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Serco awarded new transport management contract in Hong Kong

Date: 07 Jun 2013

Serco Group plc (Serco), the international service company, today announces that it has been awarded by the Hong Kong Transport Department a new Management, Operation and Maintenance contract for the Tsing Sha Control Area. The contract, which is expected to commence in September, has a six-year base period with a total estimated value to Serco of HK$960m (approximately £80m).

Hong Kong's roads are amongst the most heavily utilised in the world. With its dense development and difficult terrain, a key challenge to meeting growing traffic demands is to provide additional road capacity by enhancing the performance of existing transport systems.

Serco has been supporting the Transport Department since 1993. As part of this Serco understands the complexities and integrity of road user charging, toll and fare collection; Serco collects over HK$11bn a year from people driving on roads and travelling on rail and public transport networks. Serco is the largest tunnel operator in Hong Kong, employing over 900 staff, with our operations including the Cross Harbour Tunnel, the key arterial link to Hong Kong Island. Serco provides other leading transport information and integrated transport management systems in Hong Kong.

Under the new contract, Serco will provide management and operation of the Tsing Sha Control Area including collection of tolls, traffic control and regulation, vehicle recovery and rescue, patrols and handling of incidents. Serco will also be responsible for scheduled works including regular inspection and routine maintenance of bridges, buildings, tunnels, equipment, traffic signals and IT systems. Amongst the many structures Serco will be responsible for is Stonecutters Bridge, one of Hong Kong's key landmarks, particularly the view from the central business district of the 1.6 kilometre span across Rambler Channel.

Serco will be working in partnership with a number of specialist providers, including a joint venture partner Lam Construction. As a Public Works Approved Contractor, Lam Construction brings significant road infrastructure expertise to the joint venture.

Christopher Hyman, Chief Executive of Serco Group plc, said: "We are delighted to be expanding our longstanding relationship with Hong Kong's Transport Department. We will be supporting them in their commitment to provide the world's best transport system which is safe, reliable, efficient and environmentally friendly. This announcement builds upon our recent significant contract win with the Virginia Department of Transportation in the US, and strengthens our global transport capabilities in preparation for further growth driven by expanding middle classes and mass urbanisation. We anticipate further management, operation and maintenance opportunities in Asia, together with other exciting transport opportunities in Australia, India and the Middle East, all of which will leverage Serco's international skills and capabilities in this important market."

Ends

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Last Updated: 07 Jun 2013