Thales has won a €17m (£12.5m) contract for signalling, communications and the operational control centre for Taiwan’s second tramway line.

The work is for the Danhai light rail transit project. Taiwan’s local industry giant China Steel along with its subsidiaries United Steel Engineering & Construction and Taiwan Rolling Stock will construct the first phases corridors. There will be two lines – one with 11 stations and the other with three – as well as a depot. The project, expected to be completed in 2018, will be approximately 10km long.

Danhai, which is close to Taiwan’s capital Taipei, has plans to build at least four similar lines in the next four to seven years.

“Taiwan is among the most mature and demanding public transport markets in Asia, it is no surprise if it is the first to introduce LRT lines in the region,” said Jean-Louis Moraud, managing director of Thales in Japan and Taiwan. “We believe in Taiwan as a showcase for this emerging segment, and we believe in our partner to jointly deliver this iconic project.