CDPQ takes 25% stake in Australian transport project

Hong Kong's MTR Corporation, Japan's Marubeni Corporation, and Australian infrastructure contractor CIMIC Group also participated, as did Plenary Group, a local specialist in public-private partnership (PPP) investments. Plenary and MTR are existing members of the contractor consortium called Northwest Rapid Transit (NRT) that is tasked with developing the targeted PPP.

The Sydney Metro PPP is Australia's largest public transport project, bringing together the 13-station North West commuter train line, which opened in May this year, with two developing lines designated City and Southwest. The A$3.7 billion contract includes A$1.7 billion for new metro trains and core rail systems, as well as a A$2 billion operations and maintenance component. NRT is contracted to operate the combined North West and City and Southwest lines until 2034.

"The Sydney Metro is a transformative project for the city and for thousands of people who look to public transport for fast and efficient travel each day," Emmanuel Jaclot, an executive vice president and head of infrastructure at CDPQ, said in a statement. "This transit system will expand sustainable mobility in the region and contribute to the transition toward a low-carbon economy by compounding the benefits of mass transit, electrification and energy from renewable sources."

The North West line is being touted as Australia's most technologically advanced railway service. It has carried more than 11 million passenger journeys in its first five months of operations and claims a 95% customer satisfaction score. "Sydney Metro is transforming travel in one of the world's great cities with its fully automated trains and best-in-class railway technology, setting new standards in Australia for safety, reliability and customer service," Jacob Kam, MTR's CEO, said in a separate release.

Other investment activity in this space includes the acquisition last year of a 51% stake in Sydney's WestConnex highway system from the New South Wales government for A$9.3 billion by a consortium featuring Canada Pension Plan Investment Board (CPPIB) and AustralianSuper. CPPIB and Queensland Investment Corporation previously participated in A$2.9 billion investment in Sydney's NorthConnex tunnel project. Both projects aim to mitigate greenfield risk through toll road concessions.

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• Topics
• Australasia
• Infrastructure
• Australia
• Caisse de depot et placement du Quebec (CDPQ)
• Transportation