Germany taps Rheinmetall to handle some wartime logistics
BERLIN — Germany's Rheinmetall will provide logistics support for military movements within and across the country under a major new contract, the company announced.
The deal comes as part of a wider German effort to remake the Bundeswehr into a more combat-ready force and efforts to prepare German society for future crises, including an armed defense of the country.
The contract, estimated to be worth around €260 million ($271 million) over the course of the next three years, was announced by the German arms maker on Feb. 19. It entails providing and running housing, catering, waste disposal, energy supply and refueling, among other tasks. According to the government tender outlining the contract's scope, the tasks surrounding the creation and running of such convoy support centers are being fulfilled by Rheinmetall Project Solutions as the 'full-service partner' since Jan. 1.
The agreement will run for three years, with the possibility of two one-year extensions until the end of 2029. Notably, the contract stipulated that the tasks delegated to Rheinmetall's logistics branch would still be the company's responsibility even in times of war or if a mutual assistance clause – NATO's Article 5 – were triggered. It will also apply not just to the provision of services for German units but also allied troops transiting Germany, including NATO, United Nations, EU or Partnership for Peace forces.
'Due to its central location in Europe, Germany is both a transit nation and a logistical hub in terms of collective defense,' Rheinmetall said in a statement. 'Within NATO and the EU, the country therefore plays a central role in the deployment of forces.'
Germany has also played a role as a logistics hub for supplies making their way to Ukraine, especially by land.
Rheinmetall, perhaps best known for making tanks, trucks, artillery and other military gear, has seen its share price rise tenfold since Russia's full-scale attack on Ukraine in 2022.
In July 2024, the Düsseldorf-based company received a Bundeswehr contract to deliver up to 6,500 trucks, worth up to €3.5 billion ($3.65 billion).
The logistics deal marks an expansion of private sector involvement in Germany's military logistics. It is the first industry partnership under Germany's classified 'Operations Plan Germany,' a restructuring of the country's armed forces to make them more resilient and effective.
The Operations Plan is a response to Russia's invasion of Ukraine, with a public brochure about the plan stating: 'One thing is for certain: Germany and its population must become more … prepared to face threats and aggressors.'
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