Forum Archive Index - November 2000

["G Stolwyk" <stolwyk@wave.co.nz>]

 

 

Dear Hugh,

 

 

Thanks for reading my contribution of Nov 6!

 

We shall now discuss this multti-faceted business;also see their webpage     www.lang.com.au

 

1.INDUSTRY AND COMPETITION.

 

LANG STEVEDORES is the largest operator,the other is P&O. Many see them as a duopoly. Costs of entry by a new entrant are prohibitive.

 

LANG is in a strong position when it negotiates with shipping companies. However, the government-as reported-

has allowed these companies to combine in these negotiations

 

LANG operates all major ports in Austalia and has spent a lot of money upgading their operations and the capacities of their docks.

 

2. LOGISTICS  

 

The $A 200 mill. raised at the beginning of 2000, were partly spent on:

A large tranrport and shipping company ' Holyman ltd '.

The leading freight forwarding company ' RFL Australia '.

LANG also operates the third largest private railway in Australia.

 

The combination of these large feeder routes and freight forwarding services are additional big profit contributors and 

they create a seamless route from customer to the docks.

 

The highly pro-active Board, Management and Staff are giving a very efficient service indeed!

 

Total time spent on delivery has been reduced,repeated loading is avoided.Super sized containers will be arriving shortly and these would require heavy loading equipment;

Smaller ports can't afford this and there will be diverting of

goods to bigger ports: That will suit LANG!

 

3.STAFF.

 

 

LANG has been instrumental in totally changing work practices at the ports:Refer to their website.

Agreements will reduce any strikes to a minimum.Much credit is due to Chris Corrigan, the managing director.

 

4.6 mill. options have been issued to staff and this measure is one of the many put into place.

 

4.TECHNICAL APPLICATIONS.

 

 

Because of the size of the operations, LANG handles millions of containers,many with temperature controlled goods.The location of every container is given by GPS

(Global pos. syst.)

 

Research is always going on: A prototype enhanced straddle carrier which automates container handling, has been successfully tested and is now being refined.

 

5.ORGANIC GROWTH

 

It is clear that there is still a lot of growth possible due to further takeovers or generated growth from within.

This will take many years .

Obviously, increasing imports and exports will also promote growth.

 

6.SUMMARY

 

The sum total of  the benefits from vastly improved port

operations; improved logistics-some of these due from takeovers-,advancement in technology; the highly focussed Board, management and staff, must lead to higher share prices.

 

LANG is a large dominant growing company handling increasing exports and imports.

 

 

 

 

Take it away, Hugh!

 

I hope to show tomorrow, why, I think, LANG OPTIONS( LACO) are good buy!!

 

 

 

Please note that the contents of this email are my opinion on the company. Much care has been taken with the preparation of this work; however,circumstances which could affect this opinion can change.Also,the accuracy or completeness of this work cannot be wholy guaranteed. Any claims for damages arising from either reading of, or communicating the contents of this email to others, will not be accepted. No one is asked to buy,hold or sell shares in any company, trust or any other instrument!   

 

 

Gerry