Hyundai wins $1.2 bn railway order from Philippines

South Korea’s Hyundai Engineering & Construction Co. has won a $1.2 billion order from the Philippines to build a railway connecting the central areas of Manila to the southern city of Calamba, Hyundai said on Friday.

For the 56-kilometer railway project, Hyundai will build nine above-ground stations and a 32 km long overpass.

Hyundai will lead the 57-month project, excluding some basic groundwork to be conducted by South Korea’s Dong-Ah Geological Engineering Co.

Dong-Ah secured the groundwork contract for 186 billion won ($134 million), according to the company.

The construction project is composed of nine zones, of which Hyundai will take charge of three zones: the fourth, fifth and sixth ones. 

The latest order, placed by the Philippines’ Department of Transportation, is equivalent to 9.3% of Hyundai E&C’s 2021 revenue.

This is the second time that Hyundai received an order from the Philippines in two years. In 2020, it won a contract for the Philippines’ North-South commuter railway project.

Hyundai expects the new Philippine government will scale up infrastructure investments. To win relevant orders, it will strengthen cooperation with the Southeast Asian country.

President Ferdinand Marcos Jr. took office as the Philippines’ president in May of this year.

The Korean builder has been carrying out 14 overseas projects to build underground and rail lines in seven countries, including Panama and Saudi Arabia.

Write to Eun-Ji Shim at summit@hankyung.com
Yeonhee Kim edited this article