United Group signs $127m rail deals with BHP Billiton, FMG

Sydney-based industrial services company United Group Rail has been awarded over $127 million in new contracts from BHP Billiton and a Fortescue Metals Group subsidiary for two projects in the Pilbara.

United Group Rail, a subsidiary of United Group Ltd, will build 480 iron ore wagons for BHP Billiton's Rapid Growth Project 3, to increase capacity at its Port Hedland port. These follow on from the 2000 already produced which allow BHP Billiton to transport the incremental capacity from the project.

United will also, in conjunction with GE-Transportation, build 15 locomotives for Fortescue subsidiary The Pilbara Infrastructure, to haul iron ore wagons from the proposed mine site in the Pilbara to the new Port Hedland port facility.

United Group last month formed a joint venture with engineering and fabrication firms Ausclad Group, Park Engineers and Fremantle Steel to bid for work on major projects, starting with the planned Gorgon gas project.