Major US fleet-management contract for Babcock
Firm awarded US$30 million 10-year fleet managed service contract by Aggregate Industries US
AGGREGATE Industries US (AIUS), part of the Holcim Group, have awarded Babcock International Group a US$30 million 10-year contract to provide a fleet managed service for their Aggregate operation’s heavy mobile equipment (HME) across the Mid-Atlantic Region.
Babcock’s independence coupled with ALCAMiE, the company’s proven approach to optimizing fleets, means that AIUS will benefit from an innovative asset-management partner, improving efficiency and service for their customers while allowing the business to fully focus on its core operations.
Under the agreement, which covers more than 130 assets across 14 sites in the Mid-Atlantic Region, Babcock will work closely with AIUS to procure the right equipment and services at the most competitive price, regardless of manufacturer or supplier.
The contract sets service level guarantees, based on vehicle availability, that underpin Babcock’s performance commitment. The one-stop-shop service, delivered through Babcock’s round-the-clock North American Managed Service Centre, also offers the optional supply of additional services, such as the procurement and management of ground-engaging tools and tyres.
Robert Whetstone, Babcock’s head of operations in North America, said: ‘We are delighted to be AIUS’ fleet-management partner of choice and look forward to partnering with them in transforming their fleet performance, sharing best practice and delivering long-term benefits.’
Babcock say this latest contract success builds on their already significant organic growth in North America following contract awards by Lafarge between 2012 and 2014, and sees them now managing close on 2,000 trucks and HME across Canada and the US.
Mirroring the strong growth achieved in their mining and construction activities in other territories, this expansion has seen a substantial increase in Babcock’s North American footprint, as well as further investment in local capabilities.
To capitalize on their international growth, Babcock are now investing in a continuous improvement programme to capture best practice from every part of their global mining and construction operations, and to share this for the benefit of all their customers.
Commencing in North America, an international Babcock team is evaluating processes, procedures and governance in detail to ensure that fleet-management services remain robust and future-proofed for growth across the globe.
Babcock currently manage close to 30,000 vehicles and more than 176,000 equipment stock lines globally, including contracts to manage Aggregate Industries’ UK HME fleet and Lafarge’s HME fleets within the UK, US and Canada, as well as their Readymix fleet in Western Canada.
