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- CIMIC’s (CIM) subsidiary UGL wins a $297 million locomotive contract from Pacific National
- Under the contract, UGL will design, manufacture and supply new fuel-efficient diesel-electric locomotives for Pacific National
- These locomotives will be the most technologically advanced, fuel-efficient and environmentally compatible diesel-electric locomotives in Australia
- The contract will generate roughly $297 million in revenue to UGL and will solidify its position as Australia’s only freight locomotive manufacturer
- CIMIC is down a slight 0.05 per cent on the market with shares trading at $19.65 at 2:24 pm AEST
CIMIC’s (CIM) subsidiary UGL has been awarded a $297 million locomotive contract from Pacific National.
Under the contract, UGL will design, manufacture and supply new fuel-efficient diesel-electric locomotives for Pacific National.
These C44 Evolution locomotives will be the most technologically advanced, fuel-efficient and environmentally compatible diesel-electric locomotives in Australia.
They will be designed and manufactured in Newcastle, New South Wales.
CIMIC Executive Chairman and CEO Juan Santamaria said CIMIC and UGL were pleased to be partnering with Pacific National.
“Pacific National has a strong focus on improving the efficiency of its locomotives and its environmental performance,” Mr Santamaria said.
“We’re pleased to support this strategy by delivering locomotives that lower emissions and operating costs, with improved productivity, reliability and availability.”
The contract will generate roughly $297 million in revenue for UGL over seven years and will solidify its position as Australia’s only freight locomotive manufacturer.
UGL Managing Director Doug Moss commented on the contract win.
“UGL’s unique position as Australia’s only manufacturer and maintainer of Australian-made locomotives allows us to ensure a strong home-grown supply chain and ongoing local employment,” Mr Moss commented.
“The C44 Evolution locomotive is better for the environment with lower emissions and better fuel efficiency than anything Australia has seen before.”
CIMIC was down a slight 0.31 per cent on the market with shares trading at $19.60 at 1:40 pm AEST.
