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13 January 2015

Babcock awarded £41mn HME fleet management contract with Lafarge Tarmac

First published13/01/2015
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Lafarge Tarmac has awarded Babcock International Group
Lafarge Tarmac has awarded Babcock International Group a five-year contract for fleet management services
Lafarge Tarmac has awarded Babcock International Group a £41 million (€52.5 million) five-year contract (with a five-year extension option) to provide a fleet managed service for its heavy mobile equipment (HME) across the UK.

Babcock says the new contract follows an open tender process run by Lafarge Tarmac to secure the best solution for its requirements. Babcock’s independence coupled with ALCAMiE, its proven approach to optimising fleets, was key to this, ensuring that Lafarge Tarmac will benefit from an innovative asset management partner that will help to improve efficiency and service for its customers while enabling the business to fully focus on its core operations.

This agreement covers over 400 assets across 189 sites and is in addition to the existing fleet management arrangement currently in operation, awarded to Babcock in 2011.

Babcock will work closely with Lafarge Tarmac to procure the right equipment at the most competitive price, securing better warranty terms and continuing to advise on and source new market products and equipment, regardless of manufacturer or supplier.

The contract sets service level guarantees, based around availability, that underpin Babcock’s performance in managing Lafarge Tarmac’s HME. The one-stop-shop service, delivered through Babcock’s 24/7 managed service centre, also offers the optional supply of additional services such as the procurement and management of ground engaging tools and tyres.

Martin Riley, managing director Aggregates & Asphalt at Lafarge Tarmac said: “We selected Babcock as our fleet management partner, because they share our ethos of excellence, customer service and delivering market-leading solutions. This new contract will enable us to ensure we have the right equipment on hand to meet growing demand from customers, to help them deliver their projects as efficiently and cost-effectively as possible. It will also allow us to remain focused on our core business; continuing to develop and innovate our range of sustainable construction solutions and services.”

Keith Holland, Babcock’s mining & construction director, said: “We are delighted to be Lafarge Tarmac’s fleet management partner of choice and look forward to working together in setting an ever higher benchmark in HME fleet performance.

“Across the UK, we now provide support services to three of the top five producers. This is a significant achievement in just over three years, demonstrating that our whole life fleet management approach is resonating with forward thinking organisations seeking competitive advantage. As part of this, we are continuing to expand our team of mobile skilled engineers across the UK to ensure our customers remain fully supported.”

Babcock manages close on 30,000 vehicles and over 176,000 equipment stock lines globally, and includes contracts to manage Aggregate Industries’ UK fleet and Lafarge’s HME fleets within the UK, US and Canada as well as its ready mix fleet in Western Canada.

Babcock’s mining and construction team spans the UK, North Europe, Brazil, North America and Australia as the organisation looks to new territories to deliver its proven capability in managing fleets.

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