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Briefcase: Business snippets from around SA

In this week’s briefcase, Kelsian sells off its major London bus business, Adelaide company Fleet Space launches its seventh satellite and SA’s tourism industry conference returns after a two-year absence.

May 30, 2022, updated May 30, 2022
A London SeaLink bus in Trafalgar Square. Picture: Stefano Broli

A London SeaLink bus in Trafalgar Square. Picture: Stefano Broli

Kelsian sells off London bus service

Adelaide-headquartered transport company Kelsian has sold its East London bus operations for $35 million.

The company, known as SeaLink until last year, entered into binding agreements on May 27 with Stagecoach Bus Holdings to sell its East London public bus transport service operations at Lea Interchange, for a total consideration of £20 million ($35 million).

The divestment includes 11 route contracts, about 500 bus and depot staff, the lease of the Lea Interchange depot site and 150 buses.

Half of the $35 million will be paid at the finalisation of the agreement next month with a further £1 million per annum for 10 years.

Kelsian said it would continue to participate in the London bus market via its 12.5 per cent stake in the RATP Dev Transit London joint venture in the western region of London and its ongoing 100 per cent freehold interest in the Westbourne Park bus depot.

Based in Adelaide, Kelsian is Australia’s largest land and marine transport service provider and tourism operator.

The company, which changed its name from SeaLink Travel Group last October to better reflect the changing nature of its business, increased its revenue in the six months to December 31 to $649 million, up from $570 million the previous year.

Kelsian is an anagram of SeaLink, which it says was a factor in the name choice to reflect the company’s history that began in 1989 with the operation of one ferry to Kangaroo Island.

In January 2020, the company acquired Transit Systems Group for $635 million, Australia’s largest private operator of public bus networks, with established operations in London and Singapore.

Business SA welcomes $100m recovery fund ahead of State Budget

Business SA has applauded the Malinauskas Government’s decision to launch a $100 million “Economic Recovery Fund” for South Australian businesses.

The pre-budget announcement from Treasurer Stephen Mullighan last Thursday will see the State Government issue $100 million worth of grants to local businesses over the next four years.

The funding is an additional $90 million on top of the $10 million already in place for the Manufacturing Innovation Grants Program. Businesses will be invited to apply against a set of criteria.

“It’s absolutely essential that the Malinauskas Labor Government sends a message to the business community that we want to work with them, we want to help them to lock in long-term, sustainable economic growth,” Mullighan told reporters on Thursday.

“And having a fund like this … recognises some of the difficulties that particular industries like tourism, hospitality, manufacturing have had over the last two years.”

Mullighan also announced last week the State Government will be re-establishing investment attraction agency InvestSA to identify opportunities for “long-term, strategic industry growth” and selling South Australia’s credentials nationally and internationally.

The agency will cost $4.2 million over four years.

The pre-budget announcements got the tick of approval from the state’s chamber of commerce.

“This announcement shows that Premier Malinauskas understands the South Australian business community has borne the financial brunt of this pandemic. It will take some time for many business operators to get back to pre-pandemic levels,” outgoing Business SA CEO Martin Haese said in a statement.

“As the Economic Recovery Fund will run over several years, this is even better news for those businesses who need the extra time to get to the point of looking at growth again.

“It also tempers the influx of government stimulus to an already hot economy with rising inflation and higher interest rates.”

Mullighan will hand down his first State Budget on Thursday, June 2.

SA products to get Japan e-commerce page

Japanese e-commerce giant Rakuten has agreed to sell more than 400 additional South Australian food and beverage products in a new partnership with the State Government.

The online retailer, which is second only to Amazon with a 27 per cent share of Japan’s e-commerce sector, will launch a dedicated South Australian products page on June 3.

Nine new South Australian businesses have taken the opportunity to feature on Rakuten, according to the Department of Trade and Investment, with the companies exporting products ranging from honey, sweets, pet food, beer, gin and wine.

Minister for Trade and Investment Nick Champion said the partnership would increase the number of South Australian products featured on Rakuten to around 2500.

