Its president Syahrunizam Samsudin said the revenue would come mostly from its US$545 million (RM1.84 billion) monorail project in Mumbai which is slated to be delivered by end-2011.
“Mumbai will be the main contributor to our revenue for this year and 2011. However, we are also not discounting contributions from other projects in India, as well as the ones we are tendering at the moment,” he said.
Scomi Engineering and its Indian parter Larsen & Toubro had secured the Mumbai Monorail project in November 2008, to deliver a total of 15 sets of four-car trains. The 19.54km monorail line is the first in the country.
In addition to that, Syahrunizam said its client might order nine more train sets.
“We are set to deliver six trains to Mumbai by end of the year, and another nine by the first quarter of 2011. It would take another three months to test the system integration before it is opened for the public,” he said, adding that India is a US$15 billion (RM46.8 billion) market for monorail systems.
Apart from the Mumbai project, Scomi is also eyeing other monorail projects in Bangalore, Pune, and Thane-Bhiwandi-Kalyan to be tendered by end of the year.
Syahrunizam. Photo by Mohd Izwan Mohd Nazam
The group, in another consortium, is also expected to secure the tender for the US$754 million Manaus monorail project in Brazil, which is slated to be announced next month.
The 20km line is aimed at helping prepare Manaus to host the 2014 World Cup.
Scomi Engineering also got another shot at the 24km Tiradentes monorail project in Sao Paolo worth RM3 billion, which was recently reissued due to delivery and payment issues.
“Apart from that, we are also exploring other places such as Jakarta and Bangkok. We also expect to secure a 19km project in Jeddah, and we are also looking at Mecca and Madinah,” he added.
For the first half ended June 30, 2010, Scomi Engineering saw its net profit drop 70% to RM11.02 million on the back of RM216.35 million in revenue, due mainly to lower revenue from its machine shop unit which it sold off to Sumitomo Corp Asia Pte Ltd for RM327.68 million.
Syahrunizam said the drop in net profit was also due to increase of estimated cost from the Mumbai project. Notwithstanding, Scomi Engineering remains bullish on the global monorail market and expects to secure more jobs in the future.
According to reports, the group is believed to be bidding for monorail jobs worth around US$11 billion in Brazil, India, Saudi Arabia and Nigeria at an average US$35 million to US$40 million per kilometre.
“From its usage in theme parks, the monorail has become an urban transit solution and is now seen as a large capacity carrier. It is becoming a strong alternative to metro lines and light rail transit (LRT) as it cost less with a shorter time to be implemented. It only takes about 24 months to get it up and running,” he said.
MONORAIL REVENUE... Scomi Engineering president Syahrunizam Samsudin (left) briefing Minister of International Trade and Industry Datuk Seri Mustapa Mohamed (third from left) on his visit to the company’s Rawang facility yesterday. With him were Scomi Rail COO Azmi Abdul Aziz and Scomi Engineering chairman Datuk Zainun Aishah. Photo by Mohd Izwan Mohd Nazam
Syahrunizam said its current second-generation car could accommodate 135 passengers from 107 passengers in its first model. It is also currently developing a third generation car that could accommodate 200 passengers.
“The second generation car could transport 40,000 passengers per hour, compared to 20,000 passengers with the first model. Comparatively, the LRT could transport 30,000 passengers,” he said.
Scomi Engineering had spent RM30 million in 2008 to upgrade its facility in Rawang. According to Syahrunizam, it allocates about RM20 million yearly for research & development.
On its proposal to upgrade trains for the current KL Monorail line, it said it is currently in discussion with Syarikat Prasarana Negara Bhd.
“We have submitted our proposals and are currently in discussion with Prasarana,” he said.
Scomi Engineering had submitted the proposal to the government to upgrade trains from the existing two-car to four, and to extend the current KL Monorail line to Mid Valley and Kerinchi. The 8.6km line currently runs from Titiwangsa to Brickfields.
It was reported that the group is expected to receive a RM600 million contract as part of the government’s bid to upgrade public transportation in the city.
Scomi Engineering closed two sen higher at RM1.14 yesterday with 76,300 shares traded.
This article appeared in The Edge Financial Daily, September 8 2010.
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