Downer EDI Limited (DOW) announced that, in partnership with Electro-Motive Diesel (EMD), it had been awarded rolling stock supply and support contracts to design, build and deliver 19 new SD70ACe/LCi locomotives to Fortescue Metals Group Ltd in the Pilbara region of Western Australia. The first new locomotives are expected to be delivered in August 2012. The total value of the project is over $73 million including the provision of service and support activities for the 19 locomotives for a minimum of five years with an option to extend.
The Chief Executive Officer of Downer, Grant Fenn, said the Fortescue contract highlighted Downer’s complete service offering and its ability to provide whole of life asset management for customers. “This fleet of SD70ACe locomotives will bring significant performance benefits to Fortescue including additional haulage capability, fuel consumption improvements, exhaust emission benefits and reliability improvements,” Mr Fenn said. The SD70ACe locomotive and its key components and systems are designed by EMD (a subsidiary of Progress Rail and Caterpillar Inc.). Downer and EMD have worked together for more than 60 years supplying and supporting locomotives in Australia. “By combining the technical strength and expertise of EMD with Downer’s local Australian knowledge and support, we will deliver a fully integrated locomotive that complies with Australian customers’ requirements,” Mr Fenn said.
The SD70ACe locomotive is a proven product, having successfully operated in the arduous and demanding Pilbara environment for the past five years. Downer Rail has over 100 years’ experience and is a leading provider of innovative and rolling stock asset management solutions. Downer Rail is a partner of choice for freight and passenger rail operators, providing services at more than 30 strategic locations across Australia.
Downer EDI Limited provides comprehensive engineering and infrastructure management services to the public and private Minerals & Metals, Oil & Gas, Power, Transport Infrastructure, Telecommunications, Water and Property sectors across Australia, New Zealand, the Asia Pacific region and the United Kingdom.