“Along with a first-mover advantage on Japan’s premium e-commerce platform, we are seeking to establish our own unique footprint in the Japanese market,” Champion told parliament on May 18.

“This initiative will … provide additional support and exposure to over 70 companies already in market, including over 50 wineries, from small Adelaide Hills producers like BK Wines and Jauma to iconic names such as D’Arenberg, Henschke and Penfolds.

“South Australia will be the first Australian jurisdiction with a standalone designated page that showcases the very best of our state’s premium wine, beer, gin, honey, almonds, seafood, sweets, spreads and pet food, along with fashion and beauty products.

“With that increase comes an anticipation that this initiative will yield an increase in the value of our export sales into the Japanese market.”

Japan is currently South Australia’s fifth biggest export market, according to Champion, with an export value of just under $700 million a year.

Adelaide craft gin distillery Prohibition Liquor was among those to take up the new export opportunity.

CEO Wes Heddles said the e-commerce platform was the most logical option to enter the Japanese export market.

“We saw Rakuten as the most premium opportunity to launch into Japan as a sophisticated alcohol market and then use the sales data as market research to present our range to more traditional retailers; bars, bottle shops and restaurants, knowing what products are most popular,” he said.

Rakuten’s e-commerce platform boasts more than 111 million Japanese users, while the Rakuten Group has more than 1.6 billion global members.

Tourism state conference resumes

The South Australian Tourism Conference will return tomorrow after a two-year hiatus due to the coronavirus pandemic, which has crippled some parts of the industry while providing a boost for other segments.

The one-day conference at the Adelaide Festival Centre is titled “The Art of Tourism” and aims to highlight the strong connection between arts, culture, and tourism in South Australia.

Delivered by the Tourism Industry Council South Australia (TiCSA), the conference is the state’s preeminent annual networking and professional development event for the tourism sector and broader visitor economy.

TiCSA’s Chief Executive Officer Shaun de Bruyn said tomorrow’s conference was highly anticipated following a two-year absence.

“The tourism industry is eager for the chance to convene, collaborate and connect,” he said.

The 2022 program features renowned keynote speakers from around the country, including Tara Howell, creator of acclaimed projects Blue Derby Pods Ride and Change Overnight, 2020 Australian of the Year Dr James Muecke, and retail consultant and former director of LUSH Australia & New Zealand Peta Granger.

Tourism Minister Zoe Bettison will open the conference.

“Tourism is a key driver of South Australia’s economy and creates thousands of jobs for locals – the return of this major industry conference is a strong indication that we are on the path to recovery in the industry,” she said.

Adelaide company uses SpaceX rocket to launch seventh satellite

Fleet’s Centauri 5 satellite.

Adelaide company Fleet Space has launched its seventh satellite, this time using a Space X Falcon 9 launch vehicle to propel its 3D printed Centauri 5 satellite into orbit.

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The launch took place from Cape Canaveral, Florida, on Wednesday morning.

The Transporter 5 mission launched 59 small payloads, including Fleet’s satellite, for customers around the world.

The Centauri 5 is Fleet’s seventh satellite in space.

The 6U sized microsat with a total weight of 12kg, produced using 3D printing technology, aims to add capacity, reduce signal delay and provide additional network redundancy in existing in the company’s six-strong Centauri smallsat constellation.

It was the western suburbs company’s third launch with SpaceX, following the successful deployment of Centauri 4 on the Transporter 2 mission in June 2021.

Centauri 5 has been placed in low earth orbit (LEO) at an expected altitude of some 530km (330 miles), with Fleet announcing over the weekend on social media that it had made contact with its satellite from the company’s ground station in the Barossa.

Fleet’s nanosatellites are combined with ground-based networks, providing industries a cost-effective way to access information from their IoT-enabled devices where cellular networks are unavailable.

3D printing technology was used in the construction of the satellite’s patch antenna.

Fleet says the technology will feed into the development of its forthcoming fully 3D printed micro Alpha constellation, scheduled for launch during 2023.

