The package, awarded by the Australian Rail Track Corporation, is one of three capital works programs to increase the coal-carrying capacity of the Main Northern Railway Corridor in the Hunter Valley.
The Ulan Alliance will undertake the design and construction of 11 passing loops and associated tunnel ventilation works on the line between Muswellbrook and Ulan.
The civil, structure and track construction works Macmahon and its subsidiary will undertake will be worth about $60 million.
Macmahon chief executive Nick Bowen said the deal highlighted the contractor’s expanding capacity in large-scale rail projects.
“Our strategy of pursuing growth opportunities in the NSW infrastructure sector is paying off, with this being the third major rail contract awarded in the past nine months,” Bowen said.
Passing loops to be commissioned by the end of this year are Aerosol Valley, Worondi and Radio Hut.
By the end of 2011 the Bengalla and Wilpinjong loops are expected to be commissioned, along with loops at the 337km and 378km marks.
Two more loops will be finished by the end of 2012.
“Demand for coal from Ulan is set to grow exponentially by 2012. Against the backdrop of volatile world markets, it is essential for the Australian economy that the Hunter Valley rail network is able to meet future demand and deliver coal to port efficiently and on time,” ARTC chief executive David Marchant said.
Macmahon was trading up 6% mid-morning today at 44c.
