■ Selected as the contractor, jointly with ITD for railway modernization project amounting to 25 billion KRW.
■ Made the first foray into Thailand in 2001 ••• /accumulative record over 134 billion KRW along with technological prowess and stable project implementation.
■ Rapidly expanding railway infrastructure industry in ASEAN accelerates forays into local markets.
LS ELECTRIC recently succeeded in winning additional projects amid the accelerated expansion of railway construction project in Thailand. After being selected as the contractor for modernization of the Northeastern Railway Lines, in the railway’s signal system markets in which major European businesses had played a leading role.
On September 22, LS ELECTRIC announced that it, jointly with ITD (Italian-Thai Development), which ranks as the top business in railway construction in Thailand, was selected as the contractor for the signal system project for Thailand’s Eastern Line of Railways, amounting to 667 million baht (=25 billion won). The project was initiated by the State Railway of Thailand.
The Company involved in the project as part of a consortium, and its portion (design, production, and installation of railway signal system) comes to 13 billion KRW, from the total amount of 25 billion KRW.
The project is for the replacement of a 169 km-long Yothaka- Khlong leuk section of the Thai railway, as well as 14 station buildings, in connection to the demand for regional development and enhancement of the cargo and passenger transportation capacity.
In 2001, LS ELECTRIC made a successful foray into the Thai construction market by successfully gaining work on the Thai Railway Modernization Project, Phase-1 (ST1). It also succeeded in winning ST4 and ST5 related projects in 2007 and 2015, respectively. Last December, the company won the ST9 for the Thai Railway’s Northeastern Line and managed to establish a stable track-record of construction work it has carried out in Thailand. Its selection, as the contractor for Eastern Line this time, accumulates the railway projects won by the Company, standing at 134 billion KRW.
LS ELECTRIC plans to make an intensive foray into the local railway construction project in Thailand amid the expectation of rapid market growth, including railway expansions linking ASEAN countries, and the work on subway infrastructure improvements.
Thailand’s land size comes to 2.3 times larger than the Korean Peninsula. The country operates a 2,771㎞-long railway network, linking the southern and northeastern past. Thailand is advancing with a railway development project; focus on establishment a logistics hub for Southeast Asia and smart cities. The country also plans to build nine lines on the urban railway system by 2029, to improve Bangkok’s current traffic congestion. Thus, LS ELECTRIC expects to expand its construction market.
Commenting on the matter, an LS ELECTRIC official said, “The railway construction market in Thailand has been monopolized by European businesses, making it difficult for others to enter the market. However, we have successfully completed several construction projects in Thailand over the past 20-plus years and thus solidified our status as a reliable business with world-class technological prowess. Other ASEAN countries are also planning to expand their railway infrastructure on the back of their economic growth, and we intend to make a positive foray into the market.”