US-based Loram Maintenance of Way has signed a binding agreement to acquire the rail grinding services business of Australian rail freight operator Aurizon.
Executed through the wholly owned Australian subsidiary of Loram, the deal includes Aurizon’s contracts to serve four customers.
Loram president and CEO Phil Homan said: “Loram’s continued global expansion as a respected leader in railway maintenance contract service operations is based on the principle that technology is global and service is local.
“While drawing upon our global technical expertise, Loram will deliver its unrivalled customer service to Australian Customers under the leadership of its Australia-based team from our office in Brisbane and strategic sites interstate.”
Loram Maintenance of Way is the original equipment manufacturer of Aurizon’s entire fleet of rail grinders.
The acquisition also involves Loram’s newly built 120-stone RG419, which is expected to be delivered later this year.
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Loram managing director Stephen Mannix said: “Loram recognises substantial opportunities in the Australian rail market.
“This acquisition positions Loram for significant growth. In addition to expanding this rail grinding business, Loram is committed to listening to Customers’ challenges throughout Australia and developing Loram’s entire suite of innovative solutions to meet their unique needs.”
The completion of the deal is subject to certain conditions precedent.
In addition to rail grinding, Loram offers solutions for ballast maintenance, material handling, friction management and automated track inspection.
In October, Aurizon selected the Trimble R2M remote diagnostic system and Trimble P2M planning and performance management system.
In addition, Aurizon and Trimble agreed to work together to pilot innovative solutions for enhanced infrastructure and rolling stock monitoring, data analytics and other technologies for rail.