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Transport firms rank high on 2014 collapses list

Transport firms rank high on 2014 collapses list

The year 2014 wasn't a great year for numerous Australian transport companies, with high-profile transport and logistic companies’ collapses making headlines left, right and centre. Unfortunately, a rather significant number of them involved prominent transport companies. Here's the low-down on who didn't make it through.

The biggest collapse of them all

The collapse that drew the most attention in 2014 was that of Gregory's Transport. Receivers came knocking on their door in November. They took over the company's entire collection of road trucks, as well as the vast majority of their assets. Apparently, this action occurred after several payments on leases and loans had been missed. It was on December 1st that things went further, when the New South Wales Supreme Court ruled that Gregory's should be closed for good, following an application from New South Wales WorkCover Authority.

How one big client caused a company to close

Back in 2013, one of Roadwise Transport Group's most important clients withdrew their business. For Roadwise, which was turning over about $10 million each year, this proved to be an enormous problem. According to reports, this single move did such financial damage that the company simply couldn't get back on its feet. Of course, it was all made worse by the fact that the costs of running transport companies increased considerably around the same time. In May 2014, Roadwise appointed administrators.

How one specialist company was squeezed out by competitors

The third major transport company to call it quits in 2014 was Australian Entertainment Logistics. They were a specialist brand, which, as their name suggests, focused on providing transport for entertainment tours. But the story goes that things became more and more competitive, as non-specialist companies started to offer lower rates, leading to Australian Entertainment Logistics being squeezed out of the market.

Lessons learnt

Sudden economic changes can certainly prove incredibly challenging for any business and especially transport companies, which are costly to keep on the road. That said, it's important that all enterprises try to be as responsible and as prepared as possible. After all, some collapses are avoidable. It is important that companies react quickly, as soon as something goes wrong, rather than ignoring the problem or treating it lightly. Efficient, forward-thinking management can go a long way in ensuring the long-term future of a transport company.

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