KUALA LUMPUR (Oct 25): Gamuda Bhd, together with its joint venture partner in Taiwan, has bagged a design and build contract for the construction of Taiwan’s Kaohsiung Mass Rapid Transit (MRT) metropolitan line from Kaohsiung City government for RM3.45 billion.

This latest project marks its third railway project in Taiwan and second project in Kaohsiung. Gamuda built the Kaohsiung MRT Orange Line back 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 delivering six infrastructure projects in Taiwan, including the Guantang marine bridge, Taipei port seawall and 161kV Songshu to Guanfeng underground transmission line.

Overall, the new MRT in Kaoshiung (Yellow Line) is about 22.8km, consisting of a 21.9km underground section and 0.9km stretch which is elevated, with a total of 23 stations — covering six districts, NiaoSong, SanMin, LingYa, XinXing, FengShan and QianZhen.

The latest project construction works (package YC01) awarded to Gamuda and Asia World Engineering & Construction Co (AWEC) (in an unincorporated joint venture agreement), is a 4.4km railway track located within NiaoSong district, comprising 3.5km underground twin-bored tunnels and 0.9km of elevated tracks.

Gamuda has a majority 88% stake in the joint venture, hence its share of the contract value is RM3.03 billion. The remaining 12% stake is owned by AWEC, which is principally engaged in general civil construction specialising in geotechnical, hydraulic, architectural and civil engineering.

The package is estimated to be completed within nine years and Gamuda expects this project to contribute positively to its revenue and earnings for the financial year ending July 31, 2024 (FY2024).

Kaohsiung, the third-largest city in Taiwan with a population of 2.73 million, is a vital economic hub in the south. 

The Yellow Line, coming over 15 years after the Kaohsiung MRT Red and Orange Line, is a significant addition to the city's four-line MRT network. This new MRT line is crucial to strengthening the city's transportation infrastructure and supporting ongoing economic expansion.

Gamuda's share price closed one sen or 0.22% lower at RM4.60, giving the group a market capitalisation of RM12.41 billion.

Still, the stock has risen 23% year-to-date.