Rail link to mainland China to be delivered three years late, according to report
Balfour Beatty and Kier are suffering major cost overruns and project delays over the $8.4bn rail scheme to link Hong Kong with the Chinese mainland, it has been reported.
According to a report released by mass-transit operator MTR, two of the three major problem contracts on the Guangzhou-Shenzhen-Hong Kong Express Rail Link project include joint ventures involving the UK-based construction giants, a report by the UK-based Construction Enquirer said.
An MTR report revealed that the 23km rail project is now nearly a third over budget at $10.89 billion and is expected to be delivered in the third quarter of 2018, three years behind schedule.
Problems have reportedly arisen in the contract to deliver the West Kowloon Terminus Station North, according to the MTR report quoted by Construction Enquirer. Australia’s Leighton and local contractor Gammon – in which Balfour Beatty holds a 50% stake – were the firms tasked with the delivery of the $1.12 billion station.
Kier’s $186.8 million contract with joint-venture partners Kaden and OSSA for a 2.6km long tunnel has also run into problems, it was reported.
Balfour Beatty and Kier did not immediately respond to a request for comment when contacted by MEConstructionNews.com.