16/07/2021 - 14:54

Macmahon, Agility Logistics in legal stoush over delivery

16/07/2021 - 14:54

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Macmahon Contractors is suing Kuwait-based Agility Logistics, claiming the company is still in possession of equipment it agreed to transport to Queensland six months ago.

Macmahon, Agility Logistics in legal stoush over delivery
In a writ lodged in the Supreme Court this week, Macmahon Contractors claims Agility Logistics has failed to return the goods.

Perth-based civil engineering company Macmahon Contractors is suing Kuwait-based Agility Logistics, claiming the company is still in possession of equipment it agreed to transport to Queensland six months ago.

According to a writ lodged in the Supreme Court this week, the two companies signed a written agreement for the transport of mining equipment to the port of Mackay by January 17 2021.

The contract came just months after Macmahon’s parent company, Macmahon Holdings, was awarded a $250 million mining contract for work on the Foxleigh coalmine in Mackenzie River, about 250 kilometres south of Mackay.

The mining deal involved the hiring of equipment and maintenance of 21 large-capacity dump trucks, as well as client-owned equipment over a five-year term, with work on the mine scheduled to start in March 2021.

In the writ, Macmahon claims the global logistics company failed to deliver the goods on time, leaving it liable for liquidated damages under the contract.

Macmahon further alleged Agility Logistics was still in possession of some of the goods at the centre of the contract.

The value of those goods, however, and the cause of the delay are not disclosed.

The civil engineering company claims it had attempted to retrieve the goods and even issued a notice of dispute to the company on June 1, but that Agility Logistics had refused to comply, despite not having the right to retain possession of the equipment.

According to the writ, Macmahon is now seeking a court order to force Agility Logistics to return the equipment, as well as pay liquidated damages calculated from the proposed delivery date.

Macmahon is also pushing to have the cost of the legal fees associated with the court action covered by Agility Logistics.

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