By Sharen Kaur
A high speed rail system is costly to build and recouping the investment would take a long time. There is investment in new infrastructure, track, bridges, stations, trains, rolling stocks, supporting facilities and system (electrification, signalling, communication), as well as wages.
Investment would be recouped through ticket revenues.
So when countries hit the breaks on bullet train projects, or postpone their plan to build one, it may be the right thing to do.
The world knows that Malaysia last year had deferred plans to build a high-speed rail network that would link Kuala Lumpur and Singapore with 90 minutes of travel time.
Many were left disappointed, especially builders and construction companies in Malaysia. Even international railway companies from China, Japan, South Korea, Spain, Canada and Germany who were eyeing a slice of the cake were disappointed as they were looking forward to the project.
Malaysian Prime Minister Tun Dr Mahathir Mohamad had said in the aftermath of his shock election victory last year that the project, approved by his predecessor Datuk Seri Najib Razak, was unnecessary and would be cancelled.
Upon signing the original agreement in 2013, Najib and Singapore’s Prime Minister Lee Hsien Loong hailed their decision to build the line as a game changer in bilateral ties after decades of on-off tensions between the two neighbours following their acrimonious split in 1965.
The original estimates for the project was RM35 billion but it has now doubled up to RM70 billion to RM75 billion.
Last September and after several meetings, the two governments announced that the construction of the Kuala Lumpur-Singapore high-speed rail link will be postponed for two years rather than cancelled. Good news?
Previously the project had been slated to open to the public in 2026. It may now begin operating in 2031, it was reported.
The question is, how many people will want to travel on the Kuala Lumpur-Singapore high-speed rail, if and when, it becomes fully operational?
Furthermore, is the line really necessary and who will benefit from it?
Construction players will surely benefit and Malaysia tends to dish out contracts to the same companies for railway projects and some other infrastructure developments.
Meanwhile, in the United States of America, it was reported this week that California Governor Gavin Newsom is abandoning plans to build a high-speed railroad between Los Angeles and San Francisco.
The roughly 520-mile line initially was estimated to cost US$33 billion and was expected to complete in 2020. The aim was also to connect the line to San Diego and Sacramento.
Subsequent estimates by the California High Speed Rail Authority put the cost of the full line to US$77 billion.
The timeline has also been pushed to 2033.
Newsom was quoted as saying that the project, which was approved by voters and championed by his predecessor is too costly.
He also said, there was not enough transparency and that the project would take too long.
Perhaps Newsome may be right on this.
Why build a railroad that is going to take 14 years to complete, at a whopping US$77 billion?
With the current global economic meltdown, it would be wise to put that money to better use like building the healthcare industry and providing cheaper medical services.
Instead of the high-speed railroad, the state will finish some 120 miles of track that is under construction in the Central Valley. Central Valley is a rural agricultural region that runs down the spine of the state.
It was reported that the Central Valley segment was expected to cost US$10.6 billion.
Better to finish the track in Central Valley than abandon it!
/ends
A high speed rail system is costly to build and recouping the investment would take a long time. There is investment in new infrastructure, track, bridges, stations, trains, rolling stocks, supporting facilities and system (electrification, signalling, communication), as well as wages.
Investment would be recouped through ticket revenues.
So when countries hit the breaks on bullet train projects, or postpone their plan to build one, it may be the right thing to do.
The world knows that Malaysia last year had deferred plans to build a high-speed rail network that would link Kuala Lumpur and Singapore with 90 minutes of travel time.
Many were left disappointed, especially builders and construction companies in Malaysia. Even international railway companies from China, Japan, South Korea, Spain, Canada and Germany who were eyeing a slice of the cake were disappointed as they were looking forward to the project.
Malaysian Prime Minister Tun Dr Mahathir Mohamad had said in the aftermath of his shock election victory last year that the project, approved by his predecessor Datuk Seri Najib Razak, was unnecessary and would be cancelled.
Upon signing the original agreement in 2013, Najib and Singapore’s Prime Minister Lee Hsien Loong hailed their decision to build the line as a game changer in bilateral ties after decades of on-off tensions between the two neighbours following their acrimonious split in 1965.
The original estimates for the project was RM35 billion but it has now doubled up to RM70 billion to RM75 billion.
Last September and after several meetings, the two governments announced that the construction of the Kuala Lumpur-Singapore high-speed rail link will be postponed for two years rather than cancelled. Good news?
Previously the project had been slated to open to the public in 2026. It may now begin operating in 2031, it was reported.
The question is, how many people will want to travel on the Kuala Lumpur-Singapore high-speed rail, if and when, it becomes fully operational?
Furthermore, is the line really necessary and who will benefit from it?
Construction players will surely benefit and Malaysia tends to dish out contracts to the same companies for railway projects and some other infrastructure developments.
Meanwhile, in the United States of America, it was reported this week that California Governor Gavin Newsom is abandoning plans to build a high-speed railroad between Los Angeles and San Francisco.
The roughly 520-mile line initially was estimated to cost US$33 billion and was expected to complete in 2020. The aim was also to connect the line to San Diego and Sacramento.
Subsequent estimates by the California High Speed Rail Authority put the cost of the full line to US$77 billion.
The timeline has also been pushed to 2033.
Newsom was quoted as saying that the project, which was approved by voters and championed by his predecessor is too costly.
He also said, there was not enough transparency and that the project would take too long.
Perhaps Newsome may be right on this.
Why build a railroad that is going to take 14 years to complete, at a whopping US$77 billion?
With the current global economic meltdown, it would be wise to put that money to better use like building the healthcare industry and providing cheaper medical services.
Instead of the high-speed railroad, the state will finish some 120 miles of track that is under construction in the Central Valley. Central Valley is a rural agricultural region that runs down the spine of the state.
It was reported that the Central Valley segment was expected to cost US$10.6 billion.
Better to finish the track in Central Valley than abandon it!
/ends
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