Sojitz : Enters Australia’s Transport Sector

Sojitz Corporation ("Sojitz") has concluded a strategic partnership with CIMIC Group Limited ("CIMIC"), a member of the ACS Group, to acquire a 50% equity interest in the transport business of UGL Limited ("UGL Transport"), a business engaged in the engineering, design, and construction of advanced signaling and communications systems, manufacturing of rolling stock, and operation and maintenance (O&M) of transport assets across Australia and New Zealand. The acquisition of shares is expected to be completed at the end of December 2025 following receipt of relevant regulatory approvals. UGL Transport's sales in 2024 reached a scale of JPY 100 billion. Through this acquisition, Sojitz will enter the rail O&M business to expand on its existing rail engineering, procurement, and construction（EPC) business in Asia with the aim of developing and providing comprehensive rail-related services.

Australia is one of the world's top markets for public-private partnership (PPP) development driven by population growth and urbanization. Based on the Australian government's "Infrastructure Australia" strategy, Australia's passenger railway market is expected to grow at an average annual rate of 6.5% between 2025 and 2030.^*1

UGL Transport is a leading integrated transport services platform operating across Australia with capabilities spanning rolling stock manufacturing and servicing, network management, transport operations, and advanced signaling and communications systems. Established in 1899, UGL has been awarded projects for rail, light rail (LRT), and bus operations in major cities including Melbourne, Canberra, and Sydney. In addition to passenger rail operations, UGL has a strong track record of manufacturing and maintaining locomotives essential for mineral resource transport.

Sojitz has a wealth of experience and in-depth expertise in the rail industry that includes both investment in the railcar maintenance and leasing business in North America and delivery of EPC projects for India's railways and the Jakarta metro construction project in Indonesia. By entering the rail operations business in Australia, Sojitz plans to add post-construction O&M to its EPC services to establish comprehensive rail-related services. Moving forward, Sojitz will continue to pursue business expansion in Australia's rapidly developing infrastructure sector and has set its sights on future expansion into greater Asia while strengthening its business foundation to increase the scale of earnings.

*1: Sojitz study