Read Silver Bullet July 2009_FINAL.indd text version

HALL'S QUARTERLY NEWSLETTER

ISSUE 18 JULY 2009

Corporate Refresh

LCL Name Change - Introducing Hall's Intermodal

On 1 July 2009 LCL Transport changed its trading name to Hall's Intermodal©. We are very excited about the launch of this new trading name as it reflects the future, independence and direction the business is going while simultaneously leveraging the strong Hall's reputation and branding. There is no secret that LCL was purchased in 2007 and we inherited some very challenging issues and as such we had to significantly transform and improve the business model. During this transition stage the business has appreciated the support and continued patronage from its very loyal customers who have worked with us as we managed our way through the first 18 months of ownership. During this time we completed the following: 1. Migrated to a new management team after the departure of the former team. 2. Installed a completely new computer system that was capable of providing the business with the integrated systems needed to successfully run and administer our commercial transactions. 3. Relocated offices onto land we own. 4. Lowered overheads by installing Shared Services in conjunction with Hall's Refrigerated in the functional areas of Finance, HR, IT and Safety. 5. Commissioned new and modern equipment that reduced the total running costs of the fleet through RUC savings, R&M savings and fuel efficiency while simultaneously improving fleet reliability and uptime. 6. Improved run efficiency by leveraging the synergies associated by sharing work with Hall's Refrigerated and some other key subcontractors. 7. Installed savings by passing on Hall's group procurement arrangements. 8. Introduced daily Key Performance Indicators to better manage the day to day issues and respond to customer demands and desired performance levels in a timely fashion. 9. Taken waste and inefficiency out of the business. > Continued Back Page

IN THIS ISSUE

From the Ceo's Desk..................2 Operations Corporate Refresh ....................... 1 Sustainability Programme ..........4 Trailer Magazine Feature ............5 Hall's backs Rail for Intermodal Growth .............. Insert

Driver Training Economy Driving Tips ..................8 Quick Quiz ....................................9 Staff Kenworth Visit ..............................3 Service Awards .......................... 10 Anniversaries ............................. 10 New Staff .................................... 10 Truck Ten Years Old .................... 10 Around the Depots....................11 Live Penguins ..............................11 Hall's Directory ........................... 12 Thankyous .................................. 12

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FROM THE

CEO'S DESK

Alan Pearson Chief Executive As the financial year for Hall's draws to a close I would like to take the opportunity to thank all customers, staff and suppliers for the work that has gone into the 2008/9 year. Significant improvements have occurred across the business with some of the more notable items being ­ 1. Significant improvement from the Project B2B initiative in customer claims relating to temperature, product damage and product loss. 2. Significant improvement in our chep pallet management. 3. Improvement in our overall safety performance. 4. The improvements in computer systems, cost reduction, route planning and operations within LCL (now renamed Hall's Intermodal©). 5. Commissioning of leading edge temperature monitoring, GPS enabled, product securitization technology CoolTrax. 6. Significant overhead cost reduction. 7. Improvement in customer service through reduced customer claims, increased DIFOTIS measures and improved customer feedback on these service levels,. 8. Improved environmental performance through reductions in energy use per tonne shipped via a number of initiatives contained and realised within our Sustainability plan. The path before us is still filled with opportunities and threats due to the current economic backdrop coupled with desperate competition. We would not have it any other way as it keeps us sharp and focused. As someone once penned the only constant is change and we at Hall's are comfortable about that. In July last year I wrote the following item "we at Hall's have fantastic customers who are primarily in the food industry and though family dietary patterns will alter due to budget concerns, people still have to eat and so does the international community. As I mentioned in the last issue [March 2008] I am very upbeat about the Free Trade Agreement with China and our ability as a nation to grow and export food. We will however need to continuously improve as there is tremendous competition from other countries competing with our customers and our success is heavily dependant upon their success. We have to maintain and even improve our world class competitiveness in refrigerated logistics in order to provide our customers with a point of competitive advantage for them to compete and therefore feed the world's needs. This will entail us at Hall's being on top of our game at all times. Project B2B has gained a lot of traction and for that I thank you for your effort and commitment. Not surprisingly there is still some room for improvement however we are on-track to the timetable proposed and I am confident that as a team we will deliver on our business goals and objectives." With reflection nothing has changed with regard to this message; our success is 100% dependant on our customer's success and if we fail them we fail ourselves. The good news however is that we will not fail them! We will have mistakes, we will have errors, and we will own up to our mistakes, however overall we will not fail them. Our success in doing this is borne out of the service results to date. So keep it up and let's look forward to the future.

