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BEYOND

THE

HORIZON

50 YEARS OF THE CFC GROUP

CFC GROUP CELEBRATING 50 YEARS OF CONTINUED SERVICE

BEYOND

THE

HORIZON

50 YEARS OF THE CFC GROUP By Gabi Mills and Brooke Evans-Butler

CFC GROUP CELEBRATING 50 YEARS OF CONTINUED SERVICE

Copyright: Gabi Mills and Brooke Evans-Butler, 2018 First published: 2018 Published by Premium Publishers 26 John Street, Northbridge, Perth WA 6003 Visit premiumpublishers.com.au All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a database and retrieval system or transmitted in any form or any means (electronic, mechanical, photocopying, recording or otherwise) without the prior written permission of both the owner of copyright and the above publishers. Special original photography by: Christian Sprogoe, Crib Creative and Darren Thomas. Title: Beyond The Horizon: 50 Years of the CFC Group Mills, Gabi and Evans-Butler, Brooke ISBN: 978-0-9946331-2-5 Printed by Vanguard Press in Perth, Western Australia

Contents

Foreword by Hon. Mark McGowan MLA

Introduction by Carl Cardaci, Co-Founder of CFC Group

Chapter 1 ~ Band of Brothers

Una Storia Segreta

Chapter 2 ~ Next Steps

Meet the Board

Chapter 3 ~ RIPPA and Why it Matters

Chapter 4 ~ Industry Innovators

Chapter 5 ~ Coast to Coast

Chapter 6 ~ Our People are the Difference

Chapter 7 ~ An Integrated Family of Firms

Chapter 8 ~ Our Partners Matter

106

Chapter 9 ~ The Next Generation

116

Chapter 10 ~ Building Blocks

120

Chapter 11 ~ The Good Gardener

124

In Memorium: Frank Cardaci

126

In Memorium: Marc Cardaci

5 CONTENT S

Foreword

heavily in infrastructure in regional WA. Through actively recruiting young and Indigenous people, promoting road safety messages on its nationwide fleet and playing a role in the continuing development of the communities in which it operates, it is clear the true measure of a successful company is not weighted on its profitability alone, but on its willingness and ability to give back. As you browse through this book, you will gain a real sense of the history and character of the CFC Group. From the origins of the Cardaci family, to the insights of its employees, this celebratory publication provides a glimpse into the life of a vibrant and dynamic Western Australian company that is poised to have an even greater presence in the future. Hon. Mark McGowan MLA Premier of Western Australia August 2018

7 FOREWORD // MARK McGOWAN

am inspired by stories of success involving home-grown companies that have created high calibre local businesses across the state. This year, the CFC Group celebrates its Golden Anniversary. Fifty years in business is a milestone that reflects the strength, stability and success only a few companies can ever achieve. In 1968 a simple paper advertisement spurred the Cardaci brothers to grab an opportunity with both hands, and it is this hard work, passion and persistence that has seen their business transform into one of Western Australiaâ€™s largest privately-owned companies. In addition to its corporate success, the CFC Group has made a significant direct social contribution to WA, especially in many of our regional communities. For the past 50 years the Group has been providing employment opportunities and investing

Introduction

It looks at how we grew the business over time, building and acquiring new businesses, and many of the challenges we have faced. It also features some of the extraordinarily talented people who have supported us along this incredible journey. You may think that it has been all plain sailing. Nothing could be further from the truth. The story of the CFC Group is about determination, persistence, passion, integrity and how to overcome adversity. It’s also a book about relationships. There were a number of times I thought personally the business would never make it only to be persuaded by my brother Frank that everything would be all right. It’s about how two heads are always better than one. I look back now with a sense of enormous pride in what has been built in

Carl Cardaci Co-founder of CFC Group August 2018

9 INTRODUC TION // CARL CARDACI

he origins of this book can be traced to a simple, small stone dwelling (above) that my father Leone built with his own hands, situated down a quiet track, nestled in a hazelnut plantation in Sinagra, Sicily. This was also my early childhood home, which I returned to recently with my family. It was an emotional trip for me because it demonstrated in very real terms, to my children and grandchildren, the humble beginnings of our family and of the CFC Group. This book charts the courageous journey of my father Leone from those humble beginnings to a new life, not just for him but for his family, here in Australia. It covers how my brother Frank and I embraced every opportunity we could while growing up through to the start of our first business.

the last 50 years. Not just the businesses in the Group, but the livelihoods of the hundreds of people that work for us and their families. It was a firm belief of my brother and I that we were given a great chance in life when our father moved to Australia and it is inherent in the Group’s fabric that we continue to provide opportunities for people to work for our great businesses. A place in this book must be reserved for a number of very special people. My brother Frank, the co-founder of the Group, and his son Marc who was integral to the regeneration of the Centurion business in the early 90s. Both have sadly passed away in recent years. Without them the business would not be here today. Equally to Philip Cardaci, our current executive chairman, who has driven the business forward in the last three decades, and Kaye Bailey, our longest serving employee whose involvement in the business has been invaluable. Lastly I would like to thank the Group’s incredible employees. From the CEOs of the respective businesses today, to everyone who plays a meaningful role across the Group. We are a business built on great people and they are quite simply the life blood of our success. I hope you enjoy the story of the CFC Group and here’s to another 50 years of success.

1 A

Band of Brothers

figure who became known as ‘father of the poor’ thanks to his benevolent and charismatic nature. Thanks to his reputation for protection of those most in need, when Sicilians left their home shores, San Leone went with them – to Argentina, the USA and Western Australia. Leone was no different. Perhaps he took a San Leone medallion in his luggage as he packed for such an unfamiliar land. He, like so many other hopeful migrants, was ready to take a great leap into the unknown on the promise of something better than he and his ancestors had endured in Sicily. Leone had his eyes on the most remote of horizons. Following the birth of his first child, Francesco (Frank), with wife Angelina in 1939, he set sail for Fremantle when his infant son was just four months old. Leaving his wife and child behind could not have been an easy decision for this familyfocused man, yet that’s what he did, not knowing for certain, perhaps, whether he would ever see them again as the ship left port and headed south. Choosing Fremantle over Sydney for purely economic reasons – it was cheaper to reach than the east coast from Sicily

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dversity. It’s a word that some people see as a barrier while, for others, like Leone Cardaci, it’s a word that’s there to be overcome. Born in 1907 in Sicily, by the time Leone Cardaci was in his 30s, he perhaps had an inkling that his destiny lay elsewhere. Life in Sinagra was the definition of tough, albeit in beautiful surroundings. Opportunities for ambitious young men were few and far between. The main source of income in this largely agrarian community was growing hazelnuts. Labouring in the orchards was a thankless task with over 80 per cent of each crop going directly to the government. It was a life of drudgery and little reward, and one that Leone wanted to escape. Perhaps it occurred to Leone, one sundappled afternoon under the boughs of a hazelnut tree, that somewhere, far from here, a new life could be grabbed with both hands. The idea of Australia, that distant, sun-baked land, would have seemed as far away from that Sinagra orchard as the moon and yet a kernel of an idea took root in Leone’s mind and a plan was born. It’s no surprise perhaps that the patron saint of Sinagra is San Leone, a popular

HUMBLE BEGINNINGS Above, Sinagra is still a small town in the heart of the Sicilian countryside, not greatly changed from the days of Leone and his family. Previous page, (right) Carl and Frank (aged 10 and 20) in Perth, and left, Angelina and Leone on their wedding day in Sicily, 1937. 12

Opposite, Angelina, Frank, Carl and Rosa in Sicily.

SINAGRA

PALERMO Bagheria Castellammare del Golfo Marsala

SICILY Caltanissetta

Catania

Arigento Syracuse

– Leone set in motion a series of events which would change his family’s fortunes forever. He may have left his ‘paese’ behind, but in doing so he had begun to create a new dynasty that was destined to make an indelible impact on their new home: Australia. The dark clouds of World War II were gathering as he looked over that ship’s rail, alongside scores of other migrants also intent on new opportunities, also filled with hope. But even in far-flung Western Australia, the perceived threat from Germany and its ally, Italy, would have consequences for all those who stepped off the boat and onto Fremantle’s dockside. Leone may have wanted a new start, but for now, he would have to settle for something altogether less appealing: five years of internment with his fellow countrymen in a series of camps across the state.

saving every cent to bring his family over to join him. At last there was enough in the kitty to send for Angelina, Frank and Carl. After trips to Naples and Rome to fulfil medical requirements, they were given the all-clear to join Leone, and the big adventure began for the two boys and their mother. “The ship was called The Australia, an old US liberty ship,” recalls Carl. “The voyage took 31 days and my mother was sick every day. I was sick too but I loved it, I’d never seen an ocean before.” Surrounded by lots of other children on deck (he estimates 600), Carl loved the salty ocean air and couldn’t wait to arrive in his new home – and, after turning seven on the ship, he did just that, on Valentine’s Day, 1956. For Carl, this was a momentous occasion. Not only was he stepping off a ship and leaving his entire world behind him, he was also reuniting with a father he barely knew. “I had no memory of my father except via photographs,” he says. “It was a stinking hot day, and the G-Sheds were packed with hundreds of people, all crowding onto the wharf to meet their loved ones. And then I saw my dad. I’ll never forget it, I knew him straight away. And from that point on, he

became my best friend.” It’s not hard to imagine the unfettered joy that little seven-year-old Carl, his big brother Frank and mother Angelina must have felt after their arduous voyage. Stepping into this brave new world of opportunity and hope, without further ado they excitedly jumped into Leone’s brand new Commer Utility and drove to Kalgoorlie. “My mother, uncle and dad were in the front, and Frank and I were in the back. It was very hot, no air conditioning in those days – there was a water bag in the front to drink from, and we sat on the Great Eastern Highway all the way through,” remembers Carl. Nevertheless, Carl’s challenges were just beginning. Speaking not a word of English, he had learned to read and write in Italian and, despite the war being over for nearly a decade, lingering racial tensions still remained. “I refused to learn to speak English at Kalgoorlie Primary and was bullied because I was Sicilian, so my dad took me to St Mary’s Catholic School instead, where there were more immigrants – and there I thrived,” he says. Leone meanwhile was thriving too, running a successful market garden.

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Just a few months after arriving in WA, Leone found himself, from June 1939, interned, spending six weeks on Rottnest Island before being transferred to Harvey, Kalgoorlie and South Australia. There was a very real fear in those days surrounding the German threat, and all those classed as ‘enemy aliens’ – nationals of countries at war with Australia and the Allies – were put in camps across the country until the war was over. At its peak in 1942, more than 12,000 people were interned in Australia. Despite the harsh conditions and isolation – Leone had very little contact with Angelina during this period – he always told how well he was treated in the camps. “If I’d have been in Italy, I would have been sent to Libya,” he recalled years later. Instead he enjoyed the very best hospital and dental care that Australia had to offer. As such, once the war was over and he was released, there was no ill-feeling on his part to the Australians he worked alongside. It was time to start earning a living, and save so that he could return to Sicily to see the child he barely knew, the wife he adored, and build a future for his family. Three years passed and he had finally earned enough to return to Sinagra in 1948. Leone and Angelina welcomed a second son – Carlo (known as Carl) – in 1949, but despite their domestic happiness, the situation in Sinagra was perhaps even worse than before. Being on the losing side, Italy was a crushed nation, and struggled to rebuild in the post-war years. The island, always the poor relation to its bigger neighbour, was even more poverty-stricken than when Leone left in 1938. Adversity reared its head again. Despite this, Carl has only joyful memories of his childhood in Sicily. “All my memories were of my brother,” he says. “There may have been an 11year difference between us, but we’d do everything together. We’d go tobogganing and other things that boys do. When my father was away, Frank was both a brother and a father-figure to me.” Leone returned to Western Australia and started working on the land in Kalgoorlie,

“Dad wanted more for his family than he’d had in Sicily. He’d gone to war at an early age so had travelled and knew that the world was a bigger place than just Sinagra,” recalls Carl. Leone had originally headed to Kalgoorlie, like so many others, to join the mining community but, as Carl recalls, it wasn’t the career for him. “He lasted one week underground,” he laughs. As well as helping his father till the soil, Frank also took a position as an apprentice chef and waiter at Sorrento Restaurant. All was well, the family settled and settled down into their new life until, in 1959, Frank began to have bigger aspirations. “He said to me, ‘let’s go to Perth, there are more opportunities there’,” Carl says. The big city we know now was still little more than a country town in the late ’50s, but it was still a bigger metropolis than any of the Cardaci family had experienced to date. If they were going to make it anywhere, said Frank, it was Perth. They moved to the family house in Mount Lawley and began the next phase of life in WA.

NEW START Top, Leone and Frank enjoying a cold one while they cleared bush. Above, Frank’s wife Grace in the deli. Right, Frank turns his hand to selling fruit and veg at the family deli in Bayswater. Grace is in the background, keeping an eye on things (1965).

During this time, Frank and Leone started clearing bush in the Wheatbelt, tough, punishing work which relied solely on manual labour. Life continued with its accompanying highs and lows. Frank met a young lady and was swiftly smitten, marrying Grace Spagnolo in 1964. Meanwhile Carl left school in Year 10 and attended Perth Technical School for a year, studying accountancy part time. “I wanted to get a job in finance,” he says. “I was always good at figures and languages, and always ambitious, even at 15.” He would work in Frank’s deli and greengrocery shop in Bayswater, doing all the maths in his head and ‘learning people skills’. Frank and Grace welcomed a son, Philip, in 1965, followed by another son, Marc, in 1966 and a daughter, Angela, in 1974, and Carl joined a finance company, making connections in the insurance and finance sector which would eventually open the door to something unexpected: the beginnings of a company which would change all their lives. “A friend who was an insurance assessor told me about a vehicle he’d written off after

a crash,” says Carl. “He asked if I wanted to buy it. Frank agreed to put some money into it as well, so I left work at 5pm and panel beat it with a friend until 4am the next day. I sold it and made a bit of money on it.” Another opportunity came his way, a Holden sedan. This time Frank helped Carl buy it with an eye on a similar revamp. “The deli wasn’t Frank’s passion, but he made it work in surprising ways,” says Carl. “He had a particular gift for seeing different ways of making money, like when he cornered the market in strawberries.” Frank had bought all the available strawberries very early one morning and, although that particular deal meant he only broke even on his purchase, he was savvy enough to realise that from then onwards, he’d be known as the guy to go to for strawberries. Even Grace got in on the act, creating beautiful signs to advertise their wares. “He didn’t mind a risk,” laughs Carl. This was illustrated on another occasion when Frank invested in an unusually large supply of watermelons. Such was the weight of the large consignment that the tyres on his truck were overloaded. This didn’t go

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EARLY DAYS In 1971 the first Centurion truck arrived at the company’s first depot on Bassendean Road, Bayswater. It was a Dodge 760 V8 Petrol truck. Right, an early Mack truck with Centurion branding, Karratha (1979).

unnoticed by the long arm of the law. Carl takes up the story. “A policeman on traffic patrol on a motorbike with a sidecar drew up alongside and was ready to fine him for his overloaded truck. Frank said he didn’t realise how much the watermelons weighed and off-loaded 30kg of the fruit to the constable sitting in the sidecar. Fine avoided, everybody happy.” The wheeling-dealing pair of brothers were enjoying life and beginning to see new possibilities beyond even what their father had anticipated sitting in those hazelnut groves of Sinagra, dreaming of a better life. And those opportunities continued to present themselves to the Cardaci boys. “Another friend said that they had a truck for sale, a four-tonne Commer,” remembers Carl. “Frank and I took a look at it and, of course, we knew nothing about trucks. But we bought it, and said, let’s clean it up and sell it.” It was 1968. The project took about a month and, after a milkman bought it off them, they made a tidy $1,000 profit after all the hard labour. More truck renovations followed until Frank saw an advertisement in the

newspaper. A furniture removal company was looking for a sub-contractor with an eight-tonne truck to work with them. They had a truck – a Dodge 690 – and they had a driver, paying him a $70 per week wage. This was the first foray of the Cardaci brothers into the haulage business, albeit small-scale, but almost immediately, they ran into trouble. “We bought another truck, I’m still working at the finance company and suddenly we start losing money,” says Carl. “We couldn’t work out what was going wrong. Somebody came into Frank’s shop, offering him some tyres for sale. Then the penny dropped. They were our tyres, the driver was stealing the truck’s tyres and fuel and selling them on. So we sacked the driver.” By now, Carl was 19 and resigned from his day job.

“I jumped into truck driving and found myself heading north quite often,” he said. The trips began to get more ambitious. No longer confined to Perth’s environs, the Cardaci brothers began accepting jobs to take goods as far afield as the state’s north west. “I had six flat tyres on my first trip to Tom Price,” Carl says. Changing tyres on those tough outback roads wasn’t for the faint-hearted. In those days, the roads were rough and often just red dirt tracks. I looked at my face after that trip and could only see my teeth.” Physical adversity was no impediment to this pair however. Despite the fact such long journeys in those days could be dangerous and gruelling – driving to Tom Price took two days and meant Carl had to sleep under the truck – they met many people and began to build a reputation for their can-do attitude. But despite their endeavours, Frank

remained unhappy with the financial outcomes of so much effort. “He said, we’re only drawing a wage, we’re never going to make much. Let’s try something else,” Carl recalls. Thanks to the wide customer base coming through the deli’s doors in Bayswater, Frank had an idea. “Go and see Mervyn Karlovsky,” he said to Carl. “He’s a plumber and might need our services.” Carl did so and was asked something seemingly impossible. “What would you do if I asked for a semitrailer by this afternoon, and two or three by the morning?” Mervyn asked Carl. “No problem,” said Carl, barely breaking into a sweat. As he drove to Frank’s house, his mind was whirring.

UP AND RUNNING Above, containers being loaded at Tom Price (1982). Left, conveyor belting on its way to Tom Price, with Frank and Carl (1982). Opposite, Frank and Carl in 1983 with a shiny new Mack truck.

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“We had to deliver earthenware pipes to Karratha and I’m thinking, I’m the mouthpiece, he’s the brains,” Carl recalls. Sure enough, Frank had a solution. He jumped in a car and headed to a transport depot in Victoria Park and asked, “who’s got a couple of semis?” Somebody said, “I have” and that, says Carl, was the real start of it. Frank’s approach to this sudden opportunity to create a new career was refreshing. “He used to say ‘let’s get the business and worry about how we’ll do it later’,” says Carl. “He was always working out how to do it, making connections, trying to find common ground, and then away we’d go. He was a great communicator and saw answers where others couldn’t.” It must have been, literally, the time of the two brothers from Sinagra’s lives. “We became so close, almost telepathic, complementing each other with our different skills,” says Carl. “Of course, we argued something fierce too.” Those arguments – always in Italian – would sometimes spill over into public view, on one occasion almost losing them the opportunity to work with a member of staff who’s still with the company today. “We interviewed Kaye Bailey and, at some point, started swearing at each other about something else,” says Carl. “I look up and see this little lady who we’d completely forgotten about during the argument, looking astonished. Afterwards, she told us that she thought we’d both gone mad.” It was time to name their new company and initially they kept it simple – Cardaci Bros. However, Frank said that the business didn’t describe what they offered, so they changed it. In 1971, they picked the name Centurion (Centurion Transport Co Pty Ltd) because, apart from the obvious Italian connection, their initial vision was to own 100 trucks. “As it turned out, it took us 20 years to achieve that landmark,” says Carl. With the dawn of a new decade – the 1970s – Frank and Carl were well placed to ride the shirt-tails of a boom in the north west of the state, jostling for position alongside many other truck companies.

“Gascoyne, Bell Bros, Brambles and TNT were all working at the same time,” says Carl, “so we needed to stand out. And the way we did that was through our personal service.” Frank also identified an area where they could excel – servicing the construction industry. “We knew a chap through Frank’s deli who supplied timber to builders and he offered to introduce us to builders up north – Peter Wylie and Don Skene. They were building two houses and gave us their work.” Another business – Albert and Poole in Port Hedland – followed suit. Before long, Centurion had cornered the construction market by applying the personal approach, and ended up supplying materials for more than 1,000 buildings including the prestigious Cable Beach Club in Broome and the steeple for Karratha’s church. The personal touch extended way beyond your average customer service values; Carl would often stay in their clients’ houses, such was the strength of the relationships they built. Carl married Evelyn in 1977 and went on to have three children of his own – Carla, Justin and Stephanie. It was time to invest in some infrastructure of their own and Frank, unsurprisingly, had a plan. “It was 1971 and, in Bayswater, there was a 1,000sqm piece of land and office,” says Carl. “Frank said ‘let’s buy it’. It was a private sale via a retiring builder. He wanted $20,000, a fortune in those days. As usual, Frank thought outside the box. “He said, ‘I’ll give you a $1,000 deposit and then I’ll pay 7 per cent on the remainder over the next 10 years’.” The offer was accepted and from then onwards trucks came and went out of their new HQ at a frequent rate. Such activity did not go unnoticed by officialdom, and it wasn’t long before a shire engineer paid the pair a visit. “He said that the street wasn’t wide enough for the business we were engaging in. I typically wanted to know what we had to do to fix the problem, so I went to the Shire, and in 1980 I became a councillor.”

FIRST OF MANY Opposite, one of the first earthmovers purchased by CFC in 1987. Far right, the Karratha depot and the Collier Road depot in 1982. Right, an early advertisement for Centurion Transport, highlighting its north west, local and interstate specialisms.

