QR says it has awarded contracts worth $126m to United Group to supply coal locomotives and wagons to its QRNational Coal business.

Under the contracts, United Group will manufacture 15 180t diesel-electric locomotives for $93m and 160 120t stainless steel bottom-dump wagons for $34m.

According to QR, the new 5020 class locomotives will be delivered between December 2010 and May 2011 to support new contracts with Peabody Energy Australia and Felix Resources in the Hunter Valley, New South Wales.

QR claims the locomotives are a new generation based on the 5000 class currently operating in the Hunter Valley.

The new wagons are said to include improved strength, reliability, braking performance and increased haulage capacity.

QR’s Rollingstock and Component Services (RACS) business will build another 80 wagons under a rolling stock investment of $18m to support the Peabody contract with wagons from both suppliers to be delivered during 2010.