PCM Strescon bags $10bn UAE rail contract

DUBAI: Indian firm PCM Strescon Overseas Ventures Limited (PCM Strescon) has bagged a $ 10.89 billion (40 billion dirham) contract for the provision of railway sleepers at Etihad Rail, the master developer and operator of the UAE's national railway network.

The company will be responsible for the design and manufacturing of railway sleepers as well as the production of the sleeper manufacturing facility for phase One of the railway network of 266km route linking Shah, Habshan and Ruwais in Abu Dhabi's Western Region.

The award of this contract comes ahead of the laying of the first tracks for the 1,200km network in Q4 of 2012.

Etihad Rail's railway project is forecast to transport up to 50 million tonnes of freight and 16 million passengers per annum, connecting population centres and opening up channels for trade, over the next two decades.

PCM Strescon, a manufacturer of pre-stressed concrete sleepers, has already set up two factories in Saudi Arabia, with the world's highest production capacities and has supplied more than 2.6 million sleepers to the North South Railway Project of Saudi Arabian Railways (SAR), a statement released by UAE's official news agency Wam said.

For the Etihad Rail network, PCM Strescon will oversee and manage the design, manufacturing, maintenance and storage of the railway sleepers that will support the network's tracks which will carry the trains transporting granulated sulphur (in partnership with Abu Dhabi National Oil Company, ADNOC) for export at the port of Ruwais.

Etihad Rail CEO Richard Bowker said this contract highlights that they are moving ahead at full speed with the railway network.

"We look forward to announcing news of further important contract developments over the coming months," Bowker said.