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Skanska's largest single order to date - lands 600 million dollar in New York

4/16/1998 12:00 AM CET
Press release

In international competition, Skanska and Bombardier Transit Corporation in joint venture, have been selected for the design, construction, operations and maintenance of a new light rail system servicing the JFK Airport in New York. The contract is valued at about USD 1.3 billion, about SEK 10.4 billion.

PRESS RELEASE, APRIL 16, 1998                            29/98

SKANSKA'S LARGEST SINGLE ORDER TO DATE - LANDS 600 MILLION DOLLAR IN NEW YORK

In international competition, Skanska and Bombardier Transit Corporation in joint venture, have been selected for the design, construction, operations and maintenance of a new light rail system servicing the JFK Airport in New York. The contract is valued at about USD 1.3 billion, about SEK 10.4 billion.

The design and civil works portion of the project amounts to USD 750 million, about SEK 6 billion. Skanska's share is 80 percent, resulting in a total order value for Skanska of USD 600 million, about SEK 4.8 billion - the Group's largest to date.

The customer is the Port Authority of New York and New Jersey.

With the JFK Light Rail System it will be possible to travel by train between Manhattan and JFK Airport. The 13.5-kilometer segment between the terminals at JFK and the Jamaica Subway Station will have ten stations. The elevated railway will connect all of the terminals and traverse the congested Van Wyck Expressway.

The project is being carried out by the Air Rail Transit Consortium led by Skanska USA.

In addition to Skanska's American subsidiaries, Slattery Skanska, Koch Skanska and Sordoni Skanska, the consortium includes Perini Corporation. This group is responsible for the design and construction of the civil works. Bombardier will furnish the passenger cars and operate and maintain the line for five years, with an option for ten more years. The operations and maintenance portion is estimated to amount to about USD 20 million annually in excess of the construction contract.

"We are extremely proud to have won this prestigious assignment in tough international competition," says Stuart E. Graham, President of the Skanska USA business area. "It secures our strong position in the infrastructure segment. The JFK project is a major challenge that provides us the opportunity to take advantage of the unique capabilities in the Skanska companies in the New York region."

"This type of total project responsibilities is in line with our business strategy." says Claes Bjork, President and CEO of Skanska. "Our capability of managing large, complex projects enables us to utilize all the expertise within the Skanska Group. We will see increasingly more of these type of undertakings in the future."

"This large project suits Skanska USA uniquely in that we constructed a number of projects at JFK recently" continues Claes Bjork. "Our New York based companies are very familiar with the local conditions."

Planning for the project is being initiated immediately for a construction start in September. The construction period is 53 months. About 150 salaried employees and 1,000 tradesmen will be involved in the construction phase.

Skanska is carrying out a number of large infrastructure projects in the USA, including several contracts on the Central Artery project in Boston and the construction of a subway tunnel below an existing subway tunnel in New York City. In San Francisco, construction of a 550 MUSD 13-kilometer commuter rail tunnel connecting the existing system to the international airport will get underway shortly.

 

Uppsala, Sweden
April 16, 1998

SKANSKA AB
Group Corporate Communications

 

For further information, please contact:Stuart Graham, President of Skanska USA, telephone 718 767 26 00
Claes Bjork, President and CEO of Skanska, telephone +46 8753 88 00
Cecilia Schon, Senior Vice President Communications Skanska, +46 8753 87 99