ST Engineering bags $1.4b contract for Taiwan’s Taichung MRT Blue line
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The fully automated Blue line will be 24.8km long, and consist of eight elevated stations and 12 underground stations.
PHOTO: TAICHUNG CITY GOVERNMENT
Chloe Lim
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SINGAPORE - ST Engineering announced on April 10 that its urban solutions business secured a $1.4 billion contract to provide turnkey rail services for Taiwan’s new Taichung mass rapid transit 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, which 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.
This contract expands the group’s rail footprint in Taiwan. 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.
The fully automated Blue line will be 24.8km 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 March 28, group chief executive Vincent Chong said at the company’s investor day that the group expects to garner $3.2 billion from its urban solutions and satellite communications unit by 2029. ST Engineering posted $11.3 billion in revenue and $702.3 million in net profit for the financial year 2024, with its order book coming in at $28.5 billion.
Shares of ST Engineering closed 5.1 per cent, or 32 cents, higher at $6.62 on April 10, among the biggest gainers in a Singapore market rebound.
