MRT extends CEO Shahril's contract for two more years

By Sharen Kaur
Published NST Online, August 10, 2016

KUALA LUMPUR: Datuk Seri Shahril Mokhtar's contract as chief executive officer (CEO) of Mass Rapid Transit Corp Sdn Bhd (MRT Corp) has been extended by two years effective January 1, 2017.

Shahril, who holds a Master of Management from the University of Malaya, was appointed CEO of MRT Corp effective January 1, 2015 to oversee the country’s biggest infrastructure project.

MRT Corp CEO Datuk Seri Shahril Mokhtar's contract has been extended for another two years, effective Jan 1, 2017

MRT Corp, a wholly owned subsidiary of Minister of Finance Inc Malaysia, is the developer and owner of the Klang Valley Mass Rapid Transit (KVMRT) project.

The project involves the construction of a rail-based public transport network comprising three lines - Sungai Buloh-Kajang (SBK) Line; Sungai Buloh-Serdang-Putrajaya Line; and Circle Line.

Shahril, who currently sits on the Board of Prasarana Negara Bhd and MyHSR (High Speed Rail) Corp Sdn Bhd, both wholly-owned units of the MOF Inc, has played a key role in helping to develop the country's transport industry.

Before being appointed as CEO of MRT Corp, he was group managing director of Prasarana, a position which he held since 2010.

Prior to that, he was chief operating officer of Suruhanjaya Pengangkutan Awam Darat (SPAD).

Before joining SPAD, Shahril was attached to RapidKL as its general manager of corporate planning.

While serving in that position, he was seconded as an Adviser to the Economic Planning Unit in the Prime Minister’s Department where he was involved in drafting the Land Public Transport Commission Act 2010 and the Land Public Transport Act 2010.

Shahril was also involved in the laboratory for urban public transport improvement which was held as part of the Government Transformation Plan.

Among the other positions he has held were general manager of Corporate Services in Penerbangan Malaysia Bhd, manager at PricewaterhouseCoopers Malaysia and British American Tobacco (M) Bhd, and senior executive in the Maybank Group.

Tough times for real estate sector

By Sharen Kaur
Published in NST, August 10, 2016

KUALA LUMPUR: Certain real estate segments, including high-end condominiums, in key areas in Malaysia may not be in the pink of health now and in the near future, according to Knight Frank Malaysia.

The global property consultant, however, said there would be growth despite the cloudy outlook for all market sectors amid weakening in the domestic economy and global uncertainties.

The country’s economic growth would continue to be driven by significant increase in construction activities, in particular infrastructure projects, according to Frank Knight Malaysia’s half-year real estate report released yesterday.

The report looks at market performance across the property mix of residential, office and retail, and highlights the trends and outlook in four key markets in Malaysia — Kuala Lumpur, Penang, Johor Baru and Kota Kinabalu.

“The slew of infrastructure-related projects in the country will inevitably shift the focus of future developments,” said Frank Knight Malaysia managing director Sarkunan Subramaniam.

He expects more activities along the various transportation routes as a higher segment of the population embraces public transport.

With Phase 1 of the Mass Rapid Transit Sungai Buloh-Kajang Line slated to be operational by year-end, urbanites in Klang Valley would experience improved mobility, he said.

“Penang is benefiting from the RM337 million Bayan Lepas Expressway that was opened to traffic in early April. Sabah is also set to benefit long term from big infrastructure projects, such as the Pan-Borneo Highway and Bus Rapid Transport system.”

On the recent signing of the memorandum of understanding (MoU) between Malaysia and Singapore for the high-speed rail (HSR) project, Subramaniam said it was a step closer to bringing the “game-changer” to reality.

The MoU was signed on July 19 in Putrajaya. The 350km HSR project, targeted for commercial operations in 2026, would reduce travel time between here and Singapore to 90 minutes.

The report also highlighted that the high-end condominium market here remained lacklustre as potential buyers and investors continued to adopt a “wait-and-see” approach.

The report said multinational corporations from marine and offshore sectors were enticed to relocate here in view of attractive currency and competitive rental rates.

It added that consumers continued to hold back on spending, as evident from weaker retail sales data in the Klang Valley in the first quarter of this year (-4.4 per cent) against the 1.3 per cent growth in the fourth quarter of last year.

However, there are still opportunities in the Klang Valley retail market, particularly in upcoming under-served but well-populated areas.

The report said Iskandar Malaysia in Johor was still attractive to investors with cumulative investments so far standing at RM202 billion.

