the Middle East and Australia/ New Zealand. Our global express business has recently purchased Footwork Express a very large express road transport business in Japan and our contract logistics business has assumed total control of ST Anda to become one of the most significant 3PL providers in Greater China,” Toll Group managing director, Paul Little tells Payload Asia.

Asked whether the group was eyeing more M&As and what criteria it was looking at, Little said: “We don’t comment on future acquisitions except to say we anticipate further growth in our global forwarding and global express business to round out their networks.” He points out that Toll still has a strong balance sheet and has a great deal of capacity to carry out further M&As.

With the group’s annual results out end-August, Little declined to comment on company performance but did note that, “integration is a continuous challenge, but it’s one we are very familiar with given the number of acquisitions successfully integrated over the years.”

Little says one of the biggest challenges in this post-economic crisis environment is getting the understanding and support of shareholders. “In relation to that, we have been through tougher times thanthat in the last 18 years since listing on the ASX. Due to the recent global economiccrisis, our shareholders are less willing tosupport growth in the longer term.”

Shareholders had now become “more short term”, says Little, who is the largest private shareholder in the Group. “Shareholders have asked our company to be more patient, and we, as a public company, have to listen to them,” he adds.

China
The Toll Group has been operating in China through its controlling interest in joint venture partner ST Anda since 1996. The Group completed its acquisition of the joint venture earlier this year, and now fully operates a network of 23 logistics facilities with over 20 distribution centres, covering over 400,000 square metres, delivering to more than 1,600 cities across the country. Toll has seven regional distribution centres in China — Beijing, Shanghai, Guangzhou, Shenyang, Chengdu, Wuhan and Xi’an. It manages a combined fleet of 1,200 trucks, including Toll-owned vehicles, as well as handling over 700,000 stock keeping units (SKUs).

Toll Global Logistics, which is a division of the Toll Group, has its Greater China regional headquarters in Shanghai.

“Toll will invest in providing our customers with a comprehensive range of logistics services within China. Our customers will also have the valueadded benefit of being able to leverage opportunities from Toll’s growing regionaland global network for their imports and exports,” says Wayne Hunt, CEO/president, Toll Global Logistics.

Through its comprehensive China distribution network, Toll provides a range of transportation and contract logistics services to both local and multinational companies, harnessing its global capabilities across a diverse range of sectors including industrial, hi-tech, chemical, healthcare, and Toll’s strong presence in the retail and consumer market segment.

“We are delighted to have completed the integration of ST-Anda and to strengthen Toll’s network in China. China is one of the world’s most important growth engines and demand for consumer products domestically and internationally is an important part of that expansion,” says Little.

Toll’s customers in China will also be able to leverage the company’s global network spanning Asia Pacific, US, Middle East, Africa and Europe. As an Asia Pacific-based company with 122 years of operating experience in the region, Toll is positioned to offer regional solutions to its customers’ needs.

“The Asia Pacific is our home market and we believe we have important value to add to our regional customers as a result,” Little says.

Outside China
According to Little, the group provides a full range of logistics services in Australia and New Zealand as well as hold the market’s leadership position.

“In Asia we have a strong contract logistics and freight forwarding network along with some very good businesses in the resources sector in Southeast Asia,” he adds.

Turning to North America, Little says the company is growing the freight forwarding business there and is currently the number four NVOCC between Greater China and US. With regards Europe, he says Toll had freight forwarding presence in many markets with the strongest businesses in the UK.

In Africa, Toll has a growing presence off the back of freight forwarding, resources and United Nations work.