Josie’s Transport Group has a proud history in the Geelong region.
When new ownership took over in 2020, they were determined to honour the legacy of the original Runia family by protecting its roots while taking the business into the next stage of expansion.
When the business, based at Lara, was purchased the existing site was demolished and new offices and a warehouse were erected.
The location is in close proximity to major freight routes with direct access to Melbourne and regional southwest Victoria, a traditional stronghold.
The fleet is a mixture of company-owned vehicles and subcontractors.
There is about 20 late model Isuzu units, and two IVECO S-Ways augmented by use of over 85 subbies which brings allocation of the total vehicle pool consistently well over 100 trucks.
Daily runs include Geelong, Colac, Hamilton, Portland, Horsham, Warrnambool, Ballarat, Bendigo and Metropolitan Melbourne. Service is same day or generally next day explains Aaron Cole, Josie’s Transport Group Chief Executive Officer.
“Unlike the Melbourne based services there’s no time critical stuff where drivers don’t get paid very well,” he says.
“Our drivers get paid well so they stay with us. That’s really important for us to make sure we have good quality drivers. In a lot of regional areas our drivers are forward facing. Good quality driver means good customer service.”
Trucks dispatched to Geelong typically don’t run fully loaded as that would preclude the pickups scheduled for the afternoon.
The cycle is dictated, firstly, by how many pallets are initially assigned the vehicle. Those deliveries will be completed by as early as 1pm at which time the allocators will have transmitted the pickups to bring the vehicle back.
“They will load plan the regional fleet,” says Aaron. “By 3- or 4pm they know what’s coming in tomorrow. It’s already in our system generally by 4pm.”
At night, up to 15 trucks will get loaded and the allocators will stage four or five based on the load plan. The first semi-trailers arrive at 4am for Melbourne.
Much of the work involves onboarding where that is eventually broken down into pallets or mixed pallets.
“We don’t have to have the trucks here or even the freight here to do that,” says Aaron. “As long as we know it’s already in the system.”
Horsham is, at present, the furthermost point a Josie’s truck will venture. Along with Hamilton and Warrnambool, these destinations are loaded first so that the freight gets out first. Trips, as a result, are staggered.
“You can’t get down too early because nothing will be open,” says Aaron. “So, they will probably leave between five and six in the morning. The last one will leave around 7- or 7.30. There’s also pickups to do.”
Ballarat is usually loaded last because it can be recovered the same day.
“If we have an issue with a Warrnambool load you can’t actually get down there and back in time,” says Aaron. “Ballarat and also Geelong are close enough. We don’t classify those as regionals.”
Josie’s have a particularly big presence in western Victoria. When new ownership acquired the business, it had two or three vehicles going regionally. Now there’s well over 20.
The company fleet is responsible for the regional work as it wants to be able to control that task. Subcontractors, at the minute, take care of most of the Melbourne deliveries. The rigid fleet was recently upgraded, and presently consists of 14-pallet Isuzu FVL 240-300s with automated manual transmissions (AMT). Josie’s invests heavily in this area.
The average age of the company-owned vehicles is about 2.5 years old. The new warehouse covers an area of 2100m². Previously it was 750m² before the rebuild.
At the old facility they would have to tarp the freight if it was raining outside and play “Tetris”, as Aaron likens it, when loading.
“When you had to tarp everything, you couldn’t get throughput. Now we can get the volume through,” says Aaron. “It’s rare now trucks are held up. The only way you can do it is to invest back into the business.”
The new warehouse capacity, being triple in size, was settled on after acquiring KDs Transport.
“We looked at their volumes and we thought we’ll only need double what we had because we’ve got all the hardstand here that we can use and we can use the awning,” says Aaron.
“From that perspective we forecast what our work would look like over a period of time.”
There’s also another big area out back that they can grow into if needed down the track. The provision for expansion is now embedded in the business model.
As part of its robust future planning, Josie’s purchased Lightning Transport in 2022. That integration is currently being completed. Until very recently the two fleets were being operated separately.
“There’s probably 25 vehicles that we call on from time to time,” explains Aaron. “We probably do more for them than they do for us.”
While Josie’s is known as a Geelong business, Lightning maintains a strong presence in Melbourne Metro, upping the fleet presence for its urban customers.
“The reason behind the integration piece is we’re looking at Gippsland early next year,” says Aaron.
“The move into Gippsland was the catalyst for that integration piece. We’re looking at sites at the moment around Pakenham. We were looking to commence that later this year, but I just want to make sure that our customers are happy and that our drivers are happy and that there’s no churn from a driver perspective when they assimilate into the new world.”
It’s important that Josie’s handle the last mile. Aaron doesn’t want to on-forward any freight.
Ultimately, that remains a strong point of difference for the business.
“There’s a lot of transport companies out there that are servicing Victoria but they’re using agents to do the last mile,” he says.
