Macmahon awarded $90 million rail contract

Macmahon Holdings Limited (ASX: MAH), as part of the Coal Stream Alliance (CSA), announced today that it had been awarded a $90 million contract by QR for civil works within the Goonyella to Abbot Point (GAP) Expansion Project.

CSA, which comprises 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 – the alliance’s 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 (south-west of Bowen). The works include construction of two bridges, extension/construction of passing loops, rail duplication and pavement strengthening and laying.

The Goonyella to Abbot Point Expansion Project is designed to support infrastructure enhancements at the Abbot Point Coal Terminal and increase port capacity to 50mtpa by mid-2012.

Macmahon Chief Executive Officer, Nick Bowen, said that 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.

“CSA has worked together with QR for over two years. It is a credit to the whole team that we have been awarded this important infrastructure contract,” Mr Bowen said.

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

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