AECOM selected as delivery partner for Eglinton Crosstown West Extension in Toronto

Rhea-AI Summary

AECOM (NYSE: ACM) has been selected by Metrolinx as the delivery partner for the Eglinton Crosstown West Extension project, a 9.2-kilometer extension of the Eglinton Crosstown Light Rail Transit. The project aims to create a continuous rapid transit line from Scarborough, through midtown Toronto, and into Mississauga. AECOM's global and multi-disciplinary service offering will be integral to the project, including program management, advisory, commercial management, procurement and supply chain management, and project supervision services.

Insights

Industry Analyst

The announcement by AECOM of their selection as the delivery partner for the Eglinton Crosstown West Extension project marks a significant development in the infrastructure sector. This project, which extends the LRT system in Toronto, is poised to have a substantial economic impact on the region. The integration of transportation services with local and regional transit systems is expected to enhance connectivity, potentially increasing property values and stimulating business activities in adjacent areas.

From a financial perspective, such large-scale infrastructure projects typically involve significant capital expenditure but can lead to long-term revenue streams for companies like AECOM through maintenance and management contracts post-construction. The project could also influence the stock of companies involved in the supply chain, from construction materials to technology providers for the transit system.

Investors and stakeholders may see this as a positive development, given AECOM's established reputation in program management and infrastructure development. However, the inherent risks associated with large infrastructure projects, such as cost overruns and delays, should be carefully monitored.

Financial Analyst

The collaboration between AECOM and Metrolinx represents a strategic move that may bolster AECOM's future earnings and strengthen its market position. The project aligns with the growing trend of urbanization and the push for sustainable transit solutions. Financially, the project is likely to contribute positively to AECOM's backlog, providing visibility on future revenue and potentially improving investor confidence in the company's growth trajectory.

Moreover, the project's scope suggests a multi-year timeline, which could mean a steady stream of income for AECOM over an extended period. This long-term benefit, however, comes with the need for substantial upfront investments and the management of complex stakeholder relationships. Investors should consider the balance between the project's immediate costs and its potential to enhance AECOM's long-term value proposition.

Environmental Consultant

The Eglinton Crosstown West Extension project is a testament to the growing emphasis on sustainable urban development. AECOM's involvement in the project underscores the company's commitment to its Sustainable Legacies strategy. By reducing reliance on automobiles, the project aims to lower urban air pollution and improve environmental outcomes for communities.

While the environmental benefits are clear, the project's success in achieving these outcomes hinges on effective execution and public adoption. The extension's integration with various transit services could also serve as a model for other cities looking to enhance their public transportation infrastructure in an environmentally responsible way. Stakeholders, including local residents, policymakers and environmental groups, will likely monitor the project's progress and its alignment with broader sustainability goals.

DALLAS--(BUSINESS WIRE)-- AECOM (NYSE: ACM), the world’s trusted infrastructure consulting firm, today announced it has been selected by Metrolinx to serve as its delivery partner for the Eglinton Crosstown West Extension project, a 9.2-kilometer extension of the upcoming Eglinton Crosstown Light Rail Transit (LRT) from the future Mount Dennis Station to Renforth Drive. When complete, the project will create a continuous rapid transit line that stretches from Scarborough, through midtown Toronto, and into Mississauga.

“We’re honored to partner with Metrolinx to realize this key part of Ontario’s historic transportation vision,” said Richard Barrett, chief executive of AECOM’s Canada region. “By connecting our industry-leading transportation expertise with our unique program management capabilities through a global and collaborative culture, we’re prepared to support this transformative program that is expected to expand transit access to neighborhoods throughout Toronto, bringing lasting benefits to the region.”

As delivery partner, AECOM will be an integral part of the Metrolinx delivery team across the full breadth of infrastructure for the project. This includes a global and multi-disciplinary service offering, integrating the Company’s program management, advisory, commercial management, procurement and supply chain management, and project supervision services, among others.

“Fast, convenient public transportation is a crucial alternative to automobiles that are a major source of urban air pollution,” said Drew Jeter, chief executive of AECOM’s Program Management global business line. “We are excited to bring the full strength of our firm to this project, which will not only improve the quality of life for residents and commuters but also the environmental outcomes for communities. This is a great example of AECOM’s ongoing commitment to leaving a positive, lasting impact on people and our planet through our Sustainable Legacies strategy.”

The project will connect with other local and regional transit including UP Express and GO Transit rail services, as well as TTC, MiWay and GO Transit bus services. Most of the extension will be underground with a portion of the line running on an elevated guideway between Scarlett Road and Jane Street. Plans are also being explored with the Greater Toronto Airports Authority to extend the line to Toronto Pearson International Airport.

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 US$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, 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; 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; 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; AECOM Capital real estate development projects; managing pension cost; cybersecurity issues, IT outages and data privacy; risks associated with the expected benefits and costs of the sale of our Management Services and self-perform at-risk civil infrastructure, power construction and oil and gas construction businesses, including the risk that any contingent purchase price adjustments from those transactions could be unfavorable and result in lower aggregate cash proceeds and any future proceeds owed to us under those 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/20231222507414/en/

Media:

Brendan Ranson-Walsh

Senior Vice President, Global Communications

1.213.996.2367

Brendan.Ranson-Walsh@aecom.com

Investor:

Will Gabrielski

Senior Vice President, Finance, Treasurer

1.213.593.8208

William.Gabrielski@aecom.com

Source: AECOM

FAQ

What is the Eglinton Crosstown West Extension project and who is the delivery partner?

The Eglinton Crosstown West Extension project is a 9.2-kilometer extension of the Eglinton Crosstown Light Rail Transit, with AECOM (NYSE: ACM) serving as the delivery partner selected by Metrolinx.

What is AECOM's role in the project?

AECOM will provide a global and multi-disciplinary service offering, including program management, advisory, commercial management, procurement and supply chain management, and project supervision services for the Eglinton Crosstown West Extension project.

What transportation benefits is the project expected to bring to the region?

The project aims to expand transit access to neighborhoods throughout Toronto, connecting with other local and regional transit services and improving the quality of life for residents and commuters.

What are the environmental outcomes of the project?

The project aims to provide fast, convenient public transportation as an alternative to automobiles, reducing urban air pollution and leaving a positive, lasting impact on people and the planet through AECOM's Sustainable Legacies strategy.

What are the plans for extending the line to Toronto Pearson International Airport?

Plans are being explored with the Greater Toronto Airports Authority to extend the line to Toronto Pearson International Airport as part of the Eglinton Crosstown West Extension project.