Sharechat Logo

Australia's Cimic gives Auckland rail the glad eye

Thursday 7th February 2019

Text too small?

Australian construction firm Cimic Group has Auckland's rail network firmly in its sights, touting two projects in a list where it's been short-listed or is currently bidding. 

The company, formerly Leighton Holdings, has identified a pipeline of at least A$130 billion of tenders to be awarded or bid for in 2019 and a further A$300 billion beyond that, of which A$120 billion is via public-private partnerships. It's currently bidding or has been short-listed on 16 projects, including the Auckland light rail stage one main works for the New Zealand Transport Agency and Auckland's City Rail Link C3 stations and tunnels for Auckland Transport. 

Cimic's CPB Contractors is a member of a consortium with UGL, Beca, McMillen Jacobs, and Jacobs New Zealand short-listed for the C3 project.

Meanwhile, the Auckland light rail project started sounding out the market for a preferred procurement model in the final quarter of 2018, with a view to start construction next year. It has already attracted an unsolicited bid from the New Zealand Superannuation Fund and Canadian fund manager CDPQ Infra.

Cimic yesterday reported a net profit of A$780.6 million in calendar 2018, up from A$702.1 million a year earlier, on a 9.2 percent increase in revenue to A$14.67 billion. The company is ultimately controlled by Spain's Actividades de Construcción y Servicios. 

Several New Zealand projects were name-checked as contributing to those results, including the construction of Christchurch Hospital, the Transmission Gully public-private partnership, and another Kiwi PPP to build three primary schools. Upcoming work includes the A$687 million contract to design and build Waikeria prison. 

Cimic sees the New Zealand government's plans to spend NZ$42 billion during the next five years as offering a range of construction opportunities that suit the company. The pursuit of PPPs is also an area Cimic identified as an opportunity. 

The government's six-month financial statements released today show the Crown's capital commitments totalled $13.64 billion as at Dec. 31, of which $4.1 billion was for state highways, and another $4.44 billion was for land and buildings. The Crown spent $4.56 billion buying physical assets in the half, up from $3.66 billion a year earlier, and about $101 million below forecast. Treasury projects the net purchase of physical assets to total $10.67 billion in the June 2019 year. 

Cimic shares rose 3.3 percent to A$48.29 today. They are about 4 percent higher than a year ago, well above their A$39.575 12 month low.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZD headed for 0.6% weekly gain against greenback
PREVIEW: RBNZ tipped to keep cash rate at 1.75%, reiterate next move could be up or down
Sky TV hires Deloitte partner as fill-in CFO
Vector fined $3.6 mln in industry first
SIS Group to partner with Platform 4 Group
Dry weather cutting dairy production, boosting power costs
22nd March 2019 Morning Report
NZ dollar dips back below 69 US cents, focus shifting to RBNZ
Top Energy's geothermal expansion to cut lines charges
MARKET CLOSE: NZ shares rise on Fed restraint, local GDP growth; Auckland Airport slides

IRG See IRG research reports