Staff Writer

Penske provides reassurance to Australian market

Despite the departure of Team Penske from the Supercars Champsionship next year, the heavy vehicle distributor has pledged its ongoing commitment locally.

While the US-based motorsport team will not return to compete in the Virgin Australia Supercars Championship in 2021, Penske in a statement released today confirmed its long term commitment to the Australian and New Zealand markets through its on- and off-highway businesses.

“Since Team Penske partnered with Dick Johnson to form DJR Team Penske several years ago, we have seen tremendous success on the track and in the boardroom,” said Randall Seymore, Penske Australia & New Zealand President.

“We thank DJR Team Penske for helping to make Penske and our brands household names, and we look forward to remaining Dick Johnson Racing’s biggest fans.”

Since establishing its footprint in the Australian and New Zealand markets in 2013, Penske continues to invest heavily in its on- and off-highway operations.

Penske Australia currently serves as the distributor of the Western Star, MAN, Detroit and Dennis Eagle heavy vehicle brands.

“Penske Australia & New Zealand remains dedicated to our customer base, our more than 1,000 employees, and our OEM partners,” said Seymore.

“The growth of our business and loyalty of our employees, even during these challenging times, has been extraordinary,” he said.

“Building on several significant wins recently in key markets such as road transport, energy solutions, defence, and mining, we foresee a standout year for the business in 2021.

“Our team at Penske Australia & New Zealand will continue to build on our customer partnerships in 2021 and beyond, providing them with world-class customer service, along with our portfolio of superior products.”

Fenix Resources adds new prime movers for $360M Iron Ridge contract

The road transport component of the Iron Ridge Project in Western Australia has been executed under contract by Fenix Resources.

Prime movers and trailers for the project have already been ordered through Fenix Newhaul, the incoporated joint venture company established in May, 2019, to implement the strategic alliance between Fenix Resources and Craig Mitchell.

Mitchell is the founder and former owner of Mitchell Corp, a major supplier of transport and logistics services to the mining industry in Western Australia.

Fenix Newhaul is 50 per cent owned by Fenix and 50 per cent owned by Newhaul Pty Ltd, an entity controlled by Mitchell.

Funding has been secured by Fenix Newhaul for the specialist equipment through an equipment manufacturer. Additional funding for start-up costs and equipment deposits was sourced through shareholder loan facilities are estimated to be in the vicinity of $3.9 million.

The contract is valued at around $360 million for the estimated six year life-of-mine, based on a terminal gate diesel price ex Geraldton of around $1.34 per litre bearing in mind the current diesel price is around $1.05.

In accordance with the current project development timeline, the project is scheduled to commence sometime in December this year.

Road transport was quickly identified as the largest cost component for the commercialisation of Iron Ridge according to Fenix Managing Director Rob Brierley.

“We took an innovative approach to optimise this aspect and we strongly believe that the joint venture concept with Craig Mitchell has been the right way to go,” he said in an issued statement.

“Fenix Newhaul plan to commence operations with a mix of sub-contract and owned fleet and they are actively recruiting for personnel, with most of their employees to be Geraldton-based,” he said.

The terms of the contract are in line with the company’s feasibility study, announced on 4 November 2019.

These are reportedly customary for contracts of this nature.

The flagship Iron Ridge Iron Ore Project is a premium DSO desposit. It hosts a JORC 2012 compliant resource located around 490 km by road from Geraldton port.

High grade iron ore attracts a premium price on the seaborne market as Chinese steel works increasingly demand more pure inputs with lower emissions due to increasingly strict government regulations.

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