Eddie Stobart Logistics (ESL) is to be replaced by Wincanton as logistics partner for Aggregate Industries’ Concrete Products division just over two years into a five-year contract, Motortransport.co.uk has learnt.
The contract went live in October 2016, having been publicised in June of that year.
ESL replaced XPO Logistics, which had been the incumbent since 2008, after the deal was retendered.
However, sources close to the situation confirmed that relationship had now broken down and Wincanton would be taking over the contract from the start of March.
As part of the deal ESL drivers will be transferred under TUPE to Wincanton and all associated equipment is expected to be transferred.
Motortransport.co.uk understands that ESL and Aggregate Industries are locked in mediation over whether the move constitutes a breach of contract – something that could carry a multi-million pound implication.
A spokesman for the aggregates company said it was unable to comment at this time.
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In 2016 ESL CEO Alex Laffey said the operator’s multimodal capability – it has a rail hub at DIRFT – had proved decisive in securing the contract as it would support Aggregate Industries’ efforts “in reducing the amount of product moved by road” and help cut its carbon footprint.
The operator had been moving finished products from the Bradstone, Charcon and Masterblock product ranges for Aggregate Industries from 14 UK sites since that date.
ESL staffed a new traffic office specifically for the contract and, in a move deemed innovative for the sector, used a significant number of curtainsiders rather than simply flat-bed trailers to move the product.
The partnership also provided Aggregate Industries with real-time tracking of its products while in transit.
A Wincanton spokesman declined to comment.
Eddie Stobart was approached for comment but had not responded as this article was published.
