UGL wins $108m Xstrata train supply deal

The contact involves the design and manufacture of 10 C44ACi locomotives, incorporating technology from GE Transportation, and a 10-year maintenance program for these locomotives and a further 300 wagons.

The work will be carried out from UGL Rail's Taree, Goulburn and Broadmeadow facilities and the majority of the manufacturing and supply projects had already begun.

"UGL’s rail business continues to benefit from increased investment in Australia’s freight and bulk commodities markets," UGL managing director Richard Leupen said.

Mr Leupen added that UGL had a strong pipeline of tendering opportunities in the Australian market and was assessing other opportunities in new and existing international markets.

Xstrata has contracted UK rail freight specialists Freightliner to operate its new fleet of coal trains in the Hunter (see separate report).