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Infrastructure services group Downer EDI (ASX: DOW) has secured contracts worth $310 million to provide road maintenance and incident response services across Transurban's northern Sydney motorway assets for up to nine years.
The contracts cover NorthConnex, the M2 Motorway and the Lane Cove Tunnel, with an initial seven-year term and two one-year extension options commencing in July this year.
The win deepens Downer's existing relationship with toll road giant Transurban (ASX: TCL), having maintained the NorthConnex tunnel since it opened in 2020.
Downer also maintains Transurban's CityLink and West Gate Tunnel assets in Melbourne.
The expanded scope represents a significant pickup for Downer, with the M2 Motorway and Lane Cove Tunnel maintenance previously held by Ventia (ASX: VNT), which had maintained those assets for Transurban since July 2018 and secured a two-year extension in 2023.
“Our expanded role in NSW reflects a strong endorsement of our asset management expertise and the consistent high-quality services delivered by our teams across the Transurban network,” says Downer EDI CEO Peter Tompkins.
“With more than 50,000 kilometres of road networks under management across Australia and New Zealand, Downer brings significant scale and deep expertise in asset management and operations.
"We look forward to applying this capability to support the performance and resilience of Transurban’s assets linking between people, places and progress.”
Under the contracts, Downer will deliver 24/7 incident response and maintenance services, including civil maintenance, and mechanical and electrical services - involving preventative and corrective maintenance of critical assets including fire systems, water treatment plants, air quality monitoring systems, and tunnel ventilation.
The contract appears to be the one Downer had flagged during its first-half FY26 results released in February, when the company disclosed preferred-bidder status on a "Sydney motorway network maintenance contract" that was excluded from its $38.2 billion work-in-hand figure at the time.
Downer's half-year results also flagged $1 billion in preferred-bidder positions for New Zealand road maintenance contracts, signalling a broader pipeline of potential transport infrastructure work flowing through to secured revenue.
The company's transport segment has been a consistent performer, with Downer reporting $3.4 billion in transport revenue for the first half of FY26.
Downer manages road maintenance, tunnel operations and incident response services across a network spanning major urban motorways and regional highways, positioning the group as one of the largest road asset managers in Australasia.
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