UGL Rail secures $88m in new locomotive supply and maintenance contracts

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UGL Limited has announced that its rail business has secured two new orders to supply and maintain new rail freight locomotives for the Australian market valued at $88 million.

The orders include the supply of seven C44ACi locomotives and a five-year maintenance support program to support rail haulage services for a leading resources company in the Hunter Valley region of New South Wales.

UGL has also secured the supply of thirteen new GE Evolution locomotives to support Rio Tinto’s Pilbara iron ore operations and ongoing growth in Western Australia.

This brings the total number of GE/UGL rail locomotives at Rio Tinto’s Karratha operations to over one hundred and fifty.

UGL’s Managing Director and CEO, Richard Leupen, said:

“These new contracts reinforce UGL’s market leading position in the rail freight market. Our locomotive business is performing well with strong demand across all key resources markets.

“UGL is well positioned to capture a number of additional growth opportunities in the rail market.

“We continue to see a large and long pipeline of rail opportunities particularly in the resources related rail freight market with both locomotives and wagons.”

Mr Leupen added: “We are very pleased that a number of leading resources companies have chosen UGL as a key supply and maintenance partner.

“These projects also support a healthy forward workload for our rail business and further add to our recurring revenue base as we commence the 2012 financial year.”

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