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Balfour Beatty awarded rail systems work for the new Gotthard Base Tunnel in Switzerland

Multi-disciplinary rail contract likely to be worth approximately €250 million
to Balfour Beatty Rail

Balfour Beatty, the international engineering, construction, services and investment group, announces that, as part of the consortium, Transtec Gotthard, it has been awarded the rail systems work for the Gotthard Base Tunnel in Switzerland by AlpTransit Gotthard AG.  The contract is likely to be worth approximately €250 million to Balfour Beatty.

Transtec Gotthard comprises Balfour Beatty Rail, Atel Installationstechnik, Alcatel-Lucent and Alpine-Bau Mayreder.  The entire project cost is estimated at €1 billion.

The Gotthard tunnel will be the longest railway tunnel in the world and will bypass winding mountain routes to establish a direct route for high-speed passenger and heavy freight traffic.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler, said:

“We are delighted that our consortium has been selected to carry out this major long-term project which will utilise a number of Balfour Beatty’s multi-disciplinary rail skills.  We believe that our high-speed, high-performance rail experience is second to none and will continue to prove attractive to rail network owners around the world as rail infrastructure investment accelerates.”

The project will involve the design, installation and commissioning of rail infrastructure equipment for the tunnel and includes the equipping of both single track tunnels which are each 57 kilometres long, as well as the adjoining open North and South sections totalling approximately 11 kilometres in length up to the connection with the existing rail network.

On completion, it is expected that the current 3 hour 40 minute travel time from Zurich to Milan will be reduced by approximately one hour.

Balfour Beatty’s responsibilities for the installation programme include total project management, complex logistics, trackwork, overhead catenary and part of the medium voltage supply lines for the tunnel works and a wide range of other rail control technology.

Work on-site is expected to start at Biasca adjacent to the south portal at the end of 2009, with a construction period of approximately seven years.  Commercial rail services are due to start through the tunnels in 2017.

The work on the track, the overhead line system and elements of the power supply system will be carried out in joint venture by Balfour Beatty Rail GmbH, based in Munich, which became part of the Balfour Beatty Group in 2000 when it was acquired from Adtranz, and by Balfour Beatty Rail Projects (BBRP) based in Derby.

ENDS

Enquiries to:
Tim Sharp
Tel: 020 7216 6884
www.balfourbeatty.com

Notes to Editors:

1. Balfour Beatty Rail is the world’s leading multi-disciplinary fixed rail infrastructure contractor with annual revenues of approximately £800 million. It has long-term relationships and major current projects for Network Rail, London Underground, BAA, the Olympic Delivery Authority, Deutsche Bahn, AlpTransit, Italian State Railways, Swedish State Railways and many other network owners.
   
   
2. Balfour Beatty Rail is carrying out major rail infrastructure development projects between Hamburg and Lübeck in Germany, Malpensa to Milan, Bologna to Milan and Florence to Bologna in Italy, Botnia and Blekinge in Sweden and Tianjin and Shenyang in China. It is constructing a major new commuter railway on Boston’s South Shore in the US, is responsible for all the rail systems for BAA at Heathrow Terminal 5 and is active on both the UK’s overground and underground networks.
   
   
3. Balfour Beatty is a world-class engineering, construction, services and investment business, well positioned in infrastructure markets which offer significant long-term growth. We work in partnership with sophisticated customers who value the highest levels of quality, safety and technical expertise. Our skills are applied in appropriate combinations to meet individual customer need. Its financial position, with significant net cash and with strong operating cash flows, offers continuing flexibility to add additional capacity and expertise to the business mix and to make appropriate investments in PPP and other long-term growth opportunities.