China TransInfo Technology, a provider of public transportation information systems technology, through its majority-owned subsidiary Dalian Dajian Zhitong Information Service, has entered into a cooperative agreement with the Dalian branch of China Mobile to jointly invest in the installation of in-taxi LED GPS security surveillance devices on 6,000 taxis in Dalian.
According to the agreement between China TransInfo and China Mobile, China Mobile will invest up to $1.6 million to install GPS location application systems in 6,000 taxis in Dalian before the end of March 2009. Upon the launch of the system, Dajian Zhitong will operate the new system and develop commercial applications on it independently.
Dajian Zhitong has also committed to payback the $1.6 million investment to China Mobile on monthly basis without interests in three years of the launch of the system. The ownership of the GPS location application system will be transferred to Dajian Zhitong after the completion of the repayment of $1.6 million initial investment.
Shudong Xia, CEO of China TransInfo Technology, said: Through joint efforts with China Mobile, we will be able to more accurately collect real-time traffic data as well as improve taxi security management in Dalian while displaying advertisements on a uniform platform.
