KUALA LUMPUR (July 18): Gamuda Bhd (KL:GAMUDA) said on Thursday its joint venture (JV) with French rail engineer Alstom SA in Australia has secured a contract worth A$1.6 billion (RM5 billion).

The scope of works under the contract consists of the design, supply, installation, testing, commissioning and maintenance of a new automatic train control system to replace the existing signalling and train control systems on Perth’s suburban rail networks.

Gamuda has a 46% stake in the JV, while Alstom holds the remaining 54%.   

The Metronet High-Capacity Signalling Project was awarded by the Public Transport Authority of Western Australia to an alliance comprising Gamuda's wholly owned subsidiary in Australia, DT Infrastructure Pty Ltd, and Alstom Transport Australia Pty Ltd, which is a wholly owned subsidiary of Paris Stock Exchange-listed Alstom. 

Gamuda is expected to rake in revenue of up to A$737 million from its involvement in the project, the contract of which will last over 10 years, according to the group in a filing with Bursa Malaysia on Thursday.

The upgrades are "to be delivered in multiple line-by-line stages to minimise disruption to train operators", the engineering and construction giant said.

"The Metronet High-Capacity Signalling Project will modernise Perth’s train signalling system, boosting its network capacity by 40%, enhancing energy efficiency, ensuring cybersecurity, and future-proofing the system for growth, all with minimal disruption to commuters and delivering significant long-term socio-economic benefits to the community," Gamuda added. 

Alstom Transport is said to be known for its innovations in rail solutions, including high-speed trains, metros, trams, and signalling systems.

According to Gamuda, the company has been operating in Australia for more than 100 years and involved in several significant rail projects across the country, namely in the Sydney Metro, Melbourne’s High Capacity Metro Trains, Queensland’s New Generation Rollingstock, and Adelaide's Electrification and Rolling Stock. 

At Thursday's noon market break, shares in Gamuda were up 13 sen or 1.58% at RM8.38, with a market capitalisation of RM23.24 billion. A total of 7.99 million shares were traded.