By Dita De Boni
Owens Group can triple its turnover in Australia but will continue to underperform in New Zealand for the foreseeable future, says deputy chairman Norman Geary.
At the group's annual general meeting yesterday, both Mr Geary and new chief executive officer Ian Newman said Owens aimed to rival Australian
transport giants TNT and Linfox one day, though it would not move the centre of its operation across the Tasman.
Mr Newman, who has been CEO for 10 days, said the company would invest heavily in Australia, but would not be drawn on details.
"The activities we want to invest in are so specific we would be showing our hands by saying."
Meanwhile, a change of direction for internal operations would not include job losses.
Mr Geary blamed the drop in company profits - from $9.7 million in 1998 to $6.1 million in 1999 including $2.1 million from the sale of Rhino Securities - on trade volumes that fell almost 10 per cent, adverse currency movements and container over-capacity.
Fierce competition in shipping from Australasia to the United States had caused the company to withdraw from the route, paying "many millions" in exit costs.
Mr Geary also attacked Auckland's transport infrastructure. All petrol excise tax should be invested in roads instead of 70 per cent being "siphoned off into general government revenues."
