KDDI to build telecom infrastructure for Philippine subway system

KDDI Philippines said Monday that it will build the telecom infrastructure and the fare collection system for the first subway system in the country.

The company signed a contract with Thales in December to participate in a project that would see the establishment of a 30km subway system connecting the northern city of Valenzuela to the southern city of Parañaque in Metro Manila.

The French transportation systems company was chosen for the subway project in February last year as part of a larger consortium that was selected by Mitsubishi Corporation to design and build the rail system for the Philippine capital for around €1 billion (US$1.09 billion).

Thales will provide its Integrated Communications and Supervision (ICS) and Automatic Fare Collection (AFC) systems to the project, at a value of €156 million ($170 million).

KDDI Philippines will be working with other Thales partner companies on its piece of the subway project. The telecom infrastructure includes piping components, cabling work and equipment installation, while the fare collection system involves the installation of ticket gates and ticket vending machines as well as the delivery of communication equipment, servers and other equipment.

The KDDI project covers 15 stations, from East Valenzuela Station to NAIA (Ninoy Aquino International Airport) Terminal 3 Station, as well as the depot and the operation control center.

The project is targeted for completion by 2029.

Alleviating Manila's traffic congestion

Metro Manila has been plagued by worsening traffic congestion for over 30 years as the development of public transportation did not keep pace with the growing population that now numbers around 13.5 million.

Japan's Official Development Assistance (ODA) estimated that economic losses from this perennial amount to 3.5 billion Philippine pesos ($62.60 million) per day. It added that the traffic congestion has become an obstacle to smooth logistics and movement and has lowered the international competitiveness of the Philippines.

The ODA is funding the subway system on a loan agreement – signed in March 2018 – with the Philippine government.

When completed, the new underground mass transportation is expected to reduce travel time from Quezon City to NAIA from one hour and ten minutes to just 35 minutes. The subway system is expected to serve 1 million passengers daily when it comes online.