Army vigilance drives freight security group's worldwide success

Six years ago Kieran O'Connor went out to Dublin airport with his wife and two children. He was flying to Geneva to take up a new job with the Human Rights Commission.

The former army captain and then UN official had spent the previous few years on UN postings abroad and had returned to take up a job in Ireland so he could spend more time with his family.

However, a few weeks after taking up the position of general manager with freight security company Freightwatch, he had been offered a job as budget officer with the commission and had decided to take it.

At the airport, he changed his mind. Going to Geneva would mean getting back on the international travel treadmill, so he returned to his job with the small security company started two years earlier by two former army colleagues.

Freightwatch did exactly what its name said. It watched freight on behalf of clients, often following container trucks to ensure that drivers did not act in ways that increased the risk to the freight. "Eighty-five per cent of hijacks have to do with drivers, either being complicit or making errors."

Such errors could include stopping at a cafe just after driving off a ferry.

Freightwatch has found that if drivers know they are or may be monitored, they tend to create less risk.

If a monitoring person, driving behind a truck, notices an attempted robbery, the Garda is quickly informed.

In 2000, when O'Connor (45) joined the company, it had eight employees. One of the clients was a major US computer multinational and it was pleased with the service it was receiving in Ireland and asked if Freightwatch could provide a similar service in the United States.

"Three weeks later we were operating in the States. Two of us went out, working with our personal credit cards, spending long days escorting trucks ourselves. At the same time, we were working on setting up the business there. It was hectic."

O'Connor believes Freightwatch's culture is heavily influenced by the Army background shared by many of its managers. It is the "can-do" attitude and attention to detail that comes with Army culture that attracted the attention of clients, he says.

The performance with the computer multinational in the US led to a contract with the same company in Malaysia. At the same time, other multinationals began using Freightwatch in the States. By the end of 2000, the group had subsidiaries in Britain, the US and Malaysia.

"Our responsive and can-do culture led to customers asking us if we could do other things besides the service already being offered." The group started working on developing other, related services.

It now offers security guard services, aviation security, the screening of prospective employees, security camera installation and a global investigation service.

"All of this developed from responding to our multinational customers," says O'Connor. "Freightwatch is now a full suite service security company, looking to provide multinationals with a single source provider for global needs."

This year the group will have a turnover of €15 million. Next year, that is to rise to a projected €53 million, on the back of a €30 million contract the company has secured in Mexico with the international cement producer, Cemex, the parent of Irish company Readymix. "We intend to service them to death and become a single source security provider to them."

The group is achieving a profit margin in the region of 10 per cent. It is owned by O'Connor, founder manager Mick Maloney, an investor, and other managers. O'Connor and Maloney have a controlling share.

Freightwatch now employs 1,500 people, with another 200 about to be added to that with the purchase of El Salvador security company Advantage. It plans to develop a strong aviation security presence in Central and South America, spreading south from Mexico. The group already has a presence in Brazil.

Freightwatch has a practice of bringing management from its various far-flung operations together for a number of days every few months, so they can bounce ideas off each other and see how they can encourage cross-selling. O'Connor sees the joined-up, global view of the group's business as a key element of its attraction to customers.

Although the group's presence in Ireland remains relatively small, it has plans to make an acquisition in the coming month.Asked about the cash-in-transit heists that have occurred here in recent times, he said Freightwatch has suggested an alternative approach to the transfer of money to the banks, but they had not embraced it.

In the US, the group's services include the use of GPS technology to monitor freight in transit and to raise the alarm if it strays from its intended route.

When asked about the group's turnover O'Connor refers to next year's target figure and adds: "But that's only the beginning. What's driving me is to build a world class company that offers a superior service. It is not about money any more. I want the Freightwatch brand to become a recognisable brand like Kerrygold or CRH."

Only one element of his decision to stick with Freightwatch has not gone to plan. The strategy of working with Freightwatch so he could spend more time with his family has not quite worked out as intended. "I have to remind myself not to be all consumed by work."

Running a young and growing global business requires a lot of travel. "I probably do more travelling than ever, though the trips abroad are for shorter periods."