SCOMI : Earmarked for bigger things

Scomi Engineering sees strong infrastructure spending in key markets

SCOMI Engineering Bhd, the company earmarked for bigger things within the group, estimates the global market for monorail projects to be worth some US$30bil.

President Syahrunizam Samsudin says Scomi’s main selling point is its pricing, time to market and convenience. “Our turnaround time is shorter plus the cost is more competitive both in terms of production and operations,” he tells StarBizWeek.

Syahrunizam estimates that over the next two decades, infrastructure spending in the key markets it has identified – Asia, the Gulf and South America – would be US$871bil, of which US$400bil will be in Asia, US$300bil in the Middle East and US$171bil in South America.

He says Scomi Engineering has the capacity to ramp up production from 100 cars a year to 200 cars should it win more monorail jobs.
Syahrunizam Samsudin says Scomi’s main selling point is its pricing, time to market and convenience.

Reports indicate that the company is taking another shot at tendering for a monorail project in Sao Paolo estimated to be worth RM3bil and there have been expression of interest for a monorail project from other cities in India after Scomi, together with its Indian partner Larsen & Toubro Ltd, won a RM1.8bil monorail contract in Mumbai.

Syahrunizam says Scomi has been expanding in the emerging markets of India, China, the Gulf States and Brazil. The company is accelerating its growth as a world-leading manufacturer of monorail systems.

“With the recent launch of our four-car-train and our project in Mumbai, there have been preliminary inquiries from various parties, which we are following through,” he says. “We will be keen to participate in a monorail project in Indonesia should there be a tender.”

One of Scomi Engineering’s strengths, says Syahrunizam, is its ability to not only build trains but also design the entire monorail system according to customers’ specifications.

“We are also the only monorail technology provider that has turnkey capabilities where we not only provide the implementation of a complete monorail system, but also the ability to design the guide way beams that is required for civil construction,” he says.

To maintain an edge, the company spends millions in research and development (R&D) every year and for 2010, it has allocated RM20mil to improve its current monorail product.

“As demand for projects grow, so will the complexity of technology required for a lighter, energy efficient monorail that is able to transport more people,” he says, adding that the company “will continue to develop and spend in R&D annually at the same rate.”

Syahrunizam feels Scomi Engineering is well positioned to capitalise on the Government’s ambition of increasing public transportation usage to 25% in the Klang Valley. This can be achieved by increasing the number of monorail lines that act as a feeder system and linking them with the LRT and future MRT lines.

“Scomi would be able to expand the current KL Monorail two-car train to a four-car train,” he says.

Syahrunizam says Scomi also has the expertise in providing rail support systems such as works electrical and mechanical systems, power and supply distribution for LRT systems as well as supplying of bogies for LRT trains. Scomi provided these works recently in the expansion of the Kelana Jaya Line project.


— By JAGDEV SINGH SIDHU