Veidekke ASA: Road service contracts worth NOK 732 million for Veidekke
During the spring Veidekke Industri has won four new road service contracts for Norwegian classified and county roads, in addition to a contract for winter maintenance at Oslo Airport. The contracts run for five to six years, and have a total value of NOK 732 million excl. VAT.
Besides Oslo Airport (OSL), the new contracts with the Public Roads Administration are for Alta, west Romerike, Ytre Romsdal, Nesset municipality in Møre and Romsdal, and a one-year extension of the southern Hedmark contract.
"In our 19 contracts we maintain around 9,054 km of road from Finnmark in the north to Vest-Agder in the south. This makes Veidekke the largest private operator in the country with a market share of about 17%. Our total order backlog for road services is now at NOK 2.3 billion. Most of the contracts are for 5 years, and our annual turnover from them is around NOK 800 million," says Managing Director Øyvind Moen of Veidekke Industri.
An industry in positive development
Major changes have taken place since the road service contracts of classified and county roads in Norway were put out to tender around 10 years ago. Veidekke has been involved from the start, and has in common with most contractors lost money on some contracts. However, for Veidekke this is fortunately a thing of the past. All of the company's contracts have been won in fierce competition with Norwegian and foreign players and have a sound financial basis for both client and contractor.
Many important tasks
"Our job is to ensure usability, traffic safety, and maintain the roads. This involves everything from snow ploughing and gritting, washing signs, emptying rubbish bins and trimming verges to clearing up after floods, avalanches, landslides, rock falls and accidents. The Public Roads Administration determines the framework we have to work within and the road standards we have to satisfy, which depend on factors such as road type and traffic volume," Moen says.
Snow clearing at Oslo Airport
"At Oslo Airport Veidekke will for the next six winters clear snow from aircraft stands, internal roads and large areas for machinery and equipment parking. On the actual runways OSL provides the equipment while our people do the work," Moen concludes.
For more information please contact:
Managing Director Øyvind Moen of Veidekke Industri, tel. (+47) 932 01 419, oyvind.moen@veidekke.no
Communications Manager Helge Dieset of Veidekke ASA, tel. +47 90 55 33 22, helge.dieset@veidekke.no
Veidekke is one of Scandinavia's leading contractors and property developers with a turnover of 20 billion (2012) and 6,300 employees. Activities include building and construction projects, residential developments, asphalt plants, gravel and crushed stone and road services. Our values are professional, honest, enthusiastic and pioneering. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterised by a strong corporate culture with employee involvement and co-ownership as important cornerstones. More than half of the employees are co-owners, holding around 20% of the Group's shares between them. The company is listed on the Oslo Stock Exchange and has never declared a loss since it was founded in 1936.