2 MRT jobs to be awarded in Sept

By Sharen Kaur
sharen@mediaprima.com.my

Published in NST, August 3 2016



KUALA LUMPUR: Mass Rapid Transit Corp Sdn Bhd (MRT Corp) will award two packages worth about RM1.5 billion for the MRT Sungai Buloh-Serdang-Putrajaya (SSP) Line next month.

Chief executive officer Datuk Seri Shahril Mokhtar said the packages were for automotive fare collection worth more than RM100 million and track work valued at around RM1.3 billion.

Both packages would be awarded by September 30, he told Business Times at MRT Corp’s Hari Raya open house, here, yesterday.

Shahril (right) presenting a mock cheque to Yayasan Chow Kit programme coordinator Mohd Noorjamil Mohd Issak at the company's Hari Raya open house in Kuala Lumpur

“We will also award two viaduct packages, worth RM600 million to RM700 million each, between October and December.”

Next year, several other packages worth more than RM3 billion would be awarded, added Shahril.

They include four or five viaduct packages and at least 10 station packages.

“In April, we will open up 11 packages, worth between RM60 million and RM70 million each, to build multi-storey carparks. After that will come the smaller packages for signages and others.” Shahril said.

 MRT Corp had so far awarded packages worth a total of RM24 billion for the 52.2km SSP line, adding that he was happy with the progress. The packages previously awarded included eight advanced work packages, four viaduct work packages, two designated contractor/supplier packages, three system work packages, a depot work package and an underground work package.

The RM15.47 billion underground work package was awarded to MMC Gamuda KVMRT (T) Sdn Bhd to build 11 underground stations covering 13.5km of tracks.

Shahril said with the new awards between this month and December next year, the company would have dished out packages close to RM31 billion.

“The progress has been excellent. We are going to do the ground-breaking for Putrajaya Sentral on August 26, meaning starting physical works.

“We have awarded viaduct packages to Sunway Construction Sdn Bhd, IJM Construction Sdn Bhd, Ahmad Zaki Sdn Bhd and Malaysian Resources Corp Bhd (MRCB), and they are going to start working at the end of this month.”

Sunway Construction will build three stations from Damansara Damai to Sri Damansara at a cost of RM1.4 billion and Ahmad Zaki will construct four stations from Kepong Sentral to Jinjang for RM1.44 billion.

IJM Construction will build four stations from Sri Delima to Jalan Ipoh for RM1.47 billion and MRCB will construct two stations from Cyberjaya to Putrajaya for RM648 million.

MRT (SSP) Line project may cost up to RM40b, says MRT Corp

By Sharen Kaur
sharen@mediaprima.com.my

Published in NST, August 3, 2016



KUALA LUMPUR: Mass Rapid Transit Corp Sdn Bhd (MRT Corp) said the total cost for the MRT Sungai Buloh-Serdang-Putrajaya (SSP) Line could be anywhere between RM35 billion and RM40 billion.
  “We have not finalised the actual cost for the SSP Line but for construction alone, we have budgeted RM32 billion,” MRT Corp chief executive officer Datuk Seri Shahril Mokhtar told Business Times.
  “With the project delivery partner and all, we expect the total cost to be between RM35 billion and RM40 billion,” he said.
  The 52.2km SSP Line will serve a corridor with a population of around two million in Damansara Damai, Jalan Ipoh, Kampung Baru, Kuala Lumpur City Centre, Tun Razak Exchange, Kuchai Lama, Seri Kembangan and Cyberjaya.

  Phase 1 of the SSP Line will run from Kwasa Damansara to Kampung Batu, and comprise 12 stations.
  It is targeted for completion by July 2021. Phase 2 is expected to be completed in the second quarter of 2022.
  It will have 11 underground stations and 26 elevated stations.
  The MRT project is the country’s largest infrastructure development and backbone of the city’s public transport network.
  It started with the MRT Sungai Buloh-Kajang (SBK) Line, where the construction cost for the 51km network is RM23 billion.
  Shahril said construction of the SBK Line was on schedule and within the targeted cost.
  “Progress is now at 86 per cent. We have a few months before Phase 1 of the SBK Line between Sungai Buloh station and Semantan station is operational by the end of the year.”
  The mechanical and electrical system works are undergoing testing while trial runs for the trains will begin in October.
  He said Phase 2 of the SBK Line, which covered the underground and southern elevated sections, was also progressing well and would be ready for operations in July next year.

KL-Singapore high speed rail alignment almost finalised

By Sharen Kaur
sharen@mediaprima.com.my

Published in NST, July 25, 2016


KUALA LUMPUR: THE 350km alignment for the Kuala Lumpur-Singapore High-Speed Rail (HSR) project is more or less finalised, said sources.
 
