Singapore Technologies Engineering Ltd’s Opportunities With Autonomous Vehicles

Singapore Technologies Engineering Ltd  (SGX: S63) is a large engineering conglomerate with four main business segments, namely, Aerospace, Electronics, Land Systems, and Marine.

In late March, ST Engineering published its annual report for the year ending 31 December 2017. I found discussions on the company’s ventures and opportunities with autonomous vehicles in the annual report that I thought would be of interest to investors.

Autonomous bus

In 2017, ST Engineering formed the Singapore Autonomous Vehicles (AV) Consortium to identify protocols and standards for the adoption of AVs in real-world scenarios and to develop niche AV technologies, such as automotive cybersecurity, advanced autonomy, and platform-agnostic AV kits.

The consortium will also partner the Land Transport Authority (LTA) to develop autonomous buses in preparation for road trials in Singapore.  Here’s a description on the project given by ST Engineering in its annual report:

“The 40-seater buses, powered by our AV technology and integrated with various diagnostics, cyber security and localisation technologies, will navigate Singapore’s urban mixed traffic conditions under normal and adverse weather conditions. The autonomous buses, measuring 12m long with maximum speeds of 60km/h, will be developed over 42 months in three phases.”

Mobility-on-Demand-Vehicles (MODVs)

Another area the Singapore AV Consortium is working on is the development of four MODVs together with the Sentosa Development Corporation, and the Ministry of Transport. The MODVs are meant for trial deployments in 2019.

Here’s how ST Engineering describes the MODVs:

“The four MODVs, each with a seating capacity ranging from 15 to 20 passengers, will be deployed in a pilot public trial to provide autonomous mobility-on-demand services to visitors to serve their intra-island travel needs on Sentosa Island, Singapore. Visitors will be able to call for the MODV via their smartphones or information kiosks located across the island.”

Other partnerships

In 2017, ST Engineering also signed a three-year exclusive dealership with France’s NAVYA, an autonomous vehicles specialist, to distribute the NAVAY ARMA autonomous shuttle. According to ST Engineering, “the partnership also allows both parties to collaborate and deploy ST Kinetics’ autonomous technologies, such as the fleet management systems, rain filter and platooning, onto the NAVYA ARMA.”

A Foolish bottom line

From the examples above, it’s clear to me that ST Engineering is trying to position itself to benefit from the development of the AV industry. But there’s no guarantee of success, so investors will have to observe how the engineering conglomerate’s efforts in the AV space develop, and how well these can contribute to the company’s bottom-line.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.