"...the only constant is change and we at Hall's are comfortable with that"

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Alan Pearson, Chief Executive

Ross Carlene being presented with the Hall's Driver/Storeman of the Year Award at the Kenworth Factory. Award kindly donated by Kenworth. L to R: Bob Carlene, Phil Lane, Joe Rizzo (Kenworth), Grant Madill, Dave Parsons (Southpac), Ross Carlene, Maarten Durrant (Southpac)

Kenworth Visit

Ross Carlene Hall's Driver of the Year Winner

The rendezvous was set for Melbourne Airport. Ross Carlene, his Dad, Bob, along with Phil Lane were to meet Grant Madill at the Melbourne Airport. We managed to secure a vehicle and navigate our way through to the Kenworth factory in Bayswater. We were met by Kenworth Staff (Matt Thompson, Joe Rizzo) and the guys from Southpac in New Zealand (Dave Parsons and Maarten Durrant). Pleasantries were exchanged, along with a little bit of lunch. A video was presented on the Paccar Group throughout the World. This was quite interesting for the Hall's contingent. The plant tour commenced shortly after lunch. It is fair to say that factory is quieter as to what was experienced, certainly, last year. Currently four to five vehicles are coming off the line on a daily basis at the moment compared to the 20 at the peak. The tour was thoroughly enjoyed by all. Ross, Bob and Phil managed to see some of the detail of how the Kenworth product is designed and also fitted together. I would like to thank the guys from Southpac, Maarten Durrant and Dave Parsons, for arranging the tour and also the guys from Kenworth, Joe Rizzo and Matt Thompson, for taking time out of their day to show us around the factory. It is fair to say that the tour will, certainly, stand out in the memories of everyone who attended.

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SUSTAINABILITY PROGRAMME

In the last Silver Bullet issue we introduced that Hall's are embarking on a Sustainability programme. The environment and sustainability form a key part of the Hall's strategic plan. The philosophy of sustainability feeds through to all the main areas of how the business operates; from our technologies, operations, our people and the way we deal with our customers.

Being a transport company one of the main areas of environmental impact is in the area of fuel usage and the key measure to be employed is a comparison between the litres used and the volume of freight transported. As a high user of rail it is a focus that Hall's leverage and maximise the benefits of using rail and ensure that all road transport is used to optimum levels. The target is reducing levels of fuel consumption by 2% per annum. The initiatives being employed are categorised as follows: (a) (b) (c) (d) (e) (f) (g) (h) Operational initiative Depot initiative Administration initiative National/Community initiative Joint Customer initiative Supplier initiated Engineering initiatives Leadership initiatives

Emission regulations within the EU

0.4 0.35 Particulated (g/kWh) 0.3 0.25 0.2 0.15 0.1 0.05 0 0 1 2 3 4 5 6 7 8 9 NOx (g/kWh) Euro I 1993 Euro II 1996 Euro III 2000 Euro IV 2005 Euro V 2008 EEV no required date

Measured according to the Steady State Cycle

In future Silver Bullet issues there will be detail of progress. One example is the new Hall's contract with Progressive Enterprises (Woolworths) featured elsewhere in this Silver Bullet edition with regard to fleet specifications.

Other initiatives that are already in place are speed limiting at 90 km/hr and a focus on reducing unnecessary corporate travel. Other targets are the implementation of recycling bins in all areas of the business and signage to remind all staff about reducing power usage through turning off lights and air conditioning units.

