Engineering company UGL Limited (ASX:UGL) says it has secured two new orders valued at $88 million to supply and maintain new rail freight locomotives in Australia.
One award will see UGL supply seven locomotives as well as a five-year maintenance support program to support the rail haulage services.
While UGL has not disclosed the buyer, the Australian Financial Review speculates it could be New South Wales coal producer Centennial Coal.
The other award is for the supply of thirteen new locomotives to support Rio Tinto Limited’s (ASX:RIO) Pilbara iron ore operations in Western Australia.
In the 2011 financial year UGL’s net profit rose 9.7 per cent to $158.7 million.
