UGL Limited (UGL) said it had been awarded a $108 million contract for the supply and maintenance of 10 railway locomotives for Xstrata Coal. The contract also includes the maintenance of 300 wagons for the next 10 years.
UGL said the locomotives, which incorporate technology from GE Transportation, would be serviced from its Taree, Goulburn and Broadmeadow facilities.
Managing director and CEO, Richard Leupen, said the contract built on other prior rail contract wins for the company and underpinned its position as Australia’s leading provider of rail carriages.
”The manufacturing and 10-year maintenance program with Xstrata Coal is a particularly pleasing development as it illustrates UGL’s ability to provide a total solution for our customers, and at the same time, lock in longer term, predictable revenue streams,” Mr Leupen said.
”Given our expertise and experience in rolling stock design, manufacture and maintenance, we’re well-placed to support this investment.”
Mr Leupen said UGL’s rail business continued to benefit from increased investment in Australia’s freight and bulk commodities markets.
At the close Tuesday, UGL shares were trading at $13.76.
