Arcadis Wins Order to Evaluate Lower Manhattan Flood Protection
Arcadis NV (ARCAD), the biggest Dutch designer of bridges and dikes, won an order to evaluate options for flood prevention in New York as the city works to avoid a repeat of the destruction last year by superstorm Sandy.
The New York Economic Development Corp. hired Arcadis to study flood risk-reduction alternatives in Lower Manhattan and other areas that are vulnerable to flooding because of rising sea levels rise or future storms, the Amsterdam, Netherlands- based company said today in a statement. Arcadis didn’t disclose financial figures for the contract.
The Dutch company received orders last year to help restore water-treatment facilities in New York that were knocked out by Sandy, and it also helped improve New Orleans levees after Hurricane Katrina. The newly assigned studies include computer modeling of effects of severe weather, tides and sea levels as far into the future as 2050, with results to be completed within months, Arcadis said today.
“This initial order may not be particularly sizable, but any follow-on orders can become big,” Philip Scholte and Michel Aupers, Utrecht, Netherlands-based analysts at Rabobank Securities with a buy recommendation on the company, said in a report to investors. “This is another clear sign that Arcadis is a global leader in water management and flood protection.”
Arcadis rose as much as 1.1 percent to 21.20 euros and was trading up 0.7 percent at 11:03 a.m. in Amsterdam, valuing the company at 1.57 billion euros ($2.05 billion).
“As major storms like Sandy occur more frequently, coastal cities like New York will face flood risk management decisions,” said Steve Blake, head of the Dutch company’s U.S. unit. “Multiple lines of defense, including those designed and built with nature, will need to be considered in any comprehensive protection strategy.”
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