Re Contract
Balfour Beatty PLC
1 February 2001
EUROS 275 MILLION (£175 MILLION) RAIL ELECTRIFICATION PROJECT AWARDED IN
MALAYSIA
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Balfour Beatty, the international engineering, construction and services
group, announces today that Balfour Beatty Rail Power Systems, its rail
electrification and power supply business, has been awarded the Euros 275
million (£175 million) contract for the electrification of the Rawang to Ipoh
main line project in Malaysia, in joint venture with Siemens and Adtranz.
Balfour Beatty's share will be approximately Euros 119 million (£75 million).
The project involves upgrading the existing railway line, converting single
track to double track and the complete electrification system and new
signalling on a stretch of track 180 km long running from Rawang on the
outskirts of Kuala Lumpur to Ipoh in the north.
Balfour Beatty Rail Power Systems will be responsible for the overall design
and installation of the electrification system, including an overhead line
system, power supply and SCADA system; Adtranz Total Rail Systems will be
responsible for the project management, system design, telecommunications and
fare collection; and Siemens will be responsible for the signalling.
Commenting today on the contract award, Balfour Beatty Chief Executive, Mike
Welton, said:
'We are delighted to be given the opportunity to play a key part in this first
stage of the development of a modern, high-speed rail network in South-East
Asia. Balfour Beatty Rail Power Systems is a world leader in railway
electrification and we anticipate many more such opportunities as the
worldwide market for rail engineering and services continues to grow.'
This project is part of a large railway investment by the State of Malaysia to
create a modern and efficient railway connection between Kuala Lumpur and the
Thai border, with the long-term objective of establishing a Pan-Asian Link
connecting Singapore to China.
The project is expected to be completed by 2004.
The worldwide market for rail engineering and services is growing under the
influence of rapid traffic growth, the development of mass transit systems,
rail utility restructuring and increased investment from the private sector.
It is Balfour Beatty's intent to build further on its position as a leader in
fixed rail infrastructure around the world.
Enquiries to:-
Tim Sharp
Tel: 020 7216 6884
www.balfourbeatty.com
Notes to Editors
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1. Following the recent acquisition of the Rail Power Systems business of
Adtranz, Balfour Beatty Rail's annual rail turnover will be in excess of £650
million. The principal activities in Balfour Beatty Rail are in:
- major rail infrastructure development projects;
- high-speed rail electrification and power supply projects;
- major trackwork projects;
- rail renewals;
- maintenance;
- the manufacture of switches and crossings; and
- the supply of specialist rail plant and equipment.
2. Balfour Beatty Rail Power Systems has annual sales of approximately
£200 million. It designs, manages, installs and commissions railway
electrification systems and services internationally. It has leading
positions in Germany, its principal market, Sweden, Spain and Austria. It
also has a strong presence in Turkey, China, Malaysia, South America, the UK
and other territories, through current project work and in some cases through
a permanent business presence.
Its principal customers are Deutsche Bahn in Germany, Banverket in
Sweden, Renfe in Spain and OBB in Austria. It also works extensively for
metropolitan transit and mainline rail authorities including those in
Germany, China and Turkey.
3. Balfour Beatty Rail Power Systems is working on a wide range of rail
projects around the world including the Euros 100 million Harbin-Dalian Line
in China, the Euros 60 million Nurnberg to Ingolstadt Line in Germany, the
Euros 40 million Madrid to Barcelona high-speed line in Spain, the Euros 25
million Dupnitza-Kulata mainline project in Bulgaria, a Euros 22 million
project in Sao Paulo in Brazil, a Euros 22 million light rail transit system
in Adana, Turkey and a Euros 20 million project on the Sunderland Metro in the
UK.
4. In March 2000, Balfour Beatty acquired the US trackwork specialists, Marta
Track Constructors Inc and Metroplex Corporation, for an initial consideration
of $50 million. This provides the group with a substantial presence in the
large and growing US rail market.
Marta Metroplex's activities in the USA include major projects, in their
early stages, for the BART San Francisco Airport Extension, the Alameda
Corridor project in Los Angeles and the Southern New Jersey Light Rail System.
Balfour Beatty has recently completed the $500 million high-speed rail
electrification of the line from Boston to New Haven in the USA for Amtrak.
5. Balfour Beatty Rail is currently working on a number of major UK rail
projects including the remodelling of the infrastructure on the approaches to
Euston Station, the electrification of the West Coast Main Line, the
remodelling of the approaches to Leeds station and a key contract on the
Channel Tunnel Rail Link.