McAleese Limited (ASX:MCS)
has announced its Cootes Transport subsidiary has lost a national fuel transportation contract with BP.
The contract is just one of many the transportation company has relinquished since a fatal crash involving one of its fuel tankers on Mona Vale Rd in Sydney. Since the crash Cootes Transport has been subject to random safety checks and has regularly proved to be non-compliant with hundreds of defect notices issued to the company.
The Financial Review is reporting that NSW Roads Minister Duncan Gay has given Cootes Transport two weeks to ‘show cause’ why it should be allowed to operate on NSW roads.
McAleese is in the process of restructuring and says it will significantly reduce its fleet and operations in NSW.
The company’s shares closed at a record low of 56 cents on Thursday, significantly down from its initial float price of $1.47 just last November.
McAleese Limited reported a net loss of $38 million to December 31, 2013