Jakarta, Indonesia (BBN)-Indonesian electronics maker Len Industri has expanded to Malaysia and Bangladesh by creating a joint venture to build and manage railway signal systems in both countries.
A memorandum of understanding ( MoU ) has been signed with a local company that won the signaling project, previously tendered by Bangladesh Railway, said Len Industri president director Abraham Mose, reports the Jakarta Post.
“Our main priority is on the business prospects in Malaysia that will soon launch a rehabilitation of its signal systems, and in Bangladesh, which is preparing to develop its rail transport system,” he said as quoted by kompas.com on Wednesday in Bandung.
In Bangladesh, he added, the company would modify four stations operating a Vital Processor Interlocking ( VPI ) Control System from Ishurdi to Joydipur using Len products such as a Control Console ( the visual display unit and launch control post ), light-emitting diodes ( LED ) and the main distribution panel.
“Our firm has long manufactured the technology products that will be implemented in the project,” he said.
As for Malaysia, Abraham continued, the company would cooperate with EMRail, which has secured a working contract from KTMB as the owner of the project.
LEN Industri will work on the signal system for Gua Musang-Tumpat, stretching 290 kilometers and covering 30 stations.
The existing system had crashes due to massive floods, he said. LEN Industri will work to rehabilitate it by using the single track system, which is considered more efficient than the previous double track system.
With the new expansion, Abraham expected the company to score Rp 2.39 trillion ( US$180.2 million ) in revenue.
Last year, Len booked Rp 2.17 trillion in revenue, inching up from the previous year’s Rp 2.1 trillion.
“The railway-related business will still dominate, followed by the defense-related electronic products sector, which has been getting better in recent years,” he said.