Carl found a shire riddled with archaic rules, but quickly came up with ideas of how to make the most of its assets. “They gave me the finance committee to shut me up,” he laughs. “I asked if they had any assets or buildings we could sell to fund a new development. The asset register wasn’t up to date, but we found they had 20 houses which we could sell off and build our new premises. I was always a bit of a troublemaker to the status quo, I always wanted to know what I could do to fix problems.” Carl became the first mayor of Bayswater in 1983, one of the youngest in the state, and took the role as seriously as you might expect, putting in 60 hours a week for the next three years. The brothers, meanwhile, began to follow their own strengths within the structure of Centurion. Frank, always the innovator, the strategist, was head of operations.

“He had a terrific memory,” remembers Carl. “He could rattle the movements of 50 vehicles off the top of his head.” Carl, meanwhile, was the effervescent salesman, the deal-closer and people-person. It was a winning combination, and saw the company grow, slowly at first, but exponentially from about 1993 onwards. “If we did 50 trailers a week in the early days, that was big,” says Carl. “Now we do more than 500 a week. Frank and I only knew the hard way – we took a lot of time to load the trucks so we knew the business inside out.” By 1974, the business once again took a step forward in terms of its genesis. Once all the buildings they supplied materials for were complete, what, they thought, should be done with all the equipment? With so much second-hand equipment to hand, the answer was obvious. “We established CFC Equipment and began trading in used equipment,” says Carl.

As a family member you have to work twice as hard as anybody else. It’s not a hobby. It’s about long-term survivability . . .

appeal to Philip. He was more interested in the business itself, dealing with customers, and other management aspects. After completing a degree in science, while Marc qualified as an economist, the next generation of Cardacis began to bring a new level of expertise to the business. It was a move which Frank hadn’t necessarily expected of his children. “He wanted his kids to have an education above all, he never said he expected me to come on board,” says Philip. “When I was studying in the mid-1980s, Centurion was going through tough times which matched a downturn in the construction industry, but he forced me to stay at uni.” Nepotism was also a worry to Carl and Frank; they didn’t want there to be any suggestion that any employee who was a family member had got their position for any other reason than merit. “Any family member who ends up at the CFC Group has to work somewhere else

first. It’s not just a job – and you’re not guaranteed anything. As a family member you have to work twice as hard as anybody else. It’s not a hobby, it’s about long-term survivability. Many family businesses are destroyed by ego.” Philip’s first week in the family firm was a memorable one, for all the wrong reasons. “I remember thinking, what have I done? I’d worked at other places, I’d been trained very well and knew how big business operates, but when I first started, it was so tough, even miserable,” he says. Marc joined afterwards, and the pair worried about the longevity of the operation. “We worried about paying the wages and although CFC, which I was running, was making money, all the profits were being ploughed back into Centurion to pay the workers,” Philip says. Having more than one business centre worked in their favour; as one business struggled, the others could take the strain.

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Philip, Frank’s son, takes up the story. “My childhood and Marc’s were spent at Centurion on Friday nights, learning how to load trucks. Dad was always keen for us to work outside and loading trucks was a good example of this.” Frank was also a keen cook and, every Friday, he would throw a barbecue for clients, staff and the family. “He enjoyed being the host, having people around so that they could ask questions in a relaxed atmosphere.” Gardening was a passion too, a throwback undoubtedly to those fertile slopes of Sinagra. “From day one, he always loved gardens,” remembers Carl. “He always maintained the garden himself and, in later years, had a farm with an olive grove of over 3,000 trees. Every year, he would bottle olive oil and hand it out to the family and friends.” Despite this early introduction to trucks, the heavy plant side of the business didn’t

“Nowadays, we have such diversity, both in terms of geography as well as businesses, that it gives you a reserve if one should falter,” says Philip. Marc’s fresh approach identified a fault in their business model, but he was able to suggest a solution. “We were so focused on the construction cycle for the Centurion business, Marc suggested that we get involved with the production and operations cycles within the resource-rich communities in WA. “We had to diversify to survive,” Philip explains. As ever, Frank’s view was that if they were going to move into a new industry, then there should be a point of difference. “We used innovative approaches to give our customers better visibility and reduce their costs, by looking at the customer’s entire supply chain,” says Philip. “It was Marc’s vision to change the business model, implementing new systems and strengthening relationships with key clients like Rio Tinto.” Yet again, any perceived adversity was pushed aside. Centurion may have been newcomers on this particular scene, taking their place up against some big, national players who had long-term relationships in the mining sector, but such a minor detail didn’t hold the company back. “We succeeded thanks to innovation and

introducing systems that limited errors, thereby saving time and money,” says Philip. “It put us ahead of our competitors, but that’s not to say we faced moments where things could have gone the other way.” There were, Philip and Carl agree, moments when the company could have ‘gone broke’. It wasn’t an easy journey to the place where the Group finds itself now. “Frank’s approach was always this: how do I get around adversity? If we’d just given up and not solved problems, we would have gone to the wall 50 times or more,” says Carl. In the early 1990s, the equipment sales business was almost non-existent. Nevertheless, says Philip, the ambition remained to just make the company work. And work it did. From small beginnings in Bayswater, the next big step in terms of building a base was a five-and-a-half acre space near Tonkin Highway. “We bought it in 1983 for $375,000 and built our new premises at a cost of $1 million,” says Carl. “We took the risk, but it was a move that brought us respectability. In the past, our business probably wasn’t seen as that professional – this set us apart again and we started getting new customers as a result.” Carl is now more proud of the company than ever, having stepped back from the dayto-day operations in 2005. He says he always had a feeling that the

company would be a success and, by 2000, that confidence bore fruit. That doesn’t mean, however, he lacks any of his passion for the company. “I’m wistful for the early years, when things were done impulsively,” he says. “When we started, we’d be working in the middle of the night, no boots, loading seven tonnes with three-tonne cranes, never hurting anybody. You calculated the risk and went for it.” An old-school approach to honour is also at the heart of the Centurion business. “My father said that his word was his biggest asset,” says Carl. “If you’ve got the honesty to ask for help, people will help you.” And what of Leone, that far-sighted adventurer, named after Sinagra’s beloved patron saint, who started the whole story off in the first place? He died in 1990, aged 90, followed in 2012 by his beloved Angelina, aged 99 and eight months. Sadly Frank died in 2014, aged 75, and, tragically, Marc passed away the year afterwards, at just 48. “Frank and I wanted to travel around together but I lost my brother four years ago,” says Carl. “I feel very proud when I go into the office. There’s nothing I would have done differently,” he says. “It’s in super safe hands.” ◆

ON THE ROAD Below, a triple road train on its way to the Argyle Diamond Mine (1998). Left, Richard Court opening the new CFC Equipment premises in Bayswater in 1994. Opposite, the first load on its way to Hamersley Iron Express Service (Tom Price) from Collier Road (1996) and BHP Fuel transportation (1996).

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HIGH DAYS AND HOLIDAYS Clockwise from top left, Frank aged 21; Angelina, Leone, Carl (aged 8) at a wedding in Kalgoorlie; Carl and Evelyn’s engagement party in 1977; Carl, 1964, making a speech at Frank’s wedding; Leone and Frank walking along St Georges Terrace, Perth; and Frank and Carl’s maternal grandfather Carlo in 1925.

FAMILY TIES Clockwise from top left, Frank and Graceâ€™s engagement party, with Leone and Angelina looking on; Frank and Carl (aged 7) on top of a mining heap in 1956; Marc, Angela and Philip at Angelaâ€™s 40th birthday party, and bottom, Justin, Stephanie, Carl, Evelyn and Carla on a recent trip to the old family home in Sinagra.

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Una Storia Segreta

or many Italians who were subjected to internment during the Second World War, it’s a passage of their life which has remained untold – una storia segreta, or a ‘story to be kept quiet’. How it came to be that law-abiding Italian citizens were interned on Australian soil needs a little historical perspective, perhaps, to understand. From the 1920s onwards, Mussolini’s Italy promoted the fascist cause to its citizens who lived abroad. As late as 1939, according to historical reports, Mussolini was still viewed in Australia and other English-speaking countries as a model of modern leadership. There was, in fact, pride associated with being a fascist and in being Italian, and

many Italian migrants joined the local ‘fasci’ groups, not for political reasons, but in a gesture of national pride. Just before the beginning of World War II, some 40 per cent of the Italian community had become naturalised as British citizens, and several thousand were born in their new home country. When the war broke out, the Australian Government introduced the National Security Regulations, a move which would have far-reaching implications for the whole community, especially those who were migrants. For those who had not taken British citizenship, or who had arrived after 1939, there was a new class – alien or enemy alien. Restrictions for travel, work, the sale and transfer of land as well as the

possession of such items as cameras, radios, yachts, airplanes, cars and even carrier pigeons were all designed to control these new perceived ‘threats’ to national security. You couldn’t speak in another language other than English on the telephone, or organise a meeting. If you did, your assets could be seized. It’s hard to imagine nowadays, but at the time, there was a genuine fear that Italians could be spying or planning sabotage in Australia; questions remained – were these enemy aliens loyal to their new or old country? An additional power conferred by the new regulations allowed the Australian authorities to ‘detain any person in the interest of national security’. This detention became known as internment and, to make sure

DIFFICULT TIMES The paperwork which Leone was given on arrival in Western Australia, and which meant that for the duration of the war years, he would be interned in a variety of camps around the country.

enough people had been jailed there, a trainload of internees was taken back to Perth before being transferred to a holding camp on Rottnest Island. Then it was the luck of the draw where they might end up – some were sent over east to Cowra or Loveday, and eventually the Harvey camp (known as Camp No 11) was opened to take local internees. Of course, it wasn’t only Italians who were subjected to internment – Jewish refugees, German nationals, Hungarians, Japanese, communists and Seventh Day Adventists were also subject to this harsh policy. Although the internees were mostly male, there are records showing that some women and children were also held during the war. Some 4,721 people of Italian

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that all potential saboteurs and spies were scooped up in those dark times, three groups were included. The first group was enemy aliens (those Italians who had not naturalised and retained their Italian citizenship). The second were naturalised British subjects and the final group was perhaps the most surprising: Australians born of Italian background. In short, if you were a person of Italian background, the chances were very high that you would be interned. The process of internment was a serious one. In the case of Western Australia, the police were called and the person would be arrested without a warrant. After a night in the local jail, the person would then be transferred to a jail in Kalgoorlie. Once

background were interned, according to records. Western Australia contributed 1,196 to this number. Leone Cardaci’s internment story followed this path and one can only wonder what fears he may have held on the day he was imprisoned, so far from Sinagra and his family. During his days at Camp No 11, he and 1,000 other men would have lived 30 men to a hut. There were workshops, shower rooms, dining and recreation huts, detention cells and office quarters. No contact was allowed with outsiders, so to keep themselves occupied, many of the internees would try to keep busy, clearing surrounding bush, making logs for Government use or growing vegetables which would then be sold to military camps. For somebody of Leone’s background, it’s not hard to imagine him gaining some satisfaction from keeping active, growing crops and enjoying the entertainment from the internee choir and amateur theatre group. He may have enjoyed the odd glass of moonshine – illegal wine and grappa was made and shared with those who guarded the internees. Copper tokens were used as currency, holed in the middle to distinguish them from legal tender. Inscribed with the words ‘Internment Camps’, they were stamped with decorative wreaths, berries and gum nuts. Some still remain as collector’s items, the majority being destroyed at the end of World War II. The camp was surrounded by a high barbed wire fence but, despite the guards’ efforts, it was closed in 1942 after a stash of hidden weapons was discovered. Leone and others were transferred to Loveday in South Australia until the war was over. According to family, Leone looked back on his time as an internee with no ill-will; he received good treatment, health care and became an Australian citizen after he was released. For him, at least, la storia segreta was one which did not negatively colour his future life in Australia. With thanks to Jill Maughan, honorary librarian, Harvey Historical Society. Information provided by the Italian Consulate in Western Australia. ◆

2 T

Next Steps “I had been offered a job with a computer company in Japan, a job that would have taken me overseas for two years,” he recalls. For one reason and another, however, despite this being a great opportunity to spread his wings, a stint in Japan was not to be. “I decided not to take the role, so my father said, ‘why don’t you come and start up the equipment side of the business for us?’’’ It was a move which Philip hadn’t considered, despite the family business being such a big part of his life so far. He had thought he would move over east or overseas, but instead found himself in Bayswater during those early weeks wondering what on earth he’d done. “I slowly built things up, employed more people here and there and, as long as I didn’t bother my father or Carl for money, they were happy,” he says. “I had to learn quickly and, more importantly, make money quickly.” Carl and Frank shared their sales contacts with Philip, but the younger man’s inquisitive mind gave him an extra edge beyond riding on his father and uncle’s coat-tails.

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he fact that the torch was handed on to another pair of brothers is an irony not lost of Philip Cardaci, Group Executive Chairman of the CFC Group. Philip, along with Marc, who died in 2015, were the sons of Frank, and each brought a fresh new set of skills to the business. “I started in 1990 and Marc joined in 1991,” says Philip. “I was tasked with taking on the auction and equipment side of the business, which at that stage had been run down and was practically non-existent. Marc, meanwhile, began working on the transport side of things.” Marc was an economist and had worked for investment companies while Philip had a science degree and had worked for a major computer company. As a result, they both understood the machinations of working within big companies and, despite their young ages (Philip was 25 and Marc was 24), their experience and managerial intelligence was just the boost the Group required. The road to that first day for Philip in a near moribund company had taken unexpected turns.

NEW PHASE Previous page, Marc and Philip Cardaci at the then CFC Group HQ in Hazelmere. This page, above, CFC Holdings auctioned machines and equipment during the 1990s, and the CFC Equipment Bayswater Yard in 1990 with a Brambles Truck. Opposite top, Philip and Marc as children.

“I began exploring options to export used hydraulic excavators to Hong Kong, and gradually started building up a market for them,” he explains. Hong Kong was the main trading avenue to China in those days and Philip’s idea was so successful he ran out of a supply of used excavators to sell to this burgeoning market. “I realised that for the business to be viable long-term, I needed a supply of new excavators,” he recalls. He approached South Korean firm Samsung, who at the time were not as

well known as they are these days, and, by 1993, CFC became the distributors for Samsung excavators in Western Australia. New relationships were being forged in new arenas, and the business began to really increase in terms of its reach and revenue. Meanwhile Marc’s trajectory was no less impressive. When he joined Centurion in 1991, the stark truth was unavoidable – the company was in trouble. “All construction had ground to a halt in the early 1990s and Marc walked right into that firestorm. Any money made at CFC Equipment had to be ploughed back into Centurion to keep it going,” says Philip. “We used anything from that side of the business to just keep the transport arm going.” Marc’s personality traits helped him navigate these difficult times. “He was very analytical, he liked to understand how things worked and probably knew before my father and Carl that things were rocky, but he always had the support of Frank and Carl,” says Philip. “He understood that he had to stabilise

The two brothers, so close in age and the best of friends, continued to bounce ideas off each other every day.

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the business, cut costs and improve cash flow. Like Frank and Carl, we always worked closely together despite being in two different arms of the business.” The two brothers, so close in age and the best of friends, continued to bounce ideas off each other every day. “I was more sales-focused than Marc, while he was very good with people, a very giving person. Marc and I were best friends and brothers. Even though there were some disagreements, we always left them at work. We realised early on that, working together, we were very effective.” Thanks to the success of CFC Equipment, the money that those businesses generated bought time for Marc to bring order and a plan of action to Centurion. His idea – to change the focus of the business to mining operations rather than just construction projects – was just the nimble response required for Centurion. “He worked out that minesites need to operate whether there was a boom or not, and innovation was the way to differentiate

NEW PHASE Left, CFC Equipment begins distributing Samsung equipment from its Bayswater depot in 1996.

TAKING SHAPE This page, top, Centurion’s fourth premises in South Guildford and below, the new HQ at Yagine Close in Hazlemere signalled a new era for Centurion and the Group as a whole. Opposite, JCB diggers, a brand that was to become a cornerstone of the CFC Group’s growth and early equipment from Underground Services.

us from our well established competitors. By identifying that strategy, Centurion was given a lifeline.” It was this innovative approach which would mark Philip and Marc’s contribution to the business’ future success. “We were both innovators. Marc’s strength was in the technological innovation side of things, identifying ways to put the customer at the centre of what we did,” says Philip. “I was more entrepreneurial, while Marc would make sure of details, and take a more considered approach. It was about the deal for me, but having said that we made sure we could offer our customers a cheaper, safer and consistent way of doing things, Marc on the logistics side of things and me on the distribution side. We always delivered our promises to customers.” As it had been in Frank and Carl’s days at the helm, relationships remained a strong driver in the success of the Group. “One of my customers in the mid-1990s who I had sold equipment to, Peter Rowles, said he was looking for a partner to grow his business, Underground Services Australia,” says Philip. It was a different business and although

we had no experience in construction or utilities, we had seen that diversity had made us a stronger Group and this in turn led to our third business arm. In 1997 CFC Group acquired a 50 per cent shareholding in Underground Services Australia. The pieces in the CFC Group puzzle were coming together and, in retrospect, it all seemed a logical collection of separate moving parts. Innovation was central to the way Peter’s business operated and he was a pioneer in utilities installation. Marc and Philip brought a new financial structure to the Underground business and it too went from strength to strength. “Peter became our partner and friend. I was always excited by the way he thought of innovative ways to install utilities. He was the first person to introduce directional drills, micro tunnelling machines and utility plows,” says Philip.

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TOP TEAMS Above, Kevan Wacey, Frank Cardaci and Philip Cardaci visit a potential supplier in Japan. Right, Justin Cardaci and cousin Angela Florido (nee Cardaci). Opposite inset, Frank with Marc, Grace and Philip enjoying a night out. Opposite right, the first JCB equipment arrives to be sold by CEA in 1999. Far right, Philip and Kevan Wacey sign CEA as Australia’s distributor of JCB in Uttoxeter, UK as Frank Heatherton looks on.

The two sets of brothers remained in control of the day-to-day running of the business. “Marc and I were effectively the strategists, we’d always discuss each detail of the company’s strategy, while Frank and Carl were more operational,” Philip says. “Carl was excellent with customers and opened doors for Marc and I. They were still there at this point, day in, day out, still the face of the company.” In the ’80s and ’90s, Centurion’s competitors included Bramble’s, Bell Bros,

I told him that I thought their distribution was useless and their market share was only going one way,” he laughs. “He asked to set up a meeting to discuss things further. In those days, the distributor of JCB was a huge company and we weren’t that size at all, to put it mildly. Kevan Wacey and I managed to convince JCB that we should take over the distribution of JCB in Australia and, despite the previous distributor trying to challenge us legally, we succeeded. “Thanks to the success that CFC Equipment and CEA had shown with Samsung’s excavators, and the fact that we were a family business, JCB knew they had to make a change and we happened to be in the right place at the right time.” Winning the JCB distribution licence for the whole of Australia was, says Philip, “a big feather in our cap”. “JCB is a family-owned company and

we shared many mutual values, which has made it a long lasting and successful partnership. “To have secured JCB really cemented a supply chain of new equipment and meant that from that point onwards we were a successful distribution business. Once again, innovation drove success and we implemented custom systems that enabled us to become very efficient. Our knowledge of supply chains also helped.” Successful is an understatement – under CFC’s guidance, JCB has grown their footprint in Australia since 1999 to such an extent that in 2017 the 10,000th unit was sold in Australia. They process around 1,300 units per year, supplying equipment to construction companies, owner operators, farmers and other heavy plant users via 60 agents around the country. In 2003, CFC Equipment snapped up the

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Bellway, Gascoyne traders (Wesfarmers Transport) and TNT – and while some of those firms struggled and faltered, the brothers led their firm forward. In 1999, they bought the Brambles North West operation and, by the early 2000s, they were the largest operator in the North West. It was at this time that Philip crossed paths with Kevan Wacey who headed up Construction Equipment Australia (CEA) over east. By 1999, CFC Equipment had established an Adelaide operation and acquired shares in CEA. It was a golden year for one other significant reason: CFC and CEA were appointed as the JCB distributor for Australia. “My first encounter with JCB was in 1996 at a conference in Las Vegas,” Philip remembers. “Marc and I went to the JCB stand and the managing director, John Patterson, was there. In those days I was pretty upfront so

remaining shares in CEA and dropped the CFC Equipment brand in favour of CEA, before evolving once more in 2008 to become JCB Construction Equipment Australia. “Kevan and I were in a car having a heated chat,” says Philip, recalling how the final purchase of CEA came about. “We were discussing JCB and he said, ‘if you can do any better then buy me out’. So, along with Kevan’s five business partners in March 2003 we made our biggest purchase to date for the remaining CEA shares. “Kevan and I still remain the best of friends and our families continue to see each other regularly.” Diversification meant that Philip and Marc didn’t let the grass grow beneath their feet. They always looked beyond the horizon and in 2009, the Group bought the remaining Underground Services Australia

shares, fully absorbing this specialist business within the Group. Running a now coast-to-coast business was inevitably taking its toll on Philip who, along with Marc, remained based in Perth. “I had a young family at the time and I wanted Marc to spread his wings away from Perth,” Philip recalls. “I said to him to go and run CEA Parts and Service in Melbourne (as well as continue to oversee Centurion) so that same year (2003) he moved to Victoria.” It was a tough few years for Marc. A new city meant new challenges and the need to forge new networks and contacts from scratch. However, in due course it was a move which he would eventually thank Philip for. “It was the best thing for him in the end – good for him personally and it was good for me to have him on the ground. We both grew up in transport but Marc knew nothing

about equipment distribution so we both got the chance to expand our knowledge.” As national aftersales manager, Marc juggled the demands of Centurion and CEA and saw both grow. In 2007, Philip and Marc decided to bring the two arms together as one, so CFC Group was reborn. It originally stood for Cardaci Frank Carl but equally, Philip says, stood for Cardaci Family Company so they saw no reason to come up with a new moniker. “We also decided that there should be one leader across the whole Group. Marc was the CEO and I became the executive chairman – it was the most formal move we’d made so far to create an official board.” The next few years saw the two brothers working in concert with each other, their far-sighted vision to diversify and yet deliver consistent RIPPA values across the Group

COMBINING FORCES Left, an advertisement announcing the merger of CFC and CEA to ‘create a new national force’. Opposite, Mathew King, Terry Michael, Philip Cardaci, Brad Michael and Hylton Taylor receive an award for the 10,000th JCB sold in Australia.

business worked,” says Philip. “I wanted to work out where we need to expand next, and knew that it was more about finding consistent deliverers of revenue. Too many businesses make money in good times but very little in hard times. For our Group, it’s more about a consistency of earnings and diversification, not high margins.” The Group now looks very different to those early days in Bayswater. Cape is mainly WA-based, while Centurion, after buying the assets of McAleese in 2017, has expanded to include Queensland, a key market. CEA and Redstar Equipment are mostly east coast-based too. The CFC Group is truly an Australian success story. But back in 2013, despite so much professional success, dark clouds were gathering which would change the family’s lives forever.

