Lifting Solutions - BOOM Logisticstransported about 500 m. to cranes for lifting into position. This enabled sets of girders and spans to be erected in a single closure,” explained

BOOM acquires Sherrin Hire.A huge lift in services, and now there’s

a one-stop-shop for customers.

Contractors requiring lifting servicesnow have available to them adramatically expanded range of hire

equipment from Boom Logistics. In short,Boom has become a one-stop-shop for cranesand other lifting equipment, to lift eitherpersonnel or products and materials to aboveground work sites.

Sherrin Hire’s equipment is seen on many sites including construction sites, in themaintenance, engineering and industrialsectors, as well as with utilities such

as those involved in power reticulation and telecommunications.

Travel Towers are an important part of theSherrin Hire business. In this sector SherrinHire is clearly the most popular provider ofTravel Towers across Australia. Cont. page 5.

A Travel Tower, one of the major items ofequipment in the Sherrin Hire fleet - around 80% ofthe market turns to Sherrin Hire for Travel Towers.Pictured with the Travel Tower is Mr. Mike Sherrin

who sold his business to Boom Logistics.

Lift and carry service creates advantagesforWestlink M7 contractor.

Australia’s largest infrastructure project, thehuge Westlink M7 40 km. tollway, servicingouter Sydney presented an additionalopportunity for Boom to deliver some specialbenefits to the Abigroup Leighton joint venture.

Boom were able to offer a ‘total solution’ witha carry and lift service for the deck units andgirders required for the majority of the thirtyeight over and under passes as well as fortysix bridges.

“Because we could offer both a transport and alifting service, we were able to offeradvantages to the joint venture contractor,”said Nick Morris, Project Engineer at the timewith Boom Logistics. Cont. page 2.

Boom supplied cranes and girder / decking transportequipment for Sydney’s Westlink M7 tollway

construction - Australia’s biggest infrastructure project.

What’s inside

CEO’s column Page 2

Meet Stan Kemsley,International Power Page 4

Two new directors Page 6

Outstanding record on delivering safety Page 3

Sherrin Hire equipment range Page 5

Financial analysts and share market give strong approval of Boom Page 6

BOOMis ready for Australia’shuge infrastructure programme.

LiftingSolutionsThe newsletter of BOOM Logistics. Ph: 1300 36 2666

1

A Certificate of Metit has just been awarded toBoom Logistics at the annual Crane IndustryCouncil of Australia conference.

Accepting the award on behalf of Boom, NickMorris, Operations Manager Central Queenslandand Safety manager for Queensland said the liftinvolved a lot of innovative thinking.

Boom was given the task of transporting 28large fermenter tanks from a distant wharf to the

site, 50km south of Brisbane.

Each tank had to be lifted and then carefullylowered down through holes in a concrete slab,suspended 5m. above the ground. Six of theholes were beyond the SWL of Boom’s 330tonne crane.

This required a 400 tonne hydraulic jackingsystem to move and suspend the mobile craneover the slab.

Merit Award for a lift by BOOM.

CEO’sColumnby Rod Harmon

Since our last newsletter, we haveimproved further by expanding ourgeographical base and range of services

in the Bowen Basin Queensland, Port HedlandWestern Australia and Newcastle New SouthWales. We have also acquired Sherrin Hire anational provider of Travel Towers, accessequipment, material handlers, generators andlighting plant as part of our growth strategy.

With this expansion there will be additionalbenefits. Here are three:

Firstly, greater efficiency for our customers.When our customers need to find liftingsolutions for products or personnel, we cannow provide a far broader range of optionswith mobile cranes (up to 400 tonne capacity),tower cranes, travel towers and a variety ofelevating work platforms and boom lifts. It’s aone-stop-shop for lifting solutions for our customers.

Secondly, the convenience factor for ourcustomers. What was a network of 23 depotsacross Australia is now a network of 47 depots.It’s all part of locating depots to best match ourcustomers needs.

And, thirdly, increased safety standards. Therehave been further major advances in our safetystandards with a 51% improvement in ourlatest LTIF rating (Lost Time InjuryFrequency). In achieving this further majorimprovement we have continued to implementmore robust standards and procedures acrossour Australia wide network.

