UGL adds $90m to order books

WITH a booming resources sector continuing to fuel demand for new or upgraded rail cars, wagons and infrastructure, the announcement today by major Australian rolling stock supplier United Group that it has secured new contracts worth more than $A90 million comes as little surprise.
UGL adds $90m to order books UGL adds $90m to order books UGL adds $90m to order books UGL adds $90m to order books UGL adds $90m to order books


Staff Reporter

The extra work brings the engineering company's order books to $A4.3 billion overall, with approximately $A3 billion of that coming from its rail and infrastructure businesses.


United Group's (UGL) customers under the new contracts include Queensland Rail (QR), BHP Billiton and Westnet in Western Australia.


Under the QR contract, UGL will supply 200 bogies for coal wagons and 100 coal wagon hoppers, while the BHP contract will see UGL supply 23 ore cars and 118 ore car hoppers.


UGL will also supply BHP Billiton with eight GE locomotives for the Pilbara region, bringing the total number ordered by the mining giant to 10.


Adelaide to Darwin railway operator Freightlink has also ordered 25 2-pack container well wagons.


New rail infrastructure contracts include:


  • works for Westnet to design, supply, install, test and commission upgrades to level crossings in WA;
  • pedestrian gate upgrades for VicTrack; and
  • signalling works on the third set of rail tracks between Salisbury and Kuraby – in conjunction with Queensland Rail – to increase capacity for the Brisbane commuter network.

"We are seeing renewed investment in rail infrastructure across the country," UGL chief executive Richard Leupen said. "There is strong demand for upgrades or extensions of existing passenger rail tracks and rolling stock, as well as new lines to support both population expansion in our cities and intermodal freight requirements."


UGL's acquisition of French engineering company Alstom in September added $A1.6 billion to United's order book.


"The capabilities we gained through our acquisition of Alstom's Australian and New Zealand transport businesses, like rail track construction and maintenance, signalling and tunnelling, are very complementary to our existing rail operations," Leupen said.

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