AECOM awarded contract to support LA Metro’s transition to Zero Emission Buses

Rhea-AI Summary

AECOM (NYSE: ACM) has been awarded a contract to support the Los Angeles County Metropolitan Transportation Authority's (Metro) transition to Zero Emission Buses (ZEB). This initiative, one of the largest electric bus programs in the nation, aims to reduce greenhouse gas emissions and improve air quality in Los Angeles County. AECOM will provide:

• Program management, design, and engineering services
• ZEB and charging infrastructure conceptual design
• Specification and procurement support
• Implementation strategies for a seamless transition

The project, supported by the Infrastructure Investment and Jobs Act, aligns with AECOM's Sustainable Legacies strategy and will set a national example for transit agencies transitioning to zero-emission fleets.

Positive

• Awarded contract for major Zero Emission Bus transition project
• Aligns with company's Sustainable Legacies strategy
• Positions AECOM as a leader in transportation decarbonization
• Project supported by Infrastructure Investment and Jobs Act

Negative

• None.

Insights

Transportation Infrastructure Expert

Metro's ambitious Zero Emission Bus (ZEB) transition is a significant step towards sustainable public transportation. This project, supported by the Infrastructure Investment and Jobs Act, aligns with global efforts to reduce urban emissions and improve air quality. The scale of this initiative, being one of the largest electric bus programs in the U.S., positions LA as a leader in green transit solutions.

AECOM's role in providing program management, design and engineering services is important for the project's success. Their expertise in ZEB and charging infrastructure will be instrumental in addressing complex challenges such as:

• Optimizing charging station locations and capacities
• Ensuring grid compatibility and power supply reliability
• Adapting existing bus depots for electric fleet maintenance
• Developing efficient route planning for electric buses

This contract not only benefits AECOM financially but also strengthens its position in the growing market for sustainable transportation infrastructure. As more cities aim to decarbonize their transit systems, AECOM's experience with LA Metro will likely lead to similar high-profile projects, potentially driving long-term growth for the company.

Environmental Policy Analyst

The LA Metro's transition to Zero Emission Buses represents a significant shift in urban transportation policy, with far-reaching environmental implications. This initiative aligns with California's aggressive climate goals and sets a precedent for other major metropolitan areas.

Key environmental benefits include:

• Substantial reduction in greenhouse gas emissions from public transit
• Improved air quality, particularly in densely populated urban areas
• Decreased noise pollution, enhancing quality of life for residents

However, the project also presents challenges that need careful consideration:

• Ensuring the electricity used for charging comes from renewable sources to maximize emission reductions
• Addressing the environmental impact of battery production and disposal
• Managing potential increases in electricity demand and its effects on the power grid

AECOM's involvement in this project positions them as a key player in the green transportation sector, potentially leading to increased investor interest in companies focused on sustainable infrastructure solutions. This trend could have broader implications for the infrastructure consulting industry, driving innovation and creating new market opportunities in the rapidly evolving field of sustainable urban development.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM) the world’s trusted infrastructure consulting firm, today announced it has been awarded a contract to provide program management, design and engineering services to support the Los Angeles County Metropolitan Transportation Authority’s (Metro) ambitious goal of transitioning its bus fleet to Zero Emission Buses (ZEB). As one of the largest electric bus programs in the nation, this initiative with support from the Infrastructure Investment and Jobs Act, will emphasize reduced greenhouse gas emissions and improved air quality while delivering high-quality services for Los Angeles County’s residents and visitors.

“As a global leader in transportation decarbonization, we are proud to contribute to Metro’s ambitious vision for a sustainable and efficient transit system,” said Mark Southwell, chief executive of AECOM’s global Transportation business. “Reflecting our Sustainable Legacies strategy and drawing on our deep technical expertise, we are well positioned to deliver innovative solutions for these complex and transformative transportation challenges.”

In this role, AECOM will provide ZEB and charging infrastructure conceptual design, specification, and procurement support. In addition, the firm will advise on implementation strategies that ensure a seamless and successful transition to zero-emission operations.

