UGL wins $126m QR Coal rolling stock deal

In a joint statement, the companies said UGL would manufacture and supply 15 180-tonne diesel-electric locomotives for $93 million and 160 120-tonne stainless steel bottom-dump wagons for $34 million.
The 5020 class locomotives will be delivered between December 2010 and May 2011 to support QRNational Coals’s new contracts with Peabody Energy and Felix Resources in the Hunter Valley.
QR’s Rollingstock and Component Services (RACS) business will build another 80 wagons under a rolling stock investment of $18m to support the Peabody contract with wagons from both suppliers to be delivered during 2010.
“The locomotives are a new generation based on the 5000 class operating in the Hunter Valley but with new technologies and increased power output,” QR executive coal general manager Marcus McAuliffe said.
“The benefits of the new wagons include improved strength, reliability, braking performance and increased haulage capacity, which is good news for the customers.
“The addition of this rolling stock to our Hunter Valley fleet will help us to consolidate our position as a safe, reliable and efficient service provider in this important and growing market.”
UGL chief executive Richard Leupen said the growth in the Australian coal market “bodes well” for UGL and the group is well placed to benefit from increasing investment on capital equipment and infrastructure as producers look to increase production to meet growing demand from local and international customers.
“UGL’s work in hand in the rail sector is at near record levels. Since November 2009, the group has secured almost $460m of new rail manufacturing, maintenance and infrastructure projects, and UGL is pursuing a number of growth opportunities both in Australia and overseas,” Leupen said.