Mitsubishi Heavy shares rise on $3.4bn Qatar subway deal

23rd February 2015, Comments 0 comments

Mitsubishi Heavy Industries' shares rose Monday morning after a consortium led by Japan's top heavy machinery maker struck a $3.36 billion deal to build Qatar's first subway system.

The Tokyo-listed stock climbed 1.21 percent to 658.0 yen ($5.50) on news the five-member consortium, which includes Hitachi and French defense contractor Thales, had received the order from Qatar Railways to build "Doha Metro".

The deal to build the nation's first subway system in Qatar's capital is worth 400 billion yen ($3.36 billion), a Mitsubishi Heavy spokesman said.

The project, which is scheduled to be completed by 2019, includes 75 sets of three-car trains, platform screen doors, tracks, a railway yard and ongoing maintenance.

The metro system -- covering 241 kilometres (150 miles) with 106 stations -- will connect the main areas of Doha, including the Hamad International Airport, the Old City and newly developing inner city areas such as West Bay and Lusail, they said.

The system is also expected to be a key transport link between stadiums and facilities during the 2022 World Cup, which Qatar will host, the consortium said.

"The city of Doha is facing serious urban congestion due to its increased population and the growing number of cars operating in the city," the statement said.

© 2015 AFP

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