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Macmahon Holdings Limited (ASX:MAH) and Australian Rail Track Corporation (ARTC) announced today that ARTC has awarded Macmahon and MVM Rail work as part of the $100 million Ulan Line Alliance programme.
The package is one of three capital works programmes designed to increase the coal carrying capacity of the Main Northern Railway Corridor in the Hunter Valley region of New South Wales.
The Ulan Line Alliance will undertake the design and construction of eleven passing loops and associated tunnel ventilation works on the line between Muswellbrook and Ulan.
Macmahon Chief Executive Officer, Nick Bowen, said that the announcement reflected the Group’s growing ability to provide comprehensive civil infrastructure solutions to major customers, such as the ARTC.
“This award highlights our expanding capability in large scale rail projects and reinforces to the market our depth of expertise in this area,” he said.
“This project is one of several important packages of works which, once completed, will boost the capacity of this vital transportation network.
“Furthermore, our strategy of pursuing growth opportunities in the New South Wales infrastructure sector is paying off, with this being the third major rail contract awarded in the past nine months,” Mr Bowen said.
While the value of the work to be carried out will be finalised in the coming months, it is anticipated that the total contract value applicable to Macmahon and its subsidiary MVM Rail will be approximately $60 million.
ARTC Chief Executive Officer David Marchant explained that the ongoing upgrade of the Hunter Valley rail corridor is essential if the network is to keep pace with increasing demand for coal from the region.
“Demand for coal from Ulan is set to grow exponentially by 2012. The package of works to be undertaken by Macmahon and MVM Rail is part of ARTC’s strategy for the Ulan coal corridor to keep ahead of future market demands,” Mr Marchant said.
“Against the backdrop of volatile world markets, it is essential for the Australian economy that the Hunter Valley rail network is able to meet future demand and deliver coal to port efficiently and on time.”
Specifically, the programme will cover various civil, structure and track construction works in the Hunter Valley between Muswellbrook and Gulgong including:
- Passing Loops to be commissioned by 31 December 2009 at: Aerosol Valley; Worondi and; Radio Hut.
- Passing Loops to be commissioned by 31 December 2011: Bengalla Loop; Wilpinjong Loop; and a further two loops at the 337 km and 378 km marks.
- Passing Loops to be commissioned by 31 December 2012:
Two loops at the 353 km and 390 km marks. - Bylong Tunnel Ventilation: ARTC have completed a detailed study of the ventilation works. It is anticipated that the feasibility study will commence immediately after Commercial Alignment and construction works will then commence. This Project is to be completed by 31 December 2009