Barloworld Handling Ltd has won an eight-year, GBP50 million (USD73 million) contract with the United Kingdom Ministry of Defence's (MOD) Defence Logistics Organisation (DLO) to supply and maintain more than 2000 pieces of materials handling equipment.

The "Pathfinder Re-let" contract covers outsourcing of forklifts, tractors, trailers and cranes, and the skills to maintain them. It will include the delivery of about 500 Hyster forklifts to support the MOD's 28 storage and distribution sites across the UK and Germany, Barloworld said.

The DLO is the largest organisation within the MOD and is responsible for the logistical support of the United Kingdom's defence forces - from food and fuel to ship spares and sandbags.

Under the deal, Barloworld will acquire the DLO materials handling fleet through its associate Barloworld Fleet Rentals, and finance new equipment over the contract term, maintaining an optimum age profile so equipment remains dependable and economical.

Barloworld public sector division director Gary Clements said the Pathfinder contract was similar to a deal struck with the MOD in 2000, where Barloworld was awarded outsourced management of the MOD's materials handling fleet.

"These contracts are by no means easy to win, and even harder to manage, but I believe the skills and resources we have available will meet and surpass the requirements," he said.

MOD project manager Lieutenant colonel David Masters said he was delighted to award the contract to Barloworld.

"The contract is an excellent deal for the armed forces and will see highly-efficient commercial practices injected into our materials handling capability, which will mean more money can be spent on frontline capability," he said.