Coote Industrial Ltd (ASX:CXG) awarded $40M in rail wagon contracts

Company News

Project management, engineering services and manufacturing company Coote Industrial Ltd (ASX:CXG) says its rail division, Gemco Rail, has been awarded $40 million in rail wagon contracts.

One of the contracts is for the design, manufacture and supply of 194 container wagons to IMX Resources Ltd (ASX:IXR).

These container wagons are to be used at IMX Resources Cairn Hill magnetite copper, gold project in South Australia, and will be leased for a minimum five years.

Coote says Gemco Rail has also been awarded a five year maintenance contract with rail haulage operator Specialised Bulk Rail for maintenance of the wagons.

Together the contracts are valued in excess of $40 million over the initial five year period, with both having provision for consecutive two plus two year extensions.

Coote Industrial posted a loss in fiscal 09 after a profit the year before.