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delivering results which really put CFC Group on the map. “Our next big acquisition was in 2012 when we purchased Cape Crushing, a company owned by VDM Limited,” says Philip. “It was a move consistent with our strategy at the time to concentrate growth on the operational side of mining. Ore crushing and tailings dams are a vital part of minesite operations. We decided to merge Cape Crushing with Underground Services (shortening the name to Cape) in 2016. The company is a provider of worldclass solutions to businesses operating in resources, utilities, infrastructure and special projects.” The different business elements in the Group have been, in effect, the secret to the Group’s success. “I wanted to understand how each

“Marc had a medical history and, after experiencing some symptoms and undergoing tests, we found out in January 2013 that he had oesophageal cancer. At the same time, my father was unwell too. It really hit Dad hard that Marc was sick.” Marc decided to move back to Perth, to be close to his mother and family support. By mid 2013, Marc was forced to give up work and began to concentrate on enjoying life instead. “I took over control of the business reins, I wanted to give him all the space and time he needed,” says Philip. In January 2014, Frank died at the age of 75. “My last conversation with Dad was on Boxing Day 2013,” recalls Philip. “He broke down, telling me that the doctor had told him he probably had a couple of months to live. He had been overwhelmed because he didn’t know how to tell Mum how sick he really was. Of course she knew and, less than two weeks later, he died.” “Marc never thought his illness was terminal,” says Philip. “He bought a boat in 2014 and I enjoyed helping him with that.” Days spent aboard became an escape from the tough reality of his illness. Philip’s determination to spare Marc from any concerns regarding the business led him to experience some regrets retrospectively. “There were difficult times across parts of the business and that meant I had little time to step out of running the Group to spend time with my family,” he says. “Marc and Mum went on a trip for two months to Europe in 2014. I had to travel to the UK for business and Marc asked me to join Mum and some friends in Italy for a few days. I was busy and said I couldn’t. I regret that I didn’t spare the time to join them and wish to this day I had met up with them.” It was a brief period of happiness for Marc, a lull before the storm, because in a deeply unfair twist of fate, tragedies continued to hit the family. “On November 20, 2014, I was on a Pilbara minesite and got a call from Marc,” says Philip. “He said Mum had had a heart attack and died without any warning. I couldn’t fly out immediately and had to spend a

One thing my father pushed for was an education and that we all should have success outside the business . . . “ ~ Philip Cardaci

sleepless night in a campsite until the next day to go back to Perth.” By late 2015, it was clear that Marc’s positive approach to his illness was to no avail. “In November 2015, Marc died,” says Philip simply. “We were originally a family of five and in 18 months it was just my sister and I and our respective families. The business was going from strength to strength. I didn’t have a lot of time to grieve. I still haven’t really. “Marc and I had discussed having independent board members involved in the business and his illness had accelerated the search. In November 2015, I asked Hamish Williams and Tony Monisse to join the Group as independent board members.” It proved to be a positive step for Philip, allowing him to draw on others’ experience, when in the past he had so relied on his brother’s opinions and ideas. The Group continued to grow a-pace. In December 2015, they acquired Redstar, another distribution business, and Atlas Copco in 2017. In total, as of July 2018, the Group had completed 18 acquisitions across the three business pillars of Centurion, Cape and CFC Distribution (CEA and Redstar). “Our Group strategy is to specialise in distributing equipment and servicing customers who operate in the commodityrich and agricultural communities of Australia,” says Philip. “Australia is what we do well, we’re good at building platforms for growth and, although we might not make money initially, we are long-term investors and once a new platform is established, it will provide consistent long-term income.” Other new opportunities continued to present themselves. Birchmead, the property arm of the Group, experienced accelerated growth and, after completing a large industrial subdivision in 2007 and building the Hazelmere HQ in 2009, the Group established another leg as property developers. They got involved with some large building projects across Australia, creating facilities for the Group and its customers and, at the time of writing, were in the process of beginning their second residential apartment development in Perth.

he says. Keeping things lean, simple and focused is very much a hallmark of Philip’s tenure as head of the Group. “Nothing lasts for eternity, but I think we will continue to be focused on sustainable growth as a business. I believe now that growth will come mainly from the east coast and I would like to ensure the business maintains its RIPPA values at the core of everything we do. As I say to myself and my staff, ‘judge success by what you do today, not what you did yesterday or what you will do tomorrow’. “All options are still open. Although we are a strong business with family values I no longer consider us a family business. The business will survive and thrive by having the best people in the industries in which we operate. I’ve realised that, despite parts of my family being extremely long-lived – my grandmother died aged 99 and my other grandmother (Francis) is 95 and still fit and healthy – I was also robbed of my brother at just 48.” For Philip, the Group is his legacy. He’s determined to leave it in a good state, with a clear plan of taking it to the next stage.

SAFE HANDS Opposite, Marc Cardaci. Above, Carl Cardaci and Frank Cardaci at Tonkin Park in 2007.

“Business is about people. With the right people we can achieve so much,” he says. “I enjoy watching people develop and grow, watching opportunities arise and putting down a strategy and seeing it being successfully executed.” He’s proud too of the Frank Cardaci youth traineeship program and feels pride in looking after people who’ve stayed the course over the years. For this intensely private man, respect and family is at the heart of everything he does. “I went to Sicily with my family in 2015, the first time in 30 years,” he says. “Marc was meant to come, our first holiday together, but by then he was too sick and he had to cancel. “I’ve never forgotten where we came from, that simple, humble beginning, the grandson of a farmer from Sinagra. Australia has given so much to our family and I hope we can in turn return the favour.” ◆

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Another strand to the story began unfolding when another member of the family joined the fold. “One thing my father pushed for was an education and that we all should have success outside the business,” says Philip. “Justin, Carl’s son, understands transport and came to work at Centurion in operations in the early 2000s. He left to run his own business and, by the time he returned in 2011, he was a different person. The ‘outside’ experience had matured him, as had shadowing the then CEO of Centurion.” When, in 2015, the position of CEO became available, there were three internal candidates who all put their hands up for the role. Justin was one of those three. “The recruitment process was a completely independent one, and Justin was chosen to step into the role, with Marc’s full approval.” The perspective of losing so many close members of the family in such quick succession has concentrated Philip’s mind, in some ways. “It was a conscious decision to relocate the CFC Group’s head office to West Perth with only 13 rather than 100 people in 2017,”

NEW DIRECTIONS JCB CEAâ€™s first premises in Melbourne.

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Meet the Board

ollowing the death of his brother Marc, Philip knew at least one thing: it was time to look outside the Group for an advisory board. He and Marc had used each other as sounding boards for years, but now that was no longer possible – the requirement for judicious advice and informed opinion on business decisions was more important than ever. “Marc and I had talked about appointing independent board members before he died and he agreed and understood that it was required,” said Philip. “It was the right thing to do, even if he was still here today.” The need for an executive board was imperative, which led to the appointment of Tony Monisse, a long-time financial advisor and accountant, known to the family for over 20 years, and Hamish Williams, an ex-CFO with 22 years of experience with Perth’s AHG automotive Group. Both bring important skillsets and insight to CFC Group’s board, and provide Philip with the opportunity to bounce ideas around. Thanks to his two-decade connection to the Group, Tony is well placed to advise Philip and the board. “When I was working with Philip, who was managing CFC Distribution at the time, he introduced me to Marc who had been tasked with managing Centurion,” says Tony. “I spent a lot of time with Marc and admired so much his ability to turn up each day, in often very difficult circumstances. He was under

enormous pressure at Centurion in the early days when cashflow was tight as well as other issues. I admired his resilience greatly.” He also witnessed some heated discussions between the brothers, but admired their mutual respect for each other and the different styles they brought to growing each of the businesses. “Philip instigated an advisory board and I approached the role from what I would expect as a shareholder when representing the family’s interest in the business, with the advantage of doing so knowing where it had come from over those years.” Hamish meanwhile particularly admires the Group’s adherence to the RIPPA values. “If you don’t have the right culture, it won’t work,” he says. “You can have mission statements, but RIPPA is a culture statement. It runs through the Group’s veins and brings teams together, no matter where they are located.” Hamish knew of the Group and had met Philip on several occasions at local business lunches. “There was good overlap in my experience at AHG, a motorbike import arm of the business, and what CFC Group was doing with Centurion and CEA,” he says. “When Philip asked me to join the board I felt like it wasn’t a completely foreign business for me to be involved with. I thought it showed good vision from Philip to establish a board, to bring in

outsiders. Sometimes private companies are run around an individual, but that’s not the case with CFC Group. It’s run around the business’s needs, rather than an individual’s.” Both Hamish and Tony recognised Philip’s need for a ‘safe place’ to discuss business ideas. “It can be lonely at the top,” says Hamish. “Every leader needs confidants they can approach for views and opinions.” There are, however, advantages to running a private company. “You can be more patient and invest for the long-term,” says Tony. “The Group’s focus is about growing and creating businesses that enjoy a strong competitive advantage and generate cashflow to grow and further invest. Equally they can make decisions quickly without a long process of approvals, unlike large public companies.” As the Group begins its second halfcentury, both Hamish and Tony are focused on helping Philip and the executive team reach their potential. “My role is to offer financial and business perspective to any decisions – what are the risks in terms of the customers and other sensitivities and does it stack up in terms of returns to shareholders,” says Hamish. “I like to think I bring a broad managerial approach, having run a large private company. We look at the numbers and other ways of solving challenges. I’ve spent

HELPING HANDS Left, Tony Monisse has known the Cardaci family for over 20 years, while Hamish Williams has over 22 years of experience with Perth’s AHG automotive group.

“We recognised that Philip had to move to the position of non-executive chairman and he couldn’t do that while operating at the head office of the core business,” says Hamish. “We had to make the CEOs responsible for their businesses, so the establishment of a head office in West Perth was key.” True to form there was no procrastination – Philip went ahead and set up a lean head office of just 13 members of staff, while the other 90 or so other head office personnel were placed across the business as a whole. The board also helps Philip and the Group address key questions about broadening their competitive advantage. “This might be through investing in technology or expanding Centurion’s vision of servicing regional communities,” says Tony. “Safety is also a much bigger consideration these days, but despite the increase in compliance, the Group has remained a creative, entrepreneurial organisation.” This is in large part because Philip remains a creative, entrepreneurial leader. “The Group is special for several reasons, from the strong focus on RIPPA values to always pushing innovation and its commitment to contributions to the community, like the Frank Cardaci youth program, and training and elevating talent from within,” says Tony. Hamish and Tony are both optimistic about what the future holds for the Group. “As the Group gets bigger, they’re able

to diversify more, both geographically and in terms of opportunities, and are less dependent on local conditions,” says Tony. “Hamish and I can help critique in terms of the recruitment and reward of key people in the business. I’m proud to be involved in the Group, especially in the early days where we helped put in place structures and financial disciplines to help the businesses monitor their trading results and manage their balance sheet and cashflow, disciplines which continue today,” he says. Tony was privileged to be involved with the Group’s game-changing move when they took over CEA’s eastern seaboard operations. “It really took the Group to another level,” he says. Hamish believes that the existing businesses within the Group have growth opportunities. “We can’t just go and tap shareholders for extra capital as it’s a private company, but I see that there are enough opportunities to allow the Group to continue to grow,” he says. “The Group has changed so much over 50 years – it has to find new ways of doing things. Inflation is all but dead so you have to keep adapting and find cost-effective ways to do things. “Fortunately, Philip’s mind is always looking to the future, and he is willing to invest money and experiment.” It’s an approach that worked when the Group began 50 years ago, and will continue to work in the next 50 years. ◆

41 MEET THE BOARD

time with the other CEOs of the Group and they need sounding boards too.” Hamish was also involved in the appointment of Justin Cardaci in the key role of CEO of Centurion, another indication of Philip’s trust in his judgement. “There were three candidates and Philip wanted an external view on who to hire,” he says. “I didn’t have any hesitation that Justin should be offered the role. He has vision and empathy, and I said to Philip that, although it’s sometimes hard to have the family name, one of the benefits is that he has a high standard to live to and won’t want to fail.” During their time on the board, both Hamish and Tony have witnessed changes to the Group’s organisation. “Centurion has had to become less reliant on its core business,” says Hamish. “When you have a high market share, it’s hard to increase that share. So they’ve had to find something else to add to the mix and, by identifying the opportunity to expand into Queensland with its similar customers and resources-rich market, the Group was able to act swiftly with its very short lines of authority, but not to the extent of acting without due diligence.” Philip’s view, says Hamish, is not to rush things, however good the opportunity appears. “He said to Justin ‘let’s do it right, not quickly’.” Another key decision made with the board’s input was to extract the corporate office out of the main HQ in Hazelmere.

RIPPA - And Why It Matters

RESPECT: We respect each other and the world around us. INTEGRITY: We act at all times with honesty and do what we say we will do. PERSISTENCE: We work hard with urgency to make it happen. PASSION: We have pride and belief in everything we do. ACCOUNTABILITY: We are accountable for our actions and results, including everyone’s safety.

Paul Doherty, Centurion’s Executive General Manager – People & Culture, says the Group’s values are what define and shape the Group’s culture. “They are the essence of our identity as a company,” he says. “The values are the guiding principles of how we conduct relationships both internally and externally.” Miles Vasilevski, National HR/HSEQ Manager, CFC Distribution, adds that the values are what support the vision, shape the culture of the company and reflect its values. “The CFC Group’s values are the core of its culture,” Miles says. “While a vision articulates a company’s purpose, values offer a set of guidelines for the behaviours and mindsets needed to achieve that vision. This allows the CFC Group to vow to serve clients, treat colleagues correctly, and uphold professional standards.” Ry Fonseka, People and Process Manager, Cape, says Cape has adopted the RIPPA values as their own. “It formulates part of our ‘Top Tier Integrated Management’ documentation, which flows into the whole business,” he says. “Having a baseline standard for how we act when undertaking

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rank and Carl were given a chance to make something of their lives, and they wanted to give others the same opportunity. The culture they instilled in the Group is far-reaching – allowing every employee to feel their opinion is important. ‘RIPPA’ stands for the values that are expected to be lived by every employee, from the Chairman and CEOs of each of the businesses to the rest of the employees. The Group values are:

our day-to-day roles and how we treat ourselves and others ensures that we maintain the highest level of self-worth at all times. Our employees practice and implement these values daily in each and every task that we do. “The RIPPA Framework is a great tool that helps our teams to better make the correct choices that we expect. Ensuring that our teams live by good values ultimately leads to all stakeholders being respected and valued.” Each value is lived within the businesses day to day, as Paul, Miles and Ry explain:

RESPECT: “Respect is the foundation of our values,” Paul says. “Put simply, regardless of position or rank, all our employees have a forum to speak and to be listened to. People feel safe and free from judgement and know that we encourage and value their input.” Miles says every employee works together as a team, and acts with integrity and honesty. Creativity and innovation is encouraged and the Group cares about its employees and about the community. “Every employee within the business respects everyone for what they do and that’s why our business is successful.

“While undertaking work in metro areas, Cape’s site teams are required to excavate and work in stakeholders’ verges,” Ry says. “Involving each stakeholder in the process by explaining the scope of works early in the piece, working safely and properly securing excavations, and ensuring that their property is maintained to the same standard as before we arrived, is a great example of the Respect value. In general, our team lives this value by having respect for the diverse range of people that work for Cape, and by using this diversity to ensure best outcomes for the business.

Our word is our brand and the honesty and SAFETY FIRST Opposite, Group employees consistently live the RIPPA values in their working lives. Below, Paul Doherty, Centurion’s Executive General Manager for People and Culture. Bottom, Cape’s Murray Simons and Ry Fonseka.

transparency is key to building trust with each and every stakeholder . . . ~ Paul Doherty, Centurion’s Executive General Manager for People and Culture

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“This respect also applies to our clients, subcontractors and consultants.” INTEGRITY: “Integrity underpins every transaction we conduct, whether that is recruiting a potential candidate, providing information for a tender, meeting a new client or managing an existing client relationship,” Paul says. “Our word is our brand and that honesty and transparency is key to building trust with each and every stakeholder.” “Within our business, all employees perform their jobs with integrity, delivering quality work, and a quality service to our employees and customers,” Miles says. “We work as a team to deliver outcomes. We work with integrity and honesty. We celebrate our success. We uphold and display the CFC Group values in all office environments. We hire the strongest calibre employees.” When asked how the Integrity value is shown within Cape, Ry says it is generally a personal choice to hold oneself to consistent moral and ethical standards, but when the Cape Team as a business made a pledge to improve safety performance and improve culture, it was great to see the results speak for themselves with a reduction in their Total Recordable Injury Frequency Rate to a level of zero for five consecutive months. “This is doing what we say,” he says. PERSISTENCE: “Persistence is about believing we can make anything happen; it is about not giving up and building for the future,” Paul says. “Our staff always go the extra mile and this is best demonstrated when strict timelines are in place to submit tenders. Everybody works together and this often means long hours, but the drive is to

support the team and make that difference.” “I strongly believe that all employees within our business are persistent coming into work every day (and) performing their work duties to the best of their ability,” Miles adds. Persistence is also important for business growth – and Ry says 2018 saw rapid growth

for Cape – with three large new projects coming online during the months from January to April, which increased the total employee count by more than 100 people. “There are a number of other new projects coming online over the next few months, which will ensure that Cape continues to increase in both size and capability,” he says.

PASSION: Ry says members of the Cape team are some of the most passionate employees in the industry. “They take pride in their work and are prepared to do whatever is needed to get the task done,” he says. “It is passion which pushes our team to strive further and raise the benchmark

within, not only our own business, but within the industry.” “Passion is infectious and we have it in spades in our business,” Paul says. “It is something that is hard to measure but it is certainly something that is tangible. It comes from a place of conviction and true inspiration and we constantly refer to the

humble beginnings, when two Cardaci brothers bought a single truck, and their passion still inspires us today.” ACCOUNTABILITY: “Accountability is about understanding our responsibility as employees and what part reliability plays,” Paul says. “Employees demonstrate this in working together collectively to

achieve success and turning up to their shift, completing their job in a safe manner and making a commitment and taking ownership for our actions.” “One of our staff members put forward a suggestion that we undertake a safety exercise where an employee is randomly chosen every morning at the pre-start meeting to discuss a task they did the day before and the safety implications that task involves,” Ry says. “This one simple exercise engages our employees more at pre-start and ensures they are accountable for the way they carry out their jobs. This idea is so good that it is currently being worked on by the People and Process team to be rolled out to all of our sites.” Miles says accountability means that the employees are present for their entire

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TRAINING IS KEY The RIPPA values are lived and breathed by all members of staff, from the executive board downwards. Above, Ry Fonseka, People and Process Manager, Cape. Opposite inset, Miles Vasilevski, National HR/ HSEQ Manager, CFC Distribution.

required shift and they complete any tasks that have been designated to them. He says the employees should be consistent in doing the right thing in all aspects pertaining to their job, and they work as a team, achieving the same goal for the business. Day-to-day, there are extraordinary examples of the Group’s employees demonstrating the RIPPA values. One such example Paul recalls is when a long-serving sub-contracted Linehaul driver was attacked at a Roadhouse in the North West – leaving him critically injured. “A number of our employees enquired how they and the company could support the driver and his family through that difficult period,” Paul says. “A GoFundMe account was set up online and $23,000 was raised to support the family of the driver. “The driver was a respected member of our team, although not a direct employee, and the outpouring of generosity within the business reflects our Respect, not only for our own, but those we engage in our community. The Centurion employee family looks after each other.” Paul adds another example was during floods in the Kimberley region. “We serviced the local communities by freighting goods in on a barge,” Paul says. “Our drivers gave up their weekends to ensure fresh produce was available to the community. This displays the Passion our staff have to go above and beyond and how they are proud to work in a business that supports the community.” These values are also seen strongly at Cape. Ry says when one of their own is rocked with a sudden death in the family, they pull together as a team. “One example saw our team raise over $5,000 in a week for a member of our team,” Ry says. Ry also recalls a time when, over the period of a couple of days, an employee who was working at a remote site started to act and behave a little out of place. “When his health showed a slight sign of decline, the site team acted quickly and the Project Manager ensured that the employee was immediately seen by a doctor,” he says. “This resulted in the employee receiving early treatment for a significant illness, that could have been much worse if left untreated.” ◆

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IMPORTANT RELATIONSHIP CEAâ€™s dealer network is a vital link in the distribution of JCB products in Australia.

