KUALA LUMPUR: Prasarana Malaysia Bhd, operator of the Rapid Penang bus service, has put out a tender for the provision of a total integrated system for its fleet of buses in the state. Iris Corp Bhd and HeiTech Padu Bhd are among the public-listed companies participating in the tender for the estimated RM80 million job, sources said.

“This tender is about providing a complete integrated solution for the buses in Penang — we’re talking about fleet management, scheduling, passenger information and so on. Some 30 companies have bought the tender documents but it is likely only four or five will actually submit because it’s a specialised job. Only foreign companies provide total solutions — and there are only a handful of them, so local players will have to team up with them if they want to participate,” one of the sources said.

It is understood that the tender, which was to have closed last month, was extended to Feb 9. The winning party is expected to be picked three months after the closing date.

Iris Corp deputy managing director Datuk Hamdan Mohd Hassan confirmed that Iris is participating in the tender. “Iris will be going in with a foreign partner,” he said. He declined to elaborate.

Prasarana’s unit, Rapid Penang Sdn Bhd, which started operations in July 2007, currently has 350 buses, 280 of which are operating 46 routes on the island and in Butterworth.

“The idea is to have a bus system like London’s, where there are information displays in the buses, and displays at bus-stands tell you when the next bus is expected to arrive, and users can download ‘apps’ to check the right bus to take to a destination ... it’s a complete solution they are looking for,” said the source. 

That Iris Corp (fundamental: 0.55; valuation: 0.6) is keen on the project is no surprise. The diversified group, which derives the bulk of its earnings from its trusted identification division — which provides electronic passport solutions for governments — also operates a payment and transportation division, among other businesses. Federal Land Authority Bhd (Felda) holds a 25.8% stake in the ACE Market-listed company.

HeiTech Padu (fundamental: 0.35; valuation: 1.2), in which Permodalan Nasional Bhd owns a 27.54% stake, is a Main Market-listed information and communications technology provider.

Last September, the company announced that it had secured a system upgrading contract worth RM177 million from the Road Transport Department on a direct negotiation basis. 

This article first appeared in The Edge Financial Daily, on February 6, 2015.