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Wed August 05 2020

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Cimic team wins $725m of Australian rail work

14 Feb 19 Three companies within Hochtief’s Cimic Group are set to earn AU$725m (£400m) for their role on a major regional rail project in New South Wales (NSW), Australia.

Group companies Pacific Partnerships, UGL and CPB Contractors are part of the Momentum Trains consortium, which has been by Transport for NSW to carry out the AU$1.26bn regional rail project as a design, build, finance and maintain contract.

The consortium will deliver a new regional rail fleet and a new maintenance facility in Dubbo.

Cimic Group has led the consortium’s development of the project, with Pacific Partnerships providing leadership and equity financing for the contract term. Cimic company CPB Contractors will design, construct and commission the maintenance facility at Dubbo, whilst UGL will maintain both the fleet of 117 rail cars and the maintenance facility.

The consortium also includes Construcciones y Auxiliar de Ferrocarriles (CAF), which will manufacture the rail cars, as well as CAF Investment Projects and independent fund manager DIF, both of whom are also providing equity financing alongside Pacific Partnerships.

The project will generate revenue to Cimic Group of approximately AU$725m over the construction period and initial 15-year maintenance term.

UGL managing director Jason Spears said: “We’re committed to working with local organisations to generate employment and business opportunities that will deliver great community outcomes for the region.”

Trains are due to enter service progressively from 2023.

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