Macmahon Holdings Limited has announced that it has been awarded preferred contractor status to construct the first stage of the Solomon Rail Spur in the Pilbara region of Western Australia for Fortescue Metals Group (FMG).
The final contract is expected to be executed before the end of September.
The contract, worth approximately $300 million, will involve the construction of 81km of rail formation from the FMG main rail line through the Chichester Range towards the Solomon deposit.
Works to establish the rail formation will involve more than six million cubic metres of earthworks, including sidings and associated drainage, the construction of four major bridges including two over the Fortescue River and also the establishment of level crossings over the Great Northern Highway and other roadways.
Macmahon Chief Executive Officer Nick Bowen said the selection further demonstrated the Group’s capabilities in executing large and remote projects.
“The Solomon Rail Spur is a significant opportunity for our Construction Business and stands to be one of the biggest single construction contracts for the Company in Western Australia,” Mr Bowen said.
Macmahon was able to show its thorough understanding of the scope of the works, along with its capability and capacity to accomplish the complete scope of works within the proposed timeframe.
Through the Early Contractor Involvement (ECI) process, utilising value engineering, Macmahon was also able to identify opportunities for significant project savings for the client.
“This selection reinforces the positive changes we have made to the Construction Business during the year and emphasises the range of services we can deliver to our clients,” Mr Bowen said.
“Macmahon is continuing to deliver critical infrastructure across Australia and the development of the Solomon Rail Spur will help unlock the resources present in the Pilbara.
“This is an exciting project for FMG and Macmahon is very pleased to support them in establishing another key part of their rapid expansion,” Mr Bowen said.
Preliminary works will commence immediately, with the project scheduled for completion late in the 2012 calendar year.
