Construction materials group signs fleet service deal

South Australia-based MSP Group announced last month that it had contracted Babcock International Group’s local subsidiary, Babcock Australasia, to manage, repair and maintain its heavy mobile equipment and concrete agitators.

The contract, which is for an initial five-year period, came into effect on 1 June, and encompasses MSP Group’s wheel loaders, fixed and articulated dump trucks, tracked excavators, rollers, graders and dozers, among other machinery. Babcock will be establishing a workshop, mobile maintenance units and personnel to service the fleet.

Kane Salisbury, CEO of mining and construction materials at MSP Group, said the company had previously managed its own fleet but had realised that it could optimise its operations by appointing an independent mechanical servicing specialist.

“This contract will enable us to focus on what we do best, which is to provide great materials to the construction industry,” he stated.

Addressing inefficiency

MSP Group identified that maintenance planning inefficiency at its workshop had been reducing the productivity of its mechanics. “We struggled to establish good systems and processes for maintenance planning, and this is one of the key advantages we saw in Babcock being able to drive greater efficiency and therefore lower costs,” Salisbury explained.

He added that MSP Group hadn’t had the scale and expertise to keep up to date with industry best practice in maintenance planning – something that Babcock was able to provide. “This greatly mitigates our risk as we are confident that Babcock are fully up to date with both industry best practice and all statutory requirements,” he said.

Babcock Australasia CEO Craig Lockhart noted that the agreement with MSP Group was the first commercial contract win for Babcock’s fleet management business unit in Australia.

“[The contract] will assist to deliver further opportunities for growth, both within MSP and with other Australian companies,” he commented, adding that Babcock planned to expand its representation across all Australian states. The company currently has offices in South Australia and Western Australia.

“Whether we are supporting naval ships, submarines, aircraft or heavy mobile equipment, our customers can be confident that we understand how critical their assets are to the success of their business and that our employees are dedicated and focused on delivering maximum availability at lowest cost,” Lockhart said.

MSP Group has been operating for 35 years, producing and selling quarry products, concrete and building products. Its construction materials businesses include Kulpara Quarry, McLaren Vale Quarries and Hallett Concrete.

Babcock is an international engineering support services company that has more than 700 staff across Australia and New Zealand who design, build, manage, operate and maintain its customers’ assets.

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