Tuesday, July 9, 2019

Malaysia's revived rail project to go full swing this year?


By AK Grewal

  The newly revived East Coast Rail Link (ECRL) project may likely go full swing within the next few months and Malaysian companies are rushing to get a share of the pie.




  The re-launch of the ECRL is expected on July 25, said Transport Minister Anthony Loke in a speech at the Women In Rail Malaysia Leadership Conference here on July 8.

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   Loke said, Malaysian companies will “play a larger role” in the ECRL, taking up to 40 per cent of the project’s civil work.
  “It is our hope that we fully utilise the project for the benefit of the Malaysian economy, not only at the construction stage but (in future) link up the whole railway network with the ports to ensure industrialisation will take place along the railway corridor,” he said.
  The question is about foreign rail players and whether they are allowed to participate in the development.




  "There are only a handful of companies in Malaysia with real railway expertise. They probably could form joint ventures with foreign parties to work on the project but this remains to be heard," said an industry player.
  The ECRL was put on hold for several months from July 2018 as terms of its construction were renegotiated.
  The project was revived after Malaysian Rail Link Sdn Bhd and China Communications Construction Company Ltd (CCCC) signed a supplementary agreement in Beijing in April.
  Under the new deal, the project’s development cost was reduced to RM44 billion from RM66 billion previously. The line was also shortened from the previous 688km by 40km.


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