SK E&C executive director Nam Hyun-tae (right), Etihad Rail CEO Shadi Malak (center), CSCEC president Yu Tao (left) and Chairman of the Etihad Rail Board of Directors His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan (back row center) pose for a picture during a signing ceremony for a railway construction project in the UAE. [Photo by SK E&C]
South Korea’s SK Engineering & Construction Co. has won a $420 million order to build a railway in the United Arab Emirate with a Chinese partner, becoming the first Korean builder to participate in a railway construction project of a member of the Gulf Cooperation Council (GCC).
SK E&C announced Wednesday that its consortium with China State Construction Engineering Corporation (CSCEC) clinched the deal to build a 139-kilometer-long railway from Ghuweifat to Ruwais, the first section of the second stage project for a total 605-kilometer railway by UAE’s state-owned rail developer Etihad Rail.
[Photo by SK Engineering & Construction Co.]
The Korean builder holding a 42.5 percent stake in the project will be responsible for engineering, procurement and construction (EPC). It is expected to take 46 months to complete the construction by 2023.
SK E&C said that it could win the contract thanks to its outstanding technology and price competitiveness in cooperation with CSCEC, a Chinese state-run construction company which SK E&C has been in a strategic partnership with since 2015.
The Middle Eastern country has been conducting the railway project as part of efforts to promote balanced development and green growth. SK E&C expects the deal would help it win additional orders in the Gulf region.
By Lee Ji-yong and Choi Mira
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