Macmahon and MVM awarded rail upgrade contract


Macmahon Holdings and its subsidiary MVM Rail awarded contract to boost coal carrying capacity in NSW

Macmahon Holdings and its subsidiary MVM Rail will be a part of a capital works plan to boost coal carrying capacity in New South Wales.

Both companies will be involved in the $100 million Ulan Line Alliance programme, which aims to improve coal capacity on the Northern Railway Corridor in the Hunter Valley.

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.

The announcement was made by the Australian Rail Track Corporation (ARTC), and Macmahon Chief Executive Nick Bowen says it shows the company can provide comprehensive civil infrastructure solutions to major customers.

"This award highlights our expanding capability in large scale rail projects and reinforces to the market our depth of expertise in this area," he says.

"This project is one of several important packages of works which, once completed, will boost the capacity of this vital transportation network.

Bowen says the latest announcement is third major rail contract Macmahon has been awarded in the past nine months.

The ARTC estimates the value of the contract to Macmahon and MVM will be about about $60 million.

ARTC Chief Executive David Marchant says 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," Marchant says.

"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."


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