[SINGAPORE] ST Engineering announced on Thursday (Apr 10) that its urban solutions business secured a S$1.4 billion contract to provide turnkey rail services for Taiwan’s new Taichung mass rapid transit (MRT) Blue line.
This deal was awarded by the Rapid Transit System Bureau of the Taichung City Government. It is part of a broader contract with consortium partners Alstom Transport, Taiwanese construction engineering company CTCI and South Korean railway manufacturer Hyundai Rotem, who will provide the signalling system, power supply system and rolling stock, respectively.
ST Engineering Urban Solutions will lead the overall project management and systems integration, and provide rail electronics including a communications system and automatic fare collection system, while overseeing the above-ground train depot development.
With this contract, the group’s rail footprint in Taiwan expands, as its urban solutions subsidiary has been delivering rail electronics solutions for the Taichung MRT Green line and providing full turnkey rail services for projects in several other Taiwanese cities, too.
The fully automated Blue line will be 24.8 km long, and consist of eight elevated stations and 12 underground stations, connecting the east and west of Taichung while integrating with the city’s Green line.
The contracted scope covers a period of about 14 years and is expected to start in the second quarter of 2025.
On Mar 28, group chief executive Vincent Chong said at the company’s investor day that the group expects to garner S$3.2 billion from its urban solutions and satellite communications unit by 2029.
ST Engineering posted S$11.3 billion in revenue and S$702.3 million in net profit for FY2024, with its order book coming in at S$28.5 billion.
Shares of ST Engineering closed 0.6 per cent or S$0.04 lower at S$6.30 on Wednesday.
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