UGL Limited has successfully secured the renewal of its maintenance and logistics contract with RailCorp, the contract previously known as MainTrain.
Under the new contract, UGL will continue to provide heavy maintenance and logistics management services on 1,050 passenger cars in Sydney’s passenger car fleet for RailCorp in joint venture with Unipart Rail.
It is anticipated that the total contract will generate approximately $1.4 billion in revenue over the initial contract term of 7 years until June 2019.
Options would potentially generate a further $900 million in revenue and extend the contract until 2024. The award of options is at the sole discretion of RailCorp.
A joint venture company has been established between UGL Rail and its partner Unipart Rail, to deliver the requirements for heavy maintenance, engineering, procurement and logistics services. UGL holds a 70 percent shareholding in the joint venture company.
UGL Managing Director and CEO, Richard Leupen said:
“We are delighted to have been selected by RailCorp to continue providing the maintenance and logistics services to Sydney’s passenger car fleet.
“RailCorp remains one of UGL’s most valued clients and securing this award is a reflection of our longstanding, collaborative partnership with RailCorp which has been built over the last 17 years.
“The new contract is core to UGL’s strategy of providing essential services to the community.
“The renewal of this key contract further strengthens UGL’s recurring revenue base providing greater revenue certainty and visibility over the longer term.”
Mr Leupen also commented:
“We continue to see strong momentum in the outlook for our Rail business.
“UGL has identified a weighted pipeline of approximately $3 billion in passenger and freight rail supply and maintenance opportunities, which will support ongoing sustainable growth in our Rail business.”
