ABB and Consortium Win UK Rail Project - Analyst Blog


ABB Ltd ( ABB ) and UK Power Networks yesterday, on Mar 17, 2014, received a contract from UK's Network Rail to provide turnkey substations which will upgrade Britain's existing rail network through the supply of high-quality power. The contract is worth $145 million and the work is evenly distributed between both the companies according to the scope of the work. Together, the consortium will provide 30 substations.

The upgradation work undertaken by the Network Rail Project is part of the the Great Western Electrification Programme (GWEP). Per the contract, the GWEP programme will comprise ABB's unique modular Structure Mounted Outdoor Switchgear (SMOS) Light concept.

This structure is specially designed by ABB to help global railway infrastructures minimize the time required for construction, testing and commissioning by almost 30%. The consortium is responsible for providing 30 turnkey substations installed with ABB's state-of-the-art eco-efficient power distribution switchgear, thereby reducing the carbon footprint.

Moreover, the substations also include ABB's advanced protection and control concept, which was designed to suit Network Rail's own Rationalised Autotransformer Scheme (RATS). This highly sophisticated method of deploying the global IEC 61850 open communications standard increases cost-efficiency for substation solutions. The consortium plans to commission the first sub-station in 2015, while the project is expected to be complete in 2017.

Further, Network Rail will ensure that the modernization of the rail system provides reliable services to passengers. Not only this, the upgrade will also reduce noise pollution and guarantee increased train frequency, thereby increasing passenger capacity and support the overall economic development.

Recently, in Jan and Feb, ABB received contracts to upgrade the Swedish and Brazilian rail networks.

Based in Zurich, Switzerland, ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering negative impacts on the environment.

ABB currently has a Zacks Rank #3 (Hold). However, other stocks which are worth considering at the moment are Quanta Services, Inc. ( PWR ), Enersys Inc . ( ENS ) and Franklin Electric ( FELE ), all of which carry a Zacks Rank #2 (Buy).

ABB LTD-ADR (ABB): Free Stock Analysis Report

ENERSYS INC (ENS): Free Stock Analysis Report

FRANKLIN ELEC (FELE): Free Stock Analysis Report

QUANTA SERVICES (PWR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: ABB , ENS , FELE , PWR

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