UGL secures $1.5bn contract for NSW Country Regional Network

Transport for NSW has awarded a $1.5 billion contract to CIMIC Group company UGL for the operation and maintenance of rail infrastructure under the Country Regional Network. 

Execution of the 10-year contract will commence in January 2022. 

“The new partnership with UGL will see an increase in the amount of maintenance work carried out over the next 10 years to ensure that the network continues to meet the high standards that operators and customers expect. 

“We went to the market asking for a strong focus on regional employment including a minimum of 80 per cent of jobs needing to be based in the bush and a requirement for a Network Control Centre in a regional area which UGL has advised it plans to set up in Orange,” Minister for Regional Transport and Roads Paul Toole said. 

Scope of works under UGL's contract include: 

• Network operations, including establishment of a new network control centre in regional NSW 
• Rail infrastructure maintenance and implementation of a new signalling system - UGL's proprietary system, Sigview 
• Asset and property management 
• Safety, access, performance, and environmental management 

“The Country Regional Network provides a reliable and sustainable rail network to safely transport passengers and goods across regional NSW. CIMIC and UGL are proud to support TfNSW (Transport for NSW) to keep this essential service running across more than 2,300 kilometres of rail and we're pleased to do so with a strong commitment to Indigenous and regional employment,” CIMIC Group Executive Chairman and Chief Executive Officer Juan Santamaria said. 

UGL Managing Director Doug Moss added: “This contract win solidifies UGL as the leading rail services company in Australia, by building on our extensive work across the NSW rail network and complementing the rail projects we manage in all other states and territories. We look forward to working with TfNSW on the safe and successful transition of the Country Regional Network contract over the coming months.” 

In addition, the agreement between Transport for NSW and UGL is expected to help increase the overall number of jobs in the region. 

“We've also set UGL an industry leading target of 12 per cent for the employment of Aboriginal and Torres Strait Islander communities. They have set themselves the target of exceeding that and hitting 20 per cent by 2026,” Minister Toole said. 

From a decade ago, the State Government has invested over $1 billion to ensure the Country Regional Network delivers for all customers – from rail passengers to farmers and industry. 

About 1,000 kilometres of the rail network is dedicated to moving grain and this highlights the Country Regional Network's importance in moving crops from the silo to local markets as well as export ports in New South Wales. 

The Country Regional Network is comprised of approximately 2,400 kilometres of operational rail lines along with over 3,000 kilometres of non-operational lines, more than 1,300 level crossings which 300 are active, more than 900 bridges and 1,200 property assets such as stations – including 356 that are heritage listed. 

John Holland Rail has been operating and maintaining the Country Regional Network since 2011 and their contract is due to expire at the end of this year. 

UGL will begin a 12-month mobilisation period following the award of the new contract, which will allow for a smooth transition from the previous service provider. 

Source: Transport for NSW; UGL; CIMIC Group