BGC, Laing O'Rourke preferred for Northlink

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15-Jun-2016 | Business News

A joint venture comprising BGC Contracting and Laing O'Rourke has won a contract to deliver the second stage of the Northlink WA roads project, with the deal believed to be worth in excess of $400 million.

The joint venture, named Great Northern Connect, was named the preferred proponent for the central section of the $1.2 billion project by Transport Minister Dean Nalder at the turning of the sod at the first section of the project today.

The scope of work includes the design and construction of about 20 kilometres of highway, four interchanges, 14 road bridges and three foot bridges, between Reid Highway and Ellenbrook.

BGC chief executive Greg Heylen said the contract diversified the business into the public infrastructure sector.

“As opportunities in the mining sector have declined in recent years, BGC Contracting has refocused its energies on the civil construction and public infrastructure sectors,” Mr Heylen said.

“Our proven capabilities in construction and project management have us well placed to secure more contracts in these important areas in the future.

”The value of the contract wasn’t disclosed; however the state government’s most recent budget estimated the second and third stages of the project to cost a combined $836.6 million.

Work on Stage 2 is set to begin early next year, with Northlink to be open to the public by 2019.

John Holland was named the preferred proponent for Stage 1 of Northlink in November, and was awarded a $176 million construction contract in January.

Stage 1 covers work from Guildford Road to Reid Highway, including construction of flyovers at the intersections of Collier Road, Morley Drive and Benara Road, and upgrading a section of Tonkin Highway north of Guildford Road to turn it into a six­lane freeway.

The third stage of the project, which does not yet have a preferred contractor assigned to, will connect Ellenbrook to Muchea.

Northlink is being jointly funded by the federal government ($894 million) and the state government ($223 million).

Mr Nalder said the project was an essential component in the state government’s integrated freight transport system for Perth.

“Tonkin Highway provides a vital link for traffic movements to commercial and industrial areas across Perth,” he said.

Mr Nalder said Tonkin Hwy carried more than 70,000 vehicles a day and the project would result in more free­flowing traffic.

“Travelling on the freight route from Kewdale to Muchea, Northlink will potentially avoid up to 16 sets of traffic lights, one railway crossing and 21 speed limit changes,” he said.