cootes loses shell contract following crash, page-3

KSC may gain a temporary advantage from the Coote fiasco, as it has in the past, plus, perhaps, a longer-term advantage if it has a safety story that is superior to rivals, and it uses it to land viable long-term contracts.

The article at http://www.abc.net.au/news/2014-02-15/cootes-transport-voluntarily-grounds-entire-victorian-fleet/5262094 includes the following words:

“Nic Moulis from the Australasian Convenience and Petroleum Marketers Association says the industry has taken steps to ensure outlets are not reliant on just one transport company. “

SCC's Energytrans primarily carries fuels and lubricants to the mining sector in Queensland. K&S Fuels retails fuel in a minor way in the South-East area of South Australia, where it also supplies a transport service for Caltex from Melbourne and Adelaide into fuel depots in Mount Gambier, Naracoorte and Millicent. A significant function (40% of all fuel it sells) is to supply the K&S road fleet with diesel at a good price, and to this end fuel outlets have been installed in K&S freight depots throughout Australia. The combined fuel-delivery resources of KSC and SCC could be expanded if it made business sense, which is another matter. It should be easy to step one at a time into additional geographies where the KSC-SCC combo has a presence, provided viable fuel-delivery contracts can be secured.

This post is simply a conversation piece - it does not advocate buying KSC shares. It may take time for the SCC acquisition to manifest itself via a positive change in EPS, so I hold and hope. I bought KSC shares many years ago for the wrong reason, and I am way behind my buy-in SP.