Downer EDI wins $1.7B contract to build Sydney’s new trains

Company News

by David Chau

The NSW government has awarded a $1.7 billion contract to engineering company, Downer EDI (ASX:DOW) – to deliver the next generation of trains for Sydney.

The CEO of Downer EDI, Grant Fenn, says there will a “more than 90% commonality” between the designs of the new Sydney Growth Trains and the current Waratah trains.

Downer has a sub-contracting agreement with Chinese company, CRRC Changchun Railway Services, who will manufacture and deliver 24 double deck trains (which will have up to 45 more seats) as part of this project.

Downer will be responsible for maintenance of the trains for the initial 25-year period, plus two optional 5-year extensions.

Downer EDI posted a net profit of $180.6 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.