“I want to ensure we’re doing the last mile whether it’s our own vehicles or own subcontractors.”
The expansion into Gippsland is further proof the current model is not only successful but fit for replication. The second site intended for Gippsland would also service Melbourne.
“I think there’s a real opportunity to disrupt the Melbourne market,” says Aaron. “People are more organised these days. I’ve been in the game a long time. Fifteen years ago, you’d be taking orders at 4 o’clock in the afternoon. These days it’s all finished by around 1pm because of that improved organisation.”
Offering a next day service into Melbourne, by that token, disrupts the market for the time critical and urgent deliveries.
Josie’s is already picking up from South Dandenong in the afternoon and servicing the markets in western Melbourne the next day which is disrupting that time critical task.
Having a site in Pakenham would enable Josie’s, essentially, to do all of Melbourne. Once the move happens Aaron and his team, which includes Rhys Rutland Transport Manager, will closely consider procurement of the next vehicles which will be based in the southeast.
“When we started, we only did Warrnambool and Ballarat. Since then, we’ve opened up Bendigo, Shepparton, Castlemaine, Echuca, Albury, Wangaratta,” says Aaron.
“This opened up partly on the back of a customer who underpinned that additional work for us. We began going there twice a week and then three times a week. Now we’ve got multiple vehicles. Again, it’s about farming your customer base and saying this is what we offer. So you pick up ratio and you grow in both lanes.”
Chief Financial Officer Mark Muscat is overseeing the Lightning Integration and move into Gippsland. Aaron Cole and Co-Owner Scott Peacock were previously at Kings Transport for nearly 18 years. Aaron started there in 1997.
They cut their teeth in the time critical, local Melbourne transport sector before migrating to contract logistics and permanent vehicles. They helped take that business all around Australia and also into New Zealand through both organic and inquisitive growth.
After going their separate ways for a few years they were keen to get back together when the opportunity to purchase Josie’s arose.
“We see the regional transport industry as a solution not a commodity,” says Aaron.
“In Melbourne you’re a bit of a commodity. Where here you’re a solution. If you can service a number of different regional destinations, you can provide EI, you’ve got all the sign on glass and new gear and discrepancy reporting and KPIs you provide the customers.
“If you can pick up out of Melbourne and deliver to Albury the next morning, or wherever it might be, you’re actually a solution. There’s a lot of people in the Me2 game in Melbourne. We don’t want to be in the Me2 game. So that’s why the regional space attracts us.”
Josie’s Transport Group invoices 750 customers a month.
There’s room, according to Aaron for further growth and they have already, as a business, spoken to their customers who will support them should they need them to.
Two B-double rated IVECO S-Ways perform linehaul duties though both are actually being used as 22-pallet single trailers. The prime movers were purchased with a 700,000km warranty over four years. They’re a custom build.
“We do a Blood Bank for the Red Cross and we needed specific orientation of our turntables which IVECO were more than happy to work with us and get all that fitted for us,” says Rhys. “When we picked up the vehicles, they were pretty much good to go.”
The standard fitting of the turntable is between both rear axles. These units are bogie drive.
Generally speaking, the adjustable turntable sits centre and then the orientation will slide back around 300 millimetres.
“With these the orientation had to be situated over the rear axle but still have that capacity to go over forward between both axles and then further back as well,” explains Rhys. “Just the way the trailers are built for the Red Cross. That was a custom-custom build.”
The Red Cross mobile units are stationed in Traralgon where people can donate their blood.
“One of the prime movers does linehaul in and out of Melbourne over the course of the day,” says Rhys. “It can go regionally, and the other one will either mirror that as well or it will go regionally just where it is required.”
While a lot of regional carriers have umbilical cords attached to other transport companies, Josie’s is not one of them. That’s a major advantage.
“Fortunately, our customer base isn’t exposed to the vertical,” says Aaron.
“Our top ten represents only 30 per cent of our business. Of course, you don’t want to lose your top ten, but we can and we’d be fine because we’re across multiple industries. For a regional carrier that is underpinned by Border Express, StarTrack or Mainfreight, one change in that business and they’re exposed.”
It’s also crucial for the owners of the business to maintain and strengthen the ties to the Geelong area and local communities. That includes sponsoring different organisations and charities in the local area.
“Josie herself was really strong on community engagement, sponsorships and events,” says Aaron.
“I want to continue that and be very respectful of their past and the legacy of Josie and the family because we wouldn’t be here without them.”
One of the main allocators at the business Phil Runia, is Josie’s son. Grandsons of Josie have been driving for the fleet. It’s still by and large a family business.
“We wanted to keep the feel of that and hopefully, when people enter, they see it’s a calm and a welcoming place,” adds Aaron.
“Even though we’re getting fairly big we want to keep that which is really important for the Josie business and Josie’s people.”