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from shipping gazette May 2009

Hall's backs rail for intermodal growth

Hall's Refrigerated Transport ­ one of New Zealand's largest movers of domestic perishable goods ­ has reaffirmed the value of rail distribution in its strategic partnership with KiwiRail. Hall's operates a fully-refrigerated fleet of 250 trucks from depots stretching from Invercargill to Auckland, handling the distribution needs of major customers such as McCain's and Goodman Fielder. The company began its close relationship with rail a few years ago when it bought the refrigerated operation of the then Toll Tranz Link, at the same time becoming the strategic partner of the rail operation. "We bought into the relationship as well as the operation," says Hall's chief executive Alan Pearson. "We made a strategic decision to combine the strengths of road and rail to offer our customers the best of both worlds and to support this decision we invested in 75 [100] intermodal units (TRs) and skeletal trailers to complement the fleet of existing VR refrigerated rail wagons." "The VR wagons are only useable if the customer has a rail siding, whereas the TRs are intermodally flexible. They are trucked from the customer's premises to the railhead, are carried by rail for the linehaul and then are picked up by Hall's for the final delivery to the distribution centre." The TRs are fibreglass units built in three sizes, but the largest at 50ft exploits the maximum length available on a rail wagon. They are also much lighter than the metal reefer containers used for export goods, meaning they minimise tare weight and maximise payload. Hall's has a special licence from the Crown to haul loads up to 50 tonnes instead of the usual 44 tonnes. Usually, however, they "cube out" rather than hitting the maximum weight, meaning the extra internal space is filled to capacity by the customer's goods. The units have proved very popular and have been the backbone of Hall's relationship with rail.

"We have some major customers who want to know the amount of carbon we burn in delivering their goods, and they want to see what efforts we are making to contain that carbon footprint."

"Our relationship is very strong," says Alan Pearson. "KiwiRail is accountable for a number of KPIs (key performance indicators) with on-time performance very close to our heart at Hall's." "We also have a strong environmental belief in rail. We have some major customers who want to know the amount of carbon we burn in delivering their goods, and they want to see what efforts we are making to contain that carbon footprint." "One of our initiatives is clearly in using rail, with a diesel loco pulling wagons offering 400% more fuel efficiency than a truck." Mr Pearson says that looking to the future, Hall's is keen to explore more opportunities with rail. "The basis of our strategic relationship is to grow volumes where we can. Obviously rail has some limitations and cannot take all goods everywhere." "But the underlying principle that influences our decision-making at Hall's is to take opportunities to move goods by rail where it is possible." KiwiRail General Manager Commercial Aaron Temperton said he was excited by the opportunities created by the commitment that Hall's have made to the rail mode. "By working on such a collaborative basis with an industry leader we are well positioned to, where appropriate, collectively introduce the strengths and advantages of rail to a wide cross-section of prospective new supporters." Mr Temperton said the Hall's model provided a good blueprint for the future ­ "We at KiwiRail are well aware of the fact that in isolation it is not practical for us to be considered to be `all things to all people'. "However by developing industry partnerships like the one that we have with Hall's we can be confident that our capabilities are being appropriately represented and promoted under the multimodal and wide ranging product portfolios that Hall's possess." Mr Temperton said KiwRail had great respect for the Hall's team. "We very much enjoy working alongside them in developing our respective businesses and of course looking to mutually grow both." As well its core refrigerated transport business, Hall's has recently moved into the general container cartage business, buying the 40-truck fleet and operations of LCL. This will give the company extra growth options in the mainstream trucking market.

"...the underlying principle that influences our decision-making at Hall's is to take opportunities to move goods by rail where it is possible."

