Toll outbids Kalari for Shell fuel contract
<font color=red>EXCLUSIVE:</font> Toll outbids Kalari for lucrative Shell fuel contract in Victoria, possibly nation-wide
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Toll outbids Kalari for Shell fuel contract
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Transport heavyweight Toll continues to extend its reach, out-bidding Kalari for the lucrative Shell fuel contract in Victoria.
A spokesman for Kalari has confirmed Toll will take over operations at Shell’s Newport terminal in Melbourne and refinery in Geelong, but declined to make any further comment.
A source within the fuel industry says Toll will begin carrying fuel for Shell on September 1, ending Kalari's long association with Shell.
Furthermore, the source claims Toll will eventually take over contracts for Shell in other states.
"Depending on how long that will take I don’t know," the source says.
Toll has not responded to calls from ATN.
The news is a blow to Kalari, with the source claiming the company may be forced to sack up to 30 drivers.
"Most of them will be reinstated by Toll because they know the industry," the source says.
Shell’s Newport terminal is the company’s major distribution point in Victoria, capable of distributing over 200 million litres of fuel in Victoria and NSW.
Shell estimates its Geelong refinery, one of the largest hydrocarbon refineries in Australia, contributes $1.1 billion to the region.
The company declined to comment, with a spokesman saying Shell does not publicly discuss contracts.
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