Scomi Engineering, a subsidiary of Scomi Group Bhd of Malaysia, is a leader in energy and logistics engineering. Scomi Rail (formerly Mtrans Technology Bhd), a wholly-owned subsidiary of Scomi Engineering, has bid for Mumbai monorail project along with Larsen & Toubro Ltd. Kanesan Velupillai spoke to Madhu Chittora on the best model for India's mass urban transportation.

What opportunities do you foresee in the Indian rail sector?
The Indian economy is large and growing with a population of around one billion. On top of that, India will see development of many planned cities whose population will exceed a million. With rapid growth of urbanisaton and a growing middle class and the fact that major portions of the North-South and East-West connectivity and Golden Quadrilateral are ready, I can envisage that the next sector of growth will be commuter travel within the city and intra-city. At the same time, due to rising cost of fuel, cost of moving freight - that is to say cost of transportation across any sector - is going to go up. Therefore, there is need to develop efficient and effective means of transportation and in the next five years we foresee the development of urban commute, intra-city commute and freight corridor systems.
Monorail, metro rail, high-speed train and bus transit system are part of an integrated traffic system and are the solutions to transportation within the cities.
How can India reach to international standards in railways?
Malaysia has always been dependent on India for technical expertise. Many Indian experts and professionals have worked in Malaysia's railway sector. My experience is that Indians embrace technology very fast. There is a lot of employment potential in monorail projects. However, India needs to go one level higher. India has done a lot for Mumbai and Bangalore metro projects, but one of the key things it needs to do is funding of BOT projects. There should be more incentives, clear-cut guidelines and ample opportunities for funding BOT projects in urban transportation and infrastructure.
What type of rail system is suitable for India?
India knows the importance of freight corridor and it is very well covered in the country, so I will not speak about it. Next is the urban sector. The metro rail system has taken off very well and parameters with respect to metro are well established, as in some metropolitan cities like Delhi and Kolkata. At the same time, we see traffic congestion in cities, so bus rapid system is not going to be very popular and will not be easily implemented. Elevated corridor can be the immediate solution in crowded cities. Therefore, elevated metro for huge capacities or elevated monorail is going to be the best answer to mass urban transportation needs. I see tremendous opportunities for monorail in India, as cost parameters are real and feasible.
How effective are monorail systems?
Monorail systems have been effective for a long time. The light rail transit system has always overshadowed monorail system. The cost of LRT system has gone up. Monorail has become an affordable solution for cities around the world because of its pricing, design and safety features.
Tell us about Scomi's bid for a monorail project in India.
There has been the first request for proposal (RfP) for a monorail project by Mumbai Metropolitan Region Development Authority in Maharashtra, which is a major step forward. The monorail project is coming up in Mumbai. There is a tender for a 20-km monorail line that will close on June 16. Scomi has bid for the project jointly with L&T. For the project, Scomi will take care of rolling stock and signalling and L&T will take care of civil construction. Monorail will be completely operational in 30 months.
Pune Municipal Corporation is also looking at corridors of high-speed trains, metros and monorails.
Scomi Rail offers urban transportation solutions by providing the latest technology for monorail electromechanical systems and the rolling stock which refers to the travelling component in a rail system.
Why do you think Scomi should be awarded the Mumbai monorail project?
Scomi has invested more than $10 million in developing new generation monorail, which is faster, has greater capacity, longer durability and very high safety standards. Scomi's core business is in oil and gas and logistics sector. We invest in future, in new technologies. We continue to harness this innovation from Scomi Group.
Scomi is also working closely with Indian companies on integrating technologies, especially in system signalling and communication. India has a great history and capability in railways. There is a win-win possibility between Indian and Malaysian companies to work together in the rail sector. And we see this as an impetus to move faster. Scomi also sees that India has a quick need for solutions and monorail will be the fastest to implement.
What is your experience while bidding for the monorail project in India from that in Hanoi wherever Scomi is executing a similar project?
I am delighted to see that most of the cities in India, especially after JNNURM, have city and urban transportation master plans. They are in a very advanced stage of planning and now they are coming to the stage of execution. Investment plans have been identified. The timing is right and cities are implementing infrastructure projects like highway projects. Urban transportation is becoming the focus across India.
Master plans for the cities corridors have been prepared taking into account the need for the next 30 years, which is similar to master plans of some cities around the world. Every city is implementing its own projects, as in Kuala Lumpur. Now it is all about planning, execution, maintaining control and sticking to deadlines, and not diverting from it.
What competition do you envisage in the Indian market?
India has always been a country of entrepreneurs and there will always be competition which is good. Competition will drive prices and the public will get better value for whatever they invest in. There is transparency and openness in the bidding process. Scomi has the best technology which it will deliver at the best possible price.
What is the turnover of Scomi Group and what are its thrust areas?
The turnover of Scomi Group is $1 billion. The main focus areas are oil and gas where Scomi will continue to come up with new technologies. Scomi will focus on urban transportation across the Asia-Pacific region and develop technologies in this area as well.
Which projects is Scomi Group currently executing?
Scomi is currently involved in executing the Kuala Lumpur monorail project which is on the verge of completion. Scomi is also involved in the expansion of the LRT transport system of Kuala Lumpur. Scomi has just opened a new machine shop in Saudi Arabia pertaining to oil and gas and is expanding its presence in this sector across the world, building capabilities and capacities. The company will be launching new products over the next few years.
What are your plans for the Indian market?
We are critically looking at establishing a bus manufacturing facility in India. The company also plans to set up a dedicated machine shop to cater to the oil and gas sector like offering support services for drilling. The company has done oil and gas work for ONGC Ltd. Scomi is also focusing on monorail projects in all major cities and metros like Delhi, and is also exploring the possibility of setting up monorail in Kerala. Scomi wants to have a meaningful presence in oil and gas sector and urban transportation sector, both monorail and bus rapid transit system.