Scomi Engineering Bhd a subsidiary of Scomi Group Bhd a Malaysia based company announced that it has signed a non binding Memorandum of Understanding with Montagens e Projetos Especiais SA and Brasell Gestão Empresarial LTDA to set up a JV Company to undertake the manufacturing and assembling rolling stock in Brazil and to pursue other rail related services projects in Brazil.
The proposed activities to be undertaken by the JVC include monorail manufacturing and participating in other rail related projects such as systems supply and installation and other types of rolling stock supply and assembly, such as Metro vehicles and Light Rail vehicles.
The announcement follows the recent Scomi contract wins in Brazil for the Line 17 monorail project in São Paulo, awarded to the Consortium Monotrilho Integracao which consists of Scomi, MPE, Andrade Gutierrez SA (‘AG Group’) and CR Almeida SA Engenharia de Obrasare (‘CR Almeida’) and the 20 km monorail line in the city of Manaus in the State of Amazonas, awarded to the Consortium comprising Scomi, CR Almeida, Mendes Junior Trading E Engenharia S/A (‘Mendes Junior’), and Serveng-Civilsan S/A Empresas Associadas De Engenharia (‘Serveng’).
Commenting on the MoU, Mr Hilmy Zaini Zainal president of Scomi Brazil Country said that “With the 2 significant monorail project wins in São Paulo and Manaus, we are progressively extending our business presence in Brazil and continuing to augment our service offerings to our customers in the region. Through this partnership with MPE, Scomi will be in a stronger position to capitalize on rail projects driven by investments to expand and improve urban transport systems in preparation for the FIFA World Cup and the Olympic Games.”
“Through its participation in the proposed fully integrated manufacturing facility in Brazil and with the impressive track record and depth of experience of MPE, Scomi’s competitive position will be further enhanced in the country. This smart partnership will enable us to match the rail industry’s needs by offering a wider product range, innovative technologies and international expertise.”
The combined contract value for both Line 17 in São Paulo and the monorail line in the city of Manaus is approximately BRZ Real 2.86 billion. The projects are scheduled to be completed in 42 months and 40 months respectively with first delivery of cars to commence in the first quarter of 2013 for São Paulo.
With the burgeoning rail market in Brazil, the government is expected to float at least another 20 tenders in the next 24 months for urban transport projects of which 35% are projected to be monorail systems.
The JVC’s manufacturing facility which complements Scomi’s presence in Brazil will have comprehensive capabilities for the design and manufacture of monorails and light rail vehicles. The manufacturing site will be equipped to rival the world’s finest in the production of urban transport systems. A highly skilled team complemented by the latest manufacturing technology and a strong management team, will ensure that Scomi delivers the highest levels of quality demanded by the world’s rail operators today. At the same time, the North KL Facility in Malaysia will continue to enhance its role as the global R & D centre for rail related products and services.
