CIMIC Group’s UGL has been awarded a contract to design, manufacture and supply new fuel-efficient diesel electric locomotives for long-standing client, Pacific National.

The contract will generate revenue to UGL of approximately $297 million over seven years and solidifies UGL’s position as Australia’s only manufacturer of freight locomotives.

The C44 Evolution locomotives will be the most technologically advanced, fuel efficient, and environmentally compatible diesel electric locomotives in Australia and will be designed and manufactured in Newcastle, New South Wales.

CIMIC Group Executive Chairman and Chief Executive Officer Juan Santamaria said: “Pacific National has a strong focus on improving the efficiency of its locomotives and its environmental performance. We’re pleased to support this strategy by delivering locomotives that lower emissions and operating costs, with improved productivity, reliability and availability.”

UGL Managing Director Doug Moss said: “UGL’s unique position as Australia’s only manufacturer and maintainer of Australian-made locomotives allows us to ensure a strong home-grown supply chain and ongoing local employment. The C44 Evolution locomotive is better for the environment with lower emissions and better fuel efficiency than anything Australia has seen before. We look forward to continuing our strong relationship with Pacific National through the delivery of these locomotives.”

The contract is effective from October 2021.