Toll wins $1bn defence contract
Toll Holdings Limited (TOL) announced the conclusion of negotiations for the supply of relocation services to the Australian Department of Defence. The provider of integrated logistics services said final contractual issues are being resolved and contract signing is expected in the near future.
Managing director, Paul Little, said the company’s specialist relocations business Toll Transitions has been notified they have successfully tendered for the contract with the Department of Defence for the provision of both Removal Services (RS) and Relocation Administration Services (RAS).
“This Defence contract is comprised of an initial five year period, followed by up to 4 one year extensions, which are at the discretion of Defence,” Mr Little said.
“The initial five year period is expected to generate revenues of more than $1 billion, and if the extensions are granted total revenue of around $2 billion would be expected.”
Toll has provided Removal Services to the Australian Department of Defence for the past 10 years.
“Defence require over 22,000 removals and 23,000 relocations to be managed each year under this contract which is the largest of its type in Australia,” Mr Little said.
“The Tender win will entail substantial growth and opportunities for Toll Transitions with over 100 additional staff being recruited and a number of new offices being established around the country.”
At the close of trade Monday, Toll shares were trading at $8.24.
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