  According to government sources, four design criteria - geology, land, topology and geometry - were used as input to determine the alignment.
 
  "Looking at the alignment today, a lot of work has gone into it. We don't want the project cost to run up because of land acquisition, relocation of houses, transmission towers, electrical supply and communication systems.
 
  "Areas were selected to avoid the relocation of such things, and also to minimise tunnelling work. There will be some tunnelling work here, in particular around Bandar Malaysia as the area surrounding this new city is congested.
 
  "There will be more tunnelling involved for Singapore up to the point of Jurong East and this is going to cost them a lot," said sources.
 
  One of the key benefits of the HSR is that the travel time between Kuala Lumpur and Singapore will be reduced to 90 minutes.
 
  The HSR will have eight stops, a terminus each in Bandar Malaysia and Jurong East, and six transit stations in Putrajaya, Seremban in Negri Sembilan, Ayer Keroh in Malacca and Muar, Batu Pahat and Iskandar Puteri in Johor.
 
  Business Times had reported that the HSR project is expected to cost around RM60 billion.
 
  This is provided the link between Iskandar Puteri and Singapore on the Straits of Johor is via an overhead bridge.  Constructing a sea tunnel will increase the cost by four times.
 
  At least 335km of the HSR system will run in Malaysia and 15km in Singapore.
 
  The terminus in Bandar Malaysia and Jurong East, as well as the transit stations, will be designed to integrate with local public transport systems.
 
  At Bandar Malaysia, the terminus will be linked to four lines - the Express Rail Link (ERL), Keretapi Tanah Melayu (KTM), Mass Rapid Transit (MRT) Sungai Buloh-Serdang-Putrajaya Line 2 and the Ampang Light Rail Transit (LRT).
 
  The MRT Line 2 will have an interchange at Chan Sow Lin LRT Station (Ampang Line) and Sungai Besi LRT Station (Ampang Line-Sri Petaling Branch).
 
  Based on MyHSR Corp Sdn Bhd's website, the HSR is required to cater to mobility and market demand today and in the future between the two countries.
 
  At present, the demand on the Causeway exceeds capacity by 33 per cent, resulting in acute traffic congestion.
 
  Traffic would continue to grow at a rate comparable to the gross domestic product growth of Malaysia and Singapore, at an average three per cent to five per cent, the company said.
 
  Over the longer term, growth rates are expected to taper off, in line with expectations for a maturing market, with an average growth of 3.2 per cent per year from 2011 to 2060, with a market of 251 million passenger trips by 2060.

"HSR (high speed rail) will make money within concession period'

By Sharen Kaur
sharen@mediaprima.com.my

Published in NST, July 30, 2016


KUALA LUMPUR: Train-operating companies for the High-Speed Rail (HSR) connecting Singapore and here will make money within the concession period.
 
  Malaysian developer and asset owner MyHSR Corp Sdn Bhd chief executive officer Mohd Nur Ismal Kamal told the New Straits Times that operators were expected to make money from day one of the concession.
 
  Concession starts when the HSR is completed and ready for operation in 2026. Two train-operating companies will be appointed.
 
  One will operate the cross-border services between here and Singapore, while another will run domestic services within Malaysia.
 
  The HSR will have eight stops, a terminus each in Bandar Malaysia and Jurong East, and six transit stations in Putrajaya, Seremban in Negri Sembilan, Ayer Keroh in Malacca, and Muar, Batu Pahat and Iskandar Puteri in Johor.
 
  Nur Ismal said the concession period would be between seven and 10 years.
 
  He said operators would have to bid for the concession via an international open tender.
 
  "It can be any private party, whether from Malaysia or other countries. They must have a good track record and the ability to perform."
 
  A report from Nanyang Technological University said HSR projects typically struggled for years before turning a profit.
 
  For example, the Eurotunnel linking the United Kingdom and France was profitable only after 26 years.
 
  With operating deficits common among most HSR operators globally, the Kuala Lumpur-Singapore HSR might not be an exception, the report said.
 
  But, Nur Ismal said Malaysia planned to use a business model similar to that in the UK, which demonstrated the ability of HSR systems to run profitably.
 
  In the UK, operators would lease trains from Rail Rolling Stock Companies and they would pay Network Rail for the rights to use the track.
 
  There are several ways to operate an HSR system. One is to separate the infrastructure that combines civil and railway assets versus the operator as another layer, or have everything integrated.
 
  For the Kuala Lumpur-Singapore HSR, there is a separation between the infrastructure, rail operating assets and operator.
 
