AECOM joint venture awarded contract to deliver technical services for key new phase of Hong Kong’s major Northern Metropolis development

Rhea-AI Summary

AECOM (NYSE: ACM) has been selected in a joint venture with AtkinsRéalis by Hong Kong's Civil Engineering and Development Department (CEDD) to deliver Package 3 of the First Phase Development of the New Territories North – San Tin / Lok Ma Chau Development Node. This project is part of the Northern Metropolis, a major development that will support 2.5 million people.

The joint venture will provide comprehensive services for the 190-hectare development, including design, tender and construction supervision, site formation, infrastructure works, and environmental monitoring. The project, targeted for completion in 2038, will support innovation and technology industry, housing, and commercial spaces.

AECOM will lead the development of a unified digital twin platform for the San Tin Technopole project. The company is also involved in Package 1 (250-hectare portion) and the Investigation Study for Sam Po Shue Wetland Conservation Park (348-hectare site).

Positive

• Secured major contract for Hong Kong's Northern Metropolis development
• Expanded presence in Hong Kong with multiple project packages
• Leading role in digital twin platform development
• Long-term project visibility through 2038

Negative

• None.

Insights

Infrastructure Development Expert

This major contract win secures AECOM's role in one of Hong Kong's most ambitious urban development initiatives. The Northern Metropolis represents transformative infrastructure with a 190-hectare scope under Package 3 that will ultimately support 2.5 million people upon full development.

What's particularly notable is the comprehensive service suite AECOM will deliver through this joint venture with AtkinsRéalis, spanning design, tender management, construction supervision, and specialized elements like nature-based solutions. The contract builds upon AECOM's existing Package 1 work, indicating strong client satisfaction and execution capability.

The development's focus on balancing technology innovation with environmental integration aligns perfectly with evolving global infrastructure standards. AECOM's leadership in developing a unified digital twin platform shows they're bringing advanced technological capabilities beyond traditional engineering - a significant competitive differentiator in today's infrastructure landscape.

With project completion targeted for 2038, this represents a substantial long-term engagement providing extended revenue visibility. AECOM's 40+ years of experience in Hong Kong new town development positions them ideally for this complex undertaking that requires seamless integration with broader Northern Metropolis initiatives.

Financial Analyst

This contract award strengthens AECOM's already substantial footprint in Asia's infrastructure development market. While no specific contract value is disclosed, securing a comprehensive role in Hong Kong's Northern Metropolis development represents meaningful long-term revenue potential given the project's scale and 14-year timeline through 2038.

AECOM's expanded involvement from Package 1 to Package 3 suggests strong execution and deepening client relationships - often predictive of future contract awards as the broader Northern Metropolis development progresses. The joint venture structure with AtkinsRéalis allows for shared risk while maintaining significant revenue opportunity.

The digital twin platform leadership demonstrates AECOM's evolution toward higher-value technology services beyond traditional engineering - capabilities that typically command premium margins. This technological differentiation should strengthen competitive positioning for similar contracts globally.

From an investment perspective, long-duration contracts like this provide valuable revenue visibility that helps moderate cyclical impacts typical in the engineering and construction sector. The project's focus on innovation, technology and sustainability aligns perfectly with infrastructure megatrends driving public investment worldwide. While a single contract doesn't fundamentally alter AECOM's financial profile given its $12.8 billion market cap, it reinforces the company's growth trajectory in the strategically important Asia-Pacific region.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the trusted global infrastructure leader, today announced that it has been selected in a joint venture by the Civil Engineering and Development Department (CEDD) of the HKSAR Government for the design and construction of Package 3 of the First Phase Development of the New Territories North – San Tin / Lok Ma Chau Development Node. This project is a cornerstone of the Northern Metropolis, a major new development in Hong Kong that will support approximately 2.5 million people and advance economic growth, innovation and technology, and sustainable urban development.