The company says the two systems will provide continuous coverage, data rates up to 520 kbps and tailored frequency bands servicing current and future generations of IoT devices.

“This latest launch will see us put our pioneering Centauri micro satellite into low-earth orbit. It’s both a landmark technical achievement, and another significant milestone on our journey, which has seen us grow from promising start-up to a world-leading space technology company in just four years,” Fleet Space Technologies CEO and Founder Flavia Tata Nardini said.

Food SA Awards on hunt for top producers

Entries have opened for the South Australian Premier’s Food and Beverage Industry Awards across 14 categories.

The awards, run by the state’s peak body for the food and beverage industry, Food SA, aim to recognise excellence, leadership, vision, and innovation.

The categories include Business Excellence, Emerging Business, Export, Innovation in Business, Innovation in Food/Beverage, Mental Health and Wellbeing and Sustainability, New Product, Primary Producer and Service Provider.

Individual award categories include Leader and Next Generation awards along with industry nominated award categories featuring an Education & Training Award and Hall of Fame inductees.

Entries opened this month and close on July 4. Consumer voting across some categories on July 11 and close on September 19 with all award winners announced at a gala dinner on November 11.

Food South Australia CEO Catherine Sayer said entering the awards opened up a range of opportunities for businesses, such as the Retail Ready Program, represent valuable practical benefits for food and beverage businesses.

She said access to the program, presented in partnership with Foodland Supermarkets, was a key reason for many businesses entering the awards last year.

“The feedback we received indicated participants with established relationships with Foodland were using the opportunity for professional development for their staff, while newer businesses embarking on the complex process of entering the all-important retail channel are provided with practical guidance on what’s required to pitch to retailers and get their products retail ready,” Sayer said.

“There are also around 30 industry experts involved in judging the award categories each year, and shortlisted candidates are provided with their feedback as part of the judging process.”

Click here to enter .

Ag forum to build drought resilience

A national forum aimed at boosting South Australia’s drought preparedness and resilience will be held at the University of Adelaide’s Roseworthy campus next week.

The Australian Government’s Future Drought Fund Science to Practice Forum from June 7-9 – to be live-streamed across Australia – will showcase activities and innovations to prepare the state for future droughts.

The South Australian Drought Resilience Adoption and Innovation Hub will provide an opportunity for industry participants to engage in the Forum at the Hub’s headquarters at the University of Adelaide’s Roseworthy campus on Tuesday, June 7 and Wednesday,  June 8.

This will be followed by a field trip on June 9 to visit relevant sites in the Mid North and Barossa Valley, including EzyBale at Freeling where hay and fodder production within a drought context will be the focus.

Other sites to be visited include Turretfield Research Centre and Pindarie Winery where the soil and production benefits from the use of mulch and compost in vineyards will be outlined.

SA Drought Hub Director Dr Stephen Lee said the three days of activities in SA to coincide with the national Science to Practice Forum provide a unique opportunity for South Australians to come together to learn about the various initiatives being undertaken nationally and within SA to prepare for drought.

“A large suite of projects and activities are now underway through the Future Drought Fund – many with SA Drought Hub involvement and support – to strengthen the drought resilience of our farmers and regional communities,” he said.

“The Science to Practice Forum and our Hub’s associated events will provide a comprehensive insight into the work being done and a chance to discuss those initiatives and their impact with the SA Hub team and its many partners who are leading on-the-ground projects.”

Led by the University of Adelaide in partnership with the Department of Primary Industries and Regions (PIRSA), the SA Drought Hub is one of eight hubs established across the nation in 2021 through the Australian Government’s Future Drought Fund.

The forum, including the field trip, are free of charge and catering will be provided.

Register here for any of the three days of SA Drought Hub activities.

Registration is essential as numbers are limited. SA Health COVID-19 requirements will apply to this event.

Those who are unable to attend the in-person events at Roseworthy but wish to join the Forum online can do so by registering here.

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