Ferrovial Services in North America has successfully begun 2019 with the award of two new contracts by Ontario’s Ministry of Transportation (MTO). The contracts include the Operations and Maintenance of the road network in the regions of Ottawa and York (Greater Toronto Area). The contracts represent a combined value of approximately 200M€ and will be delivered over a seven-year period beginning in 2019.
The Ottawa contract begins in Q2 of 2019 and consists of 1,844 kilometers (1,146 miles) of roadway operations and maintenance, including more than 70 snowplows for winter operations. The York contract commences in Q3 of 2019 and includes the operation of more than 50 snowplows across a 900-kilometer (560 mile) network in the Toronto area, in addition to routine maintenance of the roadways.
These new awards follow the Peel Halton contract (awarded in Q3 of 2018), which also commences in Q3 of 2019. Altogether, these new contract awards represent a significant expansion of FS in Canada, where FS currently executes two similar contracts in the regions of Sault Ste. Marie and North Bay, also in the province of Ontario.
“We are extremely pleased to have regained the trust of the MTO, continuing the expansion of our Canadian activities,” says Gonzalo Nieto, CEO of Ferrovial Services in North America. “We are committed to delivering a safe and top-quality service for the MTO and the Ontario traveling public. These two new contracts represent significant growth for FS in North America in accordance with Ferrovial’s infrastructure strategy.”
By the end of 2019, FSNA will be actively managing over 4,600 kilometers (2,858 miles) of Ontario’s road network and will be one of the largest maintenance contractors to the MTO, employing more than 760 men and women in the Province. This activity includes the operation of almost 300 snowplows and management of more than 176,000 tons of salt and 125,000 tons of sand.
Responding to this rapid growth, Daniel Filer, EVP of Infrastructure for FSNA, says, “Going from two contracts to five in a matter of months gives us an opportunity to focus on Ontario and Canada as a whole, which is now our largest market by volume. As a result, we are establishing a corporate office in Toronto that can better serve our MTO client and support our project teams.”
Ontario has been a key market for Ferrovial for many years. Ferrovial Services’ growth in Ontario’s transportation sector responds to Ferrovial’s strategy of growing its presence in its core activities and regions.
This strategic growth in Canada adds to the 20 United States contracts across Alaska, California, Colorado, Florida and Washington D.C. In total, the North American Infrastructure business stands at $1.14B (993M €) of order book and $140M (123M €) in projected 2019 revenues.