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TDG cements £400m Aggregate contract

30 July 2008

TDG has signed a deal worth £50m a year to manage UK road transport operations for Aggregate Industries Building Materials (AIBM). The transport firm believes the eight-year contract will save Aggregate more than three-million road miles per year and cut its annual CO2 emissions by 12%. The deal will see TDG contract and manage existing hauliers used by AIBM via a central system.

TDG will procure haulage, plan routes to minimise empty running, and provide web reporting for planners,  hauliers and customers. AIBM's 42 sites across the UK currently dispatch more than five-million tonnes of products each year and cover 100,000 miles per day.  TDG chief executive David Garman says: "Our systems and people will provide AIBM with a mechanism to improve service, enhance market position and reduce environmental impact."

Asked why it had decided to hand its transport operation over to TDG, AIBM says: "Our business consists of a range of companies, including Charcon, Bradstone, Fyfestone and Masterblock. The reason we have entered into this agreement with TDG is to make economic savings by cutting down on empty running and improving the efficiency of our transport operations."

TDG already runs a shared platform operation for steel manufacturer Corus. This involves centrally managing 60 individual Corus production and distribution sites, as well as about 30 hauliers, from the steel giant's Scunthorpe plant. Before the seven-year programme went live in August  2006, the individual Corus sites had bought and managed their transport services separately.


Roger Brown
Email at roger.brown@rbi.co.uk
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