The dual-listed company that built Auckland’s Britomart Transport Centre expects to secure further rail contracts in New Zealand.
Infrastructure services company Downer EDI has teamed up with Bombardier to provide rail cars for metropolitan services in Auckland and Wellington.
Downer’s managing director Stephen Gillies said Auckland’s rail fleet was especially in need of upgrading.
“I think they are running some pretty old trains,” Mr Gillies said of the diesels that chug in and out of Britomart.
“We are looking at the New Zealand market in terms of rail as a prospect market.”
This follows the Australia and New Zealand listed company’s recent selection as the preferred provider for the New South Wales government’s CityRail network public-private partnership.
The partnership means Downer’s Reliance Rail consortium will finance, design, manufacture and maintain 72 eight-car train sets for the next three decades.
But Mr Gillies said the company’s expansion in New Zealand depended in part on the national and local governments’ willingness to fund rail network upgrades.
“The government does need to re-establish the lead on infrastructure,” he said.
“New Zealand, Australia and the UK governments have all basically underspent on infrastructure in pursuit of budget surpluses.”
Mr Gillies said Downer was also looking for contracts in water infrastructure, similar to its joint venture with Rodney District Council.
Downer began as a New Zealand family-owned company.
Brierley Investments acquired it in 1988.
Downer EDI listed on the Australian Stock Exchange in 1998, and on the New Zealand Stock Exchange in 2002.
Downer acquired Works Civil Construction, now known as Works Infrastructure, from the New Zealand government in 1996.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Dotcom's Seth Rich claim earns him a chance to appear on Sean Hannity's show
- Xero makes a special alteration to rival's billboard
- Trump calls on Muslim leaders to confront extremism
- Series: Business leaders’ Budget 2017 wish lists – Theresa Gattung
- Labour won’t commit support to another major trade deal
Most listened to
- Business leaders on Budget 2017: Theresa Gattung will be disappointed if the Budget doesn’t capitalise on "the biggest opportunity facing NZ"
- NZAMI chairwoman says the government's planned changes to immigration rules will hurt key NZ sectors
- Lewis Gradon explains what contributed to F&P Healthcare's record results
- Vodafone chief executive Russell Stanners won't reveal the financial details of the deal with NZ Rugby
- NBR Radio: best of the week ended May 19, with Grant Walker