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CIMIC wins Sunbury Line contract

ASX 200
ASX:CIM
01 October 2019 23:12 (AEST)

CIMIC Group’s CPB Contractors has been selected by the Victorian Government to deliver the next stage of works on the Sunbury Line upgrade in Victoria.

The Sunbury Line is a $2.1 billion project and will let modern trains run on the line from Sunbury to Footscray. The project is funded by the Victorian State Government, with works beginning in 2019 and is scheduled to be completed by the end of 2023.

The works will provide upgrades to the rail network’s power system, generating revenue of approximately $158 million to CPB contractors.

“CIMIC Group is Australia’s premier rail infrastructure and services provider and, through our construction company CPB contractors, we are very pleased to continue work on the Sunbury Line Upgrade through the Rail Infrastructure Alliance,” CIMIC CEO Michael Wright said.

“Our end to end capability and major project experience enables us to deliver high-quality rail assets and world class public transport, supporting Melbourne and Victoria’s growth,” he added.

The project will deliver power and truck upgrades to support High Capacity Metro Trains travelling through the Metro Tunnel.

CPB Managing Director Juan Santamaria said this is important project for CPB.

“We look forward to bringing our rail experience gained from other projects being built by CPB Contractors such as Melbourne’s Metro Tunnel, Sydney Metro, Brisbane’s Cross River Rail, Regional Rail in New South Wales and light rail in Parramatta, Sydney,” Juan said.

This is the second package of Sunbury Line upgrade works awarded to the Rail Infrastructure Alliance.

The Alliance consists of CPB Contractors and John Holland, with AECOM as the design partner, as well as project owner Rail Projects Victoria and rail franchisee Metro Trains Melbourne.

The contract, however, has not been enough to keep CIMIC shares afloat in a day of losses for the ASX 200. The company is down 2.43 per cent on the ASX today, and is selling shares for $30.97 apiece at 3:06 AEST.

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