Samsung SDS (CEO Kim In), a global ICT service provider, has won a $20 million (\23 billion) contract to implement its Automatic Fare Collection (AFC) system in subway line No. 2 in Chengdu, China.
In the Chinese AFC market, price competitiveness is more intense than technological competitiveness. Global companies including Thales, Omron, and Nippon Signal are lagging behind in the price competition with emerging local companies and withdrawing business from China.
An official of Samsung SDS said, "Ten companies including Samsung SDS competed for the Chengdu AFC project, and Samsung SDS, despite its high price, has won the project with excellent technical power recognized by the Chinese government."He added, "This is a very significant achievement in that Samsung SDS has established a strong position in the Chinese market with its business capabilities and technical power despite low-price strategy of local companies."
Chengdu subway line No. 2 will open 32 stations by 2016, and Samsung SDS will execute the design, development, production, and delivery of systems including a central AFC system and equipment for the stations.
Kim Hwi-kang, Vice President of Samsung SDS China emphasized, "We made this great achievement by promoting localization strategy continuously and by developing excellent technologies. We are planning to strengthen our position in the growing Chinese market by continuing technology development and promoting an image as a company that makes a difference in Chinese society."
Chengdu, a second-tier city with great ripple effects, is a base camp for China's western development. Based on this project, Samsung SDS is expected to expand its business opportunities to related projects such as fare calculation and SIE (Social Infrastructure Engineering)-related areas including a parking management system and u-city business.
Samsung SDS has been executing AFC projects since 2002 in Guangzhou, Beijing, Wuhan, and Tianjin, and its AFC technology has become a major export item of ICT services.
The company has won AFC projects in other markets as well. It was awarded the $20 million AFC project for India's Delhi subway, beating world-renowned companies from France, Japan, and Switzerland. In August of last year, it also surpassed global companies and won a $15 million AFC project for Bangalore subway.
※What is AFC (Automatic Fare Collection)
Automatic Fare Collection involves the implementation of equipment for processing purchasing, checking, and collecting tickets and related statistical work through an information system.