Industry Innovators

he CFC Group has proven itself to be at the forefront of innovating in its industry – from safety technology to improved efficiency and time-saving concepts.

Development systems to support business growth

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Enterprise Architect Sabur Aziz, who has been involved with the design, planning and development of technology components and solutions for the CFC Group of companies over the last 18 years, recalls one of the key areas of weakness identified with CEA was a lack of a controlled sales pipeline. “Sales staff would be left to their own means of devising and executing activities that would result in sales,” he recalls. “While this was OK for experienced staff, it meant that it was difficult to bring on new people with lesser experience in the industry and expect them to excel. There was also a lack of visibility for sales staff activities which incurred considerable risk for the business.” He says a CRM (customer relationship management) and Quoting System was

developed to address these shortcomings. “The CRM system introduced a standardised sales process and provided transparency to the business,” he says. “It also helped the company to make strategic decisions such as which customers to see and when to see them based on collected data which provided more control and the ability to make more informed decisions by the business. “While the CRM system revolved around coordinating employee activities and strategic data analysis, the quoting system introduced a standardised quoting model which allowed all sales reps across the country to generate a quote quickly and accurately, and in a standard format,” he says. “This helped to deliver a level of professionalism and promote cohesiveness for all CEA branches across the country.” Sabur says the CRM system helped to create a structured workflow for sales staff. “This had the benefit of providing management with transparency as to the status of the current sales pipeline, but also had the additional benefit of being able to better manage and coordinate sales staff

NATIONAL NETWORK Inset, Enterprise architect Sabur Aziz has been with the CFC Group for the past 18 years. Below, Nick Fowler delivering a loadall with dealers in Bordertown.

their configuration. It also allowed them to create such a quote in minutes rather than hours – or even days if pricing was not immediately at hand.”

Dealer network development

activities by gleaning information captured by the CRM,” he says. “The overall result was a sales force that communicated and visited their customers in a more regular and efficient manner, since the system would help to schedule their visits.” According to Sabur, the benefits of the quoting system have been to allow users to generate a professional quote, in a quick and accurate manner. “The accuracy of the pricing was a big benefit to users, since the previous method involved manual pricing or to use information that was out of date,” he says. “Pricing information would be coordinated across the country and also adjusted for differences on a state-by-state basis. The system allowed users to build up pricing information for machines that are often complex and require many components in

Nick Fowler, who was the National Dealer Network Manager until June 2017, says the Dealer Network evolved over time. “In 1999, CFC was appointed the Australian distributor for JCB construction equipment and purchased a share of Construction Equipment Australia,” Nick recalls. “Later in 2003, the Group purchased the remaining shares of CEA. Leveraging off the existing sales outlets, the Group established more CEA branches.” In 2005, the Group established Ag Equipment Australia (distributing Ezee-on Tillage and Seeding equipment). “Philip and Marc expanded AEA by taking on the distribution of Deutz-Farr Agricultural tractors,” Nick says. “The AEA business recruited some dealers around Australia. During this time, JCB Australia imported and distributed the JCB Agricultural range of products, and

this operation was a direct subsidiary of JCB UK – wholesaling Fastrac tractors and Telehandlers to a handful of foundation Ag dealers in Western Australia, Victoria and New South Wales. Nick says, over time, JCB recognised the benefit of having one organisation distribute both agricultural and construction equipment – and in 2005 the Group became the sole importer and distributor of JCB equipment in Australia. “This appointment included distribution to and management of the handful of JCB dealers already operating in rural Australia,” he says. “On becoming the sole distributor in Australia, it was Philip and Marc’s vision from the outset to become the best JCB distributor in the world. The management team all understood this and set about putting it into practice.” Nick says the Dealer Network is a vital link in the distribution of JCB products in Australia. “The dealers add to brand recognition by developing the machine park in Australia and offer service and support to our regional customers which in turn builds our competitive advantage within the marketplace,” he says. “Naturally, none of the growth we have experienced would have been achieved without an enthusiastic and dedicated team in the field, in the branches and in head office, all working together to support our Dealer Network.” Nick says that, from the outset, it was decided that dealers be offered both JCB construction and agricultural equipment, which differs from OEM distribution models where agricultural equipment is sold by agricultural dealers only, and construction equipment is only sold by construction dealers. “The philosophy behind this strategy was to leverage off the local relationships dealers have in their region with builders, plumbers, electricians and developers, not to mention the very many agricultural businesses that use construction equipment,” he explains. “Perhaps the most significant aspect of this strategy is that it gives customers the benefit of having a local service and parts supplier saving them the time and money of having to obtain these

change and adapted to meet the growth of the dealer group – and this is a credit to all who work in CEA. The transition from being just a retail business to a major wholesale operation has required a lot of adjustment and acceptance by our personnel and they have risen to the challenge.”

Supply chain visibility solutions Supply chain visibility solutions are about giving visibility to a product from the point of the purchase order being raised through to the end point of consumption. Enterprise Architect Sabur Aziz says the supply chain visibility solutions project was born from the need to differentiate Centurion in the marketplace as a leading logistics provider rather than merely a transport company. “This was identified as the market matured and our customer expectations became more sophisticated,” he says. “The

visibility solution was designed to introduce a more structured process to our systems and workflow, with the additional benefits of producing more transparency for our customers as to the status of their freight.” Andrew Ford, Executive General Manager Major Accounts, says Centurion has been operating off-site receipting (OSR) for mining customers for many years and the ability to integrate an advanced visibility solution with client enterprise systems was a major step forward in supply chain innovation. “The system was originally developed to reduce the amount of stock moving to remote locations that was not consistent with purchase order requirements,” he said. “OSR also provided the perfect platform to introduce barcoding and traceability down to line level of purchase orders. This innovation and collaboration with clients provided a level of transparency never before experienced in the industry.”

Underground Services Australia, now Cape, has pioneered a number of underground installation techniques in its time.

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services from a capital city based operation.” Nick adds that to help facilitate the dealers’ provision of excellent customer support and service, CEA developed a number of unique tools for dealers to use. “The Dealer Service Support system (DSS) offers dealer service technicians access to product technical advice via the internet or phone,” he says. “The DSS has been recognised by JCB as an innovative customer support system and an example to other JCB distributors worldwide. “Our in-field sales support is recognised by dealers as unique. Having JCB sales experts available to help dealers in prospecting, presenting and demonstrating JCB products within their designated sales district is greatly appreciated by dealers,” he says. The network has grown substantially. With only 21 regional dealer outlets in 2005, it has grown to up to 70 dealer outlets, operated by 30 dealers, so there have been challenges regarding the logistics involved. “We have some dealers who employ over 100 staff and others who have only 20. We have dealers within 70km of one of our distribution branches and others 600km away – the diverse nature and independence of the dealers who make up our network is considerable,” Nick says. “Most of our dealers have more than one brand of equipment to sell, in some cases dealers may hold many different franchises. Often JCB is ranked behind a dealer’s prime brand, so keeping them focused on our products and services has always been a challenge.” “Recognising the challenge of getting multi-franchised businesses to focus on our product range, we implemented a regime of regular dealer visits by our Territory Managers and product training by our Product Managers,” Nick says. “We continue to employ this strategy as it is a major contributor to improving sales and support of our products in regional Australia.” In 2017, the 10,000th JCB machine was sold in Australia. “This milestone underlines the growth and importance of our dealer network within the CEA business,” Nick says. “From the inception of the Dealer network, the CEA team have accepted

As the concept expanded, additional value chain links were added and the solutions were rolled out to client sites and adopted as common practice. These facilitated not only the effective discharge of linehaul vehicles, but the Centurion “Last Mile” solution, which was commonly used to provide visibility of the distribution around mine sites to end-users and unmanned drop points. According to Andrew, the main aim of good transport services is to deliver cargo to the correct location at the correct time. “Increased visibility enables information to be disseminated in a timely, accurate fashion to facilitate better planning practices and increase tool time on site.” According to Sabur, a key focus of the project from the outset was to ensure that the solution created opportunities within the business to acquire data from all touch-points of the supply chain and to use that data to analyse and make informative, strategic decisions that would allow Centurion to generate greater value to customers. “The unique barcoding solution differentiated our system from others in that all items compromising of a connote could be tracked, even if they travel

on different trucks and different routes. This ensures that tracking is always representative of the full status of all items comprising a con-note.” Sabur adds that another innovation was that the barcoding solution also integrated with customer data, allowing the customer to search for tracking information for an item with their own numbers (such as purchase order or work order numbers) rather than the con-note number.

Award-winning innovation Andrew says that over the years Centurion’s systems have evolved to continue to add value to customers. “We put the customer at the heart of what we do and there is a process of continuous improvement to ensure we meet their needs. We’re a strong enough and large enough entity to invest in what makes sense and to provide that degree of customisation and personalisation that some others can’t do.” The culmination of many of these initiatives saw Centurion receiving a Rio Tinto Supplier Award for Innovation in 2010 (pictured below). “As a result of the innovation, clients now have greater insight into the status of their orders and benefit from labour cost

savings, with recognised savings in excess of $1.5 million in direct labour costs for clients each year,” Andrew explains. Future expansions of the Centurion system are looking to provide greater integration between vendors as well as enabling earlier identification of items in the supply chain with less physical intervention. “As technologies develop and the value propositions stack up, Centurion will continue to push further down the path of automating processes, and handling items less while providing greater visibility and surety in the supply chain,” says Andrew.

Innovation leads the way at Cape Cape and its predecessor, Underground Services Australia (USA), have been at the forefront of introducing several innovative practices to the complex and high-risk area of subsurface utility engineering in WA. “The aim is to reduce risk and improve efficiency,” says Peter Rowles, Cape’s CEO. “Subsurface utility engineering involves design, construction and maintenance of underground services.” Developments in this important arena began in the late 1980s when Underground Services Australia was the first company to introduce common trenching to the residential land subdivision market in WA. “At the time, it revolutionised the industry as USA was the first contractor to install all utilities services (water, power, gas and telecommunications) concurrently in common trenches,” says Peter. “It allowed for reduced costs, increased quality and less damage to services, as well as requiring less excavation compared to installing each service separately.” The company was also the first to install direct drilled cable in Australia – a methodology which allows electrical cable to be buried underground without any extra covering, sheathing or piping as protection. This cost-effective solution for installing subsurface cable was industry-leading at the time. In 2007, Cape developed and patented innovative ploughing technology called EcoPlough. “The EcoPlough adopts a trenchless

technique, installing cables or pipes of up to 315mm in diameter,” says Peter. “The cable or pipe is laid immediately behind a specifically designed ploughing blade at an installation rate of up to 1,000 metres per hour.” This time-saving, automated technique was a game-changer, causing minimal disturbance to topsoil and avoiding groundwater issues thanks to the trenchless installation method. It’s also one that’s far better for the environment. “The EcoPlough is less labour-intensive compared to traditional open trenching and

is also more environmentally friendly as an installation method,” says Peter. “It operates in a corridor width of just 10m (it usually requires a corridor width of approximately 25m). This means significantly less clearing of natural vegetation is required.” It was an innovation that won Cape the Innovation Excellence Award in 2013 at the Western Australian Industry and Exports awards. In addition to trenching advances, USA was also the first company to introduce Mini Steerable Micro Tunnelling for pipe sizes

between 150mm and 300mm. “Micro-tunnelling is a pit-launched pipe-jacking technique that involves the use of a remote-controlled tunnelling machine,” says Peter. “Usually, tunnelling is laser-guided; micro-tunnelling is extremely precise, in most cases achieving an accuracy of within 10mm. This allows pipelines to be installed precisely on-grade.” This new micro-tunnelling approach was first introduced on USA’s work on the Water Corporation’s Infill Sewerage Program. ◆

INNOVATION IS KEY Left, Centurion’s EGM of Operations West Gary Nurick, who pioneered changes to the tyre trailer design. Opposite, Marc Cardaci accepting an award for innovation from Rio Tinto.

CENTURION DRIVES INNOVATION WITH NEW TYRE TRAILER DESIGN

Manager for Operations West. “Our drivers are trained to operate the restrain bars from a safe distance while each trailer is fitted with electronic stability control to further improve the safety performance,” he says. Centurion’s trailer also complies with Performance Based Standards (PBS) – a National Heavy Vehicle Regulator scheme that tests the asset against 16 stringent safety standards and four infrastructure standards ensuring it fits the existing road network and is safe. Last year Centurion moved more than 3,000 tyres for its customers working with them to ensure the business met their needs. “Our custom engineered trailers allow for the transportation of some of the largest heavy equipment and OTR tyres

in a road train configuration,” says Gary. “This reduces the number of drivers, pilots and trailers required for each trip making us both more efficient and more productive,” he says. “Traditionally these large tyres would need to be moved lying down and this meant that they could only be moved in single trailer configuration, typically meaning more pilots and permits and making it much more uneconomical.” Gary says the trailer is an excellent example of how the business looks for continuous improvement. “The design principles around this trailer are really to keep people safe and improve the number of tyres that can be transported at once while reducing our reliance on pilots and permits making the whole process more efficient,” he says.

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nother example of innovation at the CFC Group was Centurion’s development of a tyre trailer that improved safety, efficiency and productivity during the transportation of large heavy mobile equipment tyres for the mining industry. At the centre of the new trailer design was the concept of automating the process and removing any manual restraining of the tyres – something that had led to a fatality in the industry previously that was unrelated to Centurion’s operations. “The loading and unloading process is automated and our custom engineered trailers mechanically restrain the tyres ensuring they are never left free-standing,” says Gary Nurick, Centurion’s Executive General

INSPIRED BY COUNTRY Past and present trainees from the Frank Cardaci Traineeship Program developed the original concept for this design on a 4m x 1.8m canvas. The canvas was then scanned and recreated on both sides of a massive 13m x 2.7m refrigerated trailer in 2018.

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LEADING THE WAY From left, Justin Cardaci, CEO of Centurion, Hylton Taylor CEO of CFC Distribution (CEA and Redstar Equipment), Peter Rowles, CEO of Cape, and Philip Cardaci, CFC Group Executive Chairman.

5 F

Coast to Coast

“If I reflect over the time I have been involved in the business I would say that there have been two critical elements to our success which would remain as longterm foundations for all our businesses. “The first is putting the customer at the centre of everything we do. As Apple founder Steve Jobs said, ‘get closer than ever to your customers, so close that you tell them what they need well before they realise it themselves’. In all our businesses we need to understand our customers and give them innovative solutions to help their businesses be successful.” The second element, says Philip, is even harder to do but nonetheless just as vital for future success. “We must live the RIPPA values – they are a bit like our business’ soul. They are a guide for how we should treat people and how we should go about our everyday working lives. Respect, Integrity, Passion, Persistence and Accountability should be present in our working lives every day.”

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rom humble beginnings in Western Australia, the CFC Group is now most definitely a national company with an impressive coast-to-coast footprint. From remote rural settlements in north-western WA to the buzzing city hubs in Queensland, New South Wales, Victoria and South Australia, CFC Group has extended its reach many times from that one truck transporting earthenware pipes to Karratha 50 years ago. The growth of the business into Centurion and subsequently the creation of a group of aligned companies incorporating Cape, CFC Distribution (CEA and Redstar) and property business Birchmead, has meant that staff from many parts of the country (and from around the world) are now involved in creating a new future for CFC. “The business has had such a positive impact on the lives of our thousands of employees over the years, their families and the communities in which we operate,” says Philip Cardaci.

Centurion - Future Focused

As a little boy, Justin Cardaci (above) enjoyed nothing more than sitting on his father Carl’s knee as he drove a forklift truck around the yard. It’s not hard to imagine the joy that he felt as his dad shared those special moments with him. You could say, in fact, that the business was in his blood from day one. However, there was no guarantee that one day he would be sitting in the CEO’s chair at Centurion as he is today. “I worked in the company in a variety of roles when I was younger and left in 2007 to run my own business,” says Justin. Gaining valuable ‘outside’ experience during this period, Justin sold his business in 2011 and returned to Centurion a year later. “Leaving the Group gave me a solid understanding of how to run a business,” he says. “And when I returned, I had to go through the same rigorous interview process as everybody else to get the job;

there was certainly no favouritism.” Growing up in the business, however, undoubtedly gave Justin unique insights into how it worked.

“I loved spending time with my dad, seeing the ups and downs of the business during those years,” he says. He returned to a role at Centurion which

STRONG LEADERSHIP Left, Justin Cardaci. Opposite below, Justin Cardaci with former Nationals leader and Member for the Pilbara, Brendon Grylls, at the opening of Centurion’s Karratha branch in 2015, and right, one of the fuel tankers acquired from FuelTrans Australia.

We want to be active in resource-rich parts of Australia servicing businesses involved in both hard and soft

ACQUISITIONS CONTINUE

commodities. ~ Justin Cardaci, CEO of Centurion.

Kalgoorlie, including 50 vehicle assets. In July 2018 Triton Transport Services, who have a strong reputation for safety and reliability, also became part of the Centurion family. As part of the deal Centurion acquired more than 250 pieces of equipment including large scale prime movers, specialist heavy haulage platforms and 100 general freight trailers along with the team of logistics specialists from the business. Justin says the acquisition reaffirmed Centurion’s commitment to the Western Australian market place and left it well set for growth at what was a critical time in the economy. “There is an increasing amount of project activity in the WA mining sector as economic conditions improve and these additional resources will position us well to capitalise on this upturn,” he says. As part of the acquisition, former Triton Transport Services owner Ben Murphy became Centurion’s General Manager of Heavy Haulage in WA. The acquisitions follow Centurion’s successful diversification into the Queensland transport and logistics market at the beginning of 2017.

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was focused on developing specialised aspects of the business and was appointed to the company’s CEO position in 2015. “My role has shifted – for the first 12 to 18 months, it was all about putting structures in place, and creating a framework for growth. I make sure it’s running well while also finding new business opportunities.” Those opportunities have been hard won over the past three years, but by diversifying the business and increasing its geographical footprint, new avenues have opened up. “I’ve also spent the past few years building the right team; it’s still all about the people working well with robust systems in place,” says Justin. “The fact that our people care sets the company apart. Our successful people pick up challenges and run with them, with every level engaging with each other. “I’ve surrounded myself with people who are different to me,” he says. “I have traits of my dad’s leadership style in the way I manage. I speak my mind, I’m passionate and sure of the vision which is borne out by experience and a strong strategic plan.” Justin is also refreshingly happy to hold his hands up when things don’t go to plan. “I’m quite comfortable admitting wrong turns, and, because of that, I think we have created a work environment where people

enturion has made a number of acquisitions reinforcing its position as a leading transport and logistics provider in Western Australia. In June 2018, Centurion increased its bulk fuels presence following the acquisition of part of Fuel Trans Australia’s business, taking its road delivery volumes to more than 1.2 billion litres. The following month Centurion consolidated its position as the largest heavy haulage provider in Australia with the acquisition of Triton Transport Services, a specialist Western Australian heavy haulage and general freight business. Talking about the Fuel Trans acquisition, Justin says the activity was consistent with the business’s long-term strategy to increase market share. It also provided Centurion with a unique opportunity for future growth. “We have been successfully involved in the bulk fuels haulage market for a significant period of time and this is a natural area for us to expand our business,” he said. Centurion acquired Fuel Trans Australia’s short and line haul contracts operating from Perth and

are comfortable to come to work – and they want to come to work. Their opinion matters and is heard.” A determinedly non-hierarchical manager, Justin is proud to note that every member of the company is encouraged to get their hands dirty, an unusual aspect for a business of this size. “It’s where I’m most happy,” he says. Despite the company’s increasing reach and number of employees, Justin believes its nimble ability to react to changing market conditions and customer requirements is another strong feature. “Despite there being a lot more working parts in the company now that it’s larger, that DNA of reacting quickly was set early on in the company, and remains a strong component today.” Over the years, the requirements of Centurion’s customers have changed and the demands on management and

COMMITTED TEAMS Above, phase one of Centurion’s expansion to the east coast has been built on its heavy haulage capability. Left, Justin Cardaci getting a taste for the business at a young age.

