CIMIC Group secures Sydney Metro and Southwest contract extension

• The Northwest Rapid Transit Consortium (NRT), which includes CIMIC Group (CIM) companies UGL and Pacific Partnerships, has extended its existing Sydney Metro contract
• Initially awarded in 2014, the contract has been extended to optimise the customer experience
• NRT will operate the full metro line from Rouse Hill to Bankstown which represents 66 kilometres of rail and 31 metro stations
• UGL will also include the Sydney Metro City and Southwest line
• The contract package includes $1.7 billion for new metro trains and rails and $2 billion in operations and maintenance
• Despite the news, CIMIC is down slightly by 0.33 per cent with shares trading for $33.66 cents each

The Northwest Rapid Transit Consortium (NRT), which includes CIMIC Group companies UGL and Pacific Partnerships have extended the existing Sydney Metro contract.

The NRT Public-Private Partnership (PPP) contract was awarded in 2014 and has been extended to deliver a “seamless customer experience on the new metro system.”

NRT will operate and maintain the full metro line from Rouse Hill to Bankstown which represents a total of 66 kilometres of rail and 31 metro stations.

This contract includes UGL, an engineering services company, delivering the radio system. Additionally, UGL will extend its existing services on the newly-opened Metro North West Line to include the Sydney Metro City and Southwest line for a period of 10 years starting from 2024.

These contracts are expected to deliver approximately $366 million to CIMIC Group.

“Sydney Metro aligns well with CIMIC Group’s unique offering as an integrated rail solutions provider. This contract award will allow us to continue our work in delivering a world-class metro rail network for the Greater Sydney region,” CIMIC CEO Michael Wright said.

Pacific Partnerships Managing Director Martin D’Uva is also pleased to further invest in Sydney Metro.

“Pacific Partnerships is pleased to provide further investment into the Sydney Metro project, a world-class metro rail network and to support the CIMIC Group to deliver Sydney’s public transport infrastructure,” Martin said.

As an existing investor, Pacific Partnerships will provide further equity investment to the NRT PPP.

The $3.7 billion contract package includes $1.7 billion for new metro trains and core rail systems and $2 billion in operations and maintenance.

CIMIC is down slightly by 0.33 per cent with shares trading for $33.66 cents each at 3:59 pm AEDT.