For the analysts in the financial markets we arealso delivering improved value.

We include in this issue of our newsletter areport from financial analyst, Mr Chris Sleep,of ABN Amro (one of Australia’s largestsharebrokers), together with a chart showingthe company’s share price. Both reportpositively on Boom.

From an operational point-of-view thecompany has nearly doubled in size. Staff,with the Sherrin Hire acquisition, hasincreased from 663 to 1013. The crane fleet isnow over 400, the largest in Australia and theSherrin Hire lifting equipment (excludingmobile cranes) exceeds 2,000 units.

We are maintaining localised management and are focused on delivering value to our customers.

With this disciplined expansion in our productrange and services, as well as financialmanagement, what will remain, is a clear focuson safety, reliability and service quality.

I also want to take this opportunity to welcomeSherrin Hire, to Boom Logistics.

Lift and carry service (Continued from page 1.)

“We were able to have our jinkers loadedexactly how we needed them on-site ... andloaded to a time schedule that suited deliveryat the site,” he added.

This translated to economies, efficiencies andbenefits for the joint venture contractor.

For Boom, whilst it was a matter of taking onextra risk, it was also a risk that could bemanaged by controlling the outcome.

“The largest girders were 76 tonnes ... andtransported, one per night, from Teralba (nearNewcastle) and stockpiled near bridge sites.

“During the erection outage, on the rail line,girders were reloaded onto trucks andtransported about 500 m. to cranes for liftinginto position. This enabled sets of girders andspans to be erected in a single closure,”explained Nick.

The transport, pre-positioning and final lift -the total solution for Abigroup Leighton JointVenture was the key to the extra benefits.

Special low profileprime mover enablesextra efficiency for

j.v. contractor.

One of Boom’s special low profile prime moversenabled Boom to deliver benefits to the j.v.

construction contractor, when both transportingand lifting girders into position.

“They represent some outstanding advantagesand economies for our customers whorequire the transporting of long girders,”concluded Nick.

Signing off on$67 million.

Yes, it’s easy, when you get everything right !Boom shareholders approved the raising of$67 m. at an Extraordinary General Meeting,in August 05, to cover the acquisition ofSherrin Hire and provide some additionalworking capital as well as capital for possiblefurther acquisitions, should opportunitiesemerge. All motions put forward by thedirectors were approved.

Photo above: Chairman, Mr. John Robinson, callson shareholders present to vote on the raising ofadditional capital, approved without hesitation.

Photo below: Executive Assistant, at Head Office,Sabrina Rogic, helping CEO Rod Harmon, present

his Power Point presentation for shareholders.

The large fleet ofequipment supplied.

For the huge Westlink M7 project, Boom wasable to supply the cranes and transportequipment for the 18 month duration.

Primary cranes:- A 140 tonne All Terrain.- A 50 tonne truck crane.- A 100 tonne crawler crane.

Support cranes:- A 80 tonne All Terrain- A 140 tonne All Terrain.- A 200 tonne All Terrain.- A 300 tonne All Terrain.- A 50 tonne crawler.

Cranes on hire from others:- A 140 tonne All Terrain.- A 300 tonne All Terrain.- A 200 tonne All Terrain.- A 400 tonne All Terrain.

Transport equipment:- Jinkers and dollys.- Prime movers.- Two low profile prime movers.

2

A low profile design enables these specialprime movers to be positioned under the load.The shorter overall length enabled muchimproved and speedier manoeuvrability intight conditions.

It’s a design that translated to quickertransport times, less hours and a moreeconomic outcome for the j.v. contractor.

Adapted form a CLR Mack chassis andpowered by a 210 hp engine, each primemover is rated for an 81 tonne load.

The two prime movers were developed by LesHolt and built at Boom’s Toowoomba depot.

They can be driven from the low slung cab.

Boom upgrades itsQueensland operations

As part of a major development of ourQueensland infrastructure we haverelocated our Queensland State Office

and Brisbane North depot offices, trainingfacilities, workshops and yards ... as well asthe crane fleet.

