CBH Group has awarded a ten-year contract to Watco Companies and plans to invest A$175m (US$173.5m) in rolling stock for the planned grain rail freight network in Western Australia.
Watco will also operate and maintain the rolling stock, which will includes locomotives and a fleet of wagons to be delivered over the next 18 months.
The company will also provide a comprehensive rail logistics planning service including train planning and scheduling, tracking, maintenance, inventory control and crew management from May 2012.
The existing interim agreement with QR National subsidiary Australian Railroad Group will finish in April 2012.
A total of A$500m (US$495m) has been committed for the project, with state and federal governments providing A$350m (US$347m) to the planned freight network so far.
