Leading infrastructure and support services firm AECOM (ACM) has won a contract for preparing a detailed plan for Crossrail 2, London’s latest rail infrastructure project. AECOM, appointed by Transport for London (TfL), is one of the four consulting firms chosen for joint management of the project. However, despite the positive development, AECOM’s shares edged down marginally during the regular trading session on Feb 9, 2015, owing to broader macroeconomic views.
Beneath the Headline
Combining global knowledge and local strength, AECOM has developed a solid reputation for itself as a provider of expert advice on components of town planning and master planning. The latest contract entails the company to supervise master planning of the project and ensure that it contributes to the various aspects of socio-economic development.
Crossrail 2 project aspires to build a 36 kilometer rail route under London that will connect the north east and south west areas of the city. The new project is strategically planned to complement Crossrail 1, which connects the east and west areas.
These new initiatives indicate the British government’s proactive efforts to construct a solid transportation infrastructure in order to adequately support the steep population growth in London. The city’s population figure is anticipated to cross the 10 million mark by 2036.
In order to select the best consulting firms for the project, TfL had resorted to competitive tendering process. AECOM’s selection, as one of the consulting firms, comes as no surprise, given its extensive knowledge on public transport services.
The first phase of public consultation occurred between May and Aug 2013, with subsequent ones expected to follow soon. The official submission of the application to construct the new railway line will likely take place in 2017. Construction is expected to commence from 2020, with the line being ready for use in 2030.
Future Prospects
Crossrail 2 marks the next phase of urban development in London. The project carries an immense positive potential for the economic development of London and its surrounding areas. AECOM’s selection in Crossrail 2 is a landmark achievement that would benefit it significantly in the long run.
AECOM currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the engineering research and development services industry include VSE Corp. (VSEC), Willdan Group, Inc. (WLDN) and Pernix Group Inc. (PRXG). While both VSE Corp and Willdan Group, Inc. sport a Zacks Rank #1 (Strong Buy) each, Pernix Group Inc carries a Zacks Rank #2 (Buy).
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