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Balfour Beatty JV wins £1.4bn LAX airport deal

Los Angeles International Airport (LAX) has awarded a Balfour Beatty joint venture the $1.95bn (£1.38bn) contract to deliver a new transportation system.

CREDIT Don Ramey Logan_Los Angeles International Airport aerial

CREDIT Don Ramey Logan_Los Angeles International Airport aerial

Source: Don Ramey Logan

The JV, which also includes Dragados and Fluor, will design and build a 3.6 km automated train system for the airport.

The system will connect the airport’s central terminal to six new light rail stations and a rental car area. It has a target completion date of 2023.

A four-way JV will deliver the design-and-build element, with Balfour Beatty holding a 30 per cent stake in the venture.

The other companies in the JV are Dragados USA (20 per cent), Fluor (30 per cent) and Flatiron West (20 per cent).

The design-and-build deal is part of a wider PPP agreement that includes the operation and maintenance of the system over a 30-year period.

A JV called LAX Integrated Express Solutions (LINXS), in which five companies are invested, will oversee the wider PPP, which will have a total value of approximately $4.5bn (£3.2bn) over the 30 years.

Balfour Beatty Investments is the joint largest equity investor in the partnership, with a 27 per cent stake, the same as Fluor Enterprises.

The other equity holders in the wider PPP are Hochtief PPP Solutions (18 per cent), ACS Infrastructure Development (18 per cent) and Bombardier Transportation USA (10 per cent).

Both Balfour’s design-and-build JV and the LINXS JV have secured recommended developer status on the project.

Los Angeles City Council will vote in April on whether to give the proposal final approval.

The contract win comes two days after Balfour Beatty unveiled a management shake-up of its US operations

Balfour Beatty 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.”

The company said the LAX job marked Balfour Beatty Investments’ first major public-private partnership in the US civil infrastructure market.

Los Angeles mayor Eric Garcetti said: “Today’s recommendation brings us one step closer to a people mover that will provide Angelenos and travellers from everywhere with reliable, convenient transportation to and from the terminals.”

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