To be in print edition of 'The Australian' on Friday 7 June 2024:

We wish Austrans well, but if it folds, it'll further reduce the number of major competitors to LAU.

I hope LAU doesn't suffer from what were liquidity problems et al at Austrans:

Winding up order for Austrans puts hundreds of logistics jobs at risk

The logistics industry is facing headwinds with rising costs and weaker demand. Picture: iStock

• By bridget carter

  DataRoom Editor
• 4:01PM June 6, 2024
• 1 Comment

The country’s logistics industry has faced a further blow with reports that rail freight company Austrans hangs in the balance, threatening hundreds of jobs.

Sources have told DataRoom that the company has already laid off or stood down its workforce, with debts outstanding to suppliers and staff and there are expectations the group may soon be wound up.

It comes as a winding up order was filed in the Supreme Court of Victoria for Austrans Intermodal Pty, according to a notice lodged with the Australian Securities and Investments Commission on May 16.

The plaintiff was Citiport Holdings, which started the order on April 19 and the matter was set to be heard on May 22.

DataRoom contacted the company but it did not respond.

However, sources say a collapse of Austrans would affect hundreds of jobs, taking into account its direct workforce and contractors to the business.

Austrans was founded around 1986 as a rail freight company and the founder’s son, Greg O’Shea, is understood to have taken the reins about 12 months ago.

There are reports in the market that a number of suppliers are yet to be paid, with Pacific National, CS Leasing among those owed money, while other customers include Aldi, Peter’s Ice Cream and Lactalis.

Its website says that it offers services in the area of supply chain management, transport and logistics.

Based in Melbourne, Austrans provides long haul container freight services across road, rail and coastal freight options for point-to-point delivery around Australia.

Freight and logistics companies experienced booming conditions in the wake of the global pandemic, with soaring demand and high prices, but costs have also increased and securing staff has been challenging.

Demand for such services has since eased.