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CIMIC Group company UGL secures $630mn extension with Sydney Trains

Grupo ACS subsidiary CIMIC Group extends maintenance contract with Sydney Trains

CIMIC Group, a part of Grupo ACS, has announced its company UGL has sealed a five-year extension to its contract with Sydney Trains for the delivery of maintenance and logistics services for a portion of Sydney’s metropolitan passenger rail fleet. 

This five-year extension, effective from 1 July 2019, replaces the two-year extension announced on 30 January 2019, and will provide heavy maintenance, component overhaul and supply chain capabilities, coupled with engineering and depot-related support. 

The extension will generate revenue of approximately $630mn to UGL, replacing the $277mn 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.”

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UGL Managing Director Jason Spears added: “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.” 

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, in addition to Unipart Rail UK, which delivers world class supply chain services to both the rail and vehicle industries. 

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