The K&S Corporation has announced it has been awarded a four year extension on one of its contracts, plus gaining other contracts in the Melbourne area. Following extensive negotiations, K&S’s interstate transport services contract with Arrium (One Steel) has been extended for a further four years to the end of June 2019. According to K&S, the interstate transport services contract is for the cartage of finished goods and generates annual revenue of approximately $33 million.
As well as the new parcels of work in the Melbourne area with a revenue of approximately $9 million per annum, K&S has also retained existing parcels of work for Arrium in the Melbourne metropolitan region. Those parcels of work have been awarded to K&S for a minimum of three years.
According to a K&S statement, the award of the Melbourne metropolitan region work follows a rigorous review process by Arrium of a number of market options and is an acknowledgement of K&S Corporation’s ability to provide industry leading safety standards, innovative logistics solutions, outstanding customer service and value adding IT solutions.
“We are delighted with the decision by Arrium to continue, grow and strengthen our association. K&S has now been performing many of these services continuously for the last 25 years for Arrium, and previously Smorgon Steel,” said Paul Sarant, Managing Director of K&S Corporation. “These recent contract wins reinforce K&S’ position as the pre-eminent supplier of transport and logistics solutions to the steel industry in Australia and New Zealand”.