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Balfour Beatty joint venture receives letter of acceptance for £300 million rail systems contract in Malaysia

8 July 2008

Balfour Beatty, the international engineering, construction, services and investment group, announces today that Balfour Beatty Rail has received a Letter of Acceptance to implement the rail electrification and power supply systems package for the Ipoh to Padang Besar Double Tracking Rail Extension in Malaysia.

The project, which will be worth £160 million to Balfour Beatty Rail, will be executed through its Malaysian business, Balfour Beatty Rail Sdn Bhd, in joint venture with Ansaldo STS. The value of the systems package to the joint venture is in the region of RM 2.0 billion (£300 million). The project involves the design, supply and installation of electrification, power supply, signalling and communications on 330km of new double track. When completed, the new project will increase line speed and track capacity while enhancing safety.

Commenting today, Balfour Beatty Chief Executive, Ian Tyler expressed his appreciation to the main contractor MMC-Gamuda Joint Venture Sdn Bhd, the Malaysian Rail Authority KTMB, and the Malaysian Government, adding:

"We are delighted to continue our co-operation with the development of a modern, high-speed rail network in South-East Asia. Balfour Beatty Rail has played an integral part in the development of the Malaysian rail network and this award is confirmation of continued customer confidence in our ability to implement complex rail systems on a large scale."

The engineering disciplines required for the systems package will be provided by the partners, Balfour Beatty Rail (Electrification and Power Supply) and Ansaldo STS (Signalling and Communications). The companies recently completed the electrification and signalling systems from Rawang to Ipoh in Malaysia and have extensive systems engineering experience.

This project is part of a large railway investment by the State of Malaysia to create a modern and efficient railway connection between Kuala Lumpur and the Thai border, with the long-term objective of establishing a Pan-Asian Link connecting Singapore to China.

The project is expected to be completed by January 2013.

ENDS

Media/Analyst enquiries:
Tim Sharp
Tel: 020 7216 6884
www.balfourbeatty.com

Notes to Editors

  1. The Rawang to Ipoh Electrification project was successfully completed and handed over at the end of 2007. The project involved the installation of 180 km of double-track overhead catenary and a traction power supply system. The double tracks link Rawang, 30 km north of the Malaysian capital Kuala Lumpur, with the country’s third largest city Ipoh, to the north. The electrified track is designed to allow trains to reach speeds of up to 160 kph.
  2. Balfour Beatty is involved in a number of rail electrification projects in international markets including Italy’s Milan-Turin line, the approved tunnel and mainline station in Berlin, Germany, the Tianjin to Shenyang Line in China and in Switzerland the rail systems work for the main Gotthard Base Tunnel. In the UK, Balfour Beatty has recently completed new sidings at Orient Way, East London including overhead line equipment and signalling for the ODA (Olympic Delivery Authority). In Rugby, a design and build electrification contract is underway for Network Rail.
  3. 3. Balfour Beatty Rail is the world’s largest fixed rail infrastructure contractor with annual revenues in excess of £800 million.
  4. 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 needs.

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