6 Singapore firms team up for high speed rail projects

SINGAPORE — Six Singapore firms are teaming up to bid for projects related to the Kuala Lumpur-Singapore High Speed Rail (HSR), it was announced on Sunday (July 2).

The six companies are Clifford Capital, DBS, Sembcorp Design & Construction, SMRT International, Surbana Jurong and Singapore Technologies Electronics (ST Electronics).

In a joint statement with International Enterprise (IE) Singapore, the six companies said they are planning to partner international players to jointly participate in HSR projects.

The companies were brought together by IE Singapore in line with its role to help local companies capture global opportunities. IE Singapore’s Group Director (Environment and Infrastructure Solutions Group), Mr Kow Juan Tiang, said the local partnership is “crucial for building capabilities in new infrastructure verticals”.

“The partnership leverages unique strengths of each company, enabling them to expand into the high speed rail segment,” said IE Singapore.

Mr Yam Ah Mee, CEO of Sembcorp Design & Construction added: “By banding together, we have a stronger value proposition, combining many years of track record across the rail value chain. We plan to work with international partners with relevant rail experience as we participate in various aspects of the KL-SG HSR. Our wealth of local operating knowledge in Malaysia and Singapore is complementary.”

The 350km rail line between Singapore and Kuala Lumpur is targeted to be operational by the end of 2026. Trains are expected to have a maximum design speed of 350kmh and will cut travelling time between the two capitals to 90 minutes, compared with a near five-hour drive under normal traffic condition.

“Transport infrastructure accounts for 25 per cent of the US$4.3 trillion in global infrastructure spending in 2016. The high speed rail sub-segment is a key growth area. Singapore companies can access this space through this strategic project between Malaysia and Singapore,” said Mr Kow.

Singapore’s Land Transport Authority and Malaysia’s MyHSR Corporation will be conducting an industry briefing on July 5 to outline parameters of the upcoming AssetsCo tender for the KL-SG HSR.

The AssetsCo will be responsible for the design, build, finance and maintenance of rolling stock and the design, build, finance, operations and maintenance of all rail assets, including network operations.

The tenders for the project are expected to be called by the end of this year.