01/06/2004 - 22:00

New fleet contracts favour Easifleet, Commonwealth

01/06/2004 - 22:00

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LOCAL fleet management firm Easifleet and national operator Commonwealth Fleet Lease are the big winners from new fleet management contracts announced by the State Government.

LOCAL fleet management firm Easifleet and national operator Commonwealth Fleet Lease are the big winners from new fleet management contracts announced by the State Government.

The losers are multinational firm Lease Plan and Perth-based Fleetcare.

The four companies previously shared the State Government’s fleet management contract but in future just Easifleet and Commonwealth Fleet Lease will manage the 8,400 vehicles in the State fleet.

Easifleet, jointly owned by car dealer John Hughes and directors Mark Iriks and Tim Roberts, currently manages a total of 6,000 vehicles.

Mr Roberts said the company “will certainly be employing extra people”.

The new contract is timely for Commonwealth Fleet Lease, which has just been sold by the Commonwealth Bank to South Africa’s Super Group and will change its name to Fleet Australia in a few months.

Another winner from the fleet management review is WA Auto Auctions, which has become the sole disposal contractor.

It previously shared this work with Pickles.

A third major change is the awarding of a contract for new vehicle inspection and certification to Inspection Services Australia, a subsidiary of Fowles Auction Group.

The Department of Treasury and Finance has estimated the changes will lead to net savings of about $1 million a year.

The awarding of the new contracts follows a period of significant changes to the State’s vehicle fleet, which has reduced from 9,600 vehicles five years ago to 8,400 presently.

A department spokesman said this reflected the impact of privatisations (e.g. Westrail Freight) and a general push towards tighter financial management.

The reduced fleet size, combined with the lengthening of average lease terms from 22 months to 27 months, has substantially cut the number of vehicles passing through auction houses.

The move from four fleet managers to two is estimated to save $718,000 per year in fees.

The department also believes the reduced number will simplify and streamline contract and relationship management.

The move from two auctioneers to one is estimated to save around $487,000 a year.

“Under the new arrangement, all of the vehicles we offer for sale will be available in one place, and all potential buyers, whether they are private buyers or dealers, will know exactly where to find them,” the spokesman said.

The vehicle inspection and certification contract brings together roles previously carried out by several contractors.

The department said the service would cost around $169,000 a year but was “expected to more than pay for itself through better management of vehicle refurbishment costs”.

The contracts will be managed by State Fleet, the Government’s in-house fleet financing and leasing business.

State Fleet is required to be self-funding and operate on a commercial basis, with government agencies required to pay the full commercial cost of their respective vehicle fleets.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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