DRIVER

TRAINING

jim frew driver trainer

Economy Driving Tips

Be it a company or private vehicle, the Driver is the factor that has the biggest impact on fuel economy and for that matter, safety. There can be as much as a 35% fuel usage difference between good and poor drivers. Here are a few tried and proven techniques that drivers may use to achieve a good economical performance. While this list is aimed primarily at trucks many of these tips may apply to car driving as well. · · · · Conduct Pre-trip inspections Regular tyre pressure checks Report all faults Ensure maintenance intervals are observed ­ After an engine oil change, ensure the oil level isn't above the full mark on the dip stick. On start-up don't over crank the engine Don't pump the accelerator Start up and warm up the engine ­ Ease the vehicle (and yourself for that matter) into its work. It's not just the engine that needs to warm up, e.g. most transmissions work better when the oil has warmed up. Avoid excessive idling this not only wastes fuel but damages the engine. Identify the engine operating range for your vehicle - Read the engine performance chart ­ Where is best fuel economy achieved? Usually best fuel efficiency is slightly above maximum torque. Don't over rev the engine - Make gearshifts by watching the rev counter, don't try to judge engine RPM `by ear' as this method is flawed and one of the biggest causes of over revving. Operate transmissions in the correct manner ­ the way the manufacturer designed it to be used. Not the way a mate down the pub reckons it should work. Ease up to full speed and drive at a steady speed - use only enough revs to reach the next gear smoothly, don't `bump the governor'. Avoid jerky patterns of acceleration & deceleration. Search and anticipate the driving conditions. Appling the 2 or 4 second following distance rules allows you to view a greater area, (12 seconds ahead) more reaction time and assists in driving at a steady speed. · Avoid excessive speed ­ It is more wasteful of fuel than all the other bad habits put together. The speed limit is not a target. Research shows that speeding has little effect on trip times. Reducing speed also improves safety. Traveling regularly at 8 km/h over the speed limit uses 10 ­ 15% more fuel. · Avoid harsh braking ­ Read the road ahead, anticipate the changes in traffic lights, prepare early for intersections or hazards and `back-off' the accelerator well before speed zone signs. · Reduce engine RPM & road speed before changing down · Use auxiliary brakes correctly during descents but leave them off in residential and business areas. To avoid service brake wear, simply apply the professional driving skills mentioned above in `Search and anticipate' and `Avoid harsh braking'. · Avoid overloading ­ More weight = more fuel required to be burnt to move it. · In a strong head wind ­ reduce speed · Drive to the conditions ­ Studies show that people who drive safely generally produce very good economical driving results and that economical drivers generally produce safer results. · Maintain a relaxed, calm driving style ­ don't be distracted or get wound up by the antics of other road users. Be aware of them but focus on what you need to do to complete your trip safely. · Do not drive tired - a tired driver is erratic and unsafe, usually ignores gauges and gear changes.

Air conditioning increases fuel consumption by 3 ­ 4%. Driving with the windows open also increase fuel use. Use in-cab ventilation system if possible.

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QUICK

QUIZ

1 2 3 4 5 6 7 8 9 10

What is the maximum individual fine for a manager, dispatcher and/or client who cause a driver to exceed maximum weight limits?

A

$10,000

B

$25,000

C

$50,000

D

$100,000

You may pass another vehicle on the left at an intersection if?

A C

You think there is enough room The vehicle ahead is signalling a right turn

B D

The vehicle in front is travelling too slow It's a truck and it is signalling a left turn

Heavy loads placed at the rear of a vehicle will ...

A C

Make the load more stable Have no effect on vehicle handling

B D

Make it easier to count the items Reduce steering and braking performance

Even after the frost and the sun is out, black ice may linger in areas shaded by trees buildings or cuttings. Don't be surprised, read the road well ahead and be wary of .....

A C

Bridges and railway crossings Intersections and roundabouts

B D

Corners All of the above

A person with a full class 1 licence and an "F" endorsement may drive a forklift with a Gross Laden Weight up to ......... on a road.

A

18000 kg

B

15000 kg

C

6000 kg

D

4500 kg

Whose responsibility is it to ensure a vehicle (including trailers) is up to WOF/COF standard, has a current Registration label and enough Road Users Licence to complete the trip?

A

The company

B

The driver

C

The dispatcher

D

The fleet manager

Match these driving conditions with the drivers actions.

1 A

Flooding Clean the windscreen

2 B

Sun strike Increase following distances

3 C

Spray from other vehicles Drive through slowly but keep the revs up

In a refrigerated vehicle proper air circulation requires unobstructed paths on ... sides of the load.

A

2

B A B C

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C

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This sign means?