The new facility is located at the cnr. CurtinAve. East, and Savage St., Eagle Farm.

“One of the enhancements is the improvedand larger workshop facilities. We will beable to accommodate more cranes at the onetime, thus accelerating the speed at whichcranes can be scheduled through their routinemaintenance and servicing,” said RodHarmon.

“In short, the outcome is more units out in thefield servicing customers,” he added.

This major commitment to improving theefficiency of the Brisbane depot follows soonafter an investment of almost $10 million innew cranes for the Queensland fleet in thisfinancial year alone.

Eighteen additional cranes were added to anexisting fleet of 38 cranes in the CentralQueensland / Bowen Basin region, to service

the open cut coal mining facilities.

Three of the additional cranes deployed intothe region have lift capacities in the 200tonne class and are fitted with 60m. livebooms plus swing around fly jibs.

For one customer in particular, oursuggestions for improved lifting techniquescombined with these significant fleetincreases made efficiency based savingspossible. In this case it was for BMA (theBHP Billiton-Mitsubishi Alliance). Our additional cranes meant savings with improved access to the boom tips on their draglines.

Prior to the arrival of the new cranes in suchnumbers, with their new technology, BMA,when accessing dragline booms often carriedout the work with the not-so-advancedequipment resulting in unrecoverable delaysin set up time.

The approach of consultation and planningwith our customers, to find a better way, isyet another example of the benefits that flowout of Boom’s partnering approach to theservicing of customers.

One of the new additions to Boom’s Queensland fleet - a 200 tonne capacity Grove. Boom has its own fleetof extendable modules and can transport its mobile cranes quickly over large distances.

Two major NSW crane hire companies become part of BOOM.

The Newcastle based crane hire companies,Cameron Cranes Ltd. and Carrington Steel Pty.Ltd, with a combined fleet of fifteen mobilecranes and nine elevating work platforms, haveboosted Boom’s Hunter Valley operation.

They became part of the Boom network in July 05.

All employees from both companies are nowemployed by Boom.

The acquisitions follow soon after Boom’s

purchasing of the Hunter Valley based BowersHeavy Haulage and Crane Service, earlier this year.

“We have certainly come to town, in theHunter Valley, in a major way,” said Boom’sNSW General Manager Mark Apthorpe.

“We know that the success of the move willlargely depend on the degree to which wemaintain the standards, go on to lift thosestandards even higher and also achieve anoutstanding safety record,” he concluded.

W.A. crane hirenetwork expanded.

Resource companies and contractors operatingin the resources sector, and in particular in thePort Hedland district of Western Australia,have recently seen another expansion byBoom, the acquisition of Port Hedland Cranesfrom Brambles. Crane services primarilyprovided for BHP Billiton Iron Ore.

This acquisition added another eleven cranes(up to 200 tonne capacity) to our fleet.

Safety Award from Mobil.

The Mobil oil refinery at Altona in Victoria hasa special set of safety standards based onworking in congested conditions, having to liftdifficult objects up and over high pressurepipes ... and in the overall environment offlammable products.

Boom was one of a small number ofcompanies which received a RecognitionAward for contribution to safety.

Pictured is Glenn Henson (General Manager MobilAltona) left, presenting the award to Boom’s Safety

and Technical Manager, Victoria, Leigh Hardy.

BOOMidentityLong standing aceoperator Dusty Miller.

One of the great things about Boom is thelarge number of experienced crane operatorsand supervisors with many years ofexperience. Meet Graeme ‘Dusty’ Brownhe’s one of that well regarded group withmany years on 50 tonne ‘roughies’ and 130tonners.

They say if one goes out to choose a surgeonto operate on one’s delicate parts, then youfind there’s not much between the dexterityof one surgeon versus another. But, whatdoes make the difference is experience ... theexperienced ones know more.

Dusty fits in the well experienced group ...he’s been at it for 40 years. He came to Boomfrom the Brambles crane hire group ... helpedget the Bunbury depot going and is presentlyoperating cranes at Wagerup depot in W.A.,largely at the Alcoa refinery site where theywant the best, they want precision, they wantcare and they want a clean and safe lift.

