Balfour Beatty clinches $1.95bn deal for Los Angeles International Airport

A new transport system connecting the central terminal to a rental car facility and six stations will be built

The project is the first major public-private partnership in the US civil infrastructure market for Balfour Beatty (Reuters)

A Balfour Beatty joint venture has clinched a $1.95bn (£1.4bn) contract to build an above-ground transport system at Los Angeles International Airport (LAX).

LAX Integrated Express Solutions (Linxs) – whose members include Balfour Beatty, Fluor Corporation, Flatiron West and Dragados USA – will design, build, finance, operate and maintain a 2.25-mile system that is set to connect the LAX central terminal to a yet-to-be constructed rental car facility, six stations and a vehicle maintenance centre.

The so-called “automated people mover” will operate up to nine trains at a time with moving walkways to the terminals and parking garages.

The project is the first major public-private partnership in the US civil infrastructure market for Balfour Beatty Investments, which is a 27 per cent equity owner in the Linxs joint venture.

Balfour Beatty Group chief executive Leo Quinn said: “This award at LAX, one of the world’s busiest airports, recognises our expertise and track record for delivering critical transportation infrastructure.”

Linxs is also 27 per cent owned by Fluor Limited, with 18 per cent held by Hochtief PPP Solutions GmbH, 18 per cent held by ACS Infrastructure Development and 10 per cent by Bombardier Transportation (Holdings) USA.

Balfour Beatty was one of the firms hit by the recent collapse of construction giant Carillion, having been involved in a separate joint venture with the now-failed firm.

The infrastructure group was involved with Carillion on three projects including Aberdeen Western Peripheral Route (AWPR), the A14 in Cambridgeshire and the M60 Junction 8 to M62 Junction 20 scheme.

It warned investors last month that as a result of Carillion’s liquidation, Balfour Beatty was likely to have to pump an extra £35m to £45m into those projects in 2018.

The additional financial burden will be booked as an exceptional non-underlying charge in its next set of results, but the company assured it does not have any other financial exposure to the failed business.

PA