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Sun 15 May 2011 03:44 PM

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Kuwait's KGL nets $870m contract for US army

Group of logistics firms win five-year contract to supply US army in Kuwait, Iraq and Saudi Arabia

Kuwait's KGL nets $870m contract for US army
In March, KGL said it signed a four-year storage contract with the US military worth $157m (Getty Images - for illustrative purposes only)

Kuwaiti logistics firm KGL said on Sunday that one of its units has won an $870m logistics contract with the US Army along with three other companies.

Also known as Kuwait and Gulf Link Transport Co, KGL said in July 2010 that the US government had agreed to look into an objection filed by the company regarding the award of a military supply contract to its competitor, Anham.

KGL said that Anham did not meet the minimum bidding requirements for the contract.

"One of the units... has won with three other firms the Heavy Lift 7 contract with the US army in areas of Kuwait, Iraq and Saudi Arabia worth $870m, for five years starting September 2011," KGL said in a statement on the Kuwaiti bourse website on Sunday.

KGL said it could not specify its share of the contract because it depends on the army's needs.

In March, KGL said it signed a four-year storage contract with the US military worth $157m.

The firm's shares were up 9 percent at 0800 GMT on the Kuwaiti bourse, after it made the announcement.

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