Barges to the rescue

n example of how CFC Group is committed to going above and beyond, no matter how difficult the circumstances, was vividly realised in February 2018 in the north west of WA. “On behalf of some of our regional retail supermarket customers we commissioned barges to ensure much needed food supplies reached Broome during heavy floods,” says Justin. “Centurion commissioned two barges and redirected road freight through the ports of Dampier and Broome to help support the local community.” It was no small feat of ‘thinking outside the box’ – and a solution that perhaps Frank Cardaci would have been especially proud. Seven refrigerated trailers of produce were loaded onto a barge at Dampier in early February, and arrived in Broome two days later. Centurion then used its local fleet to distribute the goods to local supermarkets which were beginning to run low on provisions

thanks to extremely heavy rain and subsequent flooding. As part of its strategies to ensure its supply routes to the Kimberley remained open, Centurion also redirected road freight bound for Kununurra through Port Augusta and Katherine South. That may not sound like anything special, but when you consider this redirection entailed an additional 2,095km and 24 hours longer on the road, it’s clear that Centurion will overdeliver at all costs. The whole process was repeated a few weeks later thanks to further flooding and road closures caused by Cyclone Kevin. “As a Western Australian company with a strong connection to the regions, we will continue to do everything we can to ensure vital food supplies get through to the local communities,” says Justin. It’s a tale of perseverance that customers in other flood-prone states on the eastern seaboard will draw much comfort.

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members of staff have increased. “There are higher levels of interaction and our service delivery is different,” says Justin. “It’s more competitive now and we’re competing with smaller operators and on a national level.” Fortunately, because of the company’s DNA, Justin knows he can rely on his workforce to step up. “We have an extremely loyal workforce, and in many cases, an equally loyal customer base; our top 20 customers have been with us for many years and I believe that’s because we view customers as partners.” As such, Justin and his Centurion management team seek out partners who align with their values. “RIPPA is central to everything we do, and our employees would mirror that belief. The culture of the business is actively lived and breathed,” he says. The statistics surrounding Centurion are impressive. There are more than 700 employees, and Centurion trucks cover 60 million kilometres every year. That ability to share the road with other users and keep incidents to an absolute minimum comes down in large part to the company’s investment in innovation. “We are always focused on what technology can do to help remove risk and hazards in the business, and we look internationally for additional innovations on that front,” says Justin. “We like to be at the forefront of introducing technology across our entire fleet, making it work first in the world. For instance we were the first business to install a system that monitors our drivers’ eye movement and combats fatigue across our entire fleet.” For a business involved in a variety of industries, including mining and energy, safety is at the forefront of everything Centurion does, says Justin. “We believe it’s a major differentiator for us and we work tirelessly to ensure all of our people and the people we interact with on a daily basis go home safely at night.” Justin is focused on looking at the business in five-year blocks, and at the time

of writing was concentrating on building growth in existing and new markets. “We’ve recently entered the Queensland market and now have a base there with four depots operating in the state,” he says. “We want to be active in resource-rich parts of Australia servicing businesses involved in both hard and soft commodities. I’ve spent a lot of time over there to help understand the local operating conditions and get the business up and running.” The company’s current success isn’t something that has happened overnight, as the story in this book testifies. “We’ve spent many years refining our systems and processes in the WA market so we can show other states that it works,” says Justin. “We looked at the Queensland market for seven or eight years, monitoring the uplift in mining activities before we made our move.”

The long game, then, is Justin’s strategy – and it’s one that’s paying off. “I’m proud of the diversification of services we offer and of the team we’ve built,” he says. “I want to continue to push talent through. People who show passion about their work are easily taught, but what’s more intangible is the attitude. Some of our best ideas come from those doing the job, at any level.” Justin is mindful too of the legacy which he has been entrusted with as CEO of Centurion, the original building block of the Group. “I believe Frank would still see echoes of the original vision if he were here today,” he says, proud that there’s still a family link within the business. “He would see that we are making use of all our resources to full effect and that we’re operating in the same way, with the same robust discussions about how to proceed as he and Carl used to enjoy.”

Those robust discussions have helped the company weather the storms of a mining downturn and tough economic trading conditions, forcing the business to evolve and look to different horizons for opportunities. Despite that, even during the darkest days, Centurion was able to hold on to employees rather than embark on retrenchment. “In regional WA we didn’t reduce the workforce at all, even when others were retreating. We are fiscally smart and always run a strong, lean business.” As Justin looks forward to the next 50 years, it’s clear that Centurion is very much in safe hands under his tutelage. “I’m proud knowing that we’ve got a strong, sustainable business,” he says. “My motto is ‘never say never’. I’ll always consider new ideas and then implement them like a well-choreographed dance.”

RESPECT AND REPUTATION Justin Cardaci, Philip Cardaci, Kaye Bailey, Ray Pelham and Carl Cardaci at an event in Gap Ridge. Opposite, Hylton Taylor, CEO of CFC Distribution.

It’s really important we continue to deliver at the highest level in terms of customer service ~ Hylton Taylor, CEO of CFC Distribution.

CFC Distribution Eyes On The Horizon

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One of those charged with ensuring the continuing coast-to-coast success of CFC is Hylton Taylor (right) , CEO of CFC Distribution, which includes both CEA and Redstar Equipment. Originally from Cape Town, South Africa, Hylton oversees the national network of company-owned branches and dealers who supply customers with equipment from JCB, Atlas Copco, Dynapac and Magni. It’s an integral part of the Group and one that has enjoyed significant growth under Hylton’s guidance, to such an extent that in March 2018 the company hosted their largest ever conference at the Brisbane Exhibition Centre. Aptly named ‘Beyond the Horizon’, it was the first ever opportunity for dealers, suppliers and CEA staff to get together all under one roof and hear about the company’s five-year vision and growth. Two days of intensive sales training activity followed, once again underlining the importance of a continuity of customer service experiences which runs through the entire Group’s DNA. Hylton joined the Group after meeting Marc Cardaci in 2008. At the time he was the brand director of the agricultural arm of a large company, and Marc recognised in Hylton a skillset which would help build the dealer network of CEA. “I became general manager in 2008, looking after sales and after-sales service, based in Sydney,” says Hylton. “The dealer network was already in place, but we added 17 dealers during that time, reinforcing relationships at the same time alongside Marc.” Hylton left to develop his own business

We’re looking at a period of brand growth and exciting project coming to fruition over the next few years,” says Hylton (pictured left).

CLEAN SHEET CEA achieved 365 days LTIfree for the first time in February 2018, a significant milestone for the team (left). Opposite, Redstar exhibition at the Brisbane Convention and Exhibition Centre.

for four years, distributing Michelin truck tyres along the east coast corridor from Brisbane to Sydney. However, his most important work with CFC Group was still to come, and he returned in 2012. “I began working on the major accounts side of the business and a year afterwards was made Executive General Manager for construction equipment with CEA. “In 2015, we purchased Redstar

Equipment, a distributor for worldrenowned portable energy equipment. It’s a smart match for CEA and increases the ability of the team to service more aspects of their customers’ needs. “It also helps us to differentiate ourselves from competitors. With a distribution network of over 103 dealers in locations all over the country – many of them rural and remote – we can offer a far better local

presence to our customers. “With major branches in metro areas, as well as our rural dealers, we really can offer an exceptional level of parts and service access for our customers and this sets us apart from the rest. We don’t have to rely on large delivery distances, and therefore time delays, because the dealers are close to our customers’ premises, developments and projects. With such a smooth system of delivery and service, CEA is now well placed to make the most of an upswing in construction and mining projects across the country. Local relationships remain a key part of this success, with the dealer network accounting for 40 per cent of total sales.” The construction market on the east coast continued to go from strength to strength, and the infrastructure pipeline hit record levels,

which I believe has significantly helped position CEA as a major force in equipment distribution in Australia,” he adds. An effective CRM (customer relationship management) system continues to be a factor too, ahead of its time when it was introduced, and a key component in maintaining a smooth customer service experience. “We have in-house systems to cater for all customer requirements, whether it’s a warranty issue or a re-order. The customer only needs to have one point of contact, no matter where they are based.” The east coast-based business is firmly focused on continuing growth. At the time of writing, its five-year plan to gain a 12.5 per cent market share was sitting at a healthy eight per cent. “We’re looking at a period of brand growth and exciting projects coming to fruition over the next few years,” says Hylton. “We’re also in the process of opening a 24,000sqm new facility in Sydney for Redstar and CEA with state-of-the art workshops and equipment, and will be looking to replicate it

all around the country. “The focus for the next few years is how we distribute our brands’ products and the logistics involved in those tasks – it’s really important we continue to deliver at the highest level in terms of customer service. We achieved 365 days LTI-free for the first time in February 2018, a significant milestone for the entire team.” As with other industries, the customers themselves have changed significantly over the years. Hylton believes that they’re more informed than ever, which in turn requires the service deliverer to be absolutely on top of their subject. “Market intelligence tells us that 78 per cent of customers have researched the product online before they even get in touch with us, people are better informed and as such, we communicate sales information by and large via digital methods rather than print advertising these days.”

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with no sign of slowing, in 2018. Realising the importance of aligning itself with that climate, CFC Distribution strategically restructured its management team to get an increased focus on specific market opportunities. The burgeoning agriculture market also offered its dealer teams plenty of opportunities to thrive. In 2014, Hylton identified a need to put together a good team to consolidate the business and he believes that investment in the right people is now paying off. Concentrating on finding individuals who subscribe to the Group’s RIPPA values was central to hiring decisions, he says. The team oversaw a new direction in terms of winning business for the company by automatically pitching for government tenders, thanks to a new centralised system. At the time of writing, the initiative had ensured the firm won 34 per cent of tenders it applied for, an achievement which Hylton was particularly proud of. “Bringing in the distribution of Atlas Copco and Dynapac products is also something

Cape - Investing In People

One of the guiding principles of the CFC Group has always been its extreme good fortune in its human resources. That is, the people that Frank and Carl, and then Marc and Philip, put in place to head up each part of the business. Peter Rowles (left) is no exception. An eternally energetic professional, Peter heads up Cape and is a hands-on leader for this exciting arm of the Group. “My role has changed from what brought me here in the first place,” he says. “I was asked if I would return to the company and bring the focus back onto efficiency and effectiveness, a back-to-basics mindset that would change the way it operated.” That was in 2016, but is not the whole story of Peter’s involvement in the CFC Group. Peter founded Underground Services Australia in 1983 and grew the operation by being hands-on in the field. In the early days the business concentrated

KEY PERSONNEL Opposite, Cape CEO Peter Rowles has brought a renewed focus on efficiency and productivity back to the business. Above, one of Cape’s lithium operations.

small part of not only the unique culture he has created but also the fact that the mining industry landscape is slowly picking up again. “I’m passionate about teams – my success is founded on it, and being involved with those who are all driving together to the same end,” he says. Describing himself as a candid, straightup type of leader – “sometimes I would like to be not as straight up” – he says candid conversations come about when the team needs to address whether the company is heading in the right direction fast enough. “For us, growth is about internal growth, not just financial growth. It’s a must – we’ve got to stay really focused on investing in people, and all that pain invested in getting business fit is beginning to pay off.” Solving skills shortages is a particular issue faced by Peter and the mining and utilities industry. He has invested resources in creating bespoke Cape health and safety training videos which the whole company enjoys being part of. And although health

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on the gas sector, moving to water in 1988, underground power in 1990 and communications after that. The company appeared on CFC Group’s radar in 1997 during Philip and Marc’s decision to diversify the Group’s operations. “Twelve years later to the day, on September 12, 2009, CFC took full ownership of Underground Services, and I left in 2010 to pursue new interests,” says Peter. Six years after that, however, he was lured back to head up the company which he partly founded along with another arm of the CFC Group, Cape Crushing and Earthmoving. It was a decision which was, for Peter, a nobrainer, despite the difficult circumstances the business found itself in.

“The two Cape business units (Utilities and Mining Services) had both been affected by the mining boom and its subsequent tail-off. Contracts were turned off and the business had retracted because of lack of projects,” Peter explains. Fortunately, Philip Cardaci had a plan, and he believed Peter was just the man to put it into action. “Phil’s idea was that they needed a whole new mindset to turn things around, but I had no experience in the mining services sector,” says Peter. What Peter would bring to the table was leadership and a collaborative culture. “I was used to building a business environment that focuses on efficiency and productivity,” he says. “Our vision is to be seen as a great company that we’re proud to work for, and that customers and investors are proud to work with and invest in.” After returning to the helm of Cape, Peter has, at the time of writing, increased staffing levels from 140 to 300, a reflection in no

and safety is a major issue, it’s also just part of the bigger picture. “I have a major resources map on my wall in the office with pins on it in remote spots,” he says. “Our mission is to provide innovative and cost-effective solutions for our customers. We want our customers to say that Cape is a great company to work with, that their people continually look to fulfil their work safely. “We listen to our customers and know what they require. We understand and we work with them to achieve their goals. We stay close to our customers and set goals every day around our expectations and our customers’ expectations.” These are the same values, Peter says, that drive the other arms of the CFC Group, a culture created by Frank, Carl, Marc and Philip, and subsequently driven by all those who work with them. It’s those same values which have enabled Cape to ride out the storm of a choppy mining environment, forming new strengths in the process.

“We’ve developed a strong culture around efficiency and shared responsibility,” says Peter. “We have people who attend sites all over WA regularly and have a weekly email to make all parts of the company feel connected. I encourage them to drop by the Perth office too if they’re in town, and every six months I’ll visit every site. We talk as a Cape team; I’m not a fan of divisions.” This is particularly noteworthy considering one incarnation of Cape is actually the amalgamation of two separate organisations – Cape Crushing & Earthmoving and Underground Services Australia. Both have brought elements of their original DNA, contributing to a new, homogenised whole. “I think we’re lucky because they both have their own unique styles, but now they’re entwined, creating a brand new culture,” he says. “We talk about it a lot – how much we are learning from each other, bringing both sides’ strengths together onto one page.”

BUILDING A NETWORK Above, Cape’s development of the EcoPlough is one of the many ways the business has innovated over the years.

Thanks to the diverse nature of Cape’s remit, the skillset required by employees is a varied one. “We operate in water, energy, materials handling and special projects,” says Peter. “We pitch for and are approached for work, for instance our special projects business may come from a wind farm, rail signalling or tailings pipeline project – although these types of projects are from different sectors, they all have a similar construction process. This diversity of operations enables us to better utilise our resources and thus reduce our operating costs.” Special projects are in fact a growth area

We are constantly asking ourselves how we can attract, train and retain the best people . . . Peter Rowles, CEO of Cape.

water management to civil earthworks. With more than 30 years experience operating in Australia, Cape is a company built on values. It aims to be recognised as a leader in its chosen fields, including safety, and an employer of choice that is committed to sustainable practices and the long-term creation of value for its customers. Peter admits that 2018 has been a challenging year, with a focus going forward on continuous improvements. “We have been under pressure recently with the mobilisation of two large longterm remote projects,” he says. Despite this pressure, the team has risen to challenges admirably and has continued to operate at the highest level in terms of safety and standards across the board.

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for Cape, says Peter. “We chase the project rather than the state and can apply our skills appropriately. Our business development manager has his ear to the ground for suitable projects.” The difference between the Peter Rowles who worked for the Group in 2010 and the Peter Rowles described here is perhaps summed up in one word: optimism. “The sky looks bluer,” he says. “There are so many more opportunities now.” Peter has his eyes firmly on a future where 500 people will work at Cape – with a caveat. “This business will grow but only as and when it’s sustainable,” he says. “It’s not about letting people go. We want to train and keep our people. Of course, without profits, you can’t invest and without that you can’t train, replace plant or return revenue to the shareholders – so how do we do that?” It all comes down to identifying long-term contracts and locking in re-occurring income. That, and making the right hiring decisions. The ideal Cape employee is perhaps a blueprint for the ideal CFC Group employee. “They need to be a team player, they want to play the game to win and are in it for the company and the customer,” says Peter. “They need to have the capacity to grow and learn and we are constantly asking ourselves how we can attract, train and retain the best people.”

About Cape Cape is a leader in innovative and cost-effective solutions to businesses operating in the resources, utilities and infrastructure sectors. Its areas of expertise include civil, mining services and underground utility installation and maintenance, with services ranging from crushing and screening to gas or water pipelines or cable installation and from

New business opportunities reflect the world’s growing appetite for lithium, with a crushing project at Greenbushes, 250km south of Fremantle, now on the company’s ledger. Short-term contracts for Western Power, Pilbara Minerals and Nacap have also been won and are a key reason why the Cape team hit 300 in 2018 and was expected to keep growing. “Construction work is picking up pace at the Gruyere Gold Mine, 200km east of Laverton in WA, with a new gas pipeline to the remote project,” says Peter. “Cape has been awarded the package for wet hiring five of its newly purchased trenchers, and there’s a crew of two fitters and a boilermaker being sent to service and maintain all the trenchers on site.” The project has the added bonus of filtering revenue to Centurion, with a requirement to move 16 30-tonne excavators to the site – just another example of how the CFC Group is able to give customers an innovative one-stop shop fulfilment of requirements to customers, no matter where they may be operating. ◆

WALKING THE TALK Rob Cunningham and Peter Rowles of Cape.

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Image spread

IMAGE By Kevin Mitchell Chasing Stars

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Our People Are The Difference

ithout a doubt, the heart and soul of CFC Group is its employees – in particular, the long-standing employees who have seen the Group through amazing growth, challenges and changes. The Group has offered employment opportunities to thousands of people over the years – here we hear from some of the longest serving employees.

Kaye, who began working with CFC Group as an accountant in 1978, is an example of employee loyalty at its best. “There were five employees, including the owners Frank and Carl, a receptionist, a warehouse person and myself,” Kaye recalls. “The main entity then was Centurion Transport, but CFC Holdings also played a very important role with acquisitions and sales of vehicles and machinery. I kept the financial accounts for both entities, which were done manually with the aid of a ledger machine to produce the monthly debtor statements. “On Saturdays, when loading had finished, I would sit down with Frank

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KAYE BAILEY (Perth)

and we would manually price each consignment,” she says. “Back then the invoice was a carbon copy of the freight manifest. We didn’t get our first computer until 1983 and, it is hard to believe now, but it was the size of an office desk. “The tasks were many and varied. As is the case in such a small office, we all did whatever was required. One of the necessary tasks I also performed every day was applying for permits from the Transport Commission. This entailed phoning them and providing details of the vehicles before they departed, destinations and description of goods being transported, for which there was a tonnage fee payable. Out of normal business hours we had to send details via telegram, which eventually became sending via telex messages.” In her time with the Group, Kaye has certainly seen many changes including when the Group moved to a purposebuilt facility in Collier Road in 1983 – an important change that signified just how quickly they were growing. “That was a significant change because

“Embrace the five Group values – Respect, Integrity, Passion, Persistence and Accountability. ~ Kaye Bailey

LONG-STANDING SERVICE Above and right, Kaye Bailey has worked with CFC Group for over 40 years, and has witnessed the phenomenal growth and changes within the companies over the years. Opposite page, Trevor Torpy joined Centurion in 1999.

it was a purpose-built building with freight docks and cool rooms. It was a fantastic transport facility,” she recalls. Over the years, as well as the facilities changing, Kaye also saw the number of employees grow rapidly. “As far as employing people went, as we grew, we grew more professional,” she says. “There was a need to acquire more people with the skills that we needed for the different aspects of the business. We were quite proactive seeking people for those specific roles.” Despite the Group’s growth, Kaye says she still has a close relationship with management and says the Group has always kept their family business culture. “From my point of view, the culture has always been the same . . . for me, the people I work with all have the same goals and values. They are a fantastic group of people

and the family have always been fantastic, supportive and encouraging.” Additionally, although the RIPPA initiative is relatively young in the history of the Group, Kaye believes those values have always been a part of the working culture. “The Group has always had the same values and they are always in our dealings and the way we behave – that has never changed,” Kaye says.

“The values are something we all believe in. They are great values and every single one is followed, no matter what position you have in the company. In my view, Respect is a very strong value – and one we have all believed in from the start. And if we didn’t have Passion, we would not have got to where we are today. “All the other values have always been just as important. When you look at those

values, every single one of them has been upheld in all the years that I have been here. There was never a time where it was, ‘we can’t do this’. It has always been about finding a way to achieve. It is incredible to start something from absolutely nothing and build it into what it is today. It was just hard work and being consistent.” Kaye was the Financial Controller for Centurion until 2007. Then, as the property arm was expanding rapidly, she took over managing that side of the business. Now, Kaye says she has a much broader and varied role, due to her long-term knowledge of the business. Kaye has seen CFC Group grow from a small family business to a large organisation. However, she says it is clear the Group has not lost their original family values. “I have always been treated as part of the family and find (CFC Group) to be very supporting and accommodating,” she says. “It is a very friendly, inclusive and welcoming environment. Management acknowledge and reward employees for their efforts over and above,” she says, adding the Group also has an Employee of the Year Reward program, varied traineeship programs, and a very generous years of service reward program in place.

