John Holland set to share in $1.2bn Alice Springs-Darwin Railway Project

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Re: John Holland set to share in $1.2bn Alice Springs-Darwin Railway Project

Dear Sir,

Please find attached a copy of the media statement released today advising that the Asia Pacific Transport Consortium have signed an agreement regarding commercial terms with the Federal, Northern Territory and South Australian Governments for the construction and operation of the Adelaide to Darwin Railway.

John Holland Group Pty Limited, a 70% owned subsidiary of Leighton Holdings Limited is a member of the consortium that will design and construct a 1,420km rail line from Alice Springs to Darwin. The project is expected to start in December 2000 and is due to be completed during 2003. John Holland expects their share of this $1.2 billion project to be worth $220 million.

John Holland is also taking a 7½% ownership interest in the concession company, Asia Pacific Transport Consortium that will be responsible for 50 years of freight operations, including the operations of the Darwin Port Terminal.

Yours faithfully,


A.J. MOIR
Company Secreatary

John Holland set to share in $1.2bn Alice Springs-Darwin Railway Project

Issue Date: 18 October 2000
Issued by: Asia Pacific Transport Consortium

The Asia Pacific Transport Consortium this morning signed an agreement regarding commercial terms with the Federal, Northern Territory and South Australian Governments for the construction and operation of the Adelaide to Darwin Railway.

The Consortium is led by Brown & Root (part of the global Halliburton group) and also comprises Genesee & Wyoming Australia Pty Ltd; Barclay Mowlem Construction Ltd; the John Holland Group Pty Ltd; Macmahon Holdings Ltd; and PGA (Ventures) Pty Ltd. Its financial adviser is Macquarie Bank.

Having reached this stage, the Consortium can now move forward to finalise debt and equity transactions with its banking consortium and equity providers, with the aim of reaching financial close on the $1.2 billion, 53-year Adelaide to Darwin BOOT project by the end of November 2000.

The banking Consortium comprises ANZ, ABN-AMRO, Société Generale and the Royal Bank of Scotland.

The Asia Pacific Transport Consortium’s chairman, Mr Malcolm Kinnaird, said it was important to stress that the construction of the project, which is due to be completed during 2003, was the first step in establishing a business that integrated with overseas markets. “The railway is the vehicle by which we deliver the project,” he said. “It is in fact an export-import freight company to be known as FreightLink. It is one that will deliver Australian business another much-needed freight corridor for our country.”

The Consortium’s bid director, Mr Franco Moretti, said “Our Consortium has always approached this as a project of national economic benefit and we tendered for the project with a comprehensive business plan directed to deliver such benefit,” he said. “We will offer clients a one-invoice, door-to-door service that can deliver their goods to and from Asia faster and with more time certainty.”

The Consortium has also stressed the additional economic benefits of the project to the Northern Territory and South Australia. “We are committed in our contract with the Governments to sourcing 70% of the construction value of the project in goods and services from those two regions. That includes labour and sub-contracting,” said Mr Moretti.

The Consortium, under the umbrella of special purpose vehicle the Asia Pacific Transport Company, will establish two separate companies—FreightLink and ADrail.

FreightLink comprises all members of the Consortium and will be responsible for the 53 years of freight operations, including the operation of the Darwin Port Terminal for landbridge freight.

ADrail comprises four Consortium partners: Brown & Root, Barclay Mowlem, John Holland and Macmahon Holdings. These engineering and construction companies, which all have a strong background in large remote-location projects, will be responsible for the design and construction of the rail link. ADrail already has an office in Adelaide and will open its headquarters in Darwin at financial close.

Media contact - Alex Kennedy 0417 843 156