3

Helping keep Victoria switched on.One of Australia’s huge

energy resources ... the vastbrown coal deposits of theLatrobe Valley... one of the

largest in the world.

Meet Stan Kemsley, Asset Manager,Mine, International Power Hazelwood,Latrobe Valley.

A visit to Stan’s patch revealed a huge miningoperation, which is achieving outstandinglevels of efficiency.

It is a world class mining operation, reserveson a scale that are staggering, extractionprocesses that are fast and efficient (usingbucket wheel dredges) and a power generationprocess and business that keeps getting better.

“Coal, Australia’s largest energy source, isfuelling around 85% of Australia’s electricitygeneration and does so on a very cost efficientbasis,” explained Stan.

In Victoria, where 80% of Australia’s browncoal reserves are found, the big powergeneration centre is the Latrobe Valley wherefour huge thermal power stations are based.

“Hazelwood Power Station, is owned andoperated by International Power, and itaccounts for about 25% of the state’s powergeneration. Management has just reached anagreement with the Victorian Government foran immense expansion of the adjacent open cutmine, extending the life of that section of themine out to beyond 2030,” said Stan.

“This gives us formal access to the coal fieldwe purchased back in 1996, when thebusiness was sold to International Power for$2.35 billion.”

It is estimated that the Valley’s reserves ofbrown coal could last another 500 years,setting up Victoria with a supply of cheappower for a period beyond any planning.

Some people would argue that carbon dioxideemissions into the atmosphere, from such coalburning stations, are not good. In a perfectworld that may be so.

“Hazelwood’s management has not onlyagreed to meet specified reductions inemissions, as required by the Victoriangovernment and the EPA, but has gone on tomeet more stringent international standards,”said Stan.

Some facts, regarding power generation withbrown coal, are that it produces extremelyeconomical power and in the quantities that, forexample, wind turbines cannot hope to meet.

This is critical for the prosperity of Victoria,the nation’s most industrialised state.Emissions are manageable, they are wellwithin government approved standards andintensity levels are being reduced.

Furthermore, new technologies, to furtherreduce emissions, are continually being

At International Power’s coal fired Hazelwood station, which generates approx. 25% of Victoria’selectric power, Stan Kemsley, Asset Manager Mine, (pictured right) chooses to work with Boom cranes on

both dry and wet hire. Pictured left, on one of his regular mine visits is Boom’s Operations Manager,Morwell, Murray Smith who has a particular interest in safety matters

developed (including the removal of moremoisture from the coal before burning) andInternational Power has shown its integrity byworking to exceed government requirements.

Efficiency, when extracting coal from the100m deep, seam, is all part of contributing tothe financial margins, which help theHazelwood business deliver economicalcompetitively priced power, new technologyfor emission reduction and prosperity forthe district.

Stan Kemsley, both a mechanical and electricalengineer, and long time member of theHazelwood team is Asset Manager, Mine andhelping International Power drive costs downfurther and lift productivity.

“Close attention to detail on the maintenanceof equipment is a large part of the key,”

explained Stan.

“And to get that right, it’s the right team on alljobs and the right sub contractors.

“When it comes to lifting, we have threecranes on permanent dry hire from Boom andfor special ‘one off’ lifts we contract Boomcranes on wet hire.

“We use Boom because I know I can count onthem for a safe, efficient lift ... all I have to dois show them the job and then just leavethem to it.

“They work out how to do it, prepareengineering in advance - it’s all down to thelast bit of detail, with an incredible emphasison safety.

“It’s been a great working relationship that weboth value,” concluded Stan.

Coal is hydrocarbon and was formed whensedimentary plant material was subjected tohigh temperatures and pressures throughgeological processes over millions of years.

There are several stages in the process: Plantmaterial, wood. Peat. Brown coal (lignite).Black coal, various grades.

Each successive stage has a lower watercontent, and a higher energy content.Australia’s brown coal reserves are about 15

million years old, compared with black coalaround 250 million years!

