CIMIC's UGL to manufacture fuel efficient locomotives for Pacific National

CIMIC’s UGL to manufacture fuel efficient locomotives for Pacific National

CIMIC Group’s UGL has been awarded a contract to design, manufacture and supply new fuel efficient diesel electric locomotives for national freight operator, Pacific National.

As Australia’s only manufacturer of freight locomotives, UGL will generate approximately $297 million from the contract over seven years, effective from October 2021.

CIMIC Group Group Executive Chairman and Chief Executive Officer Juan Santamaria said the C44 Evolution locomotives will be the most technologically advanced, fuel-efficient, and environmentally compatible diesel electric locomotives in Australia.

“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,” Mr Santamaria said.

UGL Managing Director Doug Moss said the company would focus on home-grown supply chain and local employment. The locomotives will be designed and manufactured in Newcastle, New South Wales.

“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,” Mr Moss said.

UGL is a leading provider of rolling stock, with UGL Unipart joint venture providing heavy maintenance and supply chain services for over 1,050 passenger cars in Sydney’s metropolitan passenger rail fleet since 2011.

UGL is also part of the Metro Trains Sydney (MTS) joint venture, which has been operating and maintaining the Sydney Metro Northwest since 2019 along with John Holland and MTR Corporation. MTS is a wholly owned subsidiary of Metro Trains Australia (MTA) operating Sydney Metro Northwest for a concession period of 15 following the completion of Design & Construct contract in 2019.