Contract Signed for the Dubai Monorail Project

Dec. 14. 2005
Marubeni Corporation

Marubeni Corporation, together with Hitachi, Ltd., Obayashi Corporation and other parties, signed a construction supply contract worth approximately 390 million dollars (approximately 47 billion yen) with Nahkeel Co. L.L.C. of Dubai Emirate in the United Arab Emirates, for their passenger monorail system. The system is scheduled to start operation in December 2008.

Under this deal, Marubeni, as the sole main contractor, will construct and provide a straddle-beam monorail system 5.4 kilometers long with four stations. The system will be operated unmanned and be fully automatic, with a full turnkey handover, including civil engineering and construction. The company’s subcontractors under the contract are Hitachi, Ltd., Nippon Signal Co., Ltd., Omron Corporation Co., Ltd., a joint venture of Obayashi Corporation and Oriental Construction Co., Ltd., as well as Tonichi Engineering Consultants, Inc. and Tostems, Inc. Hitachi will supply the cars, consisting of four trains each with three cars, as well as the electrification system, operation management, communications and platform screen doors. Nippon Signal will supply the signaling facilities while Omron will provide the automatic fare collection system. Obayashi and Oriental will be responsible for the civil engineering and construction, while Tonichi Engineering Consultants, Inc. and Tostems, Inc. will provide the design supervision works.

Our company has extensive experience spanning 40 years in the Middle East in supplying railroad cars and signaling facilities to Iran and Turkey, and has earned high marks from clients in the region. The monorail to be supplied under this contract transports tourists to The Palm Jumeirah Island, a man-made resort island being developed by Nahkeel. In meeting Nahkeel’s requirements for a transport system designed to match the island’s luxury resort atmosphere, featuring a high degree of reliability and safety, we recommended the domestically proven monorail system of Hitachi. The performance and quality of Hitachi’s cars were assessed as being of a very high standard, enabling Marubeni to win the contract. The client also demands high quality and a sense of luxury in the civil engineering and construction of facilities and stations. For this requirement, a joint venture of Obayashi Corporation and Oriental Construction Co., Ltd. was selected because of their vast domestic experience in the this field.

The monorail originates at Gateway Station, located on the mainland-side entrance of The Palm Jumeirah Island, and terminates at Atlantis, a marine resort complex planned for construction at the tip of the island. The line is fully elevated and will be the sole means of transport for all tourists visiting Atlantis, so it is likely to attract attention as a main symbol of the island.

Nakheel is one of Dubai’s largest developers, and is currently planning the development of The Palm Jumeirah Island and other major resort islands, such as The Palm Jebel Ali, The Palm Deira and the Waterfront. Our deal is the largest single contract for those related to The Palm Jumeirah Island.

Marubeni was awarded a power-generator/hydro construction contract at Abu Dhabi this January with total construction costs amounting to three billion dollars. The latest deal is a consecutive contract on a major infrastructure deal in the UAE market.

The Persian Gulf region is recently experiencing worse traffic congestion in its metropolitan areas, and requires urgent development of urban railroad transportation. As we expect continuing demand for developments involving new transportation systems, we will strive in win further railway-related deals for urban transportation especially in this region.

[Corporate Profile – Nakheel Co. L.L.C.]

Headquarters   : Dubai Emirate, United Arab Emirates

Representative : Sultan Ahmed Bin Sulayem

Business activities  : Property development

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