“We are excited to partner with Metro on this critical program as they fast-track efforts to transition to zero emissions buses,” said Matt Crane, chief executive of AECOM’s U.S. West region. “This project will set a national example for how transit agencies can successfully transition to zero emissions buses and modernize their facilities to support this new fleet technology.”

About AECOM
AECOM (NYSE: ACM) is the world’s trusted infrastructure consulting firm, delivering professional services throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. On projects spanning transportation, buildings, water, new energy, and the environment, our public- and private-sector clients trust us to solve their most complex challenges. Our teams are driven by a common purpose to deliver a better world through our unrivaled technical and digital expertise, a culture of equity, diversity and inclusion, and a commitment to environmental, social and governance priorities. AECOM is a Fortune 500 firm and its Professional Services business had revenue of $14.4 billion in fiscal year 2023. See how we are delivering sustainable legacies for generations to come at aecom.com and @AECOM.

Forward-Looking Statements
All statements in this communication other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations, profitability, strategic value creation, capital allocation strategy including stock repurchases, risk profile and investment strategies, and any statements regarding future economic conditions or performance, and the expected financial and operational results of AECOM. Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward-looking statements include, but are not limited to, the following: our business is cyclical and vulnerable to economic downturns and client spending reductions; potential government shutdowns or other funding circumstances that may cause governmental agencies to modify, curtail or terminate our contracts; losses under fixed-price contracts; limited control over operations that run through our joint venture entities; liability for misconduct by our employees or consultants; failure to comply with laws or regulations applicable to our business; maintaining adequate surety and financial capacity; potential high leverage and inability to service our debt and guarantees; ability to continue payment of dividends; exposure to political and economic risks in different countries, including tariffs, geopolitical events, and conflicts; currency exchange rate and interest fluctuations; retaining and recruiting key technical and management personnel; legal claims; inadequate insurance coverage; environmental law compliance and adequate nuclear indemnification; unexpected adjustments and cancellations related to our backlog; partners and third parties who may fail to satisfy their legal obligations; managing pension costs; AECOM Capital real estate development projects; cybersecurity issues, IT outages and data privacy; risks associated with the benefits and costs of the sale of our Management Services and self-perform at-risk civil infrastructure, power construction and oil and gas businesses, including the risk that any purchase adjustments from those transactions could be unfavorable and result in any future proceeds owed to us as part of the transactions could be lower than we expect; as well as other additional risks and factors that could cause actual results to differ materially from our forward-looking statements set forth in our reports filed with the Securities and Exchange Commission. Any forward-looking statements are made as of the date hereof. We do not intend, and undertake no obligation, to update any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240926703252/en/

Media Contact:

Brendan Ranson-Walsh

Senior Vice President, Global Communications

1.213.996.2367

Brendan.Ranson-Walsh@aecom.com

Investor Contact:

Will Gabrielski

Senior Vice President, Finance, Treasurer

1.213.593.8208

William.Gabrielski@aecom.com

Source: AECOM

FAQ

What contract has AECOM (ACM) been awarded by LA Metro?

AECOM has been awarded a contract to provide program management, design, and engineering services for LA Metro's transition to Zero Emission Buses (ZEB).

What services will AECOM (ACM) provide for LA Metro's Zero Emission Bus project?

AECOM will provide ZEB and charging infrastructure conceptual design, specification, procurement support, and implementation strategies for the transition to zero-emission operations.

How does the LA Metro Zero Emission Bus project align with AECOM's (ACM) strategy?

The project aligns with AECOM's Sustainable Legacies strategy and positions the company as a global leader in transportation decarbonization.

What is the significance of AECOM's (ACM) involvement in LA Metro's Zero Emission Bus project?

AECOM's involvement in this large-scale electric bus program will set a national example for transit agencies transitioning to zero-emission fleets, emphasizing reduced emissions and improved air quality.