Order Received to Supply 240 Train Cars for Philippines’ Metro Manila Subway

December 22, 2020

Dec. 21, 2020 Sumitomo CorporationJapan Transport Engineering Company

Order Received to Supply 240 Train Cars for Philippines’ Metro Manila SubwayFirst Subway Project in the Philippines

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; President and Representative Director: Takao Nishiyama; hereinafter, “J-TREC”) have received an order from the Department of Transportation (DOTr) of the Republic of the Philippines to supply 240 train cars for the contract package CP107 of the country’s Metro Manila Subway Project Phase 1 (between Quezon City in the north and Parañaque City in the south). The CP107 contract was signed on December 15, 2020. Sumitomo Corporation and J-TREC received this order following the order to supply 104 train cars for the North-South Commuter Railway Project in July 2019.

In the Metropolitan Manila area, where the population continues to grow due to rapid economic growth, population concentration is causing traffic congestion and air pollution that are becoming more serious year by year. Building efficient and economical public transportation networks is a pressing issue. To fully develop its infrastructure, the Philippines government is promoting a large-scale infrastructure development plan called “Build Build Build,” in which the Metro Manila Subway Project is considered a core project.

The CP107 project is to be undertaken as part of the 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 Philippines’ first subway project (a total of 17 stations, including 13 underground stations, and covering approximately 36 kilometers) aims to connect the northern city of Quezon to the southern city of Parañaque in the Metropolitan Manila area. Under the CP107 contract, 240 train cars (eight cars × 30 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 JPY57.5 billion and the trainsets are scheduled to be fully delivered by March 2027.

Sumitomo Corporation has worked on numerous railway development and train car export projects, primarily in Asia and the United States. In the Metropolitan Manila area, Sumitomo Corporation has received and executed orders for multiple existing lines (LRT-1, LRT-2 and MRT-3). At present, Sumitomo Corporation is executing its rehabilitation and maintenance agreement for MRT-3 as well as a rolling stock delivery agreement for the North-South Commuter Railway, while participating in an operation project for LRT-1 that started in May 2020. Building on its wealth of experience in transportation infrastructure projects in the Philippines, Sumitomo Corporation will take steady steps to smoothly fulfill the contract for the CP107 project.

J-TREC, as a train car manufacturer with the No. 1 share in Japan’s commuter train car market (results in fiscal 2019), has designed and manufactured a wide variety of products including bullet train cars, express train cars and hybrid train cars. In recent years, J-TREC has aggressively launched its next-generation stainless-steel train cars under the brand name of “sustina,”1 contributing to the development of regional infrastructure. In the markets of Southeast Asia, J-TREC delivered train cars for Bangkok’s Purple Line in Thailand in 2016, and is currently executing a rolling stock delivery agreement for Manila’s North-South Commuter Railway in the Philippines. In the CP107 project, J-TREC will also provide sustina train cars for the development of transportation infrastructure in the Metropolitan Manila area.

1sustina: Product brand name for the next-generation stainless-steel train cars designed and manufactured by J-TREC. sustina train cars, featuring higher energy conservation, enhanced safety and high maintainability, have been adopted by multiple railway lines including the Yamanote Line operated by East Japan Railway Company.

Reference

■Outline of the Project

Project name : Metro Manila Subway Project Phase 1 CP107 (between Quezon City in the north and Parañaque City in the south) Client : Department of Transportation of the Republic of the Philippines Scope of contract : Design, manufacture, testing and delivery of 240 train cars (eight cars × 30 trainsets) with warranty, along with delivery of spare articles and special tools; delivery of operation simulator; employee training; delivery of technical training equipment, etc. Entire contract period : 322 weeks (about 75 months)

■Route map

■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 following material Issues.

Achieving Harmony with the Global Environment To realize recycling-oriented society and mitigate climate change, we are working to establish frameworks for the efficient use of resources and stable supply of renewable energy. In doing so, we will achieve growth in harmony with the global environment.

Contributing to the Development of Local Communities and Industries We steadily procure and provide goods and services to meet the needs of people in various countries and regions and contribute to developing industrial platforms. Through these means, we will create a virtuous cycle in which we can grow and develop together with local communities.

Establishing a Foundation for Comfortable and Enriching Lifestyles We strive to realize more convenient and comfortable lifestyles by providing goods and services for daily use while also responding to needs for high-quality lifestyles in order to support the physical and mental health of people around the world.

Providing Diverse “Accessibility” We provide diverse accessibility to open up the possibility of creating new value. To this end, we will improve mobility for safe and efficient flow of people and goods, and expand the network connecting information and finance.

Developing Human Resources and Promoting Diversity In order to create new value and innovation by allowing our diverse personnel to fully exercise their abilities in a variety of fields, we will promote the development and empowerment of human resources, which represent our most important management resources.

Enhancing Governance We will enhance our ability to draft and implement strategies for achieving sustainable growth and to provide appropriate supervision of these strategies, all while maintaining transparency. In this manner, we will improve management efficiency and maintain sound management.