A Territorial Army (TA) transport regiment is to be established with squadrons in the South West.
The TA will be kept at 42,000 troops
The announcement from Armed Forces Minister Adam Ingram came with the news the TA was to be remodelled to bring it closer to the regular armed forces.
The regiment is to be established in the South West in Plymouth, Devon, with squadrons in Truro, Cornwall as well as Poole and Dorchester in Dorset.
Despite the new regiment, the TA's strength is to remain at 42,000 troops.
In Plymouth, some 120 TA soldiers are to be based at the army's Derriford barracks as part of the creation of the new regiment.
About £1.3m will be spent at the base at over the next four years.
The TA's base at Millbay in the city will be unaffected.