The contract is part of the LAND 121 Overlander project, which is a $6.1 billion investment by the government to upgrade vehicles used by the army, Minister for Defense Materiel and Science Greg Combet said.

The contract is a key step in providing the Australian military with a new generation of transport systems that will enhance its mobility and logistics capability, Combet said.

The new generation of vehicular systems will replace the current trailer capability for defense and has been purposely designed to operate in conjunction with the G Wagon vehicles, currently being acquired under a contract with Mercedes Benz Australia/Pacific Pty Ltd.

Delivery of the trailers will start in 2012 and continue to February 2015.

The request for tender for the trailers was sent out in 2005 and was restricted to Australian manufacturers and vehicle suppliers capable of supplying a proprietary trailer. The Haulmark contract for the 973 lightweight and light trailers could create 60 jobs in the Brisbane area.

Haulmark Trailers was set up in 1963 and employs 150 people in the design and manufacture of military trailers for a variety of applications. These include the transportation of tanks, armored fighting vehicles, engineering plant and equipment as well as general freight, fuel, ammunition, stores, containerized freight and shelters.

Haulmark's deal is part of phase three of Overlander, the largest land project in Australia's Defense Capability Plan. Its aim is to replace the army's fleet of trucks, four-wheel drives, trailers and modules for the army's high-readiness units.

Phase three of Overlander includes procurement of 293 Bushmaster protected mobility vehicles, around 3,400 unprotected light and protected medium to heavy vehicles and up to 3,000 trailers, of which the Haulmark contract is part.

The new medium-weight and heavy-vehicles will have upgraded armor for protection against small-caliber bullets and small land mines. They vehicles will also have integrated load-handling systems to load shipping containers and special pallets without assistance.

The trailers are expected to range from cargo trailers with 1,870 pounds to 5 tons of payload. Container carrying trailers will have a payload of 10-16.5 tons. Equipment carrying trailers, including a low-loader, will have a payload of nearly 70 tons.

Combet announced in February the first 11 Mercedes-Benz G-Wagon vehicles, out of the order for 1,200 vehicles, had been delivered and were undergoing compliance testing.

The G-Wagons are to replace the army's Land Rovers. They come in four-wheel drive station wagons, cab-chassis units and in six-wheel drive vehicles in both single and dual cab-chassis configuration. Power is from a Mercedes-Benz 3.0 liter turbo-diesel V6 engine that will be Euro 5 emissions compliant.

Full production of the G-Wagon vehicles will start in Austria later this year for deliveries to Australia to begin next year.

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