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LG CNS, Emerging as a Major Player in Malaysian Transportation Market

LG CNS has won about a 20 billion won (US$16 million) deal in Penang, Malaysia to build a bus information system.

The project is designed to optimize traffic flow and streamline bus operation by applying LG CNS’ technologies to 400 intra-city buses in Penang, the third largest city and island in Malaysia. The project is led by the consortium which includes LG CNS and Malaysian local enterprise and will be finished by August 2017.

LG CNS has proved the excellence of Korea’s transportation IT solutions by winning the contract over major global competitors including Spain’s largest IT enterprise Indra Sistemas S.A., GMV in Spain and IVU in Germany. For the project, LG CNS proposed its own solutions such as the Fleet Management System (FMS) and Auto Fare Collection (AFC).

[LG CNS 사진] 말레이시아 페낭市 BIS사업 Kick Off

Kick off image of LG CNS winning the deal of building a bus information system in Penang, Malaysia

Winning this contract makes LC CNS be emerged as a major player for smart transportation in Malaysia by winning a contract for this project.

Currently in Malaysia, LG CNS is leading the core projects of the Mass Rapid Transit (MTR) construction project, which is the largest transportation project in Malaysian history.

(* <Reference 1> Malaysia’s MRT construction project)

In 2012, LG CNS was selected as a service provider for the MRT Line 1 communication system development (worth 140 billion KRW in total). Following this deal, LG CNS secured another deal in February, 2016 to supply its smart transportation system to 31 MRT stations in the Malaysian capital of Kuala Lumpur and feeder bus lines connecting the capital to metropolitan cities.

Prior to this, LG CNS successfully implemented Kuala Lumpur Bus Ticketing System (BTS) and Platform Screen Door (PSD) system development projects in 2011.

This deal gave LG CNS an advantage in Malaysian follow-up projects in the near future.

The Malaysian government plans to spend, a total of more than 30 trillion KRW on this year’s MRT Line 2 project as well as Line 3 in the future.

This project is meaningful in that it is a case of expanding smart transportation from the mega cities to small and medium-sized cities.

LG CNS has already experienced this type of success in Latin America before.

In 2011, LG CNS won the contract of the public transportation AFC and FMS development project for Bogota, the capital of Colombia (worth about 300 billion KRW in total), and successfully implemented the project.

(* <Reference 2> Transportation system project for Bogota in Colombia)

As the superiority of LG CNS’ solution was proven in mega cities like Seoul and Bogota, the small Colombian city of Pasto selected LG CNS as their BIS project service provider in November, 2015.

The BIS development project for Penang is based on LG CNS’ successful implementation of various past transportation projects in Malaysia.

“After winning a series of contracts in Malaysia, we will continue try to expand our presence, not just in the Southeast Asia, but also in Latin America, Middle East and Europe,” said Lee Eung-joon, LG CNS Vice President.

<Reference 1> Malaysia’s MRT construction project

This MRT construction project is the largest transportation project in Malaysia’s history and one of the components of the Malaysian government’s “Economic Innovation Program” announced in 2010 with the goal of growing into a high-income country.

Currently, MRT Line 1 (51 Km section, 31 stations) is under construction in Kuala Lumpur and LG CNS plans to develop a wireless train communication system for this section, communication system for station business, CCTV, broadcasting, control and security equipment by 2017.

While LG CNS is working on the communication system, Siemens of Germany, Bombardier of Canada, Meidensha of Japan, and Mitsubishi Heavy Industries of Japan, among others, are currently working on the MRT car supply, signal system, electric equipment, and railroad equipment, respectively. LG CNS is the only Korean company that is participating in this project.

<Reference 2> Transportation system project for Bogota in Colombia

Based on the successful development of the transportation card system for Seoul Metropolitan City in 2011, LG CNS obtained order for the AFC and FMS system development for Bogota, the capital of Colombia and one of the three largest cities in Latin America, completed development last year and is currently running the system.

LG CNS has integrated all buses running in Bogota and BRT bus stops into a single transfer system, by developing the AFC and FMS for 7,000 buses operated in Bogota city and 120 Bus Rapid Transit (BRT) stations.

The total project size, including 15 years of operation, amounts to 300 million USD (equivalent to 300 billion KRW) in the IT service area alone.

<Reference 3> Integrated transportation solution of LG CNS

This time, LG CNS recommended its Fleet Management System (F MS) solution, which streamlines bus operation by transmitting in real time the bus location and driving speed information to the central control center via wireless communication network using GPS receivers, vehicle units and communication modems installed in the buses so that the information collected is processed.

The Auto Fare Collection (AFC) solution is a comprehensive fare-charging system for bus, subway and MRT.

Written By LG CNS PR Team

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