Business | Shipping
Stroer Concept will build 550 bus shelters in capital
German company to complete Dh100m project by 2009 summer.
- By Ahmed A. Elewa, Senior Reporter
- Published: 00:08 July 15, 2008
- Saeed Mohammad Al Hameli and Marc Zeisel shake hands after signing the contract at Emirates Palace hotel in Abu Dhabi on Monday. Stroer Concept Group won the tender on a build, operate and transfer (BOT) basis for 10 years.
- Image Credit: Ravindranath/Gulf News
Abu Dhabi: The Abu Dhabi Department of Transport (DoT) on Monday signed a franchise agreement for the establishment of 550 bus shelters throughout the emirate.
The Dh100 million investment bid from the Stroer Concept Group won the tender on a build, operate and transfer (BOT) basis for the duration of 10 years, against Dh50 million to be paid by the company for the franchise.
"The project will be accomplished and delivered in the summer of 2009, and will include air-conditioned shelters in the densely populated and commercial areas," Saeed Mohammad Al Hameli, DoT's general manager of bus transportation, said.
The shelters structure is based on a new concept introduced by the Stroer Group providing for flexibility in adjusting heights, lengths, and widths.
"The Xenon structure allows for more flexibility compared to traditional shelters, which allows for adapting to any changing needs, but the design of the shelters will be finalised after consulting with DoT," Marc Zeisel, director of corporate business development at the Stroer Group said.
The structures will be manufactured and imported by Stroer, while some materials, where it is not feasible to import, will be provided by local suppliers, such as glass.
"In addition to the Dh50 million royalty fee, and the Dh100 million investment cost, there will also be revenues sharing with DoT at a later stage, depending on the performance of the franchise," Aldrin Fernandes, chairman of Concept Group, told Gulf News.
Stroer is the market leader in Germany with more than 90 per cent share, second in Europe and fifth worldwide, with about 260,000 advertisements and $800 million in turnover. The company entered an alliance with the Dubai-based Concept Group.
Another bid
Stroer Concept is also bidding for Metro advertisement franchise in Dubai, and is has already won the tender for the buses advertisements there.
"We have about 500 clients in the UAE, and we look for expanding that base," Zeisel said.
"The company will fully operate, manage, and maintain all the shelters, and incur all the operating costs including electricity," Al Hameli explained.
The shelters include CCTV monitoring cameras, in addition to interactive screens providing for information and entertainment, including the possibility of uploading data to mobile phones, such as journey planners, bus routes and timetables, as well as general information about Abu Dhabi.
About 30 to 40 per cent of the shelters will be air-conditioned in the first stage, to rise to 100 per cent in the second stage which will be implemented after five years.
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