Nippon Signal lands order for rail fare system in Vietnam
TOKYO -- Railway signal manufacturer Nippon Signal has won a Vietnamese order for an automated fare collection system for a new urban rail line.
The order is for noncontact smart cards, fare-collecting equipment and station computers for processing data to be installed on the Ho Chi Minh No. 1 line. The line, which will stretch for 19.7km and have 14 stations, is slated to open in early 2018.
Nippon Signal's system will be delivered in the summer of 2016. The value has not been disclosed. The project is being funded by an international yen loan from Japan.
By introducing the Japanese setup for the noncontact smart cards, the hope is to make this the de facto standard, paving the way to win more orders in Vietnam as the country continues to build railway infrastructure.
Economic development in the Southeast Asian nation is causing a sharp increase in traffic, making congestion increasingly severe. The government is thus planning a number of new railway lines in Ho Chi Minh City, Hanoi and other major urban areas.
Nippon Signal is also thinking about establishing a location in the country to oversee maintenance.