John Holland Wins Rail Contract for Roy Hill Iron Ore Project

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Researched by Industrial Info Resources Australia (Perth, Australia)--The Roy Hill Iron Ore project, which is in the iron ore-rich region of the Pilbara in northwestern Australia, took another step toward completion when John Holland Pty Limited was awarded the $240.63 million construction and track works for the 350-kilometre rail link from the mine site to Port Hedland.

John Holland, a subsidiary of Leighton Holdings (Sydney, Australia), has a global portfolio that includes engineering, contracting and service solutions, as well as transport, energy and associated infrastructure.

Samsung C&T, the chosen engineering, procurement and construction (EPC) contractor, recently awarded several contracts for the project, worth $6.55 billion. The $1.37 billion contract for the processing plant construction topped the list of big-ticket items; Forge Group Limited (Perth, Australia) and Spanish EPC company Duro Felguera were awarded as a joint venture. Both companies have EPC projects across a spectrum of industries, including metals & minerals and oil & gas, to fill their track records.

Other contracts, which have been awarded to various companies in Western Australia, are for engineering and early earthworks. These include Calibre Group Limited and NRW Holdings Limited, which will piece together the overall project.

Early site works have commenced at the mine site, and the rail project is due to begin extensive preparation activities by the end of 2013. The overall schedule is expected to be completed in about two years.

The chief executive of Leighton Holdings, Hamish Tyrwhitt, commented on the advantages of the Roy Hill project: "Roy Hill is a critical project for the state, and a strong indication that the nation is moving to close its infrastructure deficit and improve productivity."

To date, the Roy Hill project is moving at a fast pace when compared to projects in a similar capital investment range. Samsung C&T is preparing for the next round of contract awards. These include marine work at the associated port facility.

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