QR and UGL sign $125 million supply deal

UGL signs multi-million dollar contract to manufacture new locomotives for QR's expanding operations

January 29, 2010

United Group Limited (UGL) has won a multi-million dollar contract to manufacture new locomotives for Queensland Rail’s expanding operations.

Under the $125 million deal, UGL will provide QR with 15, 180 tonne diesel electric motors and 160 tonne stainless steel bottom dump wagons.

All of the wagons will be delivered between December this year and May 2011 to help QR fulfil it contracts with Peabody Energy and Felix Resources in the Hunter Valley.

QR’s Rollingstock and Component Services business will also build 80 wagons at a cost of $18 million to support the Felix operations.

QR Executive General Manager for Coal Marcus McAuliffe says the contract extends the company’s relationship with UGL while boosting its operations in the Hunter Valley region.

"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," he says.

"The locomotives are a new generation based on the 5000 class operating in the Hunter Valley but with new technologies and increased power output."

"The benefits of the new wagons include improved strength, reliability, braking performance and increased haulage capacity, which is good news for our customers."

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