Arrow Energy reported it has signed DHL to provide logistics management to Arrow’s proposed coal seam gas developments in the Bowen Basin.
In a first for the Australian resources sector, DHL has been engaged as a fourth-party logistics (4PL) contractor, meaning it will effectively function as an Arrow department.
“We have great confidence that a 4PL relationship with DHL is the best way to achieve both safety and value outcomes for the logistics task of our Bowen proposals,” Arrow CEO Andrew Faulkner said.
The contract, signed for 1+5 years, began on November 17 and covers logistics services to the proposed Bowen Gas project and the Arrow Bowen pipeline.
The bulk of the 4PL contract depends on the two proposed projects proceeding to construction.
In September, Arrow announced it was progressing the Bowen Gas Project to the front-end engineering design phase.
The 4PL task will include services covering general and over mass/size freight, fuel, water and gravel distribution, waste services and marshalling yard operations.
DHL will manage the second and third-party logistics providers, which perform the hands-on work like driving trucks, facilitating cargo through Customs and running warehouses.
Press Release; Image: DHL