Infrastructure giant Downer EDI has announced it has been awarded a rolling stock contract to supply Downer Electro-Motive Diesel services to BHP Billiton’s Iron Ore operations in the Pilbara for the next five years.

 

The contract will deliver the new model of Downer’s Model sD70Ace/LCi locomotives starting from the second quarter of 2012. The contract has a core value of $292 million with options that could see it expanded to over $400 million.

 

The Chief Executive Officer of Downer, Grant Fenn, said: “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 announcement comes weeks after the company secured contracts collectively valued at over $425 million in Queensland, Victoria and Western Australia, including:

 

  • above ground electrical and instrumentation work for Gindalbie Metals at the Karara Iron Ore Process Plant in Geraldton, Western Australia valued at $64 million;
  • installation of accommodation and process modules for Origin Energy on the Yolla off-shore platform in Bass Strait with Downer providing project planning and logistics support, workshop fabrication of process piping and structural elements as well as the on-rig installation. This contract is valued at more than $60 million and represents a significant portion of the Yolla Mid Life Expansion Program;
  • contracts for design, construction and testing of new substations and new switchyards valued at approximately $85.5 million; and
  • design and consulting, and specialist services work collectively valued at more than $120 million. This includes feasibility studies, process design, design engineering, project execution and delivery, and process equipment design and supply undertaken by CPG Resources. Downer Australia’s Specialist Services include facilities and water management and electronic ticketing.