SEOUL, South Korea, July 21, 2014 /PRNewswire/ — POSCO Engineering & Construction (CEO: Tae-Hyun Hwang) announced on July 18th that the company has signed an MOU on the 11th with India’s Adani Mining for the construction of standard-gauge heavy haul rail line that is to be used for the coal mining project in Galilee Basin Queensland, Australia.
POSCO E&C Initiates Carmichael Mine Development in Australia
Upon signing this MOU, POSCO E&C has become the priority bidder for the EPC of a 388km standard gauge rail, which is a project carried out by Adani Mining to connect Carmichael mine with Abbot Point export port, in Queensland.
Construction will begin in the first half of next year, after Adani Mining signing the final contract for EPC with POSCO E&C within this year. The completion of this railway will enable transport of 60 million tons of coal per year.
Adani Group, the parent company of Adani Mining and India’s largest integrated private power, port and infrastructure developer, currently operates power generating facilities with a total size of 9,240MW. It also owns Mundra Port in India, which is the biggest port of entry for coal in the world.
The area in which this railway will be constructed expects to create jobs for at least 10,000 people, and the state government of Queensland designated the target area as "strategic development area." Since the route is designed for many parties including other mine developers to use the railway, this project matches the state government’s strategic infrastructure policies. Moreover, it is also expected to contribute greatly to the industrial development of Australia, which is the world’s biggest exporter of iron ore and coal.
Adani Group Chairman Gautam Adani said, "The rail project will lead to the opening of the Carmichael mine project which will deliver, in excess of 10,000 jobs, and will also provide vital opportunities for Australian Infrastructure development and contribute to energy security of India by lighting the lives of millions of Indians."
Adani Mining CEO Jeyakumar Janakaraj said: "I am delighted with the way the two teams worked together in a collaborative manner to get this binding agreement signed in a record time. This is the first major step towards finalising the Project’s construction contracts and we are proud to be associating with a partner of POSCO’s E&C standing. The binding agreement will enable us to develop a cost efficient rail solution and this relationship gives Adani access to Korean market, POSCO’s expertise and capital."
"We’re happy to be participating in the rail infrastructure development project with Adani, and I’m sure we’ll produce excellent results if both companies display all the abilities to the utmost," said POSCO E&C CEO Tae-Hyun Hwang. "This will be the biggest EPC project among the infrastructure projects we’re conducting in Australia. We’ll complete this project successfully by pulling together all our competences in construction, financing and procurement."
POSCO E&C has experiences in many railway construction projects including the Busan-Gimhae Light Rail Transit and AREX (Incheon International Airport Railroad). The company’s participation in this project will further expand the opportunity for POSCO E&C to participate in upcoming projects by Adani Group as well as other railway projects in Australia.