LS Electric wins $23 mn order for Thai railway signal system

South Korea's LS Electric Co. won a contract from the State Railway of Thailand to construct a railway signaling system for a 177 km section between Ban Phai and Nong Phok in Thailand's northeastern region, according to the company on Thursday. 

The contract is valued at 32.7 billion won ($23.7 million).

This project forms a part of the initial phase of a broader 354 km railway track-doubling project that aims to connect Ban Phai, Nong Phok, and Saphan Mittraphap.

The total cost of this project is estimated at around 55.4 billion baht ($1.49 billion).

The double-tracking initiative is part of Thailand’s efforts to boost freight and passenger transport capacities by developing the northeastern regional railway network.

Since it entered the Thai market in 2001 with the Thailand Railway Modernization Project (ST1), LS Electric has completed several subsequent phases, including the fourth phase (ST4) in 2007, the fifth phase (ST5) in 2015, and projects along the Eastern and Northern lines between Den Chai and Ngao in 2020.

Following its latest project selection, LS Electric has achieved over 50% market share in the local sector, with total orders now surpassing 200 billion won.

LS Electric is strategizing to intensify its presence in the ASEAN railway infrastructure market, anticipating steep market growth with the expansion of improvement projects across Thailand and other ASEAN countries.

Write to Jeong-Soo Hwang at hjs@hankyung.com