Downer scores FMG contract
Downer Rail has won a $73m contract to build 19 new locomotives for Fortescue Metals Group (FMG).
The contract will see Downer, in partnership with EMD, design, build and deliver 19 new SD70ACe/LCi locomotives to FMG in Western Australia’s Pilbara region.
The $73m contract includes the provision of service and support activities for the19 locomotives for a minimum of five years, with an option to extend.
The first new locomotives are expected to be delivered in August 2012.
According to Downer EDI chief executive Grant Fenn, the fleet of SD70ACe locomotives will bring “significant performance benefits” to FMG including additional haulage capability, fuel consumption improvements, exhaust emission benefits and reliability improvements.
The SD70ACe locomotive and its key components and systems are designed by EMD (a subsidiary of Progress Rail and Caterpillar Inc.). Downer and EMD have worked together for more than 60 years supplying and supporting locomotives in Australia.
“By combining the technical strength and expertise of EMD with Downer’s local Australian knowledge and support, we will deliver a fully integrated locomotive that complies with Australian customers’ requirements,” Fenn said.
Downer said the SD70ACe locomotive is a proven product, having successfully operated in the arduous and demanding Pilbara environment for the past five years.
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