PETALING JAYA: A new double-track rail line linking Mentakab to Kuantan in Pahang is being planned and it will be entirely financed by the private sector.
According to sources, this will be the first time the infrastructure is fully borne by a private sector entity with the Government not having to bear any operational or financial risk.
“The project has been approved by the top level officials in the Government and is expected to be announced soon,” said a source.
“An entity from China has expressed interest to undertake the project.”
The general rule of thumb for constructing a new rail line is RM40mil to RM60mil per km. This means it may cost around RM5bil or more to build the Mentakab-Kuantan track.
Mentakab is about 120km west of Kuantan by road and currently has a railway station operated by Keretapi Tanah Melayu Bhd (KTMB).
A rail line connecting the two towns will accelerate the growth of Kuantan Port which is shaping up to be a major centre for trade, particularly with China.
It been reported that about RM4bil had been invested into the development of the Kuantan Port, which is expected to be recognised as an international port this year.
The rail line is expected to used mainly to transport cargo although it may include passenger services, according to industry players.
China’s Guangxi Beibu Gulf International Port Group Co Ltd has a 40% stake in Kuantan Port Consortium Sdn Bhd – the operator of Kuantan Port. It had bought that stake from IJM Corp Bhd for RM310mil two years ago.
The Government had announced plans to open up the inter-city freight and rail commuter services to the private sector as had been done successfully in many other countries. Currently, the Government-owned KTMB is the sole operator for train and rail commuter services in the country.
Transport Minister Datuk Seri Liow Tiong Lai was quoted as saying that the ministry hoped to see the approval of train operators this year as the railway sector continued to be one of the ministry’s priorities in 2016.
In the bigger scheme of things there is a plan for a train linking Kuala Lumpur to Kuantan via Mentakab.
The present east coast rail connection that is operated by the loss-making KTMB does not go through Kuantan. It runs from Kuala Lumpur to Gemas, Mentakab, Pasir Mas and Tumpat in Kelantan.
There is a railway line from Mentakab to Kerteh, Terengganu, but this is mainly to serve the transport of petroleum products.
A direct rail link to Kuala Lumpur would spur the development of the east cost as envisioned under the East Coast Economic Region master development plan.
One Chinese rail infrastructure based firm with notable presence in Malaysia is China Railway Construction Corp Ltd (CRCC).
The Hong Kong-listed CRCC is China’s largest state-owned construction company with a presence in over 60 countries.
It set up operations in Malaysia in 2012 through subsidiary CRCC Malaysia Bhd and to date has amassed an order book of almost RM16bil.
The Government awarded the Gemas-Johor Baru electrified double tracking project worth about RM8bil to CRCC last month.
A CRCC-led consortium is also reportedly eyeing the high speed rail project from Kuala Lumpur to Singapore.
Recently, the China Railway group emerged as a 40% partner in the joint venture that won the bid for a 60% stake in the 486-acre Bandar Malaysia project for RM7.41bil. For its part in the purchase, China Railway said it would pay RM2.64bil.
According to sources, this will be the first time the infrastructure is fully borne by a private sector entity with the Government not having to bear any operational or financial risk.
“The project has been approved by the top level officials in the Government and is expected to be announced soon,” said a source.
“An entity from China has expressed interest to undertake the project.”
The general rule of thumb for constructing a new rail line is RM40mil to RM60mil per km. This means it may cost around RM5bil or more to build the Mentakab-Kuantan track.
Mentakab is about 120km west of Kuantan by road and currently has a railway station operated by Keretapi Tanah Melayu Bhd (KTMB).
A rail line connecting the two towns will accelerate the growth of Kuantan Port which is shaping up to be a major centre for trade, particularly with China.
It been reported that about RM4bil had been invested into the development of the Kuantan Port, which is expected to be recognised as an international port this year.
The rail line is expected to used mainly to transport cargo although it may include passenger services, according to industry players.
China’s Guangxi Beibu Gulf International Port Group Co Ltd has a 40% stake in Kuantan Port Consortium Sdn Bhd – the operator of Kuantan Port. It had bought that stake from IJM Corp Bhd for RM310mil two years ago.
The Government had announced plans to open up the inter-city freight and rail commuter services to the private sector as had been done successfully in many other countries. Currently, the Government-owned KTMB is the sole operator for train and rail commuter services in the country.
Transport Minister Datuk Seri Liow Tiong Lai was quoted as saying that the ministry hoped to see the approval of train operators this year as the railway sector continued to be one of the ministry’s priorities in 2016.
In the bigger scheme of things there is a plan for a train linking Kuala Lumpur to Kuantan via Mentakab.
The present east coast rail connection that is operated by the loss-making KTMB does not go through Kuantan. It runs from Kuala Lumpur to Gemas, Mentakab, Pasir Mas and Tumpat in Kelantan.
There is a railway line from Mentakab to Kerteh, Terengganu, but this is mainly to serve the transport of petroleum products.
A direct rail link to Kuala Lumpur would spur the development of the east cost as envisioned under the East Coast Economic Region master development plan.
One Chinese rail infrastructure based firm with notable presence in Malaysia is China Railway Construction Corp Ltd (CRCC).
The Hong Kong-listed CRCC is China’s largest state-owned construction company with a presence in over 60 countries.
It set up operations in Malaysia in 2012 through subsidiary CRCC Malaysia Bhd and to date has amassed an order book of almost RM16bil.
The Government awarded the Gemas-Johor Baru electrified double tracking project worth about RM8bil to CRCC last month.
A CRCC-led consortium is also reportedly eyeing the high speed rail project from Kuala Lumpur to Singapore.
Recently, the China Railway group emerged as a 40% partner in the joint venture that won the bid for a 60% stake in the 486-acre Bandar Malaysia project for RM7.41bil. For its part in the purchase, China Railway said it would pay RM2.64bil.
Source: The Star | Business | 13 Jan 2016
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