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Macmahon awarded $90M rail contract

MACMAHON Holdings, as part of the Coal Stream Alliance, has been awarded a $A90 million contract ...

Lou Caruana
Macmahon awarded $90M rail contract

The alliance, which is made up of Aurecon Hatch and Parsons Brinckerhoff as designers and the Macmahon-MVM Joint Venture as constructors, is currently completing the final stages of the Jilalan Rail Yard project – its first project with, and for, QR.

The GAP project will see CSA undertake upgrade and expansion works along the rail corridor between the Abbot Point Coal Terminal and Bogie River, southwest of Bowen.

The works involve construction of two bridges, extension/construction of passing loops, rail duplication, and pavement strengthening and laying.

The GAP expansion project is designed to support infrastructure enhancements at the Abbot Point Coal Terminal and increase port capacity to 50 million tonnes per annum by mid-2012.

Macmahon chief executive Nick Bowen said the contract award demonstrated the strength of the alliance and the close relationship it had forged with QR.

“Macmahon, as principal contractor for CSA on the Jilalan project, is nearing completion of the upgrade of the Jilalan Rail Yard in Queensland and is very pleased to continue its partnership with QR on the GAP project,” he said.

Work will commence onsite in mid-May with civil works on the project expected to be completed by mid-2011.

The massive new rail infrastructure project – which is expected to create up to 4000 jobs – was given the green light after five coal companies reached commercial terms with QR.

The project had been delayed after the global financial crisis eroded coal company confidence, but was put in motion again in October last year after two coal companies backed the project despite not having the majors sign on the dotted line.

The GAP project includes the 69-kilometre Northern Missing Link, which connects the Goonyella coal rail system to the Newlands rail system, as well as upgrades to the Newlands system.

Queensland Premier Anna Bligh said completion of the Northern Missing Link was targeted for January 2012.

QR Network executive general manager Michael Carter said earthworks would start next month at three locations to prepare the new rail corridor for the Northern Missing Link. These were two sites outside Glenden at Cerito Road and near Lancewood Camp, and a third site at the head of the Newlands rail system, about an hour from Collinsville.

He said a site office would be established in Merinda, near Bowen, and that the project would be delivered through an alliance model.

“We will combine our specialist rail design and engineering capability with companies that can bring civil engineering, construction and signalling expertise to the project,” Carter said.

Bligh said the project would align with the $845 million expansion of Abbot Point port to support up to 50Mtpa.

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