Cootes Driver Cleared – Raises Spotlight on Truck Compliance Exposure

The driver of the Cootes Transport fuel truck that in 2013 crashed into a car, killing two people and injuring over 10 others, has been cleared of wrong-doing this month, putting the spotlight again on this high-profile incident.

The Transport Workers Union (TWU) is now asking why the driver was the only part of the supply chain charged over the deaths. Read Full Article 

If ever an incident highlights the dramatic knock-on impact of truck accidents, this is the one.This one accident has had a terrible impact on Cootes and its parent company McAleese Group. This includes:

  • Over 300 charges laid by NSW and Victorian authorities  – significant portion of the Cootes fleet grounded
  • Loss of contracts with Shell, BP, 7-Eleven – estimated cost $33.3m
  • Axing of 540 jobs
  • $47 million hit to its full-yeart earnings – lost contracts, redundancies etc
  • Slump in shares in McAleese by more than 32 percent
  • About $239 million wiped from the transport company’s market value
  • Value of now-surplus trucking fleet at $21 million
  • Annual cost of fleet management and inspections to increase from $2.3m to $5.2m
  • Resignation of both the McAlees Group CEO and CFO 

Under COR laws your business is responsible for any truck operating within your supply chain, whether operated internally or via an outsourced provider (e.g. A supplier or transport business you engage). 

How protected is your business right now against a similar incident involving a truck operating internally or via an outsourced provider? 

Every business within a supply chain using trucks needs a system to manage COR. 

The LSS COR System is used by clients and over 2,000 of their outsourced providers to manage COR, meeting the two key tests of compliance management – That stakeholders understand their responsibilities and that they are accountable for compliance with these responsibilities.

See our website for a list of clients and for further details (www.logss.com.au). We welcome your contact.