CIMIC’s UGL secures $297M locomotive contract for Pacific National

Posted: 5 October 2021 | | No comments yet

A contract to design, manufacture, and supply the latest fuel-efficient diesel electric locomotives to Pacific National, has been awarded to CIMIC Group’s UGL.

CIMIC's UGL secures $297M locomotive contract for Pacific National

Credit: UGL

The locomotive supply contract secured by CIMIC Group’s UGL will be for Pacific National, a long-standing client.

Furthermore, the contract will generate revenue to UGL of approximately $297 million over seven years and solidifies UGL’s position as Australia’s only manufacturer of freight locomotives.

The C44 Evolution locomotives will be the most technologically advanced, fuel-efficient, and environmentally compatible diesel electric locomotives in Australia and will be designed and manufactured in Newcastle, New South Wales.

Juan Santamaria, CIMIC Group Executive Chairman and Chief Executive Officer said: “Pacific National has a strong focus on improving the efficiency of its locomotives and its environmental performance. We’re pleased to support this strategy by delivering locomotives that lower emissions and operating costs, with improved productivity, reliability, and availability.”

“UGL’s unique position as Australia’s only manufacturer and maintainer of Australian-made locomotives allows us to ensure a strong home-grown supply chain and ongoing local employment,” Doug Moss, UGL Managing Director. “The C44 Evolution locomotive is better for the environment with lower emissions and better fuel efficiency than anything Australia has seen before. We look forward to continuing our strong relationship with Pacific National through the delivery of these locomotives.” 

The contract is effective from October 2021.