DOTC seals deal with Busan group for MRT-3 maintenance

By on January 8, 2016

MRT-3 (Photo from Facebook)
(Photo from Facebook)

MANILA—The Department of Transportation and Communications (DOTC) has signed the three-year maintenance contract for the Metro Rail Transit Line 3 (MRT-3) system with the Joint Venture (JV) of Busan Transportation Corporation, Edison Development & Construction, Tramat Mercantile, Inc., TMICorp Inc., and Castan Corporation yesterday.

“We are one step closer to having a safer and more reliable MRT-3 system with our new world-class rail maintenance service provider. With the operator of the Busan railway network in South Korea sharing their technical expertise, the riding public can expect an increase in the number of running trains and the efficiency of operations,” said DOTC Secretary Jun Abaya.

The Busan JV will undertake maintenance works of the rolling stock and signaling system, the most critical maintenance discipline, starting today. Twelve qualified technical experts, including rolling stock, signaling, and track specialists, from Busan are already carrying out the necessary activities for transition and system assessment.

Busan has been operating and maintaining the Busan Metro, four railway lines of the mass transit system in Busan, South Korea since 1999, demonstrating their capacity to manage the maintenance works and facility upgrades as stated in the contract.

In addition to the fulfilling maintenance requirements, the PHP3.81-B contract also covers the general overhaul of 43 coaches over the course of the agreement period, and the total replacement of the signaling system within 24 months.

Attempts to bid out the contract in September 2014 and January 2015 both resulted in failure due to the non-participation of bidders. The DOTC resorted to an alternative mode of procurement pursuant to the Government Procurement Reform Act of 2003 in recognition of the urgency to address the railway’s maintenance needs and the system’s core problems of obsolescence and complete wear-and-tear.

After the Government Procurement Policy Board (GPPB) unanimously approved the mode of procurement, the transport agency invited the following international and reputable railway firms as prospective offerors despite being given the authority to invite only one: SMRT International, Hamburg-Consult GmbH, Korea Railroad Corporation, Busan Transportation Corporation, and Schunk Bahn-und Industrietechnik GmbH and Comm Builders & Technology Joint Venture.

While the long-term maintenance service provider was under procurement, the DOTC engaged subcontractors under a multi-disciplinary approach to enhance the efficiency of maintenance works per component. (PNA)

  • RobRoyston

    busan supplies the technical expertise yet only owns 5% share of the JV. what is not clear is what does the other 4 filipino firms contribute to the contract (combined they own the other 95%).

    these filipinos are fully dependent on korean expertise yet they have the largest share of the pie despite having zero experience in rail maintenance… smells fishy to me. i wont be surprised if the koreans will one day wake up to realize theyve been taken for a ride by their filipino partners and may want to get out.

    or has anybody promised the koreans future contracts as an incentive to commit to this very lopsided deal???

  • rbieri

    How can Busan Maintaining four railway lines of the Mass Transit System in Busan, South Korea since 1999, when the Firm get Founded: January 1, 2006….