JERSEY Post has sold its freight carrier Woodside Logistics back to its original owner.
The taxpayer-owned postal authority announced its intention to buy Woodside Logistics in January 2021, saying that the acquisition was a “new strategic opportunity” which would also bring “increased competition, greater choice and an enhanced freight service for our valued local customers”.
The sale was approved by the competition regulator a month later.
Commenting on the recent disposal, which went through on 1 September, a Jersey Post spokesperson said: “The sale of Woodside Logistics, the Channel Islands’ freight carrier, will allow Jersey Post to invest in our core business while still getting access to competitive shipping rates and better service.
“It will also allow Woodside Logistics to raise the capital they need to invest and compete more effectively in the market. Having a stronger postal business and a better-invested freight operator will be better for Jersey.”
They added: “Jersey Post remains committed to being the best postal and delivery service in the Island, connecting Islanders and local businesses to friends, families, and other businesses on and off Jersey.”
Mark Siviter, Chief Executive Officer of Jersey Post added: “The sale of Woodside Logistics is good for Woodside, good for Jersey Post and most of all good for Jersey.
“Woodside Logistics will be able to invest in their business, while Jersey Post can focus on our core business, while still getting access to competitive shipping rates and good service levels.’
Woodside Logistics’ Managing Director Charles Gallichan said: “As cross-Channel and Island shipping specialists, Woodside Logistics plays a crucial role in Jersey’s supply chain resilience.
“Being independent will allow us to compete more effectively in the market, be more agile and be able to invest into the business. We remain committed to providing the best service to Jersey Post and all our customers.”
Last year, Jersey Post made a pre-tax loss £2.1m, while sales fell 2% to just over £81m.
In Jersey Post’s annual report for last year, Mr Siviter wrote: “Through 2024, there was significant focus on improving Woodside’s operational standardisation and cost efficiency, although ferry services have been a material consideration through the year with poor reliability and opaque charges complicating efforts to improve the bottom line.
“The group’s UK freight businesses were a major area of focus delivering a significantly negative financial performance. Organisationally, it was one area of the business where little integration had taken place since the component businesses were acquired.
“Significant effort has been invested in integrating Jersey Post’s UK subsidiaries and Woodside UK management structures into one, developing a comprehensive property plan rationalising the number of operational sites, and refocusing on profitable service lines.”
Recently, Economic Development Minister Kirsten Morel said that ferry operator DFDS’s flat rate card would help to “shine a light” on “a very obscure and untransparent part of Jersey’s economy” – meaning the freight logistics sector.
Woodside Logistics was established in 2015 by the Trinity-based Woodside Farms, which is owned by Mr Gallichan and his family.
