Invensys wins £170m contract with Turkey

Invensys Rail announced a £170m contract to supply signalling technology for a new commuter line that is to run under the Bosphorus.

The 77km commuter line linking Gezbe and Halkali in Turkey will be built in a joint venture with Spanish civil construction company OHL.

It was awarded by the Turkish Directorate of Railways, Harbours and Airports Construction.

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Invensys Rail will be responsible for designing and supplying a new signalling and communication system for the line.

The value of the contract to Invensys Rail is €195m (approximately £170m).

The contract also includes maintenance for two years with an option to extend it to a further five years.

The entire project is scheduled to start in early 2012 and the first phase is scheduled for completion in October 2013 to mark the 90th Anniversary of the founding of the Republic of Turkey.

It involves upgrading 63km of existing commuter line and laying a further 14km of new line, of which 1.2km will be in a new, immersed tube tunnel.

It will see the replacement of two existing tracks with three new tracks, 40 new and upgraded stations, two operational control centres, new stabling yards, workshops and maintenance facilities.

Shares in Invensys rose 5% to 219p following the announcement.

But analysts are divided on where they will go from here. Today Evolution Securities confirmed its buy rating and a 370p target, while Nomura stuck to a reduce rating and a 240p target.