Coal. Photo: Shutterstock

Adani awards $100m rail contract

Adani Mining awarded a $100 million rail contract to Martinus Rail, after Martinus was 50 per cent acquired by Malaysia’s Gamuda Berhad.

Under the contract Martinus Rail will build a 200-kilometre rail link from the $2 billion Carmichael mine to Aurizon’s Central Queensland Coal Network, facilitating passage to Adani’s export facilities at Abbot Point.

Upon its 50 per cent acquisition of Martinus, Gamuda announced it would immediately begin bidding for $20 billion worth of construction projects in Australia as part of its plans to leverage Australia’s $300 billion infrastructure development pipeline. Gamuda’s joint venture partners have previously worked with the India-based Adani in Asia.

“We are keen to now get started and looking forward to partnering with numerous local Rockhampton and other regional Queensland businesses and people to get our part of the project under way,” said Martinus Rail managing director Treaven Martinus.

Adani Mining chief executive Lucas Dow said the company had now awarded more than $450 million worth of contracts for the Carmichael project, in the Galilee Basin in Central Queensland.

According to a media release from the federal minister for resources and Northern Australia, Matt Canavan, the company also announced it was establishing a business centre in Rockhampton, Central Queensland.

“[The] new Rockhampton Business Centre will support recruitment and local business contracting for its Carmichael Project mine,” said the government statement.

“I spent years fighting for the Adani project because it means delivering jobs and economic activity for regional Queensland. These announcements are more proof in the pudding,” said Canavan about the announcement.

Environmental activists have been holding weekly protests in front of the offices of companies involved in the Carmichael coal project and are expected to target Martinus Rail.

Gamuda BhD acquires Australian specialist rail constructor Martinus Rail

Malaysian based rail and infrastructure company Gamuda Berhad is acquiring a 50 per cent equity stake in Martinus Rail, an independent Australian specialist rail constructor.

Announced in early October, Gamuda intends to leverage the significant pipeline of construction projects in Australia, estimated at $300 billion. The company will immediately bid for $20 billion worth of construction projects.

Gamuda Engineering Managing Director Datuk Ubull Din Om said the acquisition provides a springboard for Gamuda to contribute towards infrastructure development in Australia.

“This is similar to what we have successfully achieved in other nation building projects which have sustainably benefited the local supply chain in the economic and social segments,” Ubull said.

Gamuda, which works largely in Malaysia, is currently delivering a $10 billion Mass Rapid Transit (MRT) Line 2. The company will deliver a 53km metro rail system with 35 stations in one of the most challenging geotechnical conditions.

Martinus Rail has delivered large rail projects exceeding $200 million in New South Wales, Victoria and Queensland.

Martinus Rail Managing Director Martinus Rail said the companies have complementary strengths in rail infrastructure construction.

“With the hefty balance sheet and mega project experience of Gamuda backing us, Martinus Rail is set for a bright future in the rail industry,” Martinus said.

Martinus Rail General Manager for New Business and Strategy, Ryan Baden, said Martinus Rail has grown significantly in recent years. Further growth, however, will require greater financial strength and experience in delivering more complex projects across all contract models.

“Going forward, we’re adding significant capability in civil and structural work in railway construction and can leverage ground-breaking innovation and engineering solutions to help deliver some of Australia’s largest rail projects,” Baden said.

Rail infrastructure work in Australia is expected to grow 14 per cent per annum until 2023 according to the BIS Oxford Economic Report published in July.