Lae-based company bags auction contract

 A Lae business fought off international competition to win the asset distribution contract for the PNG LNG project, PNG Industry News reports.

HBS has been tasked with selling and redistributing millions of dollars of equipment now surplus to requirements following the conclusion of construction work on the PNG LNG project in Papua New Guinea.

The company, which began business in May 2006 as a distributor for brands, including Hyundai and John Deer, had expanded to provide an asset distribution service to the worldwide resources, building, civil and construction markets.

A HBS spokesman told PNG report the company negotiated for this contract against international competition.

“It’s the biggest contract of this nature ever written in Papua New Guinea, particularly to a private company. We’re delighted to secure this contract.

“Our competitors were the major auctioneering groups such as Ritchie Brothers that do world-wide auctions of major items of equipment.

“We were able to demonstrate to the client that there was a viable market for a fair percentage of the equipment to stay in Papua New Guinea.

“And that was the simplest and easiest way for the client to maximise results.

“None of the auction houses would want to keep the machinery on show. They would just put it all on a boat, and all the work associated with cleaning and marketing would be done in another country.

“We were able to convince the client that we could broker the equipment directly with customers that we were already dealing with all over the world, and could maximise their return by using our contacts to get the best available price.

“We knew we could reduce the volume that needed to be shipped because there was already a market for a fair percentage of the equipment onshore.”

The contract extends to more than 2000 lines of equipment, ranging from Caterpillar dozers to generators and smaller items of less than five tonnes.