Sojitz Corporation Expands into Australia’s Public Transport Sector

Sojitz Corporation has recently marked its entry into Australia’s public transport domain by acquiring a 50% stake in the transportation division of UGL Limited. This strategic acquisition, expected to finalize by December 2025, will allow Sojitz to expand its portfolio of services in the railway and public infrastructure sector. UGL Limited, a notable entity in the industry, operates as a subsidiary of CIMIC Group, based in Spain. With projected revenues of around ¥100 billion for 2024, UGL’s extensive experience and capabilities offer Sojitz a significant advantage as it integrates Operations and Maintenance (O&M) functions into its existing expertise in Engineering, Procurement, and Construction (EPC).

Australia is recognized as one of the leading markets for infrastructure development, driven largely by population growth and urbanization. The Australian government has been actively promoting infrastructure projects under the “Infrastructure Australia” strategy, which includes the expansion of railway networks and the construction of new rail lines. Market forecasts suggest that the passenger railway sector in Australia is expected to grow at an impressive average rate of 6.5% annually between 2025 and 2030.

UGL Limited has established itself as a leading company in providing comprehensive rail O&M services, manufacturing rolling stock, and developing public transport systems since its inception in 1899. With a solid track record that includes numerous projects in major cities such as Sydney, Melbourne, and Canberra, UGL not only caters to passenger operations but also facilitates the production and maintenance of locomotives and freight cars essential for mineral resource transport within Australia.

Sojitz has previously engaged in multiple railway-related ventures in North America, including vehicle maintenance and freight leasing, as well as construction projects in India and Indonesia. Building upon this wealth of experience, Sojitz aims to leverage its combined EPC and O&M capabilities through the UGL partnership. This integration is set to create a robust framework for delivering comprehensive rail-related services, allowing Sojitz to accommodate the increasing demands of Australia’s thriving infrastructure sector.

Furthermore, Sojitz's plans extend beyond Australian borders, as it looks to replicate its successful models in other Asian markets. The company is committed to enhancing its business foundation and revenue scale as it exploits the booming infrastructure development present within Australia.

Ultimately, this strategic move by Sojitz Corporation signifies an important milestone in its ambition to establish and expand its footprint in the public transport industry, showcasing its commitment to infrastructure development and the provision of high-quality services in the railway sector.

For reference, UGL has also contributed to the design and manufacturing of locomotives across various regions including New South Wales, enhancing its reputation in the transport sector.

As Sojitz Corporation embarks on this exciting journey into Australia’s public transport landscape, stakeholders will be keenly observing the developments and growth that follow, particularly in light of Australia’s ongoing commitment to enhancing and modernizing its transportation infrastructure.