By Sharen Kaur - January 26, 2024
KUALA LUMPUR: Seven consortiums that have submitted concept proposals to develop the Kuala Lumpur-Singapore high speed rail (HSR) project will be in intense competition.
Three of the seven consortiums, comprising a total of 31 companies, are believed to be led by Tan Sri Vincent Tan Chee Yioun-controlled Berjaya Group, YTL Group and China Railway, the national passenger and freight railroad corporation of China.
Industry insiders said in addition to rolling stock manufacturers, the bidders have roped in local and foreign firms with experience in civil engineering, technology, piling, design and build, signalling systems, construction supervision, and infrastructure development.
"Berjaya and YTL will need to be cautious around the Chinese players. Along with the East Coast Rail Link (ECRL), which is presently being built, the Chinese government sees the KL-Singapore HSR as a component of their Belt and Road Initiative, and they will have the top railroad development companies involved," said an insider.
China's HSR reportedly accounts for two-thirds of the world's total HSR networks.
The HSR network in China is the world's longest and most extensively used, with a total length of 45,000 kilometres by the end of 2023. The network encompasses newly-built rail lines with a design speed of 200-380 km/h.
"The consortiums can divide the KL-Singapore HSR construction into several sections, such as the technical part of the recommended route, the station and track alignment, and specifications like the project schedule, rolling stock, and signaling system details.
"In a different section, they can also break down the costs of the project, covering things like funding sources, operating expenses, land acquisition, and structure.
"They should explain their business models, revenue streams, pricing, and demand strategies, as well as the legal and regulatory support the government requires in their concept proposal," another insider said.
The seven concept proposals mark a new phase in Malaysia's efforts to revive the on-off-on initiative.
They were submitted to MyHSR Corporation Sdn Bhd (MyHSR Corp) in response to a request for information (RFI) that invited private sector participants to deliver the project.
MyHSR Corp is a company owned by the Minister of Finance (Incorporated) and under the supervision of the Ministry of Transport (MOT), serving as the government's project delivery vehicle.
The MOT and the Cabinet have been presented with the results of the RFI evaluation for their consideration.
It will enter the second phase with the Request for Proposal (RFP) stage to obtain detailed proposals from the selected consortia if the feedback from the government is positive, according to an insider.
The insider told Business Times that both technical proficiency and the overall capacity "to develop and operate the railway and services with the necessary resources and within the budgeted cost, quality, and time" are requirements for participating firms.
The consortiums must also present viable commercial and business models, as well as suitable frameworks for project and consortium governance.
The KL-Singapore HSR will be developed based on a public-private partnership initiative on the design-finance-build-operate-transfer (DFBOT) model, without any government funding or guarantees.
The 330-350 km-long project, first mooted over 20 years ago by YTL Group, resulted in a legally binding agreement signed in December 2016, with the aim of having the line operational by 2026.
However, it was put on the back burner following several delays at Malaysia's request and the eventual lapsing of an agreement in December 2020.
Malaysia paid more than S$102 million (US$76.46 million) in compensation to Singapore for the project's termination.
Talk of reviving the project intensified following the general elections in 2022 and Prime Minister Datuk Seri Anwar Ibrahim's visit to Singapore early in the new year, where he met with Singaporean leaders.
Source: https://www.nst.com.my/business/corporate/2024/01/1005801/seven-groups-set-intense-competition-build-kl-singapore-hsr
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