DXN lands Government contract to deliver submarine cable project to Timor Leste

The 1.3 million residents of Timor-Leste will soon have much better access to technology with the the Government of Timor-Leste having engaged data centres company DXN (ASX: DXN) to supply and install a Cable Landing Station (CLS) as part of the Timor-Leste South Submarine Cable (TLSSC) project.

The contract is valued at $2.1 million (66% of the Company’s market cap) and marks a crucial milestone for DXN and the nation-building efforts in Timor-Leste, an island nation located 700km north-west of Darwin.

The TLSSC project aims to establish a vital submarine cable connection between Díli, the capital of Timor-Leste, and the North-West Cable System (NWCS), spanning the Australian cities of Darwin and Port Hedland. The success of this project is contingent on the construction of a secure cable landing infrastructure in Díli, where DXN’s Cable Landing Station will play a pivotal role.

DXN’s Cable Landing Station will be prefabricated and constructed in Australia before being exported to Díli, where it will be installed and commissioned to connect with the NWCS in Australia. This initiative represents a significant step forward for Timor-Leste as it will mark the country’s first international cable landing station, enabling faster and more reliable telecommunications connectivity.

Commenting on the contract, DXN’s CEO, Shalini Lagrutta, expressed her enthusiasm, stating, “DXN are delighted to be selected for this important nation-building project for the Democratic Republic of Timor-Leste. This is the country’s first international cable landing station, which we are proud to be a part of.

“The cable landing station will be prefabricated and built in Australia, exported to Dili, and thereafter installed and commissioned for connection with the NWCS in Australia.”

Prefabrication for the Cable Landing Station is set to commence in DXN’s factory located in Perth, Western Australia. The Cable Landing Station is expected to be delivered to Díli by April 2024, marking a significant step forward in enhancing Timor-Leste’s telecommunications infrastructure.

The TLSSC project holds the promise of substantially improving the connectivity and communication capabilities of Timor-Leste, fostering economic growth and international collaboration. DXN’s involvement in this transformative initiative reinforces its reputation as a leader in the field of prefabricated modular data centres and cable landing stations.

As the TLSSC project progresses, the entire region can anticipate the benefits of enhanced connectivity and the realisation of Timor-Leste’s vision for a more connected and prosperous future.

For the Full Year ended 30 June 2023, DXN reported $5 million revenue which represented a 64% decline on the previous year.