Trucks and buses drive around the curve at 35kph All vehicles drive around the curve faster than 35kph The safe and comfortable speed for the curve is 35kph

To ensure that a vehicle doesn't move during loading/unloading the driver must check that the transmission is in neutral and that the park brake is applied before leaving the drivers seat. page

A

True

B

False Answers: 1.B, 2.C, 3.D, 4.D, 5.A, 6.B, 7.1-C 2-A 3-B, 8.C, 9.C, 10.A

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HALL'S

STAFF

SERVICE AWARDS

DRIVER AND STOREPERSON OF THE MONTH APRIL 2009

Jacob Tairi ­ Auckland Line Haul Luke Uruamo ­ Auckland Metro Dean O'Neil ­ Auckland Stores Willie Weaver ­ South Island Line Haul

ANNIVERSARIES

10 YEARS

Martyn Petley

5 YEARS

Alan Good Andrew Finlayson Frank Thompson Wayne Leatham Seamus Acton Stuart Fergus

MAY 2009

Richard Taurima ­ Auckland Line Haul Jazz Mangakahia ­ Auckland Storeman Alan Good ­ South Island Metro Derek Cunningham ­ South Island Storeman

NEW STAFF

AUCKLAND DRIVERS

Ehou Walker David Whitley Sam Taitapanui Willy Papple Jade Byers Paddy Jackson Clarence Batchelor

AUCKLAND AUCKLAND OPERATIONS BUSINESS DEVELOPMENT

Mike Ross

HALL'S DIRECT

CHRISTCHURCH DRIVERS

John Conley Josh Lavender

CHRISTCHURCH OPERATIONS

Lise Preilser

LOWER NTH ISLAND DRIVERS

Bryce Craig

NAPIER

Ross Macpherson Ward Austin

Jamie Jackson

TRUCK TEN YEARS OLD

Brendon Futcher writes: "Hi there Grant, Just to let you know that truck 411 is ten years old today. I always get people saying how good it looks (most are taken back to find that its that old) in my eyes its the best truck Hall's have." Grant Madill responds: "Thanks Brendon for the reminder. It is a credit to you and others who have had 411 allocated to them. I agree 411 does have a special something about it, Well done Brendon keep it up."

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AROUND THE

DEPOTS

Auckland Depot

Auckland has certainly noticed a reduction in volume being shipped as we enter the colder Winter season combined with the economic downturn . With the pressure on resources reduced we are looking at improvements to our DIFOT ( Delivered In Full and On Time) across the board . Challenges have arisen with road conditions as they always do this time of year and alternative routes and some delays causing issues for DIFOT at times . Having our Auckland depot operating 24 hrs 6.5 days per week is of great assistance with many vehicles continuing to move and deliver through the weekend period. Below are photos of the ground being prepared for the Hall's Intermodal building to be lowered onto the piles.

.

Live Penguins

Hall's Refrigerated Transport were asked to move 16 Penguins from Kelly Tarltons to Mainfreight at the airport. The Penguins were being shipped to Melbourne. Nigel de Vries, a dispatcher in Auckland, was sent with the truck to supervise and ensure all went smoothly as the Penguins are worth hundreds of thousands of dollars. This is the second time we have moved Penguins from Kelly Tarltons.

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HALL'S DIRECTORY

NORTH ISLAND

Auckland Head Office 1 Spartan Road, Takanini 2245 P O Box 5, Takanini 2245 Tel 09 268 1500 Fax 09 268 2994 (admin) 09 268 1450 (ops) Auckland Workshop 1 Rawson Way, Takanini 2245 Tel 09 266 1343 Fax 09 266 1407 Hall's Intermodal 58 Spartan Road, Takanini 2245 PO Box 5, Takanini 2245 Tel 07 849 6760 Fax 07 849 6778 Te Puke Station Road, Te Puke PO Box 218, Te Puke Tel 07 573 0225 Fax 07 573 8351 Wanganui 384 Heads Road, Wanganui 4501 PO Box 625, Wanganui Tel 06 344 6631 Fax 06 344 4005 Napier 16 ­ 18 Turner Place, Napier 4110 Tel 06 842 0653 Fax 06 842 0658 Palmerston North Cnr Rangitikie Street and Tremaine Avenue, Palmerston North 4410 PO Box 4358, Manawatu Mail Centre Tel 06 356 8910 Fax 06 358 9286 Wellington 21 Cashew Street, Grenada North, Wellington 5028 Tel 04 498 3200 Fax 04 495 3221

