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12
FLUOR CORPORATION 2004 ANNUAL REPORT
transportation infrastructure needs. Fluor is also seeing new
opportunities to further grow its transportation business in
Europe, including a number of potential new toll roads.
Having firmly established a leading position in the growing
market for privatized projects, but recognizing that such opportuni-
ties typically have long development phases, Fluor has had good
success in 2004 by selectively targeting additional transportation
opportunities with shorter lead times to help balance out its busi-
ness portfolio. During the year, Fluor won two key projects related
to this strategy. One was a program management award to oversee
the upgrade of more than 300 bridges over the next eight years for
the Oregon Department of Transportation. Fluor was also awarded
a project for the reconstruction of approximately 22 miles of railroad
on an existing rail corridor in Southern California.
In addition, important milestones were achieved along the
lengthy development path for two large, infrastructure target oppor-
tunities. Fluor secured sole-source bidding positions on both of these
projects, which are expected to reach final award in 2005. Further
progress was also made during 2004 in Fluor’s participation in the
development of a large-scale offshore wind farm in the United
Kingdom. This program, which is being driven by European Union
legislation to require at least 15 percent of power to come from green
sources, has the potential to be a significant long-term market oppor-
tunity for Fluor, but numerous development issues still remain before
this represents a fully viable project.
While activity in the telecommunications market remains at
modest levels, Fluor is continuing to execute substantial work on
two major communications network projects for government clients.
Leveraging this experience and its United Kingdom presence,
Fluor was selected in November as the preferred bidder by the
U.K. Highways Agency for its National Roads Telecommunications
Services (NRTS) project. The NRTS project represents significant
long-term potential with a new major client.
Serving the Texas Department of
Transportation, Lone Star Infra-
structure, a Fluor-led consortium,
continues to provide services for the
largest design/build transportation
project in the United States—State
Highway 130 (SH 130). In the fall of
2004, nearly 40 percent of the 49-mile
SH 130 was under active construction.
The project is on schedule to be open
for traffic by December 2007 to provide
relief for the growing congestion in
the Austin, Texas, area.