Container hire company expanding

A modified Royal Wolf container on site at the new Kawarau Falls Bridge construction site, near...
A modified Royal Wolf container on site at the new Kawarau Falls Bridge construction site, near Queenstown. Photo: supplied.
Strength in Queenstown and Southland’s economies have prompted an expansion of domestic container hirer and refurbisher Royal Wolf, which will open its 13th depot in Invercargill shortly.

Royal Wolf imports new containers from China. Electricity, plumbing and customised modifications are done  in New Zealand, and the containers are for hire or sale, but not used for exporting.

They are used for storage through to accommodation, kiosks, commercial kitchens, workers’ lunchrooms or construction site public safety walkways.

ASX-listed Royal Wolf is Australasia’s largest shipping container provider, with 34 customer service centres: 22 in Australia, 12 in New Zealand  plus the one scheduled to open in Invercargill.

Royal Wolf, which has about a 45% market share in New Zealand, has provided worker accommodation for the Kaikoura road and rail rebuild and also the new Kawarau Falls Bridge site, near Queenstown.

Royal Wolf New Zealand executive general manager Paul Creighton said its Dunedin depot had grown to the point where it needed support, prompting the Invercargill opening to better service Southland and Queenstown.

"The need to increase our footprint in the South Island is a reflection of Southland’s healthy economy and the ongoing growth and activity in the Queenstown area," he said in a statement.

Mr Creighton said both regions had numerous industries undergoing huge growth.

Investment in Queenstown was expected to be ongoing for a decade, given the construction of a gondola, hotels and other accommodation.

"We believe the demand for container solutions and products is only going to increase," Mr Creighton said.

He said Royal Wolf was targeting everything from the construction industry through to providing semi-permanent accommodation for workers and seasonal workers.

A 20-foot container, sleeping two, costs about $30,000 or $100 per week hire.

They are fully ensuited, with shower, toilet and basin,  a king single bed and bunk bed above and all cabinetry, including a dresser, air conditioning-heater and TV.

While servicing the nationwide construction boom, Mr Creighton said the modified containers were also ideal for events, concerts, temporary accommodation and transporting dangerous goods.

● Last month Royal Wolf’s 51% shareholder GFN Asia Pacific launched a successful $A1.83 takeover bid, enlarging its stake to 92.67%. The offer price implied a market capitalisation of $A184million. Last year Royal Wolf’s revenue grew 11% to $A164.3 million from container leasing and sales; having a fleet of 41,000 hire containers at the time.

simon.hartley@odt.co.nz

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