TREVOR TORPY (Perth) Trevor joined Centurion in 1999, immediately following Centurion’s acquisition of Brambles Long Distance Transport. “I was fortunate enough at the time to be one of a number of people to be offered the opportunity to transition into a management role within Centurion’s business, and did so without any preconceived expectations,” he recalls. “I took on the role of managing the OSR function within the mining services division of Centurion. At the time, OSR (off-site receipting as it is known) was a relatively new concept for transport companies to be involved with, however it was seen as a medium to establishing long-term relationships and ongoing contractual opportunities with WA’s mining sector. “I was initially involved with managing OSR which was, at the time, responsible for servicing clients such as Argyle Diamonds, Western Metals Group, Hamersley Iron and Robe River associates. Over an 11-year period I held various positions within the mining and warehousing area of the business where I not only got to witness enormous growth, but also participate in some major contract negotiations that have subsequently seen Centurion secure long-term contracts with

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companies like Rio Tinto and become an industry leader in this field. “In about 2010, I took on my current role of Administration Manager and, to be completely honest, at that time I did not think I would find the role challenging enough – how wrong I was. My prime areas of responsibility now revolve around data entry integrity and management, scanning compliance, manifesting accuracy for both Centurion and certain mining clients, and revenue recovery. Since around 2012, I have worked in close liaison with our systems development team focusing on key areas such as system functionality, development and improvement.” Trevor, along with other long-standing employees, has seen many changes in his time with the Group. “There were no other businesses; it was just Centurion,” he recalls. “The fleet was minimal compared to what we have now and the premises were probably one 10th of the size we have now. “In the old days, we had people who looked after multiple things in the business, whereas now, we have people specialised in their different areas – the focus is definitely more customer-focused now. The culture has also changed. It used to be, ‘get it done’, but now it is all about ‘get it done, but get it done safely’. “The increase in the number of employees has been great to see – the growth of the Group has generated more employment and job stability – we have proved ourselves in the marketplace.” According to Trevor, there are many things that make working at CFC Group special. He says the company is very safety focused, and is a non-discriminatory, equal opportunity employer. He says there is a diversity in jobs and opportunities, as well as reward programs that acknowledge effort, service, safety and innovation. The people are good, and there is a clearly defined vision statement for the future. Why has Trevor stayed with CFC Group as long as he has? Well, he says this is summed up in one word: passion. “When I first joined Centurion I met

someone, who, over the ensuing years, I came to admire greatly,” he says. “I considered him to be not only the boss, but a mentor and friend. He always displayed an undeniable passion for the success of Centurion, and believed that all employees needed to share that value. I have always been thankful to the late Marc Cardaci for instilling that value in me, and I know it has played a major part in my decision to remain with Centurion. While I maintain my passion, I will continue to enjoy working with and for Centurion.”

KEVIN ENNIS (Brisbane)

In 2009, Kevin began as the General Manager of Redstar, responsible for running the business nationally. He remained in that role when Redstar joined the CFC Group in 2016, and is now the General Manager Major Accounts Sales. For Kevin, being involved in the sales process of Redstar, and transitioning his team across to the CFC Group have been stand-out moments. “Being part of the CFC Group has opened many doors for Redstar and myself,” he says. “We now have a true national footprint with branches in every state and the support of the other CFC Group of companies – particularly our CEA business. “We also have a dealer network of 30plus dealers and access to the larger CEA dealer network. We are very fortunate to be able to carry the stock numbers. Without this, we wouldn’t have been able to secure some of the major sales and growth we have achieved over the last year.” Kevin says he loves what he does and the industry he works in, and that at CFC Group he feels his experience and opinion is valued and respected. “I have been fortunate to work with some pretty amazing people, who in their own right are among the best in the industry,” he says. “It is a great feeling working with people who are just as passionate as I am about the business.” If Kevin was giving advice to someone starting their career at CFC Group, he says he would say the Group has a vast depth of opportunities from all levels of the spectrum.

“I definitely believe that in this company hard work and dedication is recognised and rewarded,” he says. “Speak up and let people know what you want to achieve in your career and they will help you get there. Always know your facts and numbers, as you will never know when the Chairman will ask you a difficult question . . . and trust me he will. “But seriously, there is so much depth and variety of careers here. Persevere and you will be recognised and rewarded. Your

career success will not happen overnight, but it will happen if you want it bad enough. Sorry about the clichés, but it’s true,” he laughs.

ROB CUNNINGHAM (Perth) Rob began work with CFC Group in 2003 as a Project Scheduler/Administrator for the civils area of Underground Services Australia – a role he says is diverse and has exposed him to a range of different construction activities.

He has been able to achieve much during his time at the company, and is justifiably proud of being involved in many very large and successful projects, during which he has quickly built up his skillset. “I have attained a heap of tickets along with Cert 3 Pipe Laying, Cert 4 Supervision, Cert 4 Training and Assessing,” he says. At the time of writing, he was also close to completing his Cert 4 OHS. Rob says he has seen many changes during his time with the Group. “When I started with the company it was shorts, boots and optional shirt or vest,” he says. “Nowadays, there is a huge focus on safety.

The industry has come a long way – and so too has Cape. The focus and importance of safety is certainly the key driver.” CFC Group values their long-term employees, and Rob says the certificates and gift cards the Group presents are always appreciated and well received. He adds he has also always been afforded opportunity, been treated fairly and received training throughout his career as required. “I have been offered a variety of roles and different projects to be involved with throughout my career with Cape and travelled a reasonable amount of WA in the process,” he says.

“In addition, there is a great team of guys in the business with a wealth of knowledge and experience, from project managers, project supervisors, project admins, poly welders, drillers, pipe layers, cable layers, mechanical fitters and machine operators. “I am one of many mid-to-long-term employees who make up part of this team and working alongside these guys and gals has always been rewarding, challenging and done in good spirit and humour. So this is probably the main reason why I have stayed with the CFC Group.”

DIVERSE ROLES This page, Rob Cunningham has worked with the CFC Group since 2003 in a variety of roles for the civils area of Cape. Left, Kevin Ennis began working as the General Manager of Redstar in 2009.

81 CHAPTER 6 // OUR PEOPLE ARE THE DIFFERENCE

GLENN MCLEOD (Brisbane) Glenn started with CEA in 1999, before the change of ownership to CFC Group a few years later. His roles within the Group have been varied, from Sales Representative to his current role of National Government Business Manager. His career highlights have also been many. “The most satisfying would be the development and guidance of many professional careers to a significant number of the industry’s top sales performers; many of whom work within CEA, however, some have moved on to competitors and forged very strong careers with other companies,” Glenn says. He adds that being involved with the JCB brand for such a long time and being directly involved in the building of the brand awareness to be a tier-one recognised player are other highlights. For Glenn, there have also been many memorable moments – a stand-out being

the guidance given by Marc and Philip Cardaci and the opportunity for career advancement, especially in the formative years of CEA. Glenn says overseas business trips have allowed for a broadening of knowledge and, on occasions, have extended to a private holiday. “One of my most memorable was after a UK JCB factory visit in 2011. My wife Belinda joined me and we went across to the USA for an extended driving trip culminating with our marriage in Las Vegas,” he says. Glenn says he has stayed with CFC Group as long as he has because he loves the company that he works in and the JCB brand. “The business has changed immensely over the years and has had to become more corporate, which is necessary but still has that ‘family element’,” he says. “The growth that we have experienced is nothing short of extraordinary and continues to accelerate every year to a never-ending peak with no

expectation that we are going to slow down any time soon.” He says the business has grown over the years to have a more professional culture, which has nurtured great career prospects for individuals. In addition, since the inception of the RIPPA values, employees have been encouraged to adopt the business culture and values, which are seen not only within the business internally, but also through interactions with clients. Despite the Group’s growth, Glenn says loyalty is reciprocated with loyalty, which is still a definite trait of the family roots of the CFC Group and will never be lost. “We are big but we are still family,” he says. “Loyal and hard-working employees will continue to drive the success of the Group, and the Group will continue to be a group of businesses that values its employees.” Watch this space; the list of longstanding employees will continue to grow with the Group. ◆

CAREER HIGHLIGHTS Glenn McLeod is based in Brisbane and started with CEA in 1999. Opposite, the CFC Group has more than 1,200 employees across Australia.

CHAPTER 6 // OUR PEOPLE ARE THE DIFFERENCE

What the staff say . . .

I JOINED CENTURION on January 8, 2018. Having worked in government, banking, debt collection, building and the fuel industries I have found the transportation industry challenging and interesting. There is so much activity every day but I have enjoyed the support from the finance team and all the various divisions. Congratulations to the Group. David van der Merwe 10 months with CFC Group in Perth

I STARTED WORKING here at Centurion in February 2016 as a credit officer. I have worked as a credit officer in manufacturing industries, food services industries, mining industries and various transport companies. I have seen a lot of changes in Perth. When I first started working here I felt this company treated the staff as family, with an environment which I liked to work for. Everyone is so friendly and helpful to each department. I want to say to thank you to all the various operation staff and managers. We need to work as a team in order for us to get the final result for my team and for the company. Without everyone’s support we wouldn’t be able to do our job properly. Congratulations to the Group. Noeline Myaing 2 years with CFC Group in Perth

I STARTED WITH Centurion Transport on 11 December, 2017 and really feel like I’m part of the family. Congratulations to the Group in celebrating such a remarkable milestone! Ted Dana 1 year with CFC Group in Perth

I JOINED THE BUSINESS on February 19, 1999, from Brambles Transport. I am proud to be a part of Centurion, working in the team and having the persistence to grow professionally not only in my own area but across the business as a whole. Every day since I started 19 years ago has been an exciting challenge and it’s been great to see the company grow and progress over that time. From a small company it has reached an important milestone and with our employees continuing to live the RIPPA values the business is stronger than ever. I am so glad to have worked with really good people here, and I always have a smile on my face. My mission is to keep a strong bond with the company and people. Be loyal, work hard and enjoy every day. We after all are Centurions, strong people like the famous soldiers. Best wishes to the company and may there be many more years to come. Francesca Sabatini 19 years with CFC Group in Perth

I’VE WORKED FOR the CFC Group and Centurion since 2015, and have really enjoyed the experience. It’s refreshing to work at a company where the values are central to the business and to decision making, where they guide what everyone does. There’s a really positive culture because of this and the history of the business is an inspiring story of how to make a business work in the face of adversity. I’m also proud to work for a business that genuinely aims to give people a chance – the youth and Indigenous program really works to change people’s lives and I’m proud to be part of that. Congratulations to the Group on its 50th anniversary and good luck with the next 50 years! Adrian Firth 3 years with CFC Group in Perth

Phil Withell 10 years with CFC Group in Sydney

I JOINED THE business in 2016 as a rigid driver and was lucky enough to be retained after the fleet became redundant. I then went on to become a forklift driver in receivals then moved to back freight to co-ordinate the receiving and distribution of Centurion return freight at the PEP Transport Depot. I have been privileged to have worked with and under some great people and have learnt a lot since starting with the business. Congratulations to the Cardaci family and best wishes to the Group on “THE BIG FIVE O!”

Nick Needham 3 years with CFC Group in Sydney

I’VE BEEN WORKING for CFC Distribution since 2016. I started out as a marketing coordinator and have since been promoted to marketing communications manager. The experience and the opportunities I have had here have been amazing. Congratulations to the CFC Group on 50 years!

Mark McPhail 3 years with CFC Group in Perth

Melanie Lawlor 2 years with CFC Group in Sydney

T E S T I M O N I A L S / / W H AT T H E S TA F F S AY

ON JULY 1, 2018, I ticked off over 10 years with the JCB CEA family branch of CFC. It’s been challenging and rewarding working for the company. The passion, experience and support from peers and management alike are a constant that makes working for the CFC Group a great experience.

I JOINED THE business in 2015 in my first full-time graduate role in marketing. From the start I’ve been impressed by the support and communication from the people I’ve worked with across all parts of the business – in branches and head office. I’ve had the great opportunity to develop my role and have had encouragement to get involved in a wide range of projects which span many different areas of the business. In this growing business I still feel I have the freedom to develop my role where it adds value and that it will continue to grow as I do. I’ve found the people I work with helpful, bright and hard-working, and the communication between staff at all levels is brilliant. Originally moving overseas from the UK to work for the CFC Group, I have felt warmly welcomed by everyone I’ve met which has meant a lot and helped me build my life in Australia. I’d like to say thank you to the CFC Group for the great opportunity and support and congratulations for the 50th anniversary.

7 A

An Integrated Family of Firms

industries such as minerals and agriculture. Each of the businesses offers services across the project lifecycle for the engine room of WA’s economy: resources. By contributing to important infrastructure projects over the years, the Group has directly impacted on the state’s development through employment opportunities, fulfilment of mining operations and projects and revenue contributions. And by training the next generation of skilled workers, the Group is also directly contributing to a strong foundation of future employable young people. The vast majority of the CFC Group’s WA spend was by Centurion, which reflects the significant size of the business relative to the other CFC business units – and, as the foundation business of the Group, perhaps this is as it should be. Here’s a breakdown of the broad range of services the Group supplies within the mining and agricultural sectors, followed by examples of how the nation’s infrastructure has flourished thanks to the Group’s input.

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study of the CFC Group’s contribution to WA by Deloitte Access Economics revealed some impressive statistics for its 2016/17 financial year. The Group had contributed $244 million to the Western Australian economy, $114 million through direct contribution and $108 million through indirect contribution. The businesses generated $456 million in sales revenue in 2016/17, an increase of 13.8 per cent on the previous year – all the more impressive in the context of a general downturn in the WA economy. The Group was also responsible for the full-time equivalent employment of more than 800 WA employees, putting the Group on a par with WA businesses such as the Georgiou Group, Summit Homes and HBF. The independent study also found that the Group supported Indigenous employment and businesses as well as young people as they transition from university into the work place. The study outlined the importance of the Group’s businesses in underpinning key WA

LEADING FROM THE FRONT Centurion’s heavy haulage teams are key to providing large equipment to the mining industry. Right, one of Cape’s many crushing projects. Centurion, CEA and Cape are adding to their workload exponentially.

MINERALS Exploration logistics Greenfields exploration activity often occurs at very remote sites across WA with limited access to infrastructure. Centurion operates at various regional sites close to remote and isolated locations. The company is able to develop tailored supply chain solutions, as well as provide dedicated heavy haulage equipment and drivers, specialised heavy lift teams and resources, and a modular trailing

fleet which can handle various environments and load specifications.

Construction services Each of CFC’s businesses is capable of supporting the construction and development of resources projects in WA and other resource-rich states. CEA supplies a range of equipment and machinery including excavators, backhoe loaders and telehandlers. Redstar is a key distributor

of fixed and portable energy equipment used on construction and mining sites (such as generators, compressors, welders, fuel storage equipment and lighting towers). Meanwhile, Cape provides a range of construction-related services to the resources sector, including trenching, mining and civil earthworks, water management, and pipeline construction and installation.

Dewatering

Crushing

Tailings Storage Facilities (TSF) are critical to mine operations as they must safely and economically store tailings in an erosion-resistant, non-polluting structure that minimises environmental impacts. Cape has constructed some of the largest TSFs in Australia including at the Mount Keith BHP nickel project.

Ore is evenly and gradually conveyed into crushing equipment for primary crushing before being conveyed to plant for secondary crushing followed by screening and separation. Cape is a leader in crushing and screening services and can manage the complete crushing process for many materials.

Effective mine dewatering is a critical aspect of operations from both a commercial and environmental standpoint. Cape has significant expertise in water management and dewatering, having provided these services to FMG for its Cloud Break and Christmas Creek projects in the Pilbara.

Tailings storage

AGRICULTURE Cultivation

CEA’s JCB equipment, such as telehandlers and Fastracs, plays a key role in pre and post-sowing spreading on farms across WA. Reliability and longevity of capital equipment – key features of JCB equipment – are critical to keeping farming costs low.

Site logistics and loading Wheel loaders and telehandlers are a critical part of non-sowing farming processes, allowing for rapid, safe and effective site logistics. lifting and loading. CEA supplies JCB wheel loaders and telehandlers to farms around WA. This equipment is designed to spend the maximum amount of time at work, with long service intervals and quality componentry.

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Parts and servicing

CEA has invested heavily in its dealer network. It maintains a presence in 16 regional locations in WA – from Geraldton to Albany and Esperance. As such, customers have access to JCB products, parts and service. This provides significant peace of mind to agriculturalists in regional WA, by providing local support for their critical farming equipment.

MILESTONE PROJECTS AND INNOVATIONS Apprenticeship program (2017) Recognising a national skills shortage, CEA launched an apprenticeship program in 2017. This was designed to increase workforce flexibility by developing skilled

employees who can work across a wide variety of equipment and machinery. These apprentices are working towards Diesel Mechanic qualifications through on-the-job skills training.

Northampton’s water challenge The ingenuity of the CFC Group helped to solve critical water shortages for the WA township of Northampton in 2008 when the township was running out of potable water and facing the most severe water restrictions in WA. This was a result of severe drought conditions over the previous decade. Water was being tanked into the town each day at a significant cost. Yet this did little to alleviate the water shortage for Northampton’s 3,100 residents. As a result,

the Water Corporation elected to build a 43km pipeline between Geraldton and Northampton to meet the region’s water needs. It contracted Underground Services Australia (now part of Cape) to deliver the project. In addition to developing this pipeline, Underground Services Australia also undertook two additional projects that were directly related to the Geraldton-Northampton pipeline. These projects involved the construction of five kilometres of pipe from a water tank at White Peaks (approximately 17km north of Geraldton) to a water tank in Glenfields (approximately 9.5km north of Geraldton), and an additional two kilometres of supply pipe to connect an existing main to the Glenfields water tank.

LARGE-SCALE WORK Working with companies like Rio Tinto, BHP, the Water Corporation and other major entities has put the CFC Group in the box seat when it comes to driving the country’s large infrastructure projects. Left. Cape’s Ecoplough, just one of the many innovations that has played a part in servicing the mining industry.

to ensuring works were completed with minimal equipment downtime. In excess of 7.5 million tonnes of iron ore was produced during the length of this contract.

Lithium – Bald Hill Joint Venture and Talison Lithium

Rio Tinto’s iron ore Nammuldi mine in the Pilbara employed 1,951 full-time employees in 2016/17, including Cape personnel and local subcontractors. Under this contract, the Cape team designed, fabricated, transported and assembled a turnkey crushing facility. Crushers are used by the mining industry to break down different types of material. Cape installed the crushing facility in two stages, ensuring there were no interruptions to Rio Tinto’s operations. Where possible, Cape ensured that local sub-contractors were employed to assist with the project delivery. Specifically, local sub-contractors assisted with the

design and fabrication of the structure, along with engineering of the electrical components. In addition, equipment was sourced locally as much as possible. The new facility is able to process 2,000 tonnes of material an hour.

Iron Ore – Mount Gibson Iron Between 2010 and 2014, Cape played an integral role in the operation of Mount Gibson Iron’s Koolan Island mine. This mining operation is located approximately 140km north of Derby off the northern Kimberley coast of WA. Operating 24/7 in such a remote site location can be difficult, however Cape was able to support the project by providing ongoing maintenance of essential equipment. This proved critical

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SUPPORTING THE WA RESOURCES INDUSTRY Iron Ore – Rio Tinto

In January 2018, Cape announced a fouryear crushing operations contract to support the Bald Hill Joint Venture between Alliance Minerals Assets Limited and Tawana Resources. This contract requires Cape to crush, screen, stockpile and feed approximately 6m tonnes of lithium and tantalum ore into the Bald Hill project’s processing plant. Located 50km south east of Kambalda in the Eastern Goldfields, the project has a probable reserve of 4.3Mt of lithium-tantalum and 1.4Mt of tantalum. The first shipment of lithium concentrate from the project was exported to China in early 2018. Similarly, in March 2018 Cape announced another major crushing operations contract, this time with Talison Lithium for their Greenbushes project. Located adjacent to Greenbushes, approximately 250km south of Perth, the project’s current expansion will increase production to 1.34Mt of lithium

warehousing and supply base to specialised integrated IT solutions. The company has developed a sophisticated branch network that allows it to provide effective solutions to mining and energy customers such as Rio Tinto, Woodside, and CITIC Pacific Mining, Innovation has been a major contributor over the years as the company has looked to work with its customers to develop solutions that work for their businesses. The development of an integrated system that gives enhanced supply chain visibility to customers and the creation of a tyre trailer that improves safety, efficiency and productivity are just two examples of how Centurion has broken new ground in supporting the industry.

FUELLING GROWTH: SUPPORTING THE PILBARA RESOURCES SECTOR

THE BIG PICTURE The CFC Group plays a vital role in supplying the mining industry along with associated local communities.

concentrate each year from 2019 onwards. Lithium concentrate from this project makes up approximately 35 per cent of world supplies and is currently exported to China to be processed. This project will require Cape to crush, screen and stockpile approximately 2m tonnes of lithium ore. 92

Nickel – BHP Since 2005, Cape has supported nickel projects operated by BHP. One open pit nickel mine employed almost 660 FTEs in 2016/17. Cape is principally responsible for operating the tailings storage facility at the mine. This involves safely storing the tailings, or waste, that is left after the desired product, in this case ore, has been extracted. To date, Cape has stored 10 million cubic metres of tailings material. This volume demonstrates the significant amount of ore which has been mined at this site since 2005.

CRITICAL SUPPLY CHAIN SOLUTIONS Since its inception, Centurion has been

providing critical supply chain solutions to companies operating in the mining and energy industries through both the construction and operational phases of their projects. Centurion’s services for the mining and energy sectors range from general freight, to heavy and bulk haulage and from

In 2018, Centurion was awarded the bulk fuel cartage contract for Caltex Australia to Woodie Woodie, a manganese mine located 400km south east of Port Hedland. Caltex Australia is one of the largest fuel suppliers in WA. Its on-site refuelling services provide significant supplies of diesel fuel direct to resource sites to power a range of plant and equipment, which is critical to many of the sector’s operations. Caltex operates a fuel terminal at Port Hedland, which is serviced

by bunker tanker operations from Singapore to Dampier. Fuel is then trucked by road out of Port Hedland. Operating from Centurion’s Port Hedland branch, triple road trains have been delivering more than two million litres of fuel per month to meet demand from the Woodie Woodie project. Not only is this a significant contract for Centurion in the Pilbara, it also represents an important return to business for the Woodie Woodie project.