  "In the model that we have adopted, the operators do not have to invest in civil infrastructure, rail operating assets and operations. MyHSR will build the civil infrastructure, and AssetCo will build the railway operating assets, which include the track, signalling, communication, power and rolling stock.
 
  "The operators will use trains from AssetCo. They do not have to invest in anything other than human capital, and maybe, small infrastructure to support their operations. These are all minimal hard-asset investments."
 
  Nur Ismal also pointed out that operators would not have legacy assets and liabilities that would eat into their margins.
 
   All they had to do was focus on running operations as efficiently as possible and attract as much ridership as possible, he said.
 
   He said if operators did not perform during the concession period or performed below expectations, then they would be replaced.
 
  "We will know how they perform. We can see the number of people taking flights and how many still drive (from here to Singapore and vice versa). If operators fail to migrate these people, then we know they are not performing, and we will go out to the market and re-tender."

  /ends

Land deal freeze along HSR route

By Sharen Kaur
sharen@mediaprima.com.my

Published in NST, August 2, 2016


KUALA LUMPUR: MYHSR Corp Sdn Bhd will lay out plans for the authorities to freeze all land transactions along the Kuala Lumpur-Singapore high-speed rail (HSR) corridor.
  The HSR, which will link Bandar Malaysia, here, to Jurong East in Singapore, has a total length of 350km and will require a lot of land.
  However, MyHSR Corp chief executive officer Mohd Nur Ismal Kamal said the construction of the HSR would involve minimal displacement of families and businesses.
  About 335km of the alignment will be built in Malaysia and the rest in Singapore.

  The alignment would be the longest in Johor, about 150km to 160km, Nur told Business Times.
  “Because the alignment is the longest in Johor, there will be more land acquisitions there.”
  There will be three transit stations in Johor, namely Muar, Batu Pahat and Iskandar Puteri.
  Nur said a budget had been estimated for land acquisitions and compensation but he declined to reveal the amount. He said there would be two stages of land acquisition.
  The first will be to freeze transactions for a corridor that is 500m wide.
  “This is where we will file with the local authorities or the state governments to freeze transactions of land identified for HSR use.
  “This will enable us to do soil investigation, survey the land and determine the final alignment within that 500m corridor.
  “Once that is determined, we will take the next step to acquire the land. But we will acquire a narrower corridor of about 50m. So, much of the land will be released.”
  Nur said the 50m-wide corridor would be used for the alignment (which includes building two tracks and reserving space in-between the tracks), the railway reserve and to protect the whole railway against intrusions.
  He said bigger plots would be acquired to build stations, depots and maintenance facilities.
  “As for tunnelling and other works, if we don’t buy the land, we will have to come up with an agreement with the landowner where we can co-exist.
  This is something similar to what MRT Corp has done for the mass rapid transit project.”

Land deal freeze along HSR route

By Sharen Kaur
sharen@mediaprima.com.my

Published in NST, August 2, 2016


KUALA LUMPUR: MYHSR Corp Sdn Bhd will lay out plans for the authorities to freeze all land transactions along the Kuala Lumpur-Singapore high-speed rail (HSR) corridor.
  The HSR, which will link Bandar Malaysia, here, to Jurong East in Singapore, has a total length of 350km and will require a lot of land.
  However, MyHSR Corp chief executive officer Mohd Nur Ismal Kamal said the construction of the HSR would involve minimal displacement of families and businesses.
  About 335km of the alignment will be built in Malaysia and the rest in Singapore.

  The alignment would be the longest in Johor, about 150km to 160km, Nur told Business Times.
  “Because the alignment is the longest in Johor, there will be more land acquisitions there.”
  There will be three transit stations in Johor, namely Muar, Batu Pahat and Iskandar Puteri.
  Nur said a budget had been estimated for land acquisitions and compensation but he declined to reveal the amount. He said there would be two stages of land acquisition.
  The first will be to freeze transactions for a corridor that is 500m wide.
  “This is where we will file with the local authorities or the state governments to freeze transactions of land identified for HSR use.
  “This will enable us to do soil investigation, survey the land and determine the final alignment within that 500m corridor.
  “Once that is determined, we will take the next step to acquire the land. But we will acquire a narrower corridor of about 50m. So, much of the land will be released.”
  Nur said the 50m-wide corridor would be used for the alignment (which includes building two tracks and reserving space in-between the tracks), the railway reserve and to protect the whole railway against intrusions.
  He said bigger plots would be acquired to build stations, depots and maintenance facilities.
  “As for tunnelling and other works, if we don’t buy the land, we will have to come up with an agreement with the landowner where we can co-exist.
  This is something similar to what MRT Corp has done for the mass rapid transit project.”