Downer EDI Limited announced that it had been awarded a rolling stock contract for the supply of Downer Electro Motive Diesel Model SD70ACe/LCi locomotives to BHP Billiton Iron Ore in the Pilbara for the next five years

The first new locomotives are expected to be delivered in the second quarter of 2012. The contract has a core value of AUD 292 million with options offered that could bring the total value to over AUD 400 million.

The Chief Executive Officer of Downer, Mr Grant Fenn said that “The ability of Downer and Electro Motive Diesel to provide support at the front line has been second to none and underpins this deal. Integral with this contact is the further build up of Downer support for customers in Western Australia.”

The SD70ACe/LCi locomotive and its key components and systems are designed and built by EMD, a member of the Caterpillar family of companies. Downer and EMD have worked together for more than 60 years supplying and maintaining locomotives in Australia.

This contract follows the award to Downer, in partnership with Progress Rail USA (a wholly owned subsidiary of Caterpillar), of a rolling stock supply contract to design, build and deliver 17 new PR22L locomotives to TasRail, Tasmania’s State owned rail company.

The contract was awarded in December 2011 and the first new locomotives are expected to be delivered in mid 2013. The total value of the project is over AUD 60 million.

Mr Fenn said that “This fleet of locomotives will bring significant performance benefits to TasRail including fuel consumption improvements, exhaust emission benefits and reliability improvements.”

Source - Downer
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