Press Release

Gammon awarded £407 million railway infrastructure contract in Hong Kong

25 March 2010

Hong Kong

Balfour Beatty, the international infrastructure group, announces today that Gammon Construction Limited, a market-leading contractor in Hong Kong in which Balfour Beatty has a 50% shareholding, has been awarded by the MTR Corporation, a HK$4.75 billion (£407 million) railway infrastructure contract, in joint venture with Nishimatsu Construction Co.

The contract involves the construction of Hong Kong University and Sai Ying Pun Stations and a 2.2 kilometre running tunnel.

The work will form a prominent part of the West Island Line which, when complete in 2014, will extend the existing Island Line from Sheung Wan to Kennedy Town.

This is Gammon's third contract on the West Island Line project, following awards for Kennedy Town Station and the construction of a temporary underground magazine in 2009.

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

"We are delighted to have been awarded this contract and to be playing an integral part in the creation of the West Island Line, a project which will have significant benefits for the community in the western part of Hong Kong island."

Gammon is experienced in railway link construction in Hong Kong and South East Asia. It will use its engineering and construction expertise to minimise disruption to local communities and utilise innovative solutions to achieve superior levels of noise and dust suppression.


Analyst/media enquiries:

Duncan Murray
Balfour Beatty plc
Tel 020 7216 6865

Notes to Editors:

  1. Gammon Construction is 50% owned by Balfour Beatty and 50% by Jardine Matheson, the major Asian trading and manufacturing group. Gammon is Hong Kong's largest and most successful contractor with over 2,500 employees.

  2. Gammon's experience of railway link construction includes construction of the Tai Wai maintenance centre of Ma On Shan Rail, the Tseung Kwan O extension serving Tseung Kwan O New Town and Yau Tong, Tsim Sha Tsui Station of East Rail Line, the newly opened Austin Station of the Kowloon Southern Link and the Disneyland Resort station of the Disneyland Resort Line in Hong Kong.

  3. Gammon's recent significant project awards include:

    • the HK$2.4 billion (£195 million) contract for the widening of the Tolo and Fanling Highways in Hong Kong
    • the HK$930 million (£74 million) Victoria Park swimming pool complex
    • the HK$1.34 billion (£106 million) contract to construct Kennedy Town Station and overrun tunnels
    • the HK$2 billion (£150 million) Hong Kong University Contract for its Centennial Campus and University Street and Associated Works Phase 1
    • the HK$3.76 billion (£300 million) Harbour Area Treatment Scheme for the construction of a sewage conveyance system for the Hong Kong Government
    • the HK$1.5 billion (£120 million) Hennessy Centre redevelopment
    • the HK$2.82 billion (£230 million) contract for the reconstruction of a section of the Tuen Mun road between Tsuen Wan and Tsing Lung Tau
    • the HK$4.94 billion (£400 million) Tamar Development Project in joint venture with Hip Hing Construction for the design and construction of the new Central Government Complex for Hong Kong
    • the £100 million Gammon Capital Institute of Technical Education PPP project in Singapore.

  4. Balfour Beatty is a world-class infrastructure group operating in professional services, construction services, support services and infrastructure investments.

    We work in partnership with our customers principally in the UK, the US, South-East Asia and the Middle East, who value the highest levels of quality, safety and technical expertise.

    Our key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail). We deliver services essential to the development, creation and care of these infrastructure assets including investment, project design, financing and management, engineering and construction, and facilities management services.

    Balfour Beatty employs more than 50,000 people around the world.
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