CIMIC Group wins $725M Regional Rail Project
CIMIC Group companies Pacific Partnerships, UGL and CPB Contractors, as part of the Momentum Trains consortium, have been selected by Transport for NSW to deliver the $1.26 billion 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, New South Wales.
CIMIC Group has led the consortium’s development of the project, with Pacific Partnerships providing leadership and equity financing for the contract term. 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 includes Construcciones y Auxiliar de Ferrocarriles (CAF), who 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 $725 million over the construction and initial 15-year maintenance term.
The project is expected to commence in early 2019, with the first trains to enter service progressively from 2023.
CIMIC Group Chief Executive Officer Michael Wright said: “CIMIC Group is Australia’s premier rail services provider. Our end-to-end capability enables us to finance and maintain the rail fleet, and deliver a state-of-the-art maintenance facility, combining the collective rail expertise of Pacific Partnerships, UGL and CPB Contractors. It’s our privilege to work with Transport for NSW to deliver high-quality rail assets for rural and regional NSW, as well as creating local jobs and leaving a skills legacy of long-term value for people in regional communities.”
Pacific Partnerships Managing Director Martin D’Uva said: “Our integrated approach positions us to deliver a seamless, whole-of-life solution that achieves optimum outcomes. We’re focused on providing certainty of delivery and operational performance and ensuring customers benefit from a safe, efficient rail service.”
UGL Managing Director Jason Spears said: “This contract strengthens our position as the leading provider of rail asset management in Australia. We’re committed to working with local organisations to generate employment and business opportunities that will deliver great community outcomes for the region.”
CPB Contractors Managing Director Juan Santamaria said: “CPB Contractors has a strong track record of delivering high-quality rail construction across Australia. Our team will bring this experience and skills to safely deliver this important project for regional NSW.”