Howard Smith (company)
| Company type | Public company |
|---|---|
| Industry | Shipping, coal mining, steel manufacturing, stevedoring, travel services, railway rolling stock manufacturing, sugar manufacturing, retail |
| Founded | 1854 |
| Founder | Captain William Howard Smith |
| Defunct | 2001 |
| Fate | Acquired by Wesfarmers |
| Headquarters | Sydney , Australia |
Area served | Australia and international (including UK and Pacific regions) |
Key people | Captain William Howard Smith (founder) |
| Products | Shipping services, coal, steel products, stevedoring, travel services, railway rolling stock, sugar products, retail goods |
| Parent | Wesfarmers (from 2001) |
Howard Smith Limited was an industrial enterprise based in Australia. Established in 1854 originally as a shipping firm, it eventually expanded its operations into sectors such as coal mining, steel manufacturing, stevedoring, travel services, railway rolling stock production, sugar manufacturing, and retail. During the 1990s, its various business units were progressively divested, with the remaining assets acquired by Wesfarmers in August 2001.
Shipping
Captain William Howard Smith arrived in Melbourne from England on 7 July 1854, commanding the 177-ton steamer Express, in which he held a half ownership alongside the ship's engineer, SB Skinner. On 3 October of the same year, the Express inaugurated Australia's first scheduled passenger route connecting Melbourne and Geelong. Smith sold his interest to Thomas Parker in 1861 before returning to England.
In May 1864, Howard Smith came back to Australia aboard the 672-ton vessel Kief, entering the interstate coal transportation market with routes linking Melbourne to Sydney and Newcastle. Passenger services recommenced in 1875 and later extended to Townsville (1883), Adelaide (1885), and Fremantle (1893).
The company withdrew from interstate passenger services in 1947. It acquired the Melbourne Steamship Company in 1961 but ceased interstate shipping activities by 1968 to concentrate on bulk cargo shipping and specialized vessel management.
In 1972, Howard Smith launched an unsuccessful takeover attempt for RW Miller, acquiring a 35% share. This contest resulted in the notable legal case Howard Smith Ltd v Ampol Petroleum Ltd. By 1979, Howard Smith had increased its holding in RW Miller to 67% through purchasing shares from Ampol, eventually gaining full control in 1985. In March 1989, it acquired Dilmun Navigation Co from Inchcape plc. The company exited shipping entirely in 1996 after selling its final two ships.
Tugboats
As Australia's leading tugboat operator, Howard Smith managed fleets both independently and via joint ventures, with operations extending to locations such as Bougainville and Suva. In June 1987, it secured a 75% interest (achieving full ownership by December 1989) in North British Marine Group, a salvage and ocean towing firm headquartered in Hull. The company further expanded by acquiring Alexandria Towing Group—the largest tug operator in the UK—in 1993. In May 2001, Howard Smith divested its tugboat fleet of ninety vessels to Adsteam Marine.
Iron & steel
In 1918, Howard Smith invested capital into Vickers Commonwealth Steel Products. By May 1928, it held a nineteen percent shareholding in Australian Iron & Steel, which was formed through collaboration with Hoskins Iron & Steel, Dorman Long, and Baldwins; this partnership was instrumental in establishing the Port Kembla steelworks. The company also owned Southern Portland Cement, operating a cement factory at Berrima along with a quarry at Marulan. These iron and steel-related assets were sold to BHP in October 1935.
Coal
Howard Smith controlled Caledonian Collieries, which managed five coalfields within South Maitland as well as the Cockle Creek Power Station, alongside ownership of the Invincible Colliery located at Cullen Bullen. In 1960, Caledonian Collieries merged with J & A Brown and Abermain & Seaham Collieries to create Coal & Allied; initially, Howard Smith held a forty-eight percent stake. By 1989, its ownership had diminished to six percent and was fully divested by 1991.
Travel centres
Howard Smith initiated travel centres starting in Newcastle, subsequently expanding to Sydney and Cairns. By 1980, the company rebranded as Howard Smith & Patrick Travel and extended its reach to Brisbane and Gladstone. The travel division was divested to Burns Philp in February 1985.
Railways
Although holding a minority interest since 1917 and facing an unsuccessful takeover attempt, Howard Smith proceeded to acquire the railway rolling stock manufacturer A Goninan & Co in October 1964. This asset was later sold in August 1999 when A Goninan & Co was transferred to United Group.
Sugar mills
The Moreton Central Sugar Mill in Nambour was purchased in 1976, followed by the acquisition of Goondi mill in 1987—jointly owned with Babinda Mill—from CSR. In March 1988, both Mourilyan and Moreton mills were sold to Bundaberg Sugar.
Stevedoring
Howard Smith gradually increased its stake in the James Patrick Group, owning 73% by 1980 and achieving full ownership by 1990. In November 1988, Howard Smith combined its stevedoring operations with Australian National Line under the National Terminals banner, initially holding a 40% share which later rose to 50%. This stake was reduced to 25% in 1990 following a merger with Strang Stevedoring. The company exited the stevedoring sector in November 1994 by selling National Terminals to Jamieson Equity, associated with Patrick Corporation.
Retail
In April 1984, Howard Smith acquired J Blackwood & Son, a supplier of workplace products. The BBC hardware chain was added to its portfolio in July 1994 after purchase from Burns Philp. Further expansions included acquiring NZ Safety and Alsafe Safety Industries in March 1998, both integrated into Blackwoods, as well as Protector Safety Supply Group following its acquisition from OPSM in May 2001.
Investments
Howard Smith maintained minority equity positions without operational control in several companies, such as:
- Adelaide Steamship Company
- Amalgamated Wireless
- Belfast & Koroit Steam Navigation Company
- BHP
- EZ Industries
- Harbour Newspaper & Publishing Company
- Kooragang Coal Loader
- Melbourne Steamship Company
- Mount Isa Mines
- Port Waratah Services
Headquarters
The company shifted its headquarters from Melbourne to George Street, Sydney, in 1928.
Demise
Wesfarmers launched a successful takeover offer for Howard Smith in June 2001. Following the acquisition, the BBC Hardware and Hardwarehouse chains were merged into Wesfarmers' Bunnings division, while the Blackwood brand continued under Wesfarmers’ ownership. Howard Smith was officially removed from the Australian Securities Exchange on 17 October 2001.