Toll Holdings wins $1.26b Defence deal

MELBOURNE - Transport and logistics group Toll Holdings has won a five-year contract worth A$1 billion ($1.26 billion) to supply relocation services to the Australian Department of Defence.

Toll managing director Paul Little said the contract was for an initial five years, followed by up to four one-year extensions.

"The initial five-year period is expected to generate revenues of more than $1 billion, and if extensions are granted, total revenue of around $2 billion would be expected," Little said.

Toll said it had provided removal services to the Defence Department for the past 10 years, but the relocation of administration services was a "significant addition".

Removal services involve the movement of the personal and household effects of Defence members.

Relocation administration services co-ordinate the Defence members' relocations, including flights, temporary accommodation, allowances and reimbursements.

Toll shares closed up 13c at A$8.37 on the ASX yesterday.

- AAP