Wallenius Wilhelmsen subsidiary ARC awarded contract for transportation of household goods with US Transportation Command
Oslo, 30 April 2020 - American Roll-On Roll-Off Carrier Group, Inc. (ARC) today announced the company has been selected by the United States Transportation Command (TRANSCOM) for a new multi-year contract to provide global relocation services for the Department of Defense (DoD) and U.S. Coast Guard.
The Global Household Goods Contract (GHC) will, after an introductory setting up period, start in early 2021 with volumes gradually building so as to be fully operational by the end of the year. From 2022, the contract is estimated to provide revenues of more than USD 2 billion per year and positively impact the Wallenius Wilhelmsen EBITDA. Margins will vary in the early years of the program due to start-up and transition periods. Accordingly, while we expect the contract to be EBITDA positive post the nine-month transition, we expect margins in the next twenty-four months to be in the 0 to 2% range and to improve over time. We expect the contract to run for over nine years, if all options and awards are exercised.
"US Service Members relocate every two or three years, something that can cause significant stress for a family. With Team ARC's superior quality, deep experience and increased capacity, we aim to contribute to a positive moving experience," says ARC CEO Eric Ebeling.
ARC will lead a full-service, worldwide relocation effort focused on improving the quality of service provided to Service Members, their families, and DoD civilians. Together with a network of industry leading partners in the moving, logistics and technology industry, ARC will provide all personnel, equipment, facilities, tools, materials, supervision, and other items and services necessary to provide global household goods relocation services.
The Global Household Goods Contract Under the Global Household Goods Contract (GHC), a single commercial move manager is appointed to oversee activities that relate to the domestic and international movement and storage-in-transit of household goods. The GHC includes an initial 9-month transition period that, assuming no delays due to protests, will commence in May 2020. The contract will run for over nine years, if all options and awards are exercised by the Government. In line with standard TRANSCOM procurement process, there is a 10-day window where it is possible to protest the award of the contract.
About ARC ARC is part of the Wallenius Wilhelmsen group of companies and provides global logistics and shipping services to the U.S. Government. ARC and its affiliates own and manage the largest U.S.-flag roll-on roll-off (Ro-Ro) fleet. This includes providing American-owned, managed, and crewed Ro-Ro shipping and intermodal services committed to the requirements of the Department of Defense, other U.S. Government departments and agencies, and commercial customers. Read more at ARCshipping.com.
About Wallenius Wilhelmsen The Wallenius Wilhelmsen group (OEX: WALWIL) is a market leader in RoRo shipping and vehicle logistics, transporting cars, trucks, rolling equipment and breakbulk around the world. The company operates around 125 vessels servicing 15 trade routes to six continents, and a global inland distribution network, 120 processing centres, and 11 marine terminals. The Wallenius Wilhelmsen group consist of Wallenius Wilhelmsen Ocean, Wallenius Wilhelmsen Solutions, EUKOR and ARC. The group is headquartered in Oslo, Norway with 9 400 employees in 29 countries worldwide. Read more at walleniuswilhelmsen.com
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