Tuesday, May 3, 2016

East Coast Rail Line (ECRL) may cost RM70b

By Sharen Kaur
Published in NST, May 3 2016

KUALA LUMPUR: THE proposed East Coast Rail Line (ECRL) that will link Kuala Lumpur and three east coast states in Peninsular Malaysia is expected to cost between RM60 billion and RM70 billion, say sources.
 
  The ECRL will be Malaysia's biggest rail development project, spanning around 600km. By comparison, the high-speed rail project between Kuala Lumpur and Singapore has a total length of 350km.
 
  According to sources, the ECRL, which will be developed in three major phases, has attracted a large number of global companies and consortia, which are planning partnerships with local firms.
 
  "The ECRL could take 15 to 20 years to develop as it will involve a lot of underground tunnelling. A special purpose vehicle (SPV) will be formed. The SPV will play a similar role as MyHsr Corp Sdn Bhd for the HSR project," said sources.
 
  Land Public Transport Commission (SPAD) chairman Tan Sri Syed Hamid Albar said the ECRL would be developed with more than 500km of new tracks between Kelantan, Terengganu, Pahang and Kuala Lumpur.
 
  He said the project would involve a totally new line based on standard gauge.
 
  "The cost (of the project) has not been finalised as it is still under study. The model to be adopted will be decided later on," said Syed Hamid told Business Times.
 
  More than 55 per cent of rail lines in the world are based on standard gauge. Rail track gauge refers to the spacing of the rails on a track. Having a common gauge can facilitate inter-connectivity and inter-operability.
 
  Business Times had previously reported that the ECRL line might start either from the integrated transport terminal in Gombak, Batu Caves, or Serendah in Selangor.
 
  It would enter Pahang, stopping at Bentong, Mentakab or Temerloh, Maran and Gambang before heading on to the Kuantan Sentral station and then to the Kuantan Port.
 
  From there it will go into Terengganu, stopping at Kemaman, Kertih, Paka, Dungun, Ajil, Kuala Terengganu, Penarik and Kampung Raja.
 
  It will then move to Kelantan, passing Tok Bali, Jelawat and Kota Baru, before reaching its final stop in Tumpat.
 
  However, sources said Phase 1 could commence from Port Klang towards Bentong and onwards as the government was looking to enhance port and other economic activities in the east coast.
 
  The East Coast Economic Region Development Council (ECERDC) had established that a rail route connecting all the major ports, business centres and towns in Pahang, Terengganu and Kelantan was vital to achieve growth in the region.
 
  Prime Minister Datuk Seri Najib Razak had said in 2012 that the ECRL would provide a major boost for investors as businesses could significantly reduce costs with the cost-effective and efficient mode of transport.
 
  ECERDC and SPAD, which play a central role in improving road and rail-based public and freight transport in the country, recently launched an exercise to gauge market interest and seek views and ideas for the ECRL.
 
  The joint market study via a Request for Information (RFI) was designed as a consultation exercise to seek industry opinion and collate market feedback.
 
  SPAD chief executive officer Mohd Azharuddin Mat Sah said the RFI was open to companies and consortia interested in participating in ECRL's railway design, funding, construction, operations and maintenance across the supply chain.
 
  The deadline for submission for the RFI exercise is May 27 before 12pm.

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