10-year NSW rail contract will net Cimic’s UGL $1.2bn

Transport for New South Wales (TfNSW) has chosen Cimic Group’s UGL engineering subsidiary to operate and maintain rail infrastructure for its Country Regional Network (CRN). The 10-year agreement is expected to generate revenue for UGL in excess of US$1.2bn.

The contract includes network operations, including the establishment of a new network control centre, and the implementation of a new signalling system. UGL will also handle asset and property management as well as safety, access and performance.

The previous 10-year contract had been fulfilled by John Holland, the contractor owned by China Communications Construction Company.

The CRN links regional NSW with interstate and metropolitan rail systems, and apart from passengers carries coal, grain, cotton, minerals and containerised freight.

It covers 27,000ha of land and infrastructure including 1,200 property assets and almost 1,000 bridges.

The NSW rail network (Quaidy/CC BY-SA 3.0)

Cimic Group’s chief executive officer Juan Santamaria said: "The CRN provides a reliable and sustainable rail network to safely transport passengers and goods across regional NSW. CIMIC and UGL are proud to support TfNSW to keep this essential service running across more than 2,300km of rail and we’re pleased to do so with a strong commitment to indigenous and regional employment."

Doug Moss, UGL’s managing director, added "This contract win solidifies UGL as the leading rail services company in Australia, by building on our extensive work across the NSW rail network and complementing the rail projects we manage in all other states and territories."

Mobilisation will begin in early 2021 with UGL commencing operations in January 2022.

Top image: The CRN connects regional NSW with metropolitan areas (Philip Terry Graham/CC BY-SA 3.0)

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