Jul. 16, 2019
Japan Transport Engineering Company
Order Received to Supply 104 Train Cars for Philippines’ North-South Commuter Railway Project
Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) and Japan Transport Engineering Company (Head Office: Yokohama-shi, Kanagawa Prefecture; Representative Director, President: Takao Nishiyama; hereinafter, “J-TREC”) have received an order from the Department of Transportation (DOTr) of the Republic of the Philippines to supply 104 train cars for the contract package CP03 of the country’s North-South Commuter Railway Project Phase I (between Tutuban, Manila and Malolos, Bulacan). The CP03 contract was signed today.
The Philippines has been recording annual economic growth of six to seven percent in recent years, achieving one of the highest economic growth rates among ASEAN countries. Home to over 100 million, the country has the 12th largest population in the world. Notably, the population of the Metropolitan Manila area, the largest center of the Philippines’ economic activities, is increasing rapidly. Population concentration is pushing up demand for transportation and causing severe traffic congestion, which is negatively affecting people’s mobility and cargo logistics. The annual social cost of traffic congestion is said to be around USD 22 billion.
The project is to be undertaken as an Official Development Assistance (ODA) program of Japan based on a loan aid agreement between the Japan International Cooperation Agency (JICA) and the Philippines government. The North-South Commuter Railway Project aims to connect the Metropolitan Manila area with nearby cities on a south-north axis covering approximately 38 kilometers between Tutuban in Manila and Malolos in Bulacan in the north. Under the CP03 contract, 104 train cars (eight cars × 13 trainsets) will be designed, manufactured, tested and delivered to DOTr with warranty, helping to strengthen the Metropolitan Manila traffic network and alleviate traffic congestion. The contract amount is approximately USD 230 million and the trainsets are scheduled to be fully delivered by February 2023.
Sumitomo Corporation has been proactively developing its railway-related business both within and outside Japan, achieving an extensive track record of railway construction and railcar export projects, especially in Southeast Asia, the United States and East Asia. Building on its wealth of experience, Sumitomo Corporation will take steady steps to smoothly fulfill the contract for the project.
As a pioneering manufacturer of stainless-steel train cars, J-TREC has accumulated technology and know-how for a long time. J-TREC combined those technology and know-how into “sustina,”*. sustina has placed on the market including overseas market. J-TREC will provide sustina for the project and contribute to development of regional area and alleviate traffic congestion.
* sustina: Product brand name for the next-generation stainless-steel train cars designed and manufactured by J-TREC. sustina train cars feature higher energy conservation, enhanced safety and high maintainability.
■Outline of the Project
|Philippine North-South Commuter Railway Project Phase I (between Tutuban, Manila and Malolos, Bulacan), Contract Package CP03
|Department of Transportation of the Republic of the Philippines
|Scope of contract
|Design, manufacture, testing and delivery of 104 train cars (eight cars × 13 trainsets) with warranty, along with delivery of spare articles and special tools; delivery of operation simulator; employee training, etc.
|Entire contract period
■Image of train car when completed
■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”.