SUPPORTING GROWERS THROUGH EFFICIENT LOGISTICS

SUPPORTING RETAILERS THROUGH SUPPLY CHAIN INNOVATION Centurion has developed a value-add service to provide greater visibility to retailers purchasing produce before it arrives at market. It created an online portal which is updated in real time with quantities and grades of produce. The portal allows buyers and retailers to make informed choices and optimise their supply chain before

the goods arrive at market. Centurion also supports retailers by providing logistics services to support the retail supply chain in regional WA. In 2017, Centurion delivered retail supplies to Geraldton, Carnarvon, Derby, Kalgoorlie, Kambalda, Merredin, Karratha, Newman, Port Hedland and Broome. This service is essential for those living in regional cities and towns.

Combatting driver fatigue In 2017, Centurion became the first large-scale transport and logistics company to fit Seeing Machines’ Guardian System technology across its entire fleet as well as to vehicles operated by its contractors. The technology uses advanced computer vision technology to detect driver fatigue and distraction events and, using in-cabin alarms and seat vibrations, alerts affected drivers in order to prevent incidents from happening. The investment in this technology cost close to $1.5 million and positioned Centurion as an industry leader for safety.

Innovative approach to road resurfacing (2017) Discussions between Downer EDI and CEA identified a number of safety concerns with the skid steer loaders Downer were using for road resurfacing projects. This included poor visibility and the general unpredictability of the machines, which had led to near misses and pedestrian incidents in the past. To address this, CEA developed and adapted a 3CX Compact Backhoe Loader specifically to meet Downer’s requirements. Downer subsequently purchased six of the machines to be used as a trial around Australia in 2018.

Vivid Sydney festival (2016) Redstar was selected to supply new prime mobile generators to power displays at the Vivid Sydney festival. Redstar provided a variety of generators, including Excellent Silent Generators and Ultra Silent Generators, as well as a fuel cell. The festival broke all previous attendance records with 2.3 million visitors. ◆

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Centurion has been supporting growers in the agricultural regions of Western Australia for many years. In the past three years the company has transported more than 10,000 trailers of produce from Carnarvon, Broome, Kununurra and Katherine into the Perth market. Much of this is supplied to WA consumers, but also more widely over Australia. Close to 70 per cent of produce comes from Carnarvon and this includes a variety of fruits and vegetables including corn, grapes, tomatos, melons, mangos, bananas and herbs. Produce requires immediate freight to maximise its retail shelf life. Centurion’s role in ensuring trailers are available at the right time is therefore fundamental in ensuring fresh produce. In the majority of cases the produce is picked one day, collected, transported over significant distances and delivered just over 24 hours later to market. Freight is shipped at a variety of temperatures. Centurion’s close relationship with growers throughout WA allows the growers to remain competitive in the face of significant interstate competition.

Key events and strategic acquisitions that comprise the CFC Group

1968

Frank and Carl Cardaci commence a partnership in WA in transport

1971

Partnership is incorporated into Centurion Transport Co Pty Ltd

1998

Centurion acquires Hamptonâ€™s Broome

1999

Centurion acquires Brambles (North West and Kalgoorlie)

2004

Centurion acquires Mitchells General

2008

Centurion acquires Urgent Freight

2009

Centurion acquires Hamptonâ€™s Kalgoorlie

2011

Centurion acquires Oilfield and General Transport

2014

Centurion acquires Outback Travel Fuel Assets

2017

Centurion expands into Queensland following the acquisition of McAleese Trailing Assets

2018

Centurion acquires Triton Transport Services and FuelTrans Goldfields / Metro Assets

MAP KEY

1974

CFC Equipment is established in WA and begins trading in used equipment

1999

CFC Equipment acquires shareholding in Construction Equipment Australia (CEA). CFC and CEA appointed as Australian distributor for JCB

2000

CFC Equipment acquires Centralâ€™s Plant Hire

2001

CFC Equipment acquires Mole Engineering assets

2003

CFC Equipment acquires remaining shares in CEA and drops CFC Equipment brand

1983

Underground Services Australia founded by Peter Rowles

1995

Cape Crushing founded

1997

CFC Group acquires 50 per cent shareholding in Underground Services Australia

2009

CFC Group purchases remaining shares of Underground Services Australia

2010

VDM Group acquires 100 per cent ownership of Cape Crushing

CEA acquires Don Cosgrove and Associates

2011

2015

CFC Group acquires Redstar

2017

Underground Services Australia and Cape Crushing and Earthmoving merge to form Cape

2017

CFC Group enters partnership with Atlas Copco to distribute construction equipment through its network

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2007

CFC Group acquires Cape Crushing and Earthmoving from VDM Group

Image Spread

IMAGE By Kevin Mitchell Chasing Stars

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Our Partners Matter

ver 50 years, the CFC Group has developed strong relationships with many of its clients. We asked some of those long-standing partners about their history with CFC – and how the Group has helped their businesses.

Rio Tinto

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The CFC Group and Rio Tinto have a relationship spanning 21 years and Cindy Dunham, Rio Tinto’s General Manager PDP, Warehousing and Logistics, says Centurion provides a vitally important service to their businesses. “Centurion is our major transport provider to our Iron Ore business and manages the movement of over 220,000 tonnes of freight, mostly from Perth to our operations in the Pilbara including our 16 mines,” says Cindy. “These freight movements are what keep our business operating,” she says. “We are highly dependent on our inbound supply chain to maintain the right parts in the right place at the right time.” Cindy says Rio Tinto’s relationship with Centurion has developed over many years, and during that time they have witnessed

the growth of the company. “We have seen continuous improvement in safety tools and behaviours, which has converted into safety performance that Centurion should be very proud of,” Cindy says. “Over the years, we have seen our companies work to overcome a number of big challenges like road closures, incidents on site and weather events. I am pleased to say that we faced those challenges together knowing that we would be successful in supporting our site teams. “We have watched Centurion, a Western Australian business, grow into the company it is today. We are proud to have been a part of their journey. We have certainly had our challenges over the years, and we have worked to overcome them, with the joint goal of excellence in our inbound supply chain for Rio Tinto’s benefit. “I recall many years ago when we were working hard on improving our own safety and Centurion had a couple of serious incidents. I made a call on Saturday morning to suspend operations until I could get confidence that they would step up their safety program. Saturday afternoon, Centurion had called their leaders together and again workshopped on Sunday to get comfort that the plan to improve was sound.

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“I am pleased to say, not only did this workshop create the start of the ‘Think Safe’ culture at Centurion, but it was the platform on which further safety improvements have been built. I am pleased to say we use Centurion as an example of a strong commitment to safety in our business which partners with us to execute our safety programmes as well. “I can personally say it has been a real pleasure to work with the late Marc Cardaci, along with Phil and Justin, over the years and I always felt that they understood our business and strived to provide the right level of support. We have all stumbled along the way, but I truly believe in the partnership we have enjoyed for many years.”

JCB World Headquarters In 1999, JCB appointed Construction Equipment Australia (CEA) as their dealer for Australia. JCB Chief Executive Officer Graeme Macdonald looks back on the partnership. “Over the last 20 years CEA have significantly invested in the business establishing a number of branches to cover the Australian territory as well as recruiting great people to deal with the customers,” Graeme says. “CEA is responsible for both sales of JCB products to customers, and providing after sales and service support. Given the geography and distances involved, CEA have invested substantially in logistics (parts stock availability and warehouses) to provide our customers first-class parts back-up.”

Graeme says the business relationship between JCB and CEA is very much that of a long-term partnership. “Both JCB and CFC are family businesses and we share many of the same values, such as passion, a sense of urgency, accountability and respect,” he says. “CEA are the sole representatives of the JCB brand in Australia and, as such, CEA is JCB in Australia,” he adds. “Our customers expect great service, strong relationships and continuity in the market. CEA’s continued investment in premises, people and working capital has achieved this and has set a very strong foundation for future growth.” Graeme says the partnership between JCB and CEA has seen some ups and downs – and some great successes. “When CEA took on JCB Agriculture

We congratulate CFC group on their 50-year contribution to Australian industry. Centurion has provided services to Murrin Murrin Operations Pty Ltd since 1999. KEY RELATIONSHIPS Opposite, JCB’s Fastrac was a success in Australia largely due to CEA’s network of dealers. Below, JCB CEO Graeme Macdonald. Below right, Water Corporation’s CEO Sue Murphy.

between JCB, CEA and the local dealer network was key to this success. Australia remains a key market for Fastrac and CEA’s commitment to the promotion and support of the product remains as strong now as it was in 2005. “We share clear joint goals and ambitions to grow the business in the future, and I can only see our partnership strengthening over the next 20 years. “I would like to personally thank Philip, together with Hylton Taylor and the whole team at CEA, for the great job they do representing the JCB business in Australia. We are very proud of our longstanding relationship. I would also like to congratulate the entire CFC Group in achieving your 50-year anniversary.”

Water Corporation Water Corporation Chief Executive Officer Sue Murphy says the utility has had many successful partnerships with CFC Group, through Cape, on projects across Western Australia. “As the principal supplier of water and wastewater services across the state, we manage around $36 billion (replacement value) of assets to deliver water services across 2.6 million square kilometres,” she says. “Our contractors play a vital role in sharing our vision and our values through our capital and maintenance programs, and Cape is an exemplary partner in this respect.” Sue says Cape has completed a number of projects for the Water Corporation in Busselton, Port Hedland, Carnarvon and Narembeen.

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distribution back in 2004 they made a really bold statement by their commitment and investment in the new 8250 Fastrac launch and introduction into the Australian market place,” Graeme recalls. “A major product launch in Melbourne, sales and service training in regional centres all preceded a national demonstration tour – no small undertaking in a country the size of Australia! “The 8250 was the largest Fastrac ever produced by JCB at that time, and was the first time we had combined a CVT transmission with Fastrac’s unique high speed and full suspension. The agriculture market in Australia quickly adapted to the new model and market share saw significant increase. The partnership

On behalf of everyone at Water Corporation, I congratulate CFC Group on their 50th anniversary.” ~ Water Corporation Chief Executive Officer Sue Murphy

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“All these projects were well managed, delivered on time and to a high standard of workmanship,” she says. “Importantly for me personally, all of these projects demonstrated Cape’s commitment to providing a safe worksite for its staff, as we actively encourage a culture where safety is a priority for all our staff and contractors. “I like that the people at Cape think outside the box. They were the major contractor on a new water supply main for the town of Narembeen. Just before the contract was awarded, we were informed our proposed clearing area included native eucalypt woodlands, which had just been listed as a protected Threatened Ecological Community. “To avoid the work being delayed, Cape project managers proactively redesigned the work, using directional drilling techniques which eliminated the need to clear any of these protected

trees. It is this kind of service we value at Water Corporation and I look forward to continuing our successful working relationship with Cape. “My very best wishes to everyone at Cape and the wider CFC Group for the next 50 years, and I hope our successful working partnership continues for many years to come.”

Onsite Onsite, Australia’s second largest rental company, has been working with CFC Group for more than 10 years, with CFC Group supplying OEM (original equipment manufacturer) equipment for Onsite’s hire fleet, including warranty, parts and service back-up through CEA. It also provides Centurion Transport services in many remote locations around Australia. The CFC Group also purchased one of Onsite’s businesses, Redstar, in 2016.

SUPPLY AND DEMAND Above, Onsite, Australia’s second largest rental company, has worked with CFC for the past decade. Opposite, Centurion’s relationship with Rio Tinto spans more than 20 years including moving Rio Tinto’s first retrofitted Komatsu 830E dump truck fitted with autonomous technologies Centre, Northampton pipeline project undertaken by Cape on behalf of the Water Corporation.

only Onsite, but also our suppliers, need to adopt a can-do approach. On several occasions, CFC Group’s back-up has meant the difference between Onsite delivering for our client or not. “Building a business such as CFC Group from humble beginnings requires sheer determination and focus, not often seen in this day and age,” Mike adds. “Congratulations to Philip and all at CFC for achieving a tremendous milestone.” ◆

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Mike Foureur, Onsite Chief Executive, says the relationship between Onsite and CFC Group started with CFC Group providing on-the-ground support in various remote locations to enable Onsite to remain nimble and innovative – taking advantage of some early opportunities. “Building on this, over the years the relationship has deepened and broadened at multiple levels, based on a desire to understand our business drivers, a willingness to adapt and think outside the box,” Mike says. “There remains to this day an approach of building a better mousetrap to the benefit of both.” Mike says if CFC Group commit, then they deliver. “Onsite’s ultra-flexible ‘Branch in a Box’ offering (more often than not in very remote locations) sometimes requires out-of-the-ordinary service, technical support or parts back-up,” he says. “The very nature of the offering means that not

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The Next Generation

the trainees work full-time, they are given the opportunity to complete a certificate qualification based on their work environment. For example, in 2017 the trainees chose to work toward certificates of business, warehousing operations, boilermaking operations and workshop operations. Throughout the program, trainees are given the opportunity to experience a variety of different roles, all while being offered support and mentoring from more senior employees within the CFC Group. At the end of the program, trainees may be offered an ongoing position within the CFC Group. Since the program began in 2015, the Group has invested heavily in the young people with two full-time employees dedicated to running the program itself. In 2018 there were four graduates, adding to the nine who had previously come through the program. To implement such a vital part of the CFC Groupâ€™s investment in the future, it was

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nvesting in the next generation of CFC Group employees was always at the heart of Frank and Carlâ€™s initial vision. It was so important, in fact, that in May 2015 the CFC Group launched the Frank Cardaci Traineeship Program. The program was to build on an initial scheme the Group introduced in 2011. The 18-month program was named in honour of Frank because it aligns so strongly with his belief that everyone should be given a chance, just as he, Carl and Leone were given a chance more than 50 years ago. The goal of the traineeship program is to provide disadvantaged or marginalised young people with life-changing employment opportunities across any one of the Groupâ€™s businesses. In particular, this program has a focus on providing opportunities to young Indigenous people. The program not only provides young people with financial stability, but also the opportunity to gain experience and skills in a practical environment. While

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important to put the program in the right hands. Justin Kickett, having previously worked as a safety advisor, in a roving capacity, travelling around the Pilbara, was the perfect fit. Working across Rio Tinto, BHP and FMG sites, Justin was encountering first-hand training schemes run by some of the biggest operators in the mining community, and found himself asking whether the schemes taught employability skills as well as health and safety awareness. As such, he became a training assessor for HaulPac trucks and, while there, he began to explore pre-employment training courses for Indigenous people. “I realised that I loved to empower and train people, and strongly believe that Indigenous people are the best trained people in Australia,” he says. In 2011, he had a meeting with Philip and Marc Cardaci, who were coincidentally considering implementing a youth training scheme. It was one of those star-crossed meetings which could only eventuate into something positive. Justin was well placed

to let the two men know what the successes and failures of other training schemes he had encountered were. “Two days later, I got a phone call and they said ‘come and work for us’,” recalls Justin. “I could see right from the outset by talking to both Marc and Philip that they

CHANGING LIVES Previous page, Justin Kickett, Indigenous Affairs Manager. Above, The Frank Cardaci Traineeship Program is playing an instrumental part in giving a new generation of trainees a chance to make their mark in the world. Below, 2018 graduate Bradley Moore with Stephen Price MLA and Carl Cardaci, and opposite, some of the young people who have experienced the Program.

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were passionate and serious about doing this scheme. I’d seen my share of lip service over the years, where people were just ticking the box, but this wasn’t the same thing at all.” Philip and Marc trusted Justin’s judgement and opinion on how to set up the new program from the outset. “I was given a blank sheet of paper to create a program, which was fantastic,” he says. “Having buy-in at such a top level of the company made all the difference. They wanted to change the course of young people’s lives. They’d say ‘if we can bring someone on board who ends up being a leader, how great will that be?’ “Every time I spoke to them I could see the passion for the project oozing out of them,” he says. “One day I gave them five minutes warning before videoing them talking about the program, to show to prospective apprentices that it wasn’t just my idea.” Justin is under no illusions about the challenges that young Indigenous people face. “If you’re aged 18 to 26, there can be barriers to gaining employment locally. I knew that one of the challenges would be getting people to understand why the program was being instigated,” he says. The idea was a simple one: to bring people in, train them and engender loyalty to stay within the company. “We had to trial the program for a time to see what would work and what wouldn’t,” says Justin. It took four months for Justin to hone the program and launch it, and he was intimately involved in who was chosen to come on board. “There has to be a high potential success rate with apprentices, and I think by now I’m a good judge of character. I live locally so knew people in schools, offices and through my own network who might do well in the scheme.” Since the launch of the Frank Cardaci Traineeship Program in 2015, Justin has seen 11 young people graduate, and 10 of those are still with the company “Like Frank and Marc, I want to change the course of their lives and create really great futures for them,” he says.

KEY SKILLS By learning hands-on skills which will be industry-relevant, trainees like Travis (above) are able to apply their new abilities on the shop floor. Opposite, the CFC Group’s 2018 Graduate Trainees present their fundraising cheque to Telethon. 110

“You’ve got to understand that these young people want to change, want a different future to perhaps their parents or family. What are their transferable skills – are they willing, punctual, reliable?” Each new trainee has to pass three months of probation and, although Justin is a sympathetic manager, he’s also tough on those who don’t live up to the high standards he expects. “You can’t treat them differently despite what they might be going through at home. This isn’t school and you can’t carry them.” In 2018, Justin welcomed 20 more trainees who will find their feet across all

Opportunities for uni students

months.” Justin is also adept at spotting when a young trainee is falling behind. “They may look like they’ve got everything in hand, but sometimes they simply haven’t. The hard part for me is talking to managers to convince them to give them another go, I’ll go into bat for them, I’m a go-between and try to be mindful of what’s happening in their life. It’s possible to lose track that these are people, not commodities.” Three years after its launch, Justin says he couldn’t have predicted where the program has ended up. “We’re now looking to move the scheme to regional WA, places like Karratha, Broome, Kalgoorlie, using strategic partners to help implement it. We’re also developing some of our training modules so young people can become drivers or fill administration positions.”

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parts of the Group, building a real sense of camaraderie with their peers along the way. For Justin, it’s the perfect role for somebody who’s seen other systems which haven’t delivered on promises in the same way. “I take pride in the fact that I’m able to give a chance to a young person who I know, if we hadn’t intervened, may have ended up somewhere very different. Of course, I do get personally involved; my phone is on 24/7 for them.” The legacy of the Frank Cardaci Traineeship Program goes way beyond equipping young people with future employment skills; it changes lives beyond the workplace. “I see them doing things that they would never have been able to consider before, like buying their first car, or public speaking. As they go through the program, they become responsible for mentoring newbies; the whole system can take 18

ach year since 2016, the CFC Group has offered a paid placement in their Summer Vacation Program to a select group of university students. These students participate in a six-week program to gain hands-on experience in the workplace. In 2018, the vacation students were given the opportunity to work in the Human Resources, Marketing, Finance, Law, HSEQ and Business Analytics departments. Students participating in the program work on real-life projects and are given the opportunity to add direct value to the business in which they are working. In 2017, the projects ranged from developing engaging content for internal and external audiences to delivering an asset replacement model to determine the optimum time to replace plant assets. They also analysed data on big-spend items to find the most cost-efficient options to developing an artificial intelligence program to improve processes. The program not only provides recent graduates with hands-on experience, but throughout the course senior members of the business take the time to provide career advice and support to the students. In many cases, CFC is also able to offer them ongoing work within the company. In 2018, the students were also given the task of raising money for the Telethon Kids Institute, of which CFC Group is an ongoing sponsor. Over the six-week program the students successfully raised almost $2,000 which was then matched by Centurion. In total $3,700 was donated to the Telethon Kids Institute. Students in their final year of university are eligible to apply for the Summer Vacation program. In 2018, 11 graduates took part in the program.

First steps on the CFC Group ladder

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Tega Faka began an internship with Centurion in early 2018 and, along with 10 other graduates, is now part of the vacation student program in the marketing department. Here she shares her experience so far. By Gabi Mills.

weeks in January and February 2018. There were 10 other grads who started the program at the same time in other areas of the business. My role was mainly video production – especially online video. That’s primarily what I still focus on but I also do occasionally assist the marketing team in other areas as well.

