Mar. 22, 2019
Sumitomo Corporation
Fujita Corporation
Nippon Signal Co., Ltd.

Order Received for Improvements on Section CP101 of Yangon-Mandalay RailwayRepairs/maintenance to be carried out between Pazundaung Station and Bago Station

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo), Fujita Corporation (Head Office: Shibuya-ku, Tokyo; President & CEO: Yoji Okumura; hereinafter, “Fujita”) and Nippon Signal Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President & COO: Hidehiko Tsukamoto; hereinafter, “Nippon Signal”) (hereinafter these three companies are collectively termed “the Consortium”) have received an order from Myanma Railways for repair and maintenance work (hereinafter, “the Project”) on Section CP101 (between Pazundaung Station and Bago Station) as Phase I of the Yangon-Mandalay Railway Improvement Project.

The Yangon-Mandalay Railway runs a total of about 620km, connecting Myanmar’s largest commercial city Yangon with the capital Naypyidaw and Myanmar’s second-largest commercial city Mandalay. Even as the Yangon-Mandalay Railway has been seeing rising passenger and cargo transport demand, it has also been suffering lower operating speeds, delays and derailments because of the aging of its existing facilities, equipment and rolling stock, thus making improvements to transport service an important issue.

Funded with Official Development Assistance (ODA) from the Japanese government and planned on the basis of loan assistance between the Japan International Cooperation Agency (JICA) and Myanmar, the Project will entail track work, civil engineering, bridgework, station work, and work on all signal and communication equipment on Section CP101 (approximately 71km) of the Yangon-Mandalay Railway. By repairing aged infrastructure and incidental equipment on the existing line, the Project will help improve safety and operating speeds on Myanmar’s railways and set the cornerstone for enhancing high-speed rail transportation and passenger/cargo transport capacity. The work is expected to begin in or after April 2019 and to be completed by March 2023, with the contract amounting to about 18 billion yen.

Sumitomo Corporation has heretofore been actively engaged in rail-related business both inside and outside Japan, participating in numerous railway construction and rolling stock export projects in Southeast Asia, the US, East Asia and elsewhere. Sumitomo Corporation will be utilizing its wealth of experience to reliably and smoothly fulfill the Project contract.

Fujita has taken part in numerous railway construction projects in Japan and overseas by comprehensively providing sophisticated construction technology and high-quality management as a general construction company. Outside Japan, it has in recent years established an impressive track record in railway-related construction projects in Taiwan, Malaysia, the Philippines and Qatar. The company will be leveraging the expertise it has accumulated through such endeavors to marshal its integrated capabilities and provide high-quality construction for the Project.

Nippon Signal has supplied signal, AFC (*1), and PSD (*2) systems to countries throughout Asia and elsewhere, and will be supplying electronic interlocking devices and other signal systems for the Project. Utilizing the safe and reliable railway signal technology it has developed over its 90+-year history, Nippon Signal will be contributing to making urban life in Myanmar safer and more comfortable.

The Consortium will improve the safety of rail transport services and operating speed by repairing aged facilities and equipment, and will help boost Myanmar’s economic development and enhance its population’s quality of life.
*1 “AFC” is an abbreviation for Automated Fare Collection, meaning a fare collection system including ticket vending machines and ticket gates.
*2 “PSD” is an abbreviation for Platform Screen Doors, meaning a system including barriers and doors to prevent passengers from falling over a platform.


■Overview of project
Project name : Yangon-Mandalay Railway Improvement Project Phase I - Section CP101 (approx. 71km stretch of railway between Pazundaung Station and Bago Station)
Commissioning entity : Myanmar Railways
Scope of work : Track work, civil engineering, bridgework, station work, work on all signal and communication equipment, etc.
Scheduled work period : 48 months (work scheduled to begin in or after April 2019)



■ Yangon-Mandalay Railway

■Sumitomo Corporation’s  Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This project especially contributes to “the Development of Local Communities and Industries”, “Establishing a Foundation for Comfortable and Enriching Lifestyles” and “Providing Diverse Accessibility”.


Corporate Communications Department, Sumitomo Corporation
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