NRW Holdings Secures $200m Tonkin Highway Upgrade Contract

Major Tonkin Highway Upgrade Contract Awarded

NRW Holdings Limited (ASX:NWH) has landed a significant $200 million contract through its subsidiary NRW Contracting to deliver the Tonkin Highway Grade Separations project in Western Australia. The scope covers upgrades from Roe Highway to Kelvin Road, a vital stretch in Perth’s transport network notorious for congestion and safety challenges.

The contract includes widening Tonkin Highway to three lanes each way, constructing a diamond interchange at Welshpool Road East, and installing a Principal Shared Path with underpasses for cyclists and pedestrians. Additional works encompass lighting, noise mitigation, relocation of Western Power services, and foundational Intelligent Transport Systems (ITS) to modernise traffic management.

Project Timeline and Optional Works

Design and procurement activities are set to commence immediately following contract execution, with physical construction due to start in the fourth quarter of 2026. Notably, NRW has submitted a separate priced proposal for optional works involving a further grade separation at Hale Road, featuring north-facing ramps connecting partially to Tonkin Highway. This element remains subject to Main Roads Western Australia’s approval.

Jules Pemberton, NRW’s CEO, highlighted the strategic importance of the project, stating it will enhance safety and reduce congestion for road users and cyclists alike. He emphasised the contract’s role in underpinning NRW’s civil construction work-in-hand, ensuring continuity for its workforce and supply partners.

Strategic Significance for NRW Holdings

This contract win bolsters NRW’s presence in Western Australia’s infrastructure sector, complementing recent contract awards and acquisitions. It fits within NRW’s broader growth trajectory, which includes a robust $7.5 billion order book and a reaffirmed FY26 revenue target of up to $4.2 billion, as detailed in its latest guidance update. The Tonkin Highway project adds another layer of civil construction work to NRW’s diversified portfolio.

NRW’s electrical and mechanical division, Fredon, has also been expanding its footprint with multi-state contracts worth around $160 million, reflecting the group’s growing infrastructure capabilities across Australia. These developments collectively illustrate NRW’s strategy of combining civil construction with complementary services to capture a broader share of infrastructure spend.