DB Schenker Signs $500 Million Logistics Contract

DB Schenker, the German global freight forwarder, won a $500 million contract to provide worldwide and national transport for Australia's giant Gorgon gas project.

The four-year contract with the Kellogg Joint Venture calls for Schenker to provide integrated logistics services to transport more than 2 million metric tons of equipment to module production plants in Asia or directly to a planned gas liquefaction plant at Barrow Island on the northwest coast of Australia.

DB Schenker, a unit of German rail and logistics group Deutsche Bahn, said initial work on the $36 billion Gorgon project, one of the largest gas production developments in the world, would begin shortly on Barrow Island.

"We have established ourselves as a key player in the provision of logistical services for oil and gas exploration and production projects," said Ron Koehler, Chief Executive Officer, Schenker Australia Ltd.

"DB Schenker's international network enables us to provide the contracted services at the agreed times and within the defined budget," Koehler said.

The Kellogg Joint Venture, a consortium under contract to Chevron, Exxon/Mobil and Shell, plans to start producing gas in 2014.

The Gorgon field holds an estimated 40 trillion cubic meters of gas.

Contact Bruce Barnard at brucebarnard47@hotmail.com.