Toll Holdings Limited snags $250 million Shell contract

This latest agreement furthers the partnership between fuel provider Shell and transporter Toll.

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Transport and logistics company Toll Holdings Limited (ASX: TOL) announced Thursday that it has snagged a five-year $250 million contract with energy company Royal Dutch Shell Plc (LON: RDSA).

Toll Group will haul Shell's bulk fuel across the nation to service stations in Queensland, New South Wales, Victoria, South Australia and Western Australia.

For Toll, this latest agreement further bolsters the two-sided relationship the company has with Shell. As both a significant user of transport fuel, as well as a supplier of bulk fuel transport, Toll is uniquely positioned to engage in partnership with Shell.

"We are really pleased to be expanding our business with Shell," said Toll Liquids manager Tim Kehoe in a statement. "Our businesses are well aligned in our determination to put safety first at all times and Shell has recognised this in awarding the work to Toll. This contract supports our fuel distribution strategy perfectly and further confirms Toll's commitment to sustainable investment in the sector."

Pending final arrangements, the deal should be sealed in the next few weeks.

Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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