Toll charges on with $1 billion defence contract

Toll signs $1bn defence contract as it begins restructuring its businesses into three divisions

November 24, 2009

Toll has signed a Department of Defence deal worth $1 billion over five years, amid sweeping organisational changes designed to cement the operator’s market dominance.

The transport and logistics heavyweight announced the deal today, saying the company’s specialist relocation business, Toll Transitions, will manage the contract.

The move coincides with the creation of three new divisions which will group multiple subsidiaries under one banner.

Under the agreement, Toll Transitions will provide removal and relocation administration services. The deal may also be extended, with both parties agreeing to an option of up to four, one year extensions.

Toll says it has provided similar services to the department the last 10 years, but Managing Director Paul Little says the latest deal will drive a significant expansion within Toll Transition.

"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," Little says.

"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."

The restructuring changes will be made to the company’s Australian and New Zealand services from next year.

The new Global Express division will group Toll IPEC, Toll Priority, Toll Personnel and Toll Stream Solutions.

Toll SPD, Toll QRX, Toll Shipping, Toll Tasmania, Toll Edwards and Toll New Zealand will now be brought under the a new Domestic Forwarding division.

The third division, known as Toll Specialised and Domestic Freight, will consist of Toll Express, Toll Linehaul, Westrans, NQX, Perkins, Toll Liquids, Toll Fleet, Toll Chemicals and Toll Transitions.

Little says the changes will ensure Toll is prepared for further growth and opportunities in the coming years.

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