UGL wins $250m rail contracts

UGL Limited has announced $250 million in rail freight orders, including with Rio Tinto's iron ore business and a second unnamed iron ore customer in Western Australia.

The Rio contracts comprise the supply of nine GE Evolution locomotives and a new five-year locomotive service and support agreement in WA.

Sydney-based UGL (formerly United Group) also has a new five-year locomotive service and parts agreement with "a major WA iron ore customer".

Other contracts announced today are for the supply of six locomotives and 227 wagons to "a leading rail operator in Australia" and 450 locomotive bogie frames to GE to serve the Commonwealth of Independent States market.

UGL managing director Richard Leupen said the group's rail business "continues to see clear signs of a recovery in sales enquiries on the back of strengthening resources sector conditions".