> Continued from Cover Corporate Refresh: LCL Name Change - Introducing Hall's Intermodal Now that this work has been completed it is now time for a fresh name. To do so earlier would have been inappropriate when there were other bigger issues to deal with. Hall's Intermodal© is about leveraging all of Hall's capability with 40 years experience, 400 people, 300 trucks, 100 intermodal units and 11 depots across the country. It: 1. Has an independent management team and workforce. 2. Is based upon all modes of transport; Road, Rail and Sea. 3. Is focused on Container transport whether it is dry freight or Reefer units and all forms of dry cartage and general freight. 4. Is about offering a complete material handling, distribution and load management solution for customers. 5. Is about being the lowest cost service provider offering a dependable service. This change does not affect the status of the legal entity name which will remain as LCL Transport Limited for the immediate future.

Thank yous

From Conroy Removals On behalf of all the team at Conroy Removals Ltd we would like to say a big thank you to Ricky Matiaha who arrived on the scene of a road accident that one of our staff was involved in in February. Ricky immediately went to the aid of our driver who was in a very serious condition and took control of the accident site which had the potential to get a lot worse with a train approaching within minutes of the accident. Ricky's quick thinking on all fronts definitely saved one life and avoided a major rail catastrophe. We sincerely appreciate Ricky's quick thinking and are grateful for everything he did. From South Auckland Foodbank Thank you so much for your generous donation of meat, chicken and Christmas puddings. They were a real bonus to be able to give away to families receiving food parcels, as this is something we don't normally have to put into our food parcels. Thanks again Kim & Hall's Transport, for thinking of us Kind Regards, Ian Foster From The Lifewise Centre On behalf of everyone at LIFEWISE I write to thank you for your support of our work and our vision. The products that you have donated will be used to provide meals to the homeless of Auckland. Many charities face financial hardship as cost of living increases start to impact people's pockets. It's ironic that as times become more difficult for people, the need for social service charities, such as LIFEWISE, becomes greater. It therefore gives me immense satisfaction that we enjoy the continued loyal support of our donors. For us to be able to provide the range of essential services to those in our community experiencing disadvantage we need your support now more than ever. You are a valued supporter of our work and your regular donations enable us to provide those services that can make a lasting difference in someone's life and help create a more caring and compassionate community. Yours truly, Corie Haddock - Service Manager The Lifewise Centre From McCain Foods (NZ) Limited Just thought I would pass on this to you. I wish I had the chance to get his trailer number but the light was not the best. Last Friday I was travelling by car to Auckland and I passed several Hall's trucks. all of which I thought were very considerate to other vehicles. But this one in particular driver was very considerate. He pulled over to the shoulder to allow me to pass when I reached him at the end of the express way on the Te Kawhata stretch of road in the Waikato. So big ups to him and I wish I had got his number for you to pass this onto him. Kind Regards, Valmae Garner - Customer Services NZ McCain Foods (NZ) Limited

SOUTH ISLAND

Nelson 127 Richmond Road, Nelson 7020 PO Box 3416, Richmond, Nelson Tel 03 544 1952 Fax 03 544 1953 Blenheim Gouland Road, Spring Creek, Blenheim 7202 Tel 03 570 5081 Fax 03 577 2884 Christchurch - Lunns Road Cnr Lunns Road & Curletts Ave, Sockburn, Christchurch PO Box 11223, Sockburn, Christchurch Tel 03 348 2575 Fax 03 348 5743 Christchurch - Branston Street 96 -114 Branston Street, Christchurch Tel 03 349 7930 Fax 03 349 7861 Dunedin 572 Kaikorai Valley Road, South Dunedin 9011 PO Box 2297, South Dunedin Tel 03 488 5553 Fax 03 488 5560 Invercargill 33 Spey Street, Invercargill 9801 PO Box 1523, Invercargill Tel 03 214 9370 Fax 03 214 9371

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The Silver Bullet is published quarterly by Hall's Ltd, P O Box 5, Takanini, Auckland. For submissions contact Gayleen Staunton [email protected] 09 268 1500. Designed by Polygon Design 09 3077111 Printed by Producer.

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