“We are honored to continue our long-standing partnership with the Civil Engineering and Development Department and contribute to the development of the Northern Metropolis,” said Ian Chung, chief executive of AECOM’s Asia region. “With our expanded role in the San Tin Technopole project, AECOM will bring together an integrated, multi-disciplinary team to deliver technical excellence, digitalized solutions and nature-positive approaches to create a world-class, community-focused innovation and technology hub.”

AECOM will provide a comprehensive range of services for Package 3 in its joint venture with AtkinsRéalis, including design, tender and construction supervision, site formation and other engineering infrastructure works, urban-rural integration, nature-based solutions (NbS), open space design and landscaping, digital solutions, and environmental monitoring and mitigation. With completion targeted for 2038, the approximately 190-hectare development is designed to support the innovation and technology industry, housing, community and commercial spaces.

For this project, AECOM aims to optimize land use by balancing modern development with nature and cultural conservation. The design emphasizes urban-rural integration and nature-positive infrastructure, featuring new and environmentally restored open spaces, revitalized rivers, a cultural and recreational complex for the community, and a landscaped deck for pedestrians and cyclists, all designed with climate resilience and innovative construction methodologies in mind.

"As industry leaders in designing complex urban environments, our teams have a proud legacy of delivering innovative developments across Hong Kong and in major cities around the world,” said Bane Gaiser, chief executive of AECOM’s global Buildings + Places business. “Complemented by deep expertise in sustainable development and nature-based solutions, we look forward to creating thriving, climate-resilient communities that will shape Hong Kong’s future for decades to come.”

To align with the Government’s Smart City strategy, AECOM will take the lead in the development and implementation of a unified digital twin platform for the entire San Tin Technopole project to support efficient planning and delivery. The platform will enhance visualization of digital model outcomes and develop digital services for data depository in infrastructure design, in alignment with the Government’s initiatives like Common Spatial Data Infrastructure (CSDI) and Integrated Capital Works Platform (iCWP).

AECOM’s work on this project builds on the successful progress of Package 1, which involves design and project supervision services for a 250-hectare portion of San Tin. Additionally, AECOM has been selected to conduct the Investigation Study for Sam Po Shue Wetland Conservation Park, a 348-hectare site northwest of San Tin Technopole and the first wetland conservation park in Hong Kong planned under the Government’s Northern Metropolis Development Strategy.

With over 40 years of experience in new town development in Hong Kong, AECOM will continue to collaborate with CEDD and other stakeholders to ensure planning and design integration with broader Northern Metropolis initiatives.

About AECOM
AECOM (NYSE: ACM) is the global infrastructure leader, committed to delivering a better world. As a trusted professional services firm powered by deep technical abilities, we solve our clients’ complex challenges in water, environment, energy, transportation and buildings. Our teams partner with public- and private-sector clients to create innovative, sustainable and resilient solutions throughout the project lifecycle – from advisory, planning, design and engineering to program and construction management. AECOM is a Fortune 500 firm that had revenue of US$16.1 billion in fiscal year 2024. Learn more at aecom.com.

Forward Looking Statements
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250327716517/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 is the scope of AECOM's new contract for Hong Kong's Northern Metropolis development?

AECOM's joint venture will deliver Package 3, covering 190 hectares, providing design, construction supervision, infrastructure works, and environmental services for the San Tin / Lok Ma Chau Development Node.

When is the completion date for AECOM's Northern Metropolis Package 3 project?

The project is targeted for completion in 2038.

How many people will Hong Kong's Northern Metropolis development support?

The Northern Metropolis development is designed to support approximately 2.5 million people.

What technology solutions is AECOM implementing in the Northern Metropolis project?

AECOM is developing a unified digital twin platform for the San Tin Technopole project, aligned with Government's Common Spatial Data Infrastructure and Integrated Capital Works Platform.

What additional projects is AECOM involved in within Hong Kong's Northern Metropolis?

AECOM is also working on Package 1 (250-hectare development) and the Investigation Study for Sam Po Shue Wetland Conservation Park (348-hectare site).