Politics

BERNAMA – ECRL assets fully owned by Malaysian govt through MRL

KUALA LUMPUR, May 14 (Bernama) — Speculation that the possession of belongings and land alongside the East Coast Rail Link (ECRL) alignment can be transferred to China is utterly unfounded, Transport Minister Datuk Seri Dr Wee Ka Siong stated.

In a submit on his official Facebook web page, Wee stated ECRL belongings are totally owned by the federal government by means of Malaysia Rail Link (MRL), whereas China Communications Construction Company Ltd (CCCC) is the principle contractor of the venture.

“The ECRL belongings are 100 per cent owned by the Malaysian authorities by means of MRL and the land alongside the ECRL alignment are non-transferable railway reserves. The reimbursement plan to the Chinese government-owned financial institution additionally doesn’t contain the switch of ECRL belongings or land alongside the alignment.

“Any operating losses will be borne together 50:50. This proves the confidence of China in the prospect of ECRL’s operation which will guarantee the quality and sustainability of its services,” he stated.

MRL as a wholly-owned subsidiary of the Minister of Finance Incorporated (MOF Inc.) has signed a memorandum of understanding (MOU) with CCCC to determine a three way partnership firm and thru this MOU, 80 per cent of the working revenue can be owned by MRL and the remainder by CCCC.

In the meantime, Wee defined that ECRL fares can be decided by the Land Public Transport Agency (APAD) and can be equal to the present practice service fare fee.

In addition, he stated, the cargo and passenger visitors projections have been reviewed by certified consultants who’ve the experience to gather information and conduct research.

“Based on information assortment and analysis by consultants, ECRL is ready to generate excessive passenger and cargo visitors given the alignment of ECRL which passes by means of heavy industries areas and manufacturing hubs which can be linked to the nation’s main ports.

“There is also high demand for passenger services as the line passes through major cities on the East Coast. Therefore, ECRL can provide transportation options with affordable costs to the residents of the East Coast,” he added.

Apart from that, he stated ECRL’s single-track railway was satisfactory for the projected cargo and passenger visitors within the first 10 years of its operation, whereas the development of 9 passing loops alongside the alignment would allow the operation of two-way trains between the East Coast and Klang Valley.

Wee stated MRL had additionally drawn up and carried out a long-term plan to generate enough income to cowl the corporate’s working prices and earnings from the practice operations, and MRL’s ancillary companies can be used to repay a part of the ECRL venture mortgage.

“The advantages that may be generated by the ECRL venture by means of the value-capture of the complete venture is the fast financial improvement within the East Coast states when rail amenities are offered and the price of transporting cargo to and from the East Coast decreases by as much as 40 to 50 per cent.

“This will increase the competitiveness of the East Coast states and create more new industries that are expected to generate income for the government through taxes, and subsequently (the benefits are) returned to the people,” he stated.

The ECRL is scheduled for completion by December 2026, and can traverse the East Coast states of Kelantan, Terengganu and Pahang earlier than linking the Klang Valley on the West Coast of Peninsular Malaysia.

— BERNAMA

 

 



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