07/02/2012 - 15:43

Engenium jumps back into rail

07/02/2012 - 15:43

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Engenium, a subsidiary of the Resources Development Group, is returning to the rail operations sector two years after the highly profitable sale of its rail services joint venture Calibre Engenium to the Calibre Group.

The company's return to the rail sector comes after the recent completion of its non-compete agreement under terms of its deal with former joint venture partner Calibre, which prevented it from providing certain rail services for two years.

Engenium’s movement back into the sector will put it on course to compete for mining-related project work and see it go head-to-head with Calibre.

The return by RDG’s Engenium to the rail sector will see it focus on rail project delivery, particularly in heavy rail infrastructure supporting the mining industry. 

In 2010 Calibre made the move to full ownership of Calibre Engenium which at the time had annual revenue of about $100 million and employed over 300 staff.

The consideration paid by Calibre for full ownership of the JV was not disclosed at the time of the deal.

However Engenium posted profit of $29.9 million from the sale of non-current assets in the 2009/2010 financial year.

Apart from a small amount of equipment, the only non-current asset on its books was its share of the joint venture.  

The Calibre Engenium joint venture was successful in capturing contracts on most of the iron ore expansion projects in the Pilbara between 2005 and 2010.

Engenium managing director, Wayne Peel, said Engenium was well positioned to expand in the rail sector.

“With offices in Perth, London and now Brisbane we have a dedicated and highly experienced rail teams available in the two most significant mining regions in Australia, WA and Queensland,” he said.

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