Qube has awarded the contract to build four locomotives to UGL, part of the CIMIC Group.
The four locomotives will be built in Newcastle at UGL’s workshops there, said UGL’s managing director Jason Spears.
“These contracts extend our light rail capability alongside our Adelaide heavy rail presence and commence our relationship with Qube Logistics. UGL has a strong reputation for quality and safety and we look forward to exhibiting that through these manufacturing, maintenance and operations contracts.”
Qube has recently signed extensions to its freight rail logistics business. Late last year, the company announced that it had signed contracts with Shell Australia and Bluescope Steel. In its Half Year results announcement, Qube indicated that it would spend $73 million on new rollingstock and infrastructure to support the Bluescope contract.
Additionally, its Moorebank Logistics Park began rail operations with a major warehouse for retailer Target.
Further agreements for tenants at other sections of the Park are in the final stages of being negotiated.
According to UGL, its base in Newcastle was key to the purchase by Qube.
“UGL’s long history of manufacturing is key to our success in Newcastle. We’re proud that UGL has had a presence in in NSW for more than 120 years, including a strong presence in Newcastle.”
The news follows the announcement that UGL, along with Transit Systems and John Holland will operate the Adelaide tram network from July 2020.