Sunday, April 14

Gamuda Secures RM3.45 Billion Contract for Kaohsiung MRT in Taiwan

Gamuda Bhd, in collaboration with its joint venture partner in Taiwan, has secured a design and build contract worth RM3.45 billion for the construction of Taiwan’s Kaohsiung Mass Rapid Transit (MRT) metropolitan line from the Kaohsiung City government.

This project marks Gamuda’s third railway endeavor in Taiwan and its second project in Kaohsiung, following the construction of the Kaohsiung MRT Orange Line in 2008. In 2022, Gamuda also secured the RM2.13 billion TaoYuan City underground railway project (Package CJ18 PingZhen Commuter Station) in Taipei.

Gamuda is currently involved in six infrastructure projects in Taiwan, including the Guantang marine bridge, Taipei port seawall, and the 161kV Songshu to Guanfeng underground transmission line.

The new MRT line in Kaohsiung, known as the Yellow Line, covers a total distance of approximately 22.8km, with a majority of it (21.9km) being underground and a shorter elevated section (0.9km), encompassing 23 stations that serve six districts: NiaoSong, SanMin, LingYa, XinXing, FengShan, and QianZhen.

The recently awarded project (package YC01) to Gamuda and Asia World Engineering & Construction Co (AWEC) through an unincorporated joint venture agreement involves the construction of a 4.4km railway track within NiaoSong district. It comprises 3.5km of underground twin-bored tunnels and 0.9km of elevated tracks.

Gamuda holds an 88% majority stake in the joint venture, representing RM3.03 billion of the contract value, while AWEC owns the remaining 12%. The project is anticipated to be completed within nine years and is expected to contribute positively to Gamuda’s revenue and earnings for the financial year ending July 31, 2024 (FY2024).

Kaohsiung, Taiwan’s third-largest city with a population of 2.73 million, serves as a significant economic hub in the southern region of the country. The addition of the Yellow Line MRT is pivotal in strengthening the city’s transportation infrastructure and supporting its ongoing economic growth.

Gamuda’s share price closed marginally lower at RM4.60, with the company’s market capitalization standing at RM12.41 billion. Despite this, the stock has experienced a 23% increase year-to-date.

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