L&T Construction Secures Contract for Jakarta MRT Phase 2A

Shares of Larsen and Toubro Ltd (L&T) surged by 2% following an announcement that its Railways Business Group had clinched a significant contract for the Jakarta Mass Rapid Transit (MRT) Project Phase 2A, known as Contract Package CP205. This triumph stems from L&T's enduring collaboration with Sojitz Corporation, a prominent Japanese entity. Notably, this contract marks L&T's maiden Engineering, Procurement, and Construction (EPC) Railway Systems Order in the ASEAN region.

The Jakarta MRT Phase 2A project involves the extension of the existing Jakarta MRT Line from Bundaran HI to Kota, covering a distance of approximately 12.5 km and incorporating seven underground stations. The project's scope encompasses the procurement and delivery of systems across various domains, employing a design and build approach. Essential components include Trackworks, Overhead Contact System, Substation System, Power Distribution System, Signaling System & Telecommunication Systems, SCADA Facility, Platform Screen Doors, along with modifications to existing equipment in the OCC and stations/train sets from Phase-1.

Presently, L&T is actively engaged in executing an integrated Railway Systems project for the Mauritius LRT and Dhaka Metro.

Commenting on the development, L&T highlighted the burgeoning prospects in the ASEAN region's railway sector. With governments in the region allocating augmented budgets for infrastructure projects, there is a robust momentum towards expanding urban rail systems. Additionally, increasing investor interest further amplifies growth opportunities in this domain.

HBL