Pick up a lump of brown coal and you cansee pieces of petrified wood ... branches andtrunks of tress. It’s an eerie feeling holdinga piece of coal that represents what was oncea living thing around 15 million years ago.Our life time is quite insignificant inthe overall scheme of things! It makes you think,doesn’t it?

Australians might be paying a lot to othercountries for oil, but pause for a moment.

Australia owns enormous quantities of blackand brown coal ... absolutely huge quantitiesand Australia’s canny miners and exporters ofcoal are making sure all Australians benefitfrom this valuable resource.

They are not only extracting coal butextracting extraordinary prices from othercountries. As a result, Australians benefit ... weall share in the bonanza in various ways

including Government royalties, taxes ongrowing coal mining company profits and thehuge demand for services and products (jobs)the coal mining companies create.

Boom is an example of the knock on effects.Much of Boom’s work is in the coal fields ...articles on the pages 2 and 6 show the ultimateoutcome of the knock on effect.

Our older readers may well recall the words ofa British Prime Minister, Mr HaroldMacmillan: “You’ve never had it so good.”

Do you know how coal is made?

Australia, one of the world’s largestsuppliers of coal ... a rich future!

4

The acquisition was a major initiative by Boom Logistics ... a $130 milliontransaction, an increase of staff from 663 to1,013 and an increase in depots form 23 to 47.

Boom’s fleet of mobile cranes now exceeds400, with many units having arrived withSherrin Hire.

And, as to the Sherrin Hire range of liftingequipment, and ancillary equipment, it is nowover 2,000 items.

Like Boom Logistics, the Sherrin Hiredivision, offers its equipment for work duringday and night. Sherrin Hire also takes theopportunity to meet the demand for ancillaryequipment such as lighting towers, generatorsand compressors.

For customers of Boom, the vastly increasedarray of services and lifting solutions makeslife easier as well as more efficient with theconcept of a one-stop-shop for lifting solutions.

For customers of Sherrin Hire, the ability todeal with the one organization for lifts, right upto the big heavy lifts with mobile cranes makeslife easier. It’s a one-stop-shop.

Other equipment, largely for lifting personnel,includes elevating work platforms (morespecifically known as scissor lifts) and knuckleboom lifts.

“This one stop-shop concept demonstrates justone of the merits of the joining together of thetwo companies.

“It is a good move for the customers of bothcompanies. It is a very natural fit,” said MikeSherrin, the owner of the Sherrin Hire groupprior to the acquisition.

Sherrin Hire fleet includes:Lifting solutions equipment:

Boom Lifts Reach up to 42 m. (126 ft.)

Knuckle Boom Lifts Reach up to 42 m. (126 ft.)

Material handlers Reach up to 16.8 m. (56 ft.)

One Man Lifts Reach up to 10.8 m. (36 ft.)

Scissor Lifts (EWPs) Reach up to 15.0 m. (50 ft.)

Trailer Lifts Reach up to 13.8 m. (46 ft.)

Travel Towers Reach up to 65 m. (195 ft.)

Under Bridge Units

Ancillary equipment:

Generators Up to 500 KVa

Compressors Up to 567 l/s (1,200 cfm.)

Lighting Towers

4WD Wheeled Loaders

BOOM sponsorsSherrin Motor Sports

for Carrera Cup season.

Pictured is the Sherrin Motor Sports PorscheG11GT3. Cup car. The car and driver finished

second at a recent meeting at Sandown, Victoria. To watch progress see the website:

www.sherrinhire.com.au

5

Travel Tower. Maximum lift heights to 65m. (195 ft.) A rough terrain Scissor Lift (EWP). Maximum liftheights to 15m. (50 ft.)

Boom Lift. Maximum lift heights to 42m. (126 ft.) Knuckle Boom Lift. Maximum lift heights to 42m. (126 ft.)

BOOMacquires

Sherrin Hire.(Continued from page 1.)

Financial analysts and share market give strong approval of BOOM Logistics.

The Boom share price outlook has seen amajor upgrade. One of Australia’s largest sharebrokers, ABN Amro, has given a very positive opinion.

