United Group wins $126 million QR contracts

QR has awarded contracts worth $A126 million to United Group to supply coal locomotives and wagons, allowing subsidiary QRNational Coal to meet haulage deals made with Peabody Energy and Felix Resources.
United Group wins $126 million QR contracts United Group wins $126 million QR contracts United Group wins $126 million QR contracts United Group wins $126 million QR contracts United Group wins $126 million QR contracts

From January 2013, railways will come under a single safety regulator (Picture courtesy QR).

Angie Tomlinson

Under the contracts, United Group will manufacture 15 180-tonne diesel-electric locomotives for $93 million and 160 120t stainless steel bottom-dump wagons for $34 million.

The new 5020 class locomotives will be delivered between December 2010 and May 2011 to support new contracts with Peabody and Felix in the Hunter Valley, New South Wales.

QR’s Rollingstock and Component Services business will build an additional 80 wagons for $18 million to support the Peabody contract to be delivered this year.

“The locomotives are a new generation based on the 5000 class operating in the Hunter Valley but with new technologies and increased power output,” QR executive general manager for coal Marcus McAuliffe said.

“The benefits of the new wagons include improved strength, reliability, braking performance and increased haulage capacity, which is good news for our customers.”

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