Serco SEA Dubai Metro contract extension
Serco signs AED680m (£140m) contract extension to operate and maintain Dubai Metro to 2021 including Red Line expansion
1 April 2019
Serco Group plc
LEI: 549300PT2CIHYN5GWJ21
Serco Group plc ('Serco' or 'the Group'), the international service company, has signed a two-year contract extension with the Roads and Transport Authority (RTA) to continue operating and maintaining the Dubai Metro until September 2021. The contract extension includes the operation and maintenance of the Red Line expansion which is currently under construction; the test-run of the expanded service is expected to start in February 2020 in readiness for full operation ahead of Expo 2020 which begins in October. The total value of the fixed base fee for the contract extension is around AED680m (equivalent to about £140m).
Serco first began operating and maintaining the initial ten stations on the Red Line from the official opening of the Dubai Metro in 2009. Expansion of the Metro has seen the Red Line grow to 29 stations, while the Green Line, opened in 2011, added an additional 20 stations. The Red Line expansion for Expo 2020 adds 15 kilometres and connects seven stations. At that point, the Dubai Metro will have a total network length of 90 kilometres and over 120 trains running at peak times. Serco's more than 2,000 employees on the Dubai Metro continue to deliver excellent operational performance and record numbers of passenger journeys.
HE Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of the RTA, who signed the contract at a ceremony yesterday in Dubai alongside Rupert Soames, Serco Group Chief Executive, said: "Serco has delivered operational performance levels on the Dubai Metro with a high train service availability of 99.9% and a punctuality of 99.8%, achieving a record of 204 million journeys in 2018."
Rupert Soames added: "We are delighted to have agreed this extended and expanded contract to continue operating and maintaining the Dubai Metro, which is amongst the largest and most reliable rail services in the world. This contract demonstrates the high confidence that RTA has in Serco to continue delivering world-class levels of safety, operational performance and customer service. We look forward to working in close partnership with the RTA in support of the preparations for Expo 2020 and beyond."
Ends
For further information please contact Serco:
Stuart Ford, Head of Investor Relations T +44 (0) 7738 894 788
Marcus De Ville, Head of Media Relations T +44 (0) 7738 898 550
About Serco
Serco is a leading provider of public services. Our customers are governments or others operating in the public sector. We gain scale, expertise and diversification by operating internationally across five sectors and four geographies: Defence, Justice & Immigration, Transport, Health and Citizen Services, delivered in UK & Europe, North America, Asia Pacific and the Middle East.
More information can be found at www.serco.com
Forward looking statements
This announcement contains statements which are, or may be deemed to be, "forward looking statements" which are prospective in nature. All statements other than statements of historical fact are forward looking statements. Generally, words such as "expect", "anticipate", "may", "could", "should", "will", "aspire", "aim", "plan", "target", "goal", "ambition", "intend" and similar expressions identify forward looking statements. By their nature, these forward looking statements are subject to a number of known and unknown risks, uncertainties and contingencies, and actual results and events could differ materially from those currently being anticipated as reflected in such statements. Factors which may cause future outcomes to differ from those foreseen or implied in forward looking statements include, but are not limited to: general economic conditions and business conditions in Serco's markets; contracts awarded to Serco; customers' acceptance of Serco's products and services; operational problems; the actions of competitors, trading partners, creditors, rating agencies and others; the success or otherwise of partnering; changes in laws and governmental regulations; regulatory or legal actions, including the types of enforcement action pursued and the nature of remedies sought or imposed; the receipt of relevant third party and/or regulatory approvals; exchange rate fluctuations; the development and use of new technology; changes in public expectations and other changes to business conditions; wars and acts of terrorism; and cyber-attacks. Many of these factors are beyond Serco's control or influence. These forward looking statements speak only as of the date of this announcement and have not been audited or otherwise independently verified. Past performance should not be taken as an indication or guarantee of future results and no representation or warranty, express or implied, is made regarding future performance. Except as required by any applicable law or regulation, Serco expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statements contained in this announcement to reflect any change in Serco's expectations or any change in events, conditions or circumstances on which any such statement is based after the date of this announcement, or to keep current any other information contained in this announcement. Accordingly, undue reliance should not be placed on the forward looking statements.
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