INTER-ROLLER Engineering said it has secured baggage-handling system contracts worth $83 million.

The projects are for airports in China, the United Kingdom and Asean, including Singapore.

Expected to be completed in stages between 2005 and 2008, the contracts will raise the value of projects secured so far this year to $212 million, said Inter-Roller.

The project in China, which Inter-Roller aims to complete in 2007, is its 20th at 11 airports in China.

Two more projects were awarded by the Civil Aviation Authority of Singapore to provide operation and maintenance services as well as for upgrading the baggage-handling system at Changi Airport Terminal 1, Inter-Roller said.

The engineering firm earlier this month reported a 63 per cent jump in half-time net profit to $6.7 million, as revenue rose 42 per cent to $43.5 million.

Its proposed two-for-five bonus issue also received in-principle approval from the Singapore Exchange early last week.

CIMB-GK Goh recently raised its results forecast and price target for the company, saying that it will outperform the market, thanks to the need for airport-systems upgrade.

Inter-Roller bagged the contract to design and build an arrival and departure baggage-handling system for the new international terminal at Siem Reap International Airport in Phnom Penh, Cambodia, earlier this year. The $1.4 million project is Inter-Roller's second airport project there.

It also won a $9.5 million contract to design and build a baggage-handling system for Panama's Tocumen international airport - its first job in Latin America.

On the rise of low-cost carriers, chief executive Lim Yee Min said: 'While this may not strain existing baggage-handling systems - as such passengers have less luggage - it is forcing airports to upgrade their facilities in anticipation of the travellers turning into full-fare passengers.'

The stock closed yesterday at $1.37, up two cents.

《The Business Times》