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BRS gets Gateway
Page 14
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• British Road Services has won a £22.5 million contract hire/fleet takeover deal with Gateway Foodmarkets, just a week after the news of the similar contract between its subsidiary BRS Western and British Coal (CM 15-21 Oct). The deal involves three BRS regional companies — BRS Midlands, BRS Northern and BRS Southern — along with Scottish Road Services. The main negotiations were carried out between BRS Western's head offices and Gateway.
Under the five-year contract, BRS has taken over the
115 vehicles and 220 trailers based at four of Gateway's most recently acquired distribution centres at East Kubride. Washington, Washington, Hucknall and Aylesford.
It has also added 12 new tractive units and 28 trailers to the fleet, which will now operate under contract hire to Gateway.
BRS Western already operates the Gateway fleet in Southampton, while BRS Southern is involved in a similar contract with the Brandon distribution centre.
In July, the NFC's new Alpine subsidiary took over the distribution of Gateway's frozen food.
The new contract gives BRS 40% of the total Gateway vehicle fleet, and in cash terms is bigger than the deal between BRS Western and British Coal.
According to BRS Western managing director Steve Abel the new business "is an ideal example of how the network of regional BRS companies can work together to meet the transport needs of major companies looking for central coordination of split-location transport operations."