Monday, April 25, 2016

High Speed Rail may begin ops in 2027

By Sharen Kaur

        THE Kuala Lumpur-Singapore high-speed rail (HSR) system, Southeast Asia's most ambitious infrastructure project, may start commercial operation in 2027.
 
  The initial target was 2020 when the HSR project was first announced, but sources familiar with the matter said the completion date would likely be later.
 
  "We have to look at negotiations between Malaysia and Singapore which have taken three years. They have been discussing aspects of technical, security, immigration and safety, as well as governance and implementation.
 
  "Once the bilateral agreement is signed this year, it will follow with the procurement process, which we expect would take two to three years. We anticipate construction and commissioning to take more than seven years. So, 2027 would be a more realistic target," said one of the sources.
 
  The HSR project was announced during the Malaysia-Singapore leaders retreat here in February 2013, but no cost estimation was given.
 
  Prime Minister Datuk Seri Najib Razak said recently a memorandum of understanding was expected to be inked by the middle of this year, and the bilateral agreement at the end of this year.
 
  A tender for technical advisory services was called by MyHSR Corp Sdn Bhd two weeks ago and the submission deadline is early next month. MyHSR Corp is the project delivery vehicle representing Malaysia in the HSR project.
 
  Business Times had reported that work on the HSR project might start in early 2018 at a likely cost of RM60 billion to RM65 billion. This was based on the current estimated cost of US$10 million (RM3.9 million) per kilometre for the systems and tracks. The civil infrastructure work is expected to cost three times more than that.
 
  The HSR line involves a total of 350km. It will include a double-track on standard gauge powered with high-speed technologies.
 
  The HSR will have seven stops, a terminus each in Bandar Malaysia, here, and Jurong East in Singapore, and five transit stations in Seremban in Negri Sembilan, Ayer Keroh in Malacca and Muar, Batu Pahat and Iskandar Puteri in Johor.
 
  At least 60 four-car trains worth around RM5 billion are required to serve the line. The trains will run at a speed of more than 300kph.
 
  Meanwhile, sources said Johor and Singapore would be connected by a bridge that would be built parallel to the Second Link.
 
  "That is something both nations are finalising. They don't anticipate a need for an underwater tunnel as it would cost too much," said a source.
 
  High-speed rail project timeline
 
  * LATE 1990s: The high-speed rail (HSR) project is proposed by several Malaysian companies.
 
  * EARLY 2000: Proposals are submitted by the private sector, including YTL Corp Bhd, but the project never took off.
 
  * 2006: YTL Corp revives the proposal. However, it is not approved as the value proposition is not a priority.
 
  * 2009: The China Infraglobe-Global Rail consortium submits its proposal.
 
  * SEPTEMBER 2010: The Economic Transformation Programme highlights the HSR as a high-impact project to improve the economic dynamism of Kuala Lumpur as well as livability rankings relative to other global cities.
 
  * EARLY 2011: The Public Land Transport Commission (SPAD) is tasked by the government to lead the study on the HSR project.
 
  * MID-2011: SPAD starts pre-feasibility study (Phase 1A) on the HSR project. The study looks at the possibilities in terms of macro-economic factors, the size of the investment and economic spillover effects. The result is favourable.
 
  * EARLY 2012: SPAD commences a more rigorous feasibility study (Phase 1B), which looks at the project from the macro perspective. The study takes about 12 months. SPAD analyses critical aspects such as the anticipated cost, the economics of running the HSR and operating wages, the economic benefits it will bring in terms of employment during construction and employment after construction, the economic activities that can be generated around the proposed stops in Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Puteri, and whether the HSR will change the way business is done not only in Kuala Lumpur and Singapore but also at each stop. The findings show that the economic internal rate of return (EIRR) is very positive. EIRR looks at the impact on the economy in terms of job creation and boost in property values and economic activities.
 
  * FEBRUARY 2013: The prime ministers of Malaysia and Singapore agree to go ahead with the           project. Negotiations begin between both countries to find common grounds on the project.
 
  * JUNE 2013: SPAD presents results of the Phase 1B feasibility study to the National Economic           Advisory Council.
 
  * APRIL 2015: MyHSR Corp Sdn Bhd is set up to oversee the HSR project.
 
  * OCTOBER 2015: SPAD conducts Request for Information exercise.
 
  * April 2016: MyHSR Corp conducts Request for Proposal for technical advisory services.
 
  * JUNE 2016: Expected signing of memorandum of understanding.
 
  * NOVEMBER/DECEMBER 2016: Expected signing of bilateral agreement.
 
  * EARLY 2017: Procurement process to start.
 
  * 2018/2019: Construction to commence.
 
  * 2027: Commercial operation of the HSR.

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