UGL wins $190m in locomotive orders

Engineering firm UGL has won $190 million in contracts to supply and maintain freight locomotives for four different companies, including Rio Tinto's Pilbara mining operations.

UGL will deliver a total of 38 locomotives as a result of the contracts with Rio, as well as Xstrata Coal for its Hunter Valley operations, plus QR National and Pacific National Rail.

Chief executive Richard Leupen said there remained strong demand for rail stock from the resources sectors on Australia's east and west coasts.

"A large pipeline of locomotive supply and maintenance opportunities is visible and we expect to participate in a significant proportion of these new opportunities as they are awarded," he said in a statement.

UGL is the sole supplier for Rio's iron ore mines in WA; together with manufacturer GE, it has supplied 160 locomotives to Rio.