Engineering, Rail Supply, Rolling stock & Rail Vehicle Design, Technology and IT

Downer lands $1bn deal with Pacific National

Australian engineering group Downer EDI has won a ten-year maintenance contract with rail operator Pacific National, that the engineer values at around $1bn.

Downer announced to the ASX today that it had struck a deal with Pacific National, a subsidiary business of transport and infrastructure business Asciano.

Downer chief executive Grant Fenn said the agreement was an important development in Downer Rail’s aim to provide “total rail asset solutions” to its customers.

“Under the agreement, Downer will provide a full suite of asset management services for over 300 Pacific National locomotives,” Fenn said.

“This includes a range of scheduled and unscheduled maintenance services and a 24 hour Fleet Control Centre.

“The new features of the agreement include remote monitoring of the assets and inspections while in service to ensure more locomotives are available for service,” he continued.

“The locomotives are out on the tracks for longer hours and that they run at higher levels of reliability.”

Pacific National moves roughly 145mt of cargo each year. The company delivers rail operations for coal and other bulk solids, as well as container transport and specialised freight, such as steel.

The Pacific National deal announced today was the second bulk handling contract win for Downer so far this year. The company announced on January 5 that it had won a deal to maintain haul truck fleets at two coal mines in Queensland’s Bowen Basin.

That contract commenced on February 1, and is worth about $60m. Around 110 people will be employed to service 90 haul trucks.