) recently received an order from
Rio Tinto plc
) to upgrade an existing power substation at the Cape Lambert
port in Western Australia's Pilbara region. The order, booked in
the first quarter, is worth approximately $27 million and is
expected to be completed by early 2014. The main objective of the
contract is to upgrade and increase port power supply to catch up
with the incremental exports from Pilbara mines.
As per the agreement, ABB will be responsible for the design,
construction and commissioning of the substation upgrade.
Following the upgradation, the existing transmission network will
get electricity from a new power generation plant. The
upgradation will also increase power supply to enable the
expansion of the Cape Lambert port. ABB claimed it will ensure
the best quality of electrical supplies, thereby ensuring safety
The upgradation and expansion of the Rio Tinto substation is
primarily done to have more space for ship loading facilities and
boost port capacity. This includes the addition of a second
1,400-metre jetty and related equipments for handling bulk
materials. The port is expected to increase iron ore exports by
53 million tons annually.
Rio Tinto is a global leader in the exploration, mining and
processing of minerals and metals, including aluminum, copper,
diamonds, energy products, gold, industrial minerals and iron
The substation's upgraded automation and communication systems
will allow Rio Tinto's Operations Center at Perth, which is about
1,500 kilometers away, to supervise the power assets. The
Operations Center is responsible for controlling and managing the
mining processes, rail transport, ship loading and related
critical infrastructure for Rio Tinto's iron ore mining
operations in the Pilbara region.
Based in Zurich, Switzerland, ABB is a power and automation
technology company and currently has a Zacks Rank #3 (Hold). Some
other players in the same industry worth considering at the
Orion Marine Group Inc
EMCOR Group Inc
), both having a Zacks Rank #2 (Buy).
ABB LTD-ADR (ABB): Free Stock Analysis Report
EMCOR GROUP INC (EME): Free Stock Analysis
ORION MARINE GP (ORN): Free Stock Analysis
RIO TINTO-ADR (RIO): Free Stock Analysis
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