FOR a rapidly growing young transportation business with an ageing fleet having the odd breakdown, truck leasing has quickly become a “no-brainer’’.
And since commencing a relationship with CJD PacLease for a 90-tonne DAF XF530 prime mover last year, 4D Hiab & Delivery Services is now looking forward to receiving delivery of the next rig around December this year and already has expressed interest in another.
Owner Philip Bane, born and bred in Albany Western Australia, previously ran a window cleaning business in the South Coast regional area, but at 36 years of age, he now has clear visibility of his plans in the transport and logistics industry.
Philip is even inspired to drive industry change to achieve new, more sustainable logistics solutions, including the use of electric trucks and new trailer system designs using more green energy.
4D Hiab & Delivery Services was established five years ago while the window cleaning business was still operating. Philip noticed a gap in the local Albany market for outbound deliveries, which then soon expanded to include inbound as well, saving on triple handling that can occur in the industry.
“Our first delivery was mesh steel for a concrete pad using the Hiab truck and then it didn’t stop. BlueScope provided training for logistics and restraint to their specifications and effectively now have a new logistics chain and full control of their product as part of a direct service,’’ Philip said.
4D Hiab & Delivery Services was able to provide a direct service with delivery within 24 hours, rather than what can be a number of days. This certainly pleased Orrcon Steel and its parent, BlueScope, which subsequently eventuated into a contract for deliveries from Perth to Albany, underlining the strength of the business.
In its second year, the business bought its first prime mover, a 70t Isuzu Gigamax, and a specialised trailer requested by BlueScope to cater for increased on-road tonnage, as well as a 90t Freightliner Argosy for “back-up”.
“Both ran flat-out, running a road train a day,’’ Philip said.
Later in the next year, the business further added to its fleet with a Kenworth K108 and another road train.
Servicing and repairs were carried out via a strong relationship with CJD Albany Branch Manager Simon Wimbush and the team, and after a few problems with one of the trucks, the leasing opportunity for a DAF prime mover was presented to help achieve efficiencies and save on breakdowns.
Philip said the “clincher’’ in a great relationship with the CJD team occurred after a breakdown with the fully-loaded Freightliner Argosy in Arthur River due to a melted XY shifter.
“They came out at 4pm in the afternoon and bolted on a new one.’’
4D Hiab & Delivery Services currently runs a 90-tonne DAF XF530 prime mover on a full-service lease from CJD PacLease, fully including contract maintenance over a three-year term, plus a $40,000 overdraft facility.
Philip explained that DAF provided the warranty and he just paid a fee of 12 cents per kilometre up to 100,000kms per year. He also had the opportunity to purchase the truck under finance from CJD PacLease at the end of the three-year term, however, due to the success of the current lease, he would prefer to maintain leasing new trucks to continue to gain efficiency and technology benefits, and particularly to keep his employees happy.
“They have loved the new truck, with no issues and good comfort, so they don’t want to go back,’’ said Phil, who now employs six drivers ranging in age from 55 to 70
CJD PacLease Truck Rental and Leasing Manager James Travis, who joined the business in 2018, explained that the lease arrangement covered the residual finance risk for the customer and the lease fee included finance and maintenance fees. Inclusive in the lease is contract maintenance, covering the costs of repairs and servicing, and CJD PacLease also manage the administration.
“The contract maintenance removes the stress,’’ Philip said. “I am not going to be left on the side of the road broken down. They will send a car there to get it fixed, or, if it’s broken, they will cover the towing and will provide another truck. I don’t have a maintenance bill and I know things are going to work or be covered. That, on its own, is worth every dollar.’’
CJD PacLease also is available in the Northern Territory and Tasmania for full-service truck rental, leasing and contract maintenance.
James said in WA, the business had a fleet of 18 DAF and Kenworth prime movers for rent and a further 14 under leasing.
“Since commencing, we have tallied up to 24 rental trucks and have orders in the system for another five, so that’s about 30 trucks over the five years. They can be rented for one day through to a year,’’ he said.
“They are all six by four prime movers with carrying capacities from 88 to 106t.’’
He said they can be sourced for a range of purposes, including transporting general freight, livestock, grain, chemicals, fuel and other dangerous goods and materials.
Due to the global challenges during the pandemic, supply of truck parts and componentry has caused difficulty in putting new trucks on the road in recent times, hence many operators have turned to rental trucks to keep businesses running.
Philip said 21 DAF trucks hit Australian shores leading into 2021 and only one headed west.
“You couldn’t get a truck in Australia,’’ he said.
The latest 90t Euro 6 DAF trucks that have replaced the 84t trucks have fetched strong appeal.
“The DAF has not missed a beat after 74,000 kilometres. The European technology with the gearbox and engine is just flawless. All the mechanical side of things is impressive. It is smooth, very quiet and the emissions with the AdBlue is very good. We only went through two tanks going to the other side of Australia, which was 4500kms one way,’’ Philip said.
4D Hiab & Delivery Services has gone from strength to strength, recently assisting Molycop with a shipment out of New South Wales, and it is now targeting further opportunities, including in general freight.
For operators interested in short, medium or long-term rental facilities, CJD PacLease can assist to keep businesses moving with quality DAF and Kenworth rental trucks. For further information, visit cjdpaclease.com.au or call 1300 471 677.