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Serco signs £355m Dubai Metro contract extension

Date: 24 Oct 2013

Serco Group plc (Serco), the international service company, today announces that it has signed an extension to its contract with the Dubai Government Roads and Transport Authority (RTA) to continue to operate and maintain the Dubai Metro.  The five-year extension which will run to September 2019 is valued at approximately £355m, with an opportunity to extend for a further two years to 2021.

Serco first provided pre-launch consultancy and planning to the RTA from 2007, and began operating and maintaining the initial 10 stations on the Red Line from its official opening and inauguration on 9 September 2009.  Subsequent expansion has seen the Red Line grow to 29 stations, the Green Line open in September 2011 with a further 20 stations, and in 2012 Serco added engineering and maintenance responsibilities.

The Dubai Metro is the world's longest fully automatic driverless train system with a current network length of 75 kilometres.  Operating 50 trains at peak times that feature a maximum running speed of 90km an hour, Serco's 2,000 staff have continued to deliver world class safety and operational standards including 99.9% of trains on time while also expanding ridership - 30 million journeys were undertaken in the first 12 months after launch, growing to over 127 million in the most recent 12-month period.

Serco continues to develop its strong position as a leading provider of transport operations and integrated traffic management services around the world.  New contract awards this year have included those for the Hong Kong Transport Department and in the US for the Virginia Department of Transport.  Our recently extended Docklands Light Railway operations in London were earlier this month awarded the prestigious 'City & Metro Operator of the Year', in recognition of our delivery through the Olympic and Paralympic Games and our continued record level of performance metrics.  Meanwhile in September 2013, Serco signed a separate £18m contract with the RTA to operate the Al Sufouh Tramway which will connect to Serco's operation of the Palm Jumeirah Monorail as well as to the Dubai Metro.

Christopher Hyman, Group Chief Executive of Serco, said: "We are delighted to be extending our contract to operate one of the world's most advanced urban rail systems.  The Dubai Metro is truly iconic and it gives us great pride to continue our partnership with the RTA, play a part in the development of integrated and sustainable transportation systems for Dubai's residents and visitors, and to support the RTA's vision to provide "safe and smooth transport for all".  This award reflects the high level of confidence the RTA has in Serco to continue delivering world-beating standards in safety, performance and customer service, and will support further strong growth opportunities that we see across the Middle East region."

HE Mattar Al Tayer, Chairman of the Board and Executive Director of the Roads and Transport Authority (RTA), added: "We reaffirm RTA's unremitting commitment to effectively contribute to boosting the profile of Dubai as a metropolis that has all the ingredients of advancement and modernity, which includes deploying state-of-the-art mass transit to make this vibrant city one of the fastest growing global cities at all fields and by all measurements.  We are pleased to select Serco to continue operating the Dubai Metro given their experience in operating and maintaining a number of metro and rail lines around the world."

For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227
Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226

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Last Updated: 29 May 2015