Gabi Mills Tell me a little about yourself – what were you doing before you began working at CFC, what do you do there now, and how did you get the role you’re doing today? Tega Faka I’m currently studying a Bachelor of Laws/Arts (Communication studies) at UWA. Before working here I’d been working in childcare for the past five or so years while doing other jobs/ internships on the side. These included a journalism internship at West TV, video intern at Summit Web and some freelance website design for small businesses. I applied for the Centurion Graduate program as I saw the advertisement on LinkedIn. I was lucky enough to get the position as a marketing intern for six

GM What’s it like working for the Group? What do you particularly enjoy? TF Working for Centurion has been a great experience. I’ve really been able to build on my video production and editing skills by being involved in a range of different projects. I particularly enjoy how welcoming people are here and the amount of trust that people have placed in me. During my grad program they even sent me to Port Hedland to do some filming – I felt like that showed a level of confidence in my skill set which felt really nice. GM Do you feel like the Group is investing in your future career? Where would you like to be five years from now? TF Yes, I believe they’re definitely

investing in my future career. During the grad program we had people from different areas of the business come in to talk to us and we were given the opportunity to ask them questions and get career advice from people who have been successful. There is also the opportunity to build your skill set with additional training which is something I’d like to look into in future. I don’t believe in having specific future plans but I see myself continuing to work in marketing, and particularly in video production. GM What’s special about working for the Group? Describe a typical day. TF On a typical day, I come into the office in the morning, check my emails (see if I have anything urgent that’s come up) and then get to work on my core video projects. I might be filming somewhere around the operations area, or doing an interview, or I’m on the computer working on editing down the footage. I might also help with posting on social media or a little graphic design. Each day is a little different actually. That’s one of the

best things about working for Centurion. The marketing department is small so they’re kind of a ‘jack of all trades’ – I get to see how so many different aspects of a communications team operates. GM Is there a good vibe between you and other trainees? TF All of us trainees were pretty quiet at first so it took a few weeks for us to really get talking, but after that we got along really well. It was a little harder to get to know each other because we all worked in completely separate areas and our paths didn’t cross day-to-day so much. We did have a fundraising project to work on though, and we started to get to know each other a bit better once we got going on that. We organised a sausage sizzle, put out swear jars, had a bake sale and put out ‘guess the lolly’ jars. Overall it was also nice to know that there were other people just as new and unsure about things as I was.

One Year In - Meet

Brandon Harris

t 22, Brandon Harris has been enrolled in the Frank Cardaci Traineeship Program since February 2016, recruited by Justin Kickett. “I’m doing a diesel mechanics course at TAFE,” he says, “It wasn’t what I expected if I’m honest. I thought I’d be working straight away on trucks but instead I’m looking after air brakes.” He’s enjoying the challenges and particularly enjoys being part of a “great team”, and says he now knows what to look out for. However, it’s not all been plain sailing. “I found learning around the job hard, trying to understand complex things, but I’ve overcome that and have such good support. Justin and CFC Group will really help build your career.” He’s enjoying the program to such an extent that he’s recommending it to friends. “I say to them that if they want to be a mechanic it gives you a lot of experience. I’m already working on bigger trucks and want to move up the ladder. I ask lots of questions, which I found hard at first, and my work ethic has really improved. It’s so worth it in the end.” Brandon says he’d be happy to work anywhere once he finishes his course, and starts his full apprenticeship. The future for Brandon is definitely bright thanks to the Frank Cardaci Traineeship Program. ◆

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GM What is the training program like? Do you feel supported and like you can ask for help if you need it? TF I’d describe it more like work experience rather than ‘training.’ In saying that, everyone in the program had a different experience because we were all working in completely different areas of the business. Personally, I found the program gave me flexibility in that I could draw on a number of different skills in the work I was doing and take the lead on how I wanted to tackle new projects. For example, one of the first things I did was research new equipment. It was almost completely up to me to figure out what was most important and what would make a real difference in the quality of videos we could produce. I definitely felt like I could ask questions – it was a necessity to ask a lot of questions because the videos needed input from people in quite a few different areas of the business. So, asking questions was essential to understanding what I was working on. I always felt like people would be willing to assist if I needed it.

ROAD READY Centurionâ€™s state-of-the-art tyre trailers photographed in Wubin, Western Australia.

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Opposite, Philip Cardaci and Joe Sanfilippo, who heads up Birchmead Property Group.

n much the same way as Frank and Carl identified opportunities connected to the Centurion line of business, they were quick to recognise that other opportunities, specifically in real estate and land ownership, could contribute to the success of the business. They believed it made more sense to buy land rather than pay rent, as long as they didn’t mind playing the long game. This was the beginning of what was to become the Birchmead Property Group. Joe Sanfilippo, who heads the Birchmead Property Group, has been involved with property and construction for over two and a half decades and, since 2014, has been identifying potential property development opportunities on behalf of Birchmead. “We’re driven in large part by the business requirements of the CFC Group entities, as they continue to expand and grow.” Joe says. Coincidently, Joe is a first generation Australian with strong family ties to Sinagra in Sicily like the Cardaci family. “The majority of Birchmead’s property assets are leased to CFC Group entities, in particular the Centurion logistics and CFC Distribution divisions of the Group. We understand that these companies require strategic locations to continue to provide a

high level of service to their clients, so we need to continue to identify these locations and constantly improve these sites,” says Joe. But Birchmead hasn’t only concentrated on the Group’s requirements. “In 1986 Frank and Carl identified a seemingly unattractive 25-hectare parcel of land in Bassendean. The land, known as Tonkin Park, had been subject to soil contamination as a result of historical industrial activity and now outdated work practices, a common enough situation in many areas. They purchased the land with the intention of remediating it over time, then subdividing and selling a portion whilst retaining the majority specifically to develop a new state-of-the-art facility for Centurion” says Joe. It was, at the time, a very innovative, risky and far-sighted move as the extent of the remediation process of the land was unknown and the sheer length of time it would take to achieve this discouraged other prospective investors. However, Frank and Carl were not discouraged and, in collaboration with environmental authorities and local government, set about the remediation of the soil by creating a containment cell to prevent further permeation of contaminants into the ground

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LOCAL HERO Above, Edith Cowan was one of Perth’s most important daughters, being the first Australian female member of Parliament.

Building Blocks

NEW DESIGNS Joe Sanfilippo of the Birchmead Property Group.

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The San Leone Story

n the 1950s and 60s a substantial proportion of the population of Sinagra migrated to Perth. Strong communities were established in places such as Kalamunda, which is geographically and agriculturally similar to the Sinagra landscape with rich fertile soils well suited to the cultivation of olives, fruit and nuts. A statue of the patron saint of Sinagra, San Leone, resides in the Kalamunda Catholic Church. The statue was brought to Perth many decades ago to symbolise the link to their past lives while they were establishing themselves within the local community, embracing the new life and opportunities Australia had to offer. The two cities’ strong connection is further recognised by the naming of a suburb in the City of Wanneroo, Sinagra, with the streets there named after common family surnames from the town. Conversely, in Sinagra there’s a monument to Perth, signifying its importance to the small Sicilian town.

water, capture these contaminants and dispose of them appropriately. “Treating soil is a laborious task requiring stringent environmental management and auditing,” says Joe. “In this instance, the soil was found to be acidic so by adding an alkaline product, such as lime, it has a neutralising effect. Other elements in the soil also needed treatment and remediating so that once unusable land can be put back into beneficial use. Frank and Carl knew that this was a long-term strategy and that it would be expensive, but they wanted to persevere.” “It was a risky move that paid off thanks to an upward trend in the Perth property market, just as they brought these new, remediated industrial lots to the market in early 2007,” he says. “If land prices hadn’t increased, the whole project could have been disastrous for the Group. Looking back, it was a turning point with positive results. But it’s still a work in progress with the containments cell now able to be remediated and the soil put to beneficial use.” Birchmead is already involved in its next long-term project, a 36-hectare former fertilizer manufacturing site in Bayswater which had been remediated by the previous landowner/operator, then subsequently

granted environmental approval of the land’s use as industrial/commercial. “The remediated land was purchased in collaboration with joint venture partners in this instance and is currently in the process of being subdivided as the Tonkin Highway Industrial Estate,” says Joe. “With our partners in this project, we have gone to great lengths over and above the remediation process. Our willingness to take on a challenging project of this nature, drawing on our collective past experiences and expertise is what sets this project apart from others in my view.” The knock-on effect of breathing new life into these once moribund sites is something Joe and the Birchmead Property Group is particularly driven by and proud of achieving. “The resultant community benefit is significant,” he says. “Where there are residential communities, businesses need to and will establish themselves and develop to provide employment opportunities and other community services nearby. Land which for decades was unusable can become part of a vibrant community once again.” Over three decades, Birchmead has built strong relationships with government bodies that recognise that by shouldering the risk and being willing to bet on the long-

The Edith Cowan Connection

n 1883 a building was built on lot number 50, 31 Malcolm Street. The Cowan family, including their son and daughter (Edith, who was born in Geraldton in 1861) took up residence, and their third child was born later that same year. Two more daughters were born in 1885 and 1891. In 1892, the Cowan house was demolished, giving way to a new house, with the front elevation of the house facing east which, at the time, had views to the Swan River and Perth Hills. The Cowan family of seven (plus one house maid) moved into the new house in July 1893. In 1919, the Cowan family sold 31 Malcolm Street, moving instead to 71 Malcolm Street. Just two years later, Edith became the first woman to be elected to any parliament in Australia. Seventy years later, Edith Cowan University bought the house at 71 Malcolm Street which was dismantled and re-erected on the ECU campus in Joondalup. Although 31 Malcolm Street has lost many of its original features, it still

retains characteristics of the Victorian Rustic Gothic style, echoes of the past still present today that are worth preserving. In addition to being closely associated with Edith Cowan and in turn, her husband James, when the couple lived in the house, there is also an association with Rose and Josiah Skinner. An additional building was added in 1958, and the pair established the Skinner Gallery, an artistic hot spot which encouraged and promoted modern Australian art in the late 1950s and 60s. It was in fact one of the first purpose-designed and built privately run art galleries in Australia, and the first in WA. The remaining house which is forming the entrance to Birchmead Property’s plans for a luxury residential development is the house that replaced the Cowan’s original home on lot number 50 (31 Malcolm Street). Now that it has been listed with the Heritage Council, work will begin to bring the sadly dilapidated building up to something approaching its former glory.

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term rejuvenation of sites such as these, Birchmead is providing ongoing value to the greater community. “There are many regional buildings and it’s important for the Group that we continue to invest in these townships. Towns such as Carnarvon, Port Hedland, Karratha and Kalgoorlie for example, where we are re-establishing new premises for Centurion. This planned construction will create new jobs for the local community by using local suppliers and trades during the construction phase,” says Joe. Birchmead Property Group isn’t restricting its horizons to Western Australia only. Projects in Queensland and New South Wales are underway including a major new distribution warehouse and dealership facility in Sydney for the CFC Distribution division of construction machinery, plant and equipment. In addition to projects such as these, Birchmead is also in the process of redeveloping a prestigious historic site, creating a new luxurious residential address in the heart of Perth. “We submitted a development application to redevelop a site which contained the original residence of Edith Cowan,” says Joe. “The site became subject to a heritage listing after our initial redevelopment proposal was submitted to the City of Perth and subsequently rejected. This government interjection didn’t deter us from our ambitions to develop the site but instead we were buoyed and excited at the opportunity to preserve a significant part of Australian history. We set about working with the Heritage Council, the City of Perth and the Western Australian Planning Commission to indefinitely preserve Edith’s house.” With such an iconic focal point at its heart, the development will comprise exclusive residential apartments, with Edith Cowan’s house incorporated into the entrance to the tower. The $30 million project will be a fitting testament to such an important part of West Australian history. “Birchmead originated from the vision of Frank and Carl, a brave decision to make,” says Joe. “On those foundations the Group looks to the future with optimism.” ◆

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The Good Gardener employment, and more about building careers and long-term paths for families.” The future, Philip believes, is about understanding how young people work and view work, that success lies in engaging young workers and responding to diversity within the Group. “Young people are more project-focused, and we are recognising and understanding what that means,” he says. If the young people of the CFC Group are creating a new horizon for the business, then the board members that Philip has put in place are an important component in ensuring that horizon is delivered in a stable, orderly fashion. “I’m very focused on putting the right boards in place for each of the businesses,” he says. “We aren’t looking to the next quarter – we’re looking much longer term, and I expect my CEOs to be doing the same. I want them to see the strategies they’ve put in place executed.” The flat management structures in place are also a strong foundation upon which CFC Group rests, allowing each arm of the

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here’s a book on Philip Cardaci’s desk which speaks volumes about the kind of company and culture he and Marc have created. It’s a bestseller, Good To Great by Jim Collins, a tome that charts why some companies make the leap from good to great, and why some don’t. It appeals to Philip in particular because of its scientific (rather than emotional) approach to analysing leadership traits, and there’s a key message in its pages, written in the ’90s, which still rings true. “When you combine a culture of discipline with an ethic of entrepreneurship, you get the magical alchemy of great results,” it reads. It’s a phrase which could be the CFC Group’s motto and is central to Philip’s vision of a successful future for the group of companies he and Marc have nurtured and grown over the years since the baton was passed on from Frank and Carl. “Our business is about people, and how we continue to engage with employees and customers,” he says. “Our aim is long-term

When you combine a culture of discipline with an ethic of entrepreneurship, you get the magical alchemy of great results . . . ~ Jim Collins, author of Good To Great

business to set in place strategies for longterm success. The mix of leadership styles among the CEOs is no quirk of fate; Philip has chosen leaders who may display traits which complement others within the Group, a healthy combination of innovation and execution. “A successful company has a combination of entrepreneurship, leadership, innovation and execution,” he says. “You can have entrepreneurs who are terrible executors. Ultimately you need the leader to execute

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entrepreneurial innovations. If you have a mix of all those characteristics, then that’s the ideal. “My job is to ensure we have a balance between those abilities at CEO level.” Fifty years ago, the situation wasn’t quite so clear cut. Frank’s strategic mindset coloured him as the entrepreneur and executor of the two brothers, while Carl was a strong executor in the sales arena. He was also an innovator when it came to dealing with customers, but they ultimately needed each other to make it work.

“Frank knew where they needed to go but not how to get there, and Carl too, up to a point,” Philip says. “When Marc and I joined the business, we had strengths which could take the business forward. Marc was a true leader with vision. He had the enormous responsibility of getting Centurion back on track while I was tasked with starting something from scratch, and created my own blueprint.” It was an ideal mix of skillsets, with Philip able to use Marc to bounce ideas off, helping each other see solutions which otherwise may have remained elusive. Nowadays, the addition of board members with perspective from outside the CFC Group is an invaluable asset for Philip. Hamish Williams (ex-AHG CFO) and Tony Monisse (accountant) are Philip’s sounding boards for success. “Hamish understands how big public companies work and also understands distribution and transport issues, while

NO PROJECT TOO LARGE This page, A Centurion truck and specialised trailer transport a Cape excavator purchased from JCB CEA, an example of the Group businesses combining to deliver. Opposite, Philip and Carl, 2018.

“We’ve never forgotten our humility, where we came from. You won’t find any brass name plaques on parking spaces and our boardroom overlooks the operations floor, not the river. It’s those kind of values which are important and lived every day by every level of employee,” says Philip. To thrive in a competitive environment, it’s not enough to provide a nurturing, family-like place to work. Under Philip’s leadership, the Group has a steely-edged determination to become a world leader. “We need to think of ourselves in terms of being the world’s best at whatever we choose to do – and yes, that’s a very high bar,” he says. “If we can’t be the best, should we be in that business? Could we be the best logistics provider in the world? We could, and that comes down to knowing what our economic drivers are and sticking to that, not becoming distracted by other opportunities which may deliver in the short-term but then fizzle out.” This book, says Philip, provides a snapshot of the present, with an eye to the past and a glimpse of the future. “We are proud of what we’ve contributed

to WA and Australia, that we’ve made a difference and a positive impact on communities and families. I look back at Centurion and how we refused to play the game and join a cartel. We broke them instead and changed the face of logistics and distribution as a result. “I like people to remember my brother Marc in a positive light,” says Philip. “He made a real change and sacrificed so much. He put Centurion on the right path and, like me, wanted to leave the business for future generations in a tidy fashion, wellrun and secure. No matter who’s involved in the future, it is our intention to leave a world-class Group that has continued opportunities to grow.” Just like his father, Frank, Philip sees his role as that of a good gardener, nurturing growth and future shoots. That careful guardianship includes growing the board with industry experience where relevant. “Let’s judge success by what we do today, not what we did yesterday or will do tomorrow,” he says. “The present is today’s reality but we have our eyes fixed on the horizon.” ◆

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Tony knew Marc, witnessed the tough times we’ve endured and understands where we’ve come from,” Philip says. Acquisitions will remain part of CFC Group’s future, with 18 already completed in recent years. “From my point of view, acquisitions will continue to be a part of the picture,” Philip says. “They’ll mostly be bolt-on acquisitions but will all be taken on to improve the business overall.” Although the Cardaci name appears more than once within the Group’s roster of directors, Philip is determined that the Group isn’t defined as a family business. “I don’t consider us a family business, but I do embrace the concept of family values. A sense of entitlement isn’t present with family members who may want to work in the Group; in fact, if you’re family, you have to work twice as hard. Everybody who works in the Group is there by merit.” For a non-family business, it’s surprising how often employees say that the Group feels like one, a fact that’s largely due to the RIPPA values at the heart of its culture.

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Frank Cardaci 1937 ~ 2014

went from strength to strength. As Frank’s obituary read: “He lived by strong values which are still operating within the businesses today. Some of Frank’s customers and co-workers became his best friends, and his legendary lunch and dinner functions were open to all staff, customers and friends. His passion for only the best food, in excess quantities, always made sure that no one was left wanting.” This largesse extended to other, unexpected areas too. Instead of an industrial yard looking utilitarian and bare, Frank spent hours beautifying work spaces, his talented green fingers transforming barren beds into spectacular bursts of colour. Gardening provided him with more than a creative outlook; as he tended his blooms, it gave Frank time to figure out solutions to knotty problems. In later life, he took his love of the land to new levels, with a 3,000-strong olive tree plantation on his own wheat and vegetable farm. Friendship to Frank, says the obituary, was unconditional, and family was the most important thing above all. Perhaps his greatest success story however was his marriage. He did indeed choose well when he asked Grace to be his wife. She stood by Frank’s side for nearly half a century, raising their children often mostly alone, and providing her husband with the stability and love he needed to build one of the country’s most successful companies. ◆

125 IN MEMORIAM // FRANK CARDACI

rank Cardaci’s legacy is hard to underestimate, not just in terms of what he created with his brother Carl during a long and productive working life, but also in terms of what he left behind personally. A beloved husband to Grace, father to Philip, Marc and Angela, and grandfather to six grandchildren, Frank was so much more than the co-founder of the CFC Group. Arriving in Australia as a 17-year-old, having missed out on so many years with his father Leone, who had gone ahead to try to forge a new future for his family, Frank’s work ethic from the very start was extremely strong. Perhaps this was because his mother Angelina instilled in him some tough, early lessons, left behind as she was to raise two boys in rural Sicily. As a result, he tried his hand at many roles, from cook to fruit and veg merchant, before settling on his true talent: wheeling and dealing. Fifty years ago in 1968, Frank and Carl bought their first truck, a purchase which was to shape not only the Cardaci family’s fortunes in ways that would have been unimaginable in those days, but also a move that would change the transportation industry landscape forever. Centurion was born, and over the years morphed into something so much more than the sum of its parts. As Frank and Carl began to step back from the business, and Philip and Marc took hold of the reins alongside their trusted team, the CFC Group

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Marc Cardaci 1966 ~ 2015

Many colleagues recall with admiration how Marc continued to turn up for work despite such tough conditions. It was a tenacity which he had inherited from his grandfather Leone, and his father and mother, Frank and Grace. His interest in technological innovations would be a key part of Centurion’s future success, as he identified new ways to improve safety and customer-centric solutions for the company. A move to Melbourne presented Marc with a new set of challenges in 2003, uplifting him from all that was familiar but once again, after a period of adjustment, he began to excel, found happiness and professional success. Just 10 years later, it became apparent that life-long health issues had turned sinister, and as the prognosis turned grim, Marc returned to Perth and his family’s arms. Tragedy stalked the family; Frank died in 2014 and Grace followed soon afterwards. Marc succumbed in November 2015, leaving behind his brother Philip and sister Angela, and a gaping hole in the entire CFC Group family. Just like his father, Marc has left a legacy that extends beyond his immediate family; and, through the CFC Group, his vision and dedication to creating a long-lasting business that benefits the nation continues to this day. ◆

127 IN MEMORIAM // MARC CARDACI

hen Marc Cardaci followed his brother Philip into the CFC Group in 1991, he couldn’t have known quite what a challenge the task ahead of him would be. He was given an unenviable role; to reinvigorate a moribund arm of the business, rebuilding and creating a new network of contacts and clients almost from scratch. Fortunately he was built of stern stuff and rose to that challenge admirably. An economist and measured man by nature, he knew at least one thing; his brother Philip would be on the end of the phone on a daily basis offering advice and a listening ear when things got tough. The relationship of the two brothers became the CFC Group’s secret weapon - their ability to brainstorm and create solutions a real bonus for an industry that demanded a steep learning curve from the two men. At such a young age, Marc approached his new role as head of Centurion in the same way he approached life - with vigour and a good-natured optimism. The company may have been in trouble, but as Philip said: “Marc walked into the fire.” His gift for analysis gave him insight into the workings of the company, unpacking each element and establishing where costs could be contained, where opportunities lay and how the organisation as a whole could be stabilised.

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C H A P T E R 1 / / B A N D O F B R OT H E R S

BEYOND THE HORIZON 50 YEARS OF THE CFC GROUP From the Cardaci family’s humble beginnings in Sicily in the 1940s to the present day’s highly respected national company, Beyond The Horizon tells the story of the CFC Group’s incredible road to success.

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CFC GROUP CELEBRATING 50 YEARS OF CONTINUED SERVICE