Integrated logistics services provider Toll Holdings Ltd
(ASX:TOL) has announced the conclusion of negotiations for the supply of relocation services to the Australian Department of Defence.
The company says final contractual issues are being resolved and contract signing is expected in the near future.
Managing Director Paul Little says Toll Transitions, the company’s specialist relocations business, has been awarded the contract with the Department of Defence for the provision of both removal services and relocation administration services.
Mr Little says the contract is comprised of an initial five year period followed by up to four one year extensions.
Mr Little says 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 Holdings pulled itself out of the red in 2009 to post a profit of $270.3 million.
