The first phase consists of the 25-kilometre Rangsit-Bang Sue and 15km Taling Chan-Bang Sue sections. But the latter, with an investment of Bt13 billion, is expected to be the first to open for construction tenders. The two sections together cost Bt41 billion.

Prapat Chongsanguan, governor of the Mass Transit Authority of Thailand (MRTA), yesterday said that since the government announced a clear policy on the construction of mass-transit projects, many international investors had made inquiries, including Bombardier from Canada, Siemens from Germany, Alstom from France, and Mitsubishi and Kawasaki from Japan. Contractors from South Korea and China are also waiting in the wings.

"However, the MRTA insists that all interested contractors will have an equal chance to win the contracts," he said.

Chantana Sukumanont, executive vice president for customer relations at the country's second-largest cement-maker, said SCCC was ready to support Unique Engineering and Construction, not only for the Red Line, but also other projects.

"The company is confident of its products' quality, and other conditions to be made with its partner, so we can compete with other rivals," she said.

Virach Rungrojsaratis, vice president for engineering and control at Unique Engineering and Construction, said his firm would have to discuss further details with SCCC on forming a business alliance.

"If we can gain any edge in the bidding, the company is also prepared to partner up with SCCC," he said.

Unique Engineering and Construction is also looking at the Purple and Blue lines, as well as the Chachoengsao-Laem Chabang double-track rail project.

"For the Purple Line especially, if we win it, we can build it faster than others, as we were the contractor for the Phra Nung Klao Bridge across the Chao Phya River and the flyover over the Rattanathibet intersection in Nonthaburi," Virach added.

SCCC yesterday also inked a Bt200-million deal to supply Unique Engineering and Construction with 120,000 cubic metres of ready-mixed concrete for the Ramintra-Outer Ring Road Expressway project over 12 months.

Chantana said domestic demand for cement from all of last year to the end of this year's first quarter had not stood up. In the first quarter, demand fell by 5 per cent year on year, which is the biggest drop since the financial crisis of 1997.

"The main reasons for the plunge in demand for cement are the political uncertainty and economic slowdown," she said, adding that the delay in government investment has also hit the company.

SCCC adjusted its Bt3-billion investment plan last year to focus on cutting operating expenses, particularly for fuel. The company will also try to export 4.3 million tonnes of cement, up from 3.7 million tonnes last year, because of the sluggish domestic market.

Unique Engineering and Construction saw its revenue slide to Bt1.2 billion last year, from Bt2 billion in 2005.

Watcharapong Thongrung

The Nation