RAWANG, Sept 7 — Scomi Engineering Bhd has targeted its overseas market to contribute about 80 per cent of its revenue going forward, with the start of the Mumbai monorail project showcasing Malaysian expertise.

Its president, Syahrunizam Samsudin, said the overseas business would be the main growth driver as the local market for the rail industry was relatively small.

“The Mumbai project is a good test bed that stamps approval for us to move forward globally among the major players such as Bombardier and Hitachi.

“Of course, we are supporting the local market but generally the demand is overseas and hopefully if the local market opens up, there will be room to advance,” he told a media briefing after the visit by International Trade and Industry Minister Datuk Seri Mustapa Mohamed to its plant here today.

Scomi Engineering and Indian partner, Larsen and Toubro Ltd, won a RM1.85 billion contract to build a monorail system in the Mumbai Metropolitan Region in November 2008.

The 20km monorail route stretches from the west side of Mumbai at Gadge Maharaj Chowk (Jacob’s Circle) heading north-east to Chembur via Wadala, with one central depot and 18 user-friendly and highly-secured stations.

The Indian project contributed 40 per cent to the revenue last year and is expected to contribute 30 per cent this year and in 2011.

Last year, Scomi recorded a revenue of RM573 million.

To-date Scomi Engineering has submitted tenders for Manaus Monorail and Tirradentes Monorail project in Brazil.

It is also looking into securing the Pune Monorail Project, Thane-Bhiwandi-Kalyan Monorail Project and Bangalore Monorail Project in India.   

“We are already working towards tapping projects in Saudi Arabia. Going forward, we are eyeing Thailand, Jakarta and Sri Lanka. They are among the developing nations that plan to develop mass transport infrastructures.

“India has nine monorail plans with 184 km in its masterplan while Brazil has identified 23 monorail lines with the World Cup 2014.

“So, the market is out there,” he said.

Syahrunizam said of the 15 train sets to be delivered to Mumbai, the first batch of four-car monorail train would be despatched tonight and would be delivered in October and six-train sets would be despatched by year-end.

“The balance nine sets will be sent on a staggered basis.

“Phase one of 9km with six-train sets will be commissioned by the second quarter next year while full commission is expected in third quarter.   

“We are confident that 15 sets will be delivered within the stipulated period,” he said.

On the local rail industry expertise, Syahrunizam said Scomi has blended international talents to work together with the locals to cater to the industry requirements.

On the local front, Scomi Engineering has tendered for KL monorail fleet expansion project and is looking into Kelana Jaya Line light rail transit (LRT) and Ampang Line LRT expansion projects.

Scomi Engineering has reported a lower pre-tax profit of RM1.595 million for its second quarter ended June 30, compared with RM29.283 million in the same quarter last year.

“The drop is due to our overall estimate of cost increase for the Mumbai project and potential delay experienced by our Indian client,” he said. — Bernama