The division known as Cold Chain Solutions, a new segment launched by Tasman Logistics Services, will specialise in understanding specific cold chain requirements and developing customised plans for chilled products from warehouse to store shelf.
With a focus on high-volume clients and non-standard handling requirements, the customer portfolio will support a diverse range of brands, providing specialised handling services for meats, small goods, fresh produce, seafood, and pharmaceuticals.
Just last month Tasman Logistics Services secured a lease agreement in Queensland’s cold chain hub, Lytton Rd, Morningside.
The company anticipates its operational footprint will be established by October and be fully operational by December 2024.
“Our new Queensland warehousing hub puts us right in the heart of the cold chain action,” says Ivan Vanis, Tasman Logistics Services Chief Executive Officer.
“Cold Chain Solutions is projected to become an end-to-end transport and warehousing solution, adding real value to the supply chain for chilled and frozen products.”
As a market segment, cold chain logistics is thriving under favourable conditions. The market size, at present, is estimated at a staggering $8 billion in Australia alone.
Tasman Logistics Services has also appointed Stan Bearder as Head of Cold Chain Solutions. He has two decades of senior executive experience including five years as Chief Operating Officer at the New Jersey-based Thomas Foods International.
“Stan excels in managing organisations, crystallising big visions, harnessing technology and data-driven insights to elevate customer experiences, and consistently delivering top-notch products and services for sustained growth,” says Ivan.
Stan’s background in technology consulting, enterprise software, and successful leadership of a $680 million food organisation and high-growth biotech start-ups in the United States is considered a major advantage.
“Unlike the larger competitors in cold chain, who focus heavily on automation, Tasman will focus on customers who require the specific handling of products and reliable distribution,” explains Stan.
“We see a gap in the market, a niche that we can service.”
According to the company, the evolving trends in the current marketplace present a unique opportunity to cater to certain brands who require a specialised handling of products.
By entering into the cold chain, Tasman has positioned itself to embrace new partnerships, technologies, and industry best practices, according to Ivan. “We are not just entering the cold chain market – we are redefining it,” he says.
In addition to unlocking new warehousing and transport service possibilities with this venture, Cold Chain Solutions is looking to strategically bridge the gap where automation falls short in managing specialised stock.
An initial capacity of 4000 pallets during the first phase of the rollout will increase significantly, as part of an expansion plan, growing to 9000 pallets with four loading docks by the end of the quarter.
“A blueprint once the second stage is completed will be used for the national rollout which includes a purpose-built warehouse in Melbourne by June 2025 with Sydney, Adelaide and Perth to follow,” says Ivan.
He is also confident that this latest revenue stream will propel the company towards its goal of achieving $1 billion in sustainable revenue by FY2027.
“Tasman Logistics Services Cold Chain Solutions will span the entire spectrum of services to safeguard temperature-sensitive products, ensuring quality, efficacy, safety, and value,” he says.
The company currently boasts a fleet of over 240 prime movers including a partnership it inaugurated with PACCAR earlier in the year which includes supply of both DAF and Kenworth brands.
A whole new tech team joined the company in Q2 and is playing an integral role in capturing the breadth of fleet and travel data produced within the organisation.
The new venture comes at a prudent time in the company’s 22-year history. The Lytton Rd warehouse in Morningside is strategically located being approximately six kilometres east of the Brisbane CBD, eight kilometres west of the Port of Brisbane and nine kilometres southwest of the Brisbane Airport precinct. It connects to the Gateway Motorway and Port of Brisbane Motorway in the east.
Through the Gateway Motorway, the property has access to the arterial network of the Bruce Highway to the north and the Logan, Ipswich and Pacific Motorways to the south.
In addition to its prime exposure, the site offers B-double access, incorporate temperature-controlled rooms with 24/7 operations. No new vehicles have been procured to service the segment as yet.
Tasman Logistics Services are considering using a 3PL provider that works solely and directly for it. To enhance its operational efficiency, Tasman Logistic Services is presently in the process of obtaining the necessary accreditations.
“We are in the process of applying for accreditations to fast-track our operational capacity and manage the entire suite of chilled and frozen products,” says Stan.
“The location will help us facilitate future expansion and growth. The scalability and potential for future development in the Lytton Rd location will give us access to new markets, talent pools, and partnerships that will contribute to the long-term success and sustainability of our growing portfolio.”
Morningside is historically an industrial suburb benefiting from its proximity to the city’s wharfs and bulk terminals.
The area has an abundance of food manufactures and distribution service providers along with residential dwellings.
Lytton Road is a bitumen sealed, part two lane, part four lane roadway with concrete channelling and footpaths.
There is direct access to prime warehousing and major infrastructure projects.
“Our strategic positioning in Brisbane complements our current presence at the Port of Brisbane, enhancing our logistical capabilities,” says Ivan.
“By entering into the cold chain market, we are actively preparing for cold chain exports, with a specific focus on Indonesia and Southeast Asia to expand our market reach.”
The Asia-Pacific region, particularly Indonesia is seeing a rapid rise in cold chain services as a response to increasing demand in online food delivery services and packaged food products, agricultural commodities, and pharmaceutical products among the country’s urban consumers.
As the biggest archipelago in the world, Indonesia is also one of the world’s largest producers and suppliers of fisheries products.
Indonesians consume more than 40 kilograms of fish per capita per year, making it one of the most fish-dependent nations in the world.
In the e-commerce segment, essential items like groceries and frozen seafood dominate, indicating that these are the main growth drivers for the cold chain industry in the country.
The country’s cold chain industry, however, is still considered largely underdeveloped. It is estimated more than 10 million tonnes of food are lost in the supply chain as a result.
The business segment will also play a new role in supporting Southeast Asia and the Middle East by supporting cold storage of food supplies, particularly meats managing beef exports to the Philippines with an onus on exporting chicken, lamb and goat to the Middle East.
“We are only at the beginning of our vision for a comprehensive end-to-end cold chain solution,” says Ivan.
“Our focus is currently on meeting the national demand in Australia, Southeast Asia and the Middle East, as we work in implementing our operations.”