CIMIC Group company UGL has secured a contract to design, manufacture and deliver diesel electric locomotives for its client, Pacific National.

In addition to creating revenues of around $297m to UGL over a period of seven years, UGL believes that its position will be strengthened as the only manufacturer of freight locomotives in Australia.

Under the agreed terms of the contract, which will be effective from this month, UGL will deliver C44 Evolution locomotives.

The locomotives will be technologically advanced, fuel-efficient, and environmentally friendly.

The firm will design and manufacture the locomotives in Newcastle, New South Wales.

CIMIC group executive chairman and chief executive officer Juan Santamaria 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.”

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By GlobalData

UGL managing director Doug Moss said: “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. 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.”

Last month, Transport for New South Wales (TfNSW) in Australia awarded a contract extension for 56 additional double deck passenger cars for the Mariyung fleet.

This contract extension was given to the RailConnect NSW consortium, which is a joint venture between Hyundai Rotem Company, Mitsubishi Electric Australia, and CIMIC Group company UGL.