“... our target price has increased by 33% to$3.20 per share and now includes a 5%‘premium’ above our DCF valuation for futurepotential acquisition upside,” said Chris Sleep,of ABN Amro, back in August 05.

“We have retained our buy rating on the stockand the major reasons driving this positiveview include Boom’s strong level of sales(64%) coming from recurring maintenancework,” he added.

Current share price has been up around $3.00.(As at end of October 05.)

Boom’s ASX code is BOL.

One of Boom’s cranes at work on Australia’sbiggest infrastructure project, the Westlink M7,

servicing outer Sydney. On this project Boom alsotransported big girders up to 38 m. long (76

tonnes) using Boom’s low profile prime movers, oneof which is just visible in this photo. The extra

amount of manoeuvrability with the low profileprime movers enabled a new level of efficiency with

both transport and positioningon the site.

Expansion by BOOM strong and steady.Boom Logistics has expanded rapidly sinceformation, with a total of eleven acquisitions,six of which have occurred since listing on theASX in October 03. the latest being the $130mSherrin Hire transaction.

Although expansion has been rapid, eachcompany acquired by Boom were crane hirebusinesses and staff of the acquired companieshas been retained.

Boom has kept to the industry it knows well -providing lifting solutions - and has built itsgrowth with a team of people which representsa huge bank of experience at management,operational and administrative levels.

Sticking to the business of ‘lifting solutions’,as well as acquiring excellent assets and highlyskilled and experienced people, is a large partof the formula for on-going success and asecure future.

Boom’s continuing expansion is well in hand.The company has a wide spread of depotsacross Australia, now 47 including SherrinHire depots. Further, there is involvement in awide cross section of industries.

Geographic spread and diversified marketsthat are perfoming well underwrites the very reasonable expectation of strong organic growth.

BOOM recognisedas tower

crane authority.When one of Australia’s leading constructionindustry magazines, Construction Contractor,carried one of its regular ‘Ask the Expert’columns they decided to run the article on theuse of tower cranes.

Although Boom Logistics is not the biggesttower crane operator in Australia, themagazine still turned to Boom for comment.

Drew Baker, General Manager of the TowerCrane Division, was quoted exclusively andextensively throughout the article as he is seenas one of the most experienced andknowledgeable people in the industry.

Boom’s tower cranes are a feature in theMelbourne skyline in particular and used bythe nation’s leading construction contractorsincluding Baulderstone Hornibrook, BovisLendLease, Grocon, Leighton, Mirvac,Multiplex and Probuild.

Two new non executive directorsappointed toBOOM board.Mr Terrence Francis B.E. (Civil), MBA.

Mr Francis has had over 30 years ofexperience in infrastructure and corporatefinance in Australia, Asia and North America.He was Chief Executive of Bank America inAustralia, Executive Director of DeutscheBank Australia and Vice President ofContinental Bank.

He brings to Boom much experience infinancing arrangements for public companies.

Mr Francis is currently Chairman of theSouthern and Eastern Integrated TransportAuthority and RMIT International Pty. Ltd. Heis also a director of EmergencyCommunications Victoria and Nylex Ltd., acouncil member of RMIT University and afellow of the Australia Institute of CompanyDirectors as well as the Institution ofEngineers Australia.

Mrs Jane Harvey B. Com, MBA, FCA,FAICD.

Mrs Harvey is a former partner PriceWaterhouse Coopers and currently a nonexecutive director of a number oforganizations including the Royal FlyingDoctor Service (Victoria), which she chairs,Bayside Health Services and Rural FinanceCorporation - both of which she is DeputyChair. She is also the TelecommunicationsIndustry Ombudsman.

Mrs Harvey’s extensive experience spreadsover finance, strategic development andcorporate governance.

6

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

$2.00

$2.20

$2.40

$2.60

$2.80

$3.00

Placement of 13.0m shares at $1.50

Placement of 30.5m shares at $2.20

IPO of 33.8m shares at $0.80

The graph shows the increase in the share price, since the float in October 03. The steady upward trendreflects the growth in demand for BOOM’s lifting solutions. Graph courtesy HTM Wilson.

NORTHFIELD 1796 11/05