Friday, April 13, 2012

Govt still keen on high-speed rail link

By Sharen Kaur
sharen@nstp.com.my
Published in NST on April 9, 2012

PUTRAJAYA: THE government is still keen on the high-speed rail project linking Kuala Lumpur and Singapore, the Land Public Transport Commission (SPAD) said.

SPAD chief executive officer Mohd Nur Ismal Mohamed Kamal, however, stressed that it will depend on the outcome of a feasibility study.

Mohd Nur Ismal confirmed that the feasibility study, which started last month, will take six to 12 months to complete.

The aspects under consideration include the alignment, cost, benefits, risks, economic impact and ridership.

"We need to examine the numbers in more detail. Our mandate is to find the best way to implement the project, if it is given the goahead.

"It will be done in a transparent way where there will be a tender process and bidding," Mohd Nur Ismal told Business Times.

The government reiterated in November 2011 that it may go ahead with the project but recently said the rail network is not a priority for now.

The focus currently is to link Johor Baru and Singapore first with a rapid transit system by 2018 as part of efforts to increase connectivity between the two cities.

The high-speed rail network has been highlighted as a high-impact project in the government's Economic Transformation Programme.

Three groups have made presentations on the project to the National Key Economic Area laboratory.

They are UEM Group-Hartasuma Sdn Bhd, China Infraglobe Consortium-Global Rail Sdn Bhd and YTL Corp Bhd.

Some of them said they would not be making further commitments on the project unless there is certainty it will kick off in the next two to three years and there is some form of government involvement.

"It is not viable for private parties to take control of the project. At around RM12 billion, you cannot get your returns fast as the service is more for the public," said one company.

Mohd Nur Ismal said the high-speed rail project will not be driven by any private sector proposals.

"There will be many more proposals coming in but no one will drive the project except the government. The outcome of the project will depend on the government," he added.

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