08/07/2013 - SENSYS Traffic AB and the Swedish Transport Administration have signed multi-year contracts for the delivery of measurement systems and measurement cabinets for traffic-safety cameras. The contracts are estimated to be worth up to SEK 550 million, and at least SEK 110 million.
Sensys won procurement contracts for measurement systems and measurement cabinets earlier this year. The procurement process was appealed, but further to a subsequent decision of the Administrative Court, Sensys and the Swedish Transport Administration have now signed contracts for both measurement systems and measurement cabinets. The contracts cover a period of three years, with the possibility to extend up to a further six years. With regard to service and maintenance, the contracts may be extended by a further five years after the initial six option-years.
"The contracts mean that we have become overall supplier, and thereby a partner of the Swedish Transport Administration within the area of traffic-safety. This in turn significantly strengthens our market position and provides us with a solid platform to expand our international business within both systems and service," says Johan Frilund, CEO of Sensys Traffic AB.
The Swedish Transport Administration will replace 700 existing cameras during the contracts' first three years, and have thereby undertaken to purchase traffic-safety cameras for at least SEK 110 million. The technical length of life for a further 400 cameras is estimated to expire during this same period, which implies that they must also be replaced. The contract also contains the possibility for the Swedish Transport Administration to order regular inspections, maintenance and spare parts, which are not included in today's overall contractual value.
The Swedish Transport Administration wishes to enlarge the systems with traffic-safety cameras, and has therefore included such potential in the contracts with Sensys. In the referral documentation of the National Transport Plan, the Swedish Transport Administration stated that a further 6,000 km of roads, in addition to today's approximately 3,000 km, are planned to be equipped with traffic-safety cameras up to the year 2025.
All in all, Sensys subsequently believes it probable that orders of up to SEK 140 million will be placed during the period of the contract in addition to the specified SEK 110 million. Should the Swedish Transport Administration extend the contracts, and if the systems with traffic-safety cameras are enlarged in accordance with the proposed National Transport Plan, the order values during the extension could amount to SEK 300 million. The ultimate value of orders will be determined by future decisions.
The delivery of prototypes and standard series is expected to take place in 2013, after which series deliveries are anticipated to start in 2014. The Swedish Transport Administration will adopt and place orders each year regarding both the replacement and the installation of new traffic-safety cameras. Sensys will make an announcement each time the Swedish Transport Administration places firm orders.
Sensys Traffic is obliged to publish the information contained in this press release pursuant to the Swedish Securities Market Act and/or the Swedish Financial Instruments Trading Act. Such information was submitted for publication at 11.45am on 8 July 2013.
Johan Frilund, CEO
Mobile: +46 (0)73-274 28 23
Sensys Traffic AB develops and markets various systems for traffic informatics and traffic safety. The products are primarily used for speed and red-light enforcement. The Sensys share is listed on NASDAQ OMX Stockholm.