New Zealand transport companies sold, new owner eyes growth

Cook Strait ferry service Bluebridge and trucking company Freight Lines have been sold to a group of investors for an undisclosed sum.

Strait Shipping, which operates Bluebridge, and Freight Lines - both founded by transport industry legend Jim Barker - have been bought by funds managed by Champ Private Equity Group.

Freight forwarding business Streamline is also part of the deal, however the Barker family will retain ownership of Bulklines and Stocklines.

Strait Shipping managing director and Barker family spokesperson Sheryl Ellison said the sale represented the end of an era for the family and a positive future for the businesses.

READ MORE: Obituary: Transport giant Jim Barker's legacy will be felt for decades to come

"We are extremely proud of these three leading New Zealand transport businesses and we are excited about their future under a new growth focused ownership."

Ellison's father - Jim Barker - had been closely involved in the sale process up until his death in August.

"It was Dad's vision that these businesses would continue to thrive, grow and lead New Zealand's transport industry into the future and we're confident that this sale will ensure this."

Champ group manages about $3 billion for private equity investments in New Zealand and Australia. Its managing director Cameron Buchanan said his company was excited about the acquisition and potential the three companies offered.

"We're committed to building on the strong foundations the Barker family has created and growing these businesses for the benefit of not only investors but also the wider New Zealand freight and passenger transport markets."

Strait Shipping has been moving freight between the North and South Islands since 1992 and diversified into the passenger market with the launch of the Bluebridge service in 2003.

New Zealand Shipping Federation executive director Annabel Young said Strait Shipping was established by Jim Barker after realising the need for a second ferry service during the strikes from the late 1980s and early 1990s.

When Barker launched Strait Shipping, it was the only competitor to the Interislander ferries - and still is to this day.

"Mr Barker made the most spectacular difference to New Zealand's shipping industry," Young said.

"We can't say enough about the family and the impact of the decisions they made in the 80s."

Young was positive about the new ownership, saying it was great they wanted to invest and grow the business, she said.

The sale is expected to settle in early 2017, but in the meantime it would be business as usual for the three companies as they head into the peak summer travel and transport season.