Market competitive environment: Lack of clarity regarding the current competitive environment in the New Zealand Freight and Logistics market.
Freight flow ambiguity: Uncertainty about the flow of freight both inbound and outbound from New Zealand, including domestic movements through the road and rail network between the North and South Islands.
Value proposition uncertainty: Ambiguity surrounding the value proposition of a target logistics business and its partnerships, and how this business leveraged the New Zealand Freight and Logistics network for competitive advantage.
Strategic acquisition assessment: The challenge of determining whether the acquisition of the target business would offer strategic value to the client.
TMX strategically tackled client’s challenges by:
- Leveraging extensive expertise and subject matter knowledge.
- Conducting a comprehensive examination of the New Zealand Freight and Logistics market.
- Utilizing people and expertise capabilities, including database IP.
- Engaging with the broader logistics service provider community in New Zealand.
- Identifying four potential opportunities for synergies between existing intermodal hubs and future infrastructure plans in the North and South Islands.
- Providing client with valuable insights for future network optimization.
The TMX report received praise from client’s teams, guiding NZ investment decisions to position the business for growth. TMX recommended continued due diligence of the target business and alternative market entry approaches to mitigate risk.
Additionally, TMX provided valid TEU figures for both import and export container freight based on consignee/consignor information, which is not typically readily available. This assisted our client in evaluating the market size and understanding how a potential acquisition of the target business might influence this, considering their current customer portfolio.