November 21, 2024

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A graphic map of GS Engineering and Construction's SRL East project in Melbourne, Australia (GS E&C)

South Korean construction giant GS Engineering and Construction announced Monday that it had won a $375.7 million contract to build a subway tunnel in Melbourne, Australia.

Awarded by Victoria’s Suburban Rail Loop Authority, the contract is part of the broader Suburban Rail Loop project, which aims to construct a 90-kilometer orbital rail line connecting various regions of the city.

GS E&C said it will participate in the SRL East project, valued at $1.1 billion in total, to build a 10-kilometer twin tunnel section, including 39 emergency access points and two underground stations. When complete, the SRL East line will add six new stations across a 26-kilometer route. Construction is set to begin this year, with an anticipated opening date of 2035.

GS E&C’s Australian branch will hold a 33.5 percent stake in the joint venture for the project, joining Italy’s Webuild (33.5 percent) and France's Bouygues (33 percent), the company said.

“This contract is a crucial step in solidifying our presence in Australia’s infrastructure sector,” a GS E&C official said. “With our technical expertise and extensive experience in global construction, we are committed to successfully completing this project and further expanding our footprint in the Australian market.”

This contract marks GS E&C’s second major infrastructure project in Australia. The company first entered the market in 2021 with the $6.6 billion North East Link PPP project to connect Melbourne’s outer ring road with the eastern freeway. The North East Link remains one of Australia’s largest infrastructure contracts.

By Park Li-na (linapark@heraldcorp.com)