Singapore Technologies Engineering (ST Engineering) has been awarded a contract by the Kaohsiung City Mass Rapid Transit Bureau to provide turnkey rail services worth $1.4 billion.
The contract was awarded to ST Engineering’s Urban Solutions subsidiary as part of a consortium. This is part of a larger contract awarded to the consortium with Siemens Mobility and Stadler Rail, which will provide the signalling system and rolling stock respectively.
The services include rail electronics solutions as well as above-ground train depot design, construction and equipment fit out for the new Kaohsiung MRT Yellow line. ST Engineering will also be responsible for overall project management and serve as the systems integration lead.
ST Engineering will also provide the communications system, automatic fare collection system, platform screen doors, traction electrification system, depot design and construction, and depot maintenance equipment for the Yellow line. The contracted scope is expected to start by late 2022 over a period of 10 years.
The Yellow line is the latest rail infrastructure programme in Kaohsiung City. The line is 22.8km long with 22 underground stations and one elevated station. The line links to the existing Red and Orange lines, a light-rail system and railway station, connecting the city's six key districts, universities and schools. It will serve about 1.16 million people, which is nearly 42% of the city’s total population when completed.
The contract is not expected to have material impact on ST Engineering’s net tangible assets (NTA) per share and earnings per share (EPS) for the current financial year.
“Winning this landmark Yellow Line project demonstrates the industry’s confidence in our unique strengths and attests to our capability in moving up the value chain to deliver full turnkey rail services, systems integration and project management,” says Chew Men Leong, president of Urban Solutions at ST Engineering.
“With our deep market familiarity and strong technical and engineering expertise, we are confident of delivering a world-class modern metro line that will improve connectivity and quality of life for residents in Kaohsiung,” he adds. “This significant win following our Kaohsiung MRT Red Line North Extension contract, reinforces our position as a global Smart City participant and brings us closer to achieving our Smart City growth ambitions.”
Shares in ST Engineering closed 6 cents lower or 1.58% down at $3.73 on Aug 31.