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US firm AECOM moves out Adani's Oz rail link project

Demobilises all staff after completing the current phase of design work

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Global engineering major AECOM has 'demobilised all staff' from Adani Group's Australian project connecting its Carmichael coal mine with the Abbot Point Port through a rail link.

In a response to a DNA Money email, American construction firm's spokesperson said, "AECOM has completed the current phase of design work agreed with Adani. As a result, we have now demobilised all staff and there are no AECOM employees working on the Carmichael Rail project. However, a commercial agreement remains in place."

Engineering or construction projects are accomplished in multiple phases and same is the case with the rail project to connect the coal mine at Carmichael with Abbot Point Port in Australia's Queensland state.

As per Adani Enterprises, the rail project entails linking the mine and port with a new 388 kilometre standard gauge North Galilee Basin Rail Line.

Responding to DNA Money's email, Adani Group's spokesperson said that only "the current phase of the engineering and design for the rail project is now complete".

However, the Indian conglomerate hasn't yet parted ways with AECOM and "Adani's commercial relationship… continues," said the company's spokesperson, adding, "AECOM remains an important partner for Adani and we appreciate the quality of work they have completed to date and look forward to continuing to work with them. It is normal for contractor numbers to change through the life of a project as milestones are reached and stages of work are completed."

"Meanwhile, a new phase of activity on the project has begun. This involves working with other consultants and advisors to prepare for mine infrastructure construction and operation," read Adani Group's response.

This latest move of AECOM not going ahead with the next phase of the project comes five months after the Northern Australia Infrastructure Facility (NAIF) vetoed to extend loan worth 900 million Australian dollars (AUD) to connect Adani Group's Carmichael coal mine with the seaport.

Subsequent to the veto, the Gautam Adani-promoted company had parted ways with Sydney-based Downer EDI so that the Adani Group can develop and operate the coal mine on its own. The termination of $2.6 billion contract was termed as a mere "cost-cutting measure".

Since December 2017, the Ahmedabad-based company has not been able to arrange finances for the coal mine project and also overshot a couple of financing deadlines.

The Australian project has also been in the news due to opposition from environment conservationists on the grounds of polluting the critical and endangered Great Barrier Reef, which is also a 'World Heritage Area'. In fact, last year, Adani Group was penalised AUD 12,000 on the same charges.

Bought in 2010, Carmichael project will build Australia's largest thermal coal mine in the North Galilee Basin, approximately 160 km North-West of Clermont in Central Queensland, linked by a new 388 km standard gauge North Galilee Basin Rail Line to two terminals at Abbot Point Port near Bowen.

WORK COMPLETE

  • The rail project entails linking the mine and port with a new 388 kilometre standard gauge North Galilee Basin Rail Line
     
  • The Indian conglomerate hasn’t yet parted ways with AECOM
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