Roll-on/roll-off carrier Wallenius Wilhelmsen announced separate contract changes worth more than $2 billion.
The Oslo, Norway-based company (OTC: WAWIF) said it has signed a contract renewal with a European automotive manufacturer. The five-year agreement, valued at $380 million, is set to commence on Tuesday.
In a separate development, the carrier announced a 10-year contract extension with an automotive OEM.
Wallenius did not disclose the identity of either company. An OEM typically produces parts.
The scope of services provided by Wallenius Wilhelmsen under these agreements is comprehensive and includes receiving vehicles, end-of-line services, accessory installation, delivery management, vehicle distribution and storage, and digital supply chain insights.
Wallenius Wilhelmsen offers short-sea and deep-sea ocean services under separate agreements.
The long-term, multiproduct contracts “provide seamless integration, flexibility for both parties, and room for innovative collaborations to enhance digital value chain solutions,” said John Felitto, executive vice president and chief operating officer of logistics services at Wallenius Wilhelmsen, in a release.
Looking to the future of the contract renewal, the parties expressed their intention to expand the partnership further. The shared vision includes broadening the contract’s scope to encompass ocean services, creating a more comprehensive and integrated strategy. This approach aims to streamline processes and leverage advanced digital solutions to future-proof operations.
“The contract has a solid land-based scope and is one of our largest,” Felitto said. “It is exciting to enhance a partnership that already prioritizes comprehensive integration and digital transformation at its core.”
The extended contract, starting in April 2027, has an estimated gross revenue of $2 billion, the carrier said.
Find more articles by Stuart Chirls here.
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