Leighton sub secures $463m rail contract
Leighton Holdings Limited (LEI) said its subsidiary, Leighton Asia, had been awarded a $463 million contract to construct the Tse Uk Tsuen to Shek Yam section of the Guangzhou – Shenzhen – Hong Kong Express Rail Link (“XRL”). The work is for tunnels and ventilation buildings and is expected to begin immediately, with completion slated for 2015.
The contract was awarded by Hong Kong rail operator MTR Corporation, which is in control of the Hong Kong section of the XRL.
The Hong Kong section of the XRL will be underground for the 26 kilometres from the terminus in West Kowloon to the boundary crossing point at Huanggang, Shenzhen, Leighton said.
XRL, Leighton said, is a planned cross boundary transport infrastructure project, providing high-speed rail services between Hong Kong and mainland China.
Meanwhile, Macmahon Holdings Limited (MAH) said that it had entered an agreement with Leighton Asia for some of the work.
"Under its agreement with Leighton Asia, Macmahon will provide management expertise, technical support and participate in delivery of the project. The estimated value of the work for Macmahon is $115 million," Macmahon said in a statement.
At the open, Leighton shares were trading down 6c to $38.94, while Macmahon shares were up 3.5c to 78.5c.
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