Balfour Beatty scoops £535m rail contract

Balfour Beatty, the FTSE-250 global infrastructure group, has been awarded a £535m (AUS $835m) contract for works on a section of the Regional Rail Link project in Melbourne.

Under the contract, in which Balfour has a 35% share, the alliance partners, which also include Thiess and Sinclair Knight Merz, will design and construct the first major new rail line for metropolitan Melbourne in 80 years.

Balfour will put in place the rail systems including signalling and track and will act as the programme manager for the project. Major works are expected to begin in early 2012.

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Balfour Beatty Chief Executive, Ian Tyler, said: "The Melbourne rail contract win is really pleasing from a number of perspectives. Firstly, as a global player in rail technology, we are pleased to play a part in this historical development for rail in Australia - a buoyant market where we are developing a healthy market position.

"Furthermore, it is rewarding to see our strategy in action. We have harnessed our skills and capabilities in rail as well as in Parsons Brinckerhoff to gain a position as a joint-venture partner in the design and construction of a complex rail project. This win aptly demonstrates the success of our strategy to integrate the group's capabilities to manage complexity for our customers."

NR