Freightliner Heavy Haul Ltd (FHH) announce a significant milestone in the trading relationship with Lafarge Cement on 6 June 2007. Under the terms of a revised contract, FHH is to purchase the fleet of 322 51-tonne cement wagons currently owned by Lafarge. Under the terms of the contract, the wagons will be leased back to the company to serve their growing market in cement. FHH will take over responsibility for the control and maintenance of the fleet, leaving Lafarge free to concentrate on their core business, the manufacture and marketing of cement.

The “sale and leaseback” of this fleet by FHH is the first such deal undertaken by a haulier in the construction railfreight sector. It reflects FHH’s flexible way of thinking, relieving Lafarge of any unnecessary distraction and giving them a ‘one-stop shop’ for their substantial rail distribution network.

David Israel, Commercial Director, FHH commented:“We are delighted to have concluded this arrangement with Lafarge Cement which demonstrates a partnership approach by both companies. With FHH undertaking the fleet management and operation, Lafarge can focus on their prime goal of cement production whilst we can concentrate on giving them a value-driven and efficient rail service package.”

Dave Burley, Supply & Distribution Director, Lafarge Cement commented:“As the only UK manufacturer with nationwide coverage, we are committed to using rail to transport our products across the UK, as an effective and sustainable form of transport. In fact, we are investing over £20 million at our Hope Works in Derbyshire to increase the amount of cement transported by rail to over a million and a half tonnes. This partnership will help our operations become more efficient and opens up new possibilities which will allow us to make further improvements in service and performance.“