The publicly listed company McAleese Limited has advised that it will be restructuring its wholly owned subsidiary, Cootes Transport Group Pty Ltd (Cootes Transport), following the notification that it had been unsuccessful in tendering for the national Shell fuel transport contract, which is due to expire at the end of June.
BP has also advised the company that it has not been shortlisted for the BP New South Wales fuel transport contract. The remainder of the national BP fuel transportation contract is yet to be awarded and Cootes Transport continues to be part of that tender process.
Cootes Transport has also given 7-Eleven notice to terminate its NSW and Queensland fuel transportation contract from June 30 for reasons of “poor profitability”.
In an announcement to the Australian Stock Exchange, McAleese Limited stated that annual revenue derived from the Shell, 7-Eleven and BP (NSW) contracts is worth approximately $92.5 million and represents approximately 60 per cent of Cootes Transport’s fuel transportation revenues.
It is expected that Cootes Transport will participate in an orderly transition to the new transport operators (in the case of Shell, Toll Group) over the remaining terms of the contracts.
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