Hyundai Rotem wins $917 mn Australian electric train project
Hyung-Kyu Kim
Jun 30, 2023 (Gmt+09:00)
Hyundai Rotem, a South Korean railway system maker under Hyundai Motor Group, said on Friday that it had won a major contract in Australia alongside local railway company Downer as part of the Queensland Train Manufacturing Program (QTMP).
The project, valued at 1.22 trillion won ($917 million), will run until December 18, 2031.
QTMP is a Queensland state government initiative designed to address growing rail transportation needs in Brisbane and to bolster local manufacturing. A component of the project includes constructing a factory in the southeastern Queensland city of Torbanlea to produce electric trains domestically.
Hyundai Rotem will share the majority stake in the venture with Downer, holding 85.6% and 14.4% respectively.
Hyundai Rotem's responsibilities will encompass all aspects of electric train delivery, including vehicle design, procurement of materials, technology transfer for local production, quality control, and warranty repair. The vehicles will be delivered starting in late 2026, servicing the southeastern Queensland railway line to aid commuters in the Brisbane metropolitan area.
The electric trains will meet the Australian Disability Transport Safety Standards set by the Australian Federal Government and will be equipped with adaptable technology for various platform heights.
Upon full delivery of the trains by 2032, the rail service is expected to enhance transportation convenience for attendees of the Brisbane 2032 Summer Olympics and Paralympics.
Hyundai Rotem's bid was bolstered by its track record in overseas electric train contracts and its expertise in transferring railway vehicle production technology to Southeast Asia and Africa. The company first entered the Australian market in 2016 by winning the Sydney double-decker electric train supply project from the New South Wales state government and subsequently secured similar contracts in 2019 and 2021.