China Communications’ new subsidiary wins share of $2bn Sydney motorway

China Communications Construction Company’s decision to buy John Holland from Leighton Holdings last year has produced its first results as the contractor wins a role in a US$2bn motorway scheme in Sydney.

The decision was intended to tap into an estimated $20bn of infrastructure projects that will come to market in New South Wales in the next few years.

Australia’s WestConnex Delivery Authority (WDA) chose a consortium made up of  John Holland, Leighton Contractors and Samsung Construction to design and build the M4 East Motorway.

The road is part of the WestConnex project, presently Australia’s largest transport infrastructure scheme, which includes the widening of the existing M4 Motorway.

Marcelino Fernández Verdes, Leighton’s chief executive, said: "Australia’s strong investment in economic infrastructure continues to provide a pipeline of opportunities for the CIMIC Group.  

"We are committed to assisting our clients with solutions for expanding modern sustainable infrastructure. Projects such as WestConnex drive economic growth by easing congestion, creating jobs and connecting communities, and we value the opportunity to contribute our transport capabilities and experience.  

Major work is scheduled to start in 2016 and the M4 East is due to open to traffic in 2019.

The 33km WestConnex motorway will link Sydney’s west and southwest with the city, airport and port. It is being constructed in three stages and will be progressively opened, with final completion scheduled for 2023. The contract will generate $690m of revenue for Leighton over the next four years.

Leighton was recently selected to deliver a 6km extension of the Mitchell Freeway in Perth’s north-west corridor.

Read more about the project here.

Image: Artist’s depiction of the WestConnex M4 East (Leighton)

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