AECOM Technology Corporation (ACM - Analyst Report), a leading provider of professional technical and management support services for public and private clients,recently announced that it has received an engineering, procurement and construction management (EPCM) contract in South Africa.
Apart from EPCM services, the scope of the contract entails AECOM to provide project-close-out services for 15 infrastructure projects of South-Africa based Transnet SOC Limited. The projects are located in Cape Town, Postmasburg and Saldanha, South Africa. The independent projects are expected to be completed in a three-year time frame and AECOM expects to earn fees of roughly $30 million.
Transnet SOC Limited is a state-owned company specializing in major infrastructure improvement services including freight rail, port and fuel pipelines among others.
The aim of the project is to provide various core services for modern port buildings, expanding and improving buildings’ infrastructure, train loading facilities for new iron ore in Postmasburg, expanding container terminal and resurfacing of berths of Cape Town ports along with providing infrastructure for the recent railroad car rotary dumper in Saldanha. The construction value of the whole project is around $2.2 billion, while each of the projects’ construction value is estimated to be up to $150 million.
Based in Los Angeles, CA, AECOM is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental and energy. Its Professional Technical segment delivers planning, consulting, architectural and engineering design, program and construction management services. The company has around 45,000 employees to serve its clients, which are spread in more than 140 countries.
AECOM currently carries a Zacks Rank #4 (Sell). Some better-placed stocks in the construction sector that are worth a look include Jacobs Engineering Group Inc. (JEC - Analyst Report), KBR, Inc. (KBR) and Great Lakes Dredge & Dock Corp. (GLDD - Snapshot Report). All these stocks carry a Zacks Rank #2 (Buy).