Balfour Beatty wins in $2bn train scheme for LA airport

A consortium including UK giant Balfour Beatty has been awarded a $1.95bn (£1.4bn) contract to build a train network at Los Angeles International Airport (LAX).

The "Automated People Mover" will ferry passengers between LAX’s central terminal to a new car rental area along 2.25 miles of track. The building work will include six stations and a train maintenance garage.

The design and build element of the contract has been awarded to the LAX Integrat Express Solutions (LINXS) joint venture comprising Balfour Beatty (30%), Fluor Corporation (30%), Flatiron West (20%) and Dragados USA (20%).

Balfour Beatty said: "Once completed, travellers will enjoy a transportation system that operates up to nine trains simultaneously and moving walkways to the terminals and parking garages.

The contract is Balfour Beatty Investments’ first major public-private partnership to build civil infrastructure in the US.

Leo Quinn, Balfour Beatty’s chief executive, said: "This award at LAX, one of the world’s busiest airports, recognises our expertise and track record for delivering critical transportation infrastructure."

Balfour Beatty appears to have turned its fortunes around, posting a £12m profit in the first six months of 2017, compared with a £15m loss the year before.

Carillion tried to buy Balfour Beatty in 2014 but collapsed into liquidation last month.

Neil Wilson, analyst at ETX, told The Telegraph: "Good news for Balfour Beatty with a major contract award that should help the stock shrug off the cloud of the Carillion mess that has left the shares down more than 10pc in the last month.

"This is yet another sign of the solid progress being made under Leo Quinn and the Build to Last strategy."

Image: Los Angeles International Airport, California (Wikimedia Commons)

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