Sydney Trains awards $630 million contract

Sydney Trains has awarded a five-year extension to the contractor currently delivering maintenance and logistics services for part of its metropolitan passenger rail fleet.

UGL, a CIMIC Group company, secured the five-year extension, effective from 1 July 2019, which replaces the two-year extension announced on 30 January 2019.

UGL will provide heavy maintenance, component overhaul and supply chain capabilities, coupled with engineering and depot-related support.

The services will be delivered through UGL Unipart, a 70:30 joint venture between UGL and Unipart Rail UK.

The joint venture draws on both UGL’s asset management and maintenance capability and extensive knowledge of Sydney’s metropolitan passenger rail fleet, and Unipart Rail UK’s capacity to deliver world class supply chain services to both the rail and vehicle industries.

The extension is expected to generate revenue of approximately $630 million to UGL, replacing the $277 million of revenue announced in January.

CIMIC Group Chief Executive Officer, Michael Wright, said, “We are very pleased to be extending our long-standing relationship with Sydney Trains and Transport for NSW, building on a partnership that has spanned several decades.

“CIMIC Group, through its various operating companies including UGL, CPB Contractors, Pacific Partnerships and EIC Activities, provides a unique and market leading rail capability to the rail network owners and operators of NSW and beyond. Through this contract extension, UGL will provide value and optimal benefit for the people of New South Wales.”

UGL Managing Director, Jason Spears, said, “This significant contract extension further confirms UGL’s position as a market leader in rail maintenance and asset management, and our reputation for delivering reliable rolling stock asset management and maintenance.”

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