KL-Singapore HSR – questions raised about viability

Hitachi Super Express

Even as the draft alignment is being finalised for the KL-Singapore high-speed rail (HSR), questions are being raised about the project, concerning anticipated fares and its viability. At a state assembly sitting in Johor yesterday, the issue of the projected Passenger Flow Volume (PFV) and ticket prices were brought up, The Sun reports

It had previously been reported that the estimated annual PFV of the HSR will be around 18 million passengers. The DAP assemblyman for Stulang, Andrew Chen Kah Eng, said this number was low and questioned how much could be charged for a per-trip ticket with such a low volume.

He cited the ticket prices of three other HSR projects – which all cover about 300 km in distance – in other countries as a reference. Among these were the Shanghai to Nanjing HSR, which has an annual PFV is about 105 million passengers and costs RM150 per trip, and the Taipei to Tainan HSR, which has an annual PFV of 50 million. A ticket for this is around RM180.

MyHSR

Chen said that pricing of the KL-Singapore HSR will be an important parameter for its success. “If we charge too low, the operator will be in trouble. If we charge too high, we will face a passenger problem,” he said.

Last year, it was reported that ticket prices for a one-way trip between KL and Singapore could cost commuters less than RM200, with return trip tickets to be under RM400, in order to accommodate all market segments, including business and leisure travellers.

“We foresee a much lower average price to make the HSR project feasible. Although the return on investment will take a longer time, the operator will have several options to recoup its investment in the project,” MyHSR CEO Mohd Nur Ismal Kamal had said then. The proposed pricing structure is also expected to mirror that of an airline system, where a surge/drop in demand for tickets will affect the overall fare on a daily basis.

HSR stations proposed

Malaysia will soon be finalising the draft alignment for the project, and this will be done before the memorandum of understanding is signed by both Malaysia and Singapore in July. Proposed transit points in the draft alignment include Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Puteri.

The race to be the one to build the line has intensified between China, Japan and South Korea in recent months. The HSR, when ready, is expected to cut travel time between KL and Singapore down to 90 minutes, with trains on the service projected to run at average speeds of 350 to 450 km/h.

It will also have direct links to the Kuala Lumpur International Airport (KLIA), Changi Airport in Singapore and the proposed Pan Asean Rail Transit to Bangkok.

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Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Bijan on Apr 19, 2016 at 11:52 am

    Lancar Pas Bulanan 1Malaysia RM50/bulan.

    Like or Dislike: Thumb up 18 Thumb down 7
    • Land Of Corruption on Apr 19, 2016 at 1:43 pm

      MoF can jump in and bail the debts later. Malaysians are stupid enough to pay for it.

      Like or Dislike: Thumb up 14 Thumb down 0
      • hahaha on Apr 19, 2016 at 3:29 pm

        2013 rough figure shows approx. 35-40k single trips made between KL and singapore via airplane

        RM 200 per ticket
        40000 customers (assume HSR snatch 100% customers from all airlines)
        52 weeks a year

        approx RM416M revenue per year.

        if the cost of building HSR is RM40B (straits times May 11, 2015)

        that works out to be 96.1 years to return the cost!!!! (assuming 100% profits here)

        I understand that factors such as increased population, increased traffic between the two cities and also inflation of tickets prices has to be factored in. but i have also assumed an impossible 100% conversion of airline passengers to HSR and also 100% profits.

        we are looking at 96.1 yrs!!!!

        STOP TALKING ABOUT NONSENSE HST KL_SINGAPORE!!!!
        IT WILL RUIN THE COUNTRY!!!!

        Like or Dislike: Thumb up 21 Thumb down 4
        • just_saying on Apr 19, 2016 at 6:31 pm

          well, it’s not all doom and gloom, there will be passengers travelling from within the 6 malaysian cities as well. Can use northern serving ETS as indicator since most of the trains are perpetually full during peak times.

          Like or Dislike: Thumb up 3 Thumb down 2
        • I guess the customer volume should be higher if we consider customers from other stops aswell between kl n sg. Besides there are potential for customers not only base from current airline volume but also from other means aswell. Look at potential customers at north south highway daily along kl n sg. If hsr is fast, reliable and comfortable enough with good frequency, i believe it can be a success. Making sg n kl closer will also improve the economy. But need to improve on custom clearance at sg n public transport at kl first to attract more people using it.

          Like or Dislike: Thumb up 1 Thumb down 0
        • nhtan on Apr 21, 2016 at 7:09 am

          Think further than that my friend. Why did we have mrt when we already had roads, buses, taxis…

          Like or Dislike: Thumb up 0 Thumb down 0
    • Peter on Apr 20, 2016 at 11:33 am

      RM50 for bulanan … are you serious!? Remember how much it costs per ERL trip?
      Really hope you’re joking with this expectation …

      Like or Dislike: Thumb up 0 Thumb down 0
  • Future HSR user on Apr 19, 2016 at 12:04 pm

    One of the factors for the success is of course the price of the fares. If it is on par or cheaper with what domestic flights is offering, it will be a big advantage.
    Secondly, the frequency of the trips. If it is limited to just a few trips a day, it will be very inconvinient to travellers and there will be a rush for bookings, which is what we want to avoid in the first place when we take the local flights.
    Thirdly, weather there are sufficient seats, if anyone wants to just purchase and ride, without advanced bookings.
    Fourthly, the purchase of tickets process – how easy or convinient to purchase the tickets from all walks of life.

    Like or Dislike: Thumb up 6 Thumb down 1
    • helmi on Apr 19, 2016 at 3:19 pm

      yeah, that is still the main issue. Frequency of travel. Location of the station and duration of travel. Cost is secondary as time will be a major factor. They need to look on how the big player do in this area. For instance, Japan. Travelling by train is a lot more costly compared to flight. But due to time spent and close proximity of stations is much lesser and high frequency of travel, most of them take a train. But having said that, should the distance being way far, flight is more suitable no matter what is the cost. 2-3 hr is more likely to be suitable for a HS train from singapore to kuala lumpur. More than that, flight might be superior than HS train.

      Like or Dislike: Thumb up 2 Thumb down 0
  • In order to gauge whether this HSR a viable or NOT simply discuss on TICKET ALONE.

    This project not a feasible and viable yet. Give a go and country will be in haywire

    Like or Dislike: Thumb up 3 Thumb down 4
  • azhar on Apr 19, 2016 at 12:13 pm

    to compensate the low volume passengers, maybe they will try other sources for income like adverts and parking charges??

    Like or Dislike: Thumb up 5 Thumb down 1
  • How much does a flight costs from Klia to Singapore?

    Like or Dislike: Thumb up 1 Thumb down 6
  • From Penang to Singapore, cost RM180 per trip. Peak can go up to RM300 per trip. Who will take the train if it price at RM200 from KL to Singapore?

    Like or Dislike: Thumb up 6 Thumb down 8
  • Black Dog on Apr 19, 2016 at 1:25 pm

    Don’t they know how to do business? Charge higher during peak periods and lower off peak.

    At this advance stage still thinking about viability? Private sector proposed to do (YTL) don’t let. Delay again? Pening kepala!

    Like or Dislike: Thumb up 2 Thumb down 3
  • gaviny on Apr 19, 2016 at 1:33 pm

    why is that chap basing his arguments on CONVERTED pricing to RM ?

    Like or Dislike: Thumb up 1 Thumb down 4
  • Ahmadjr on Apr 19, 2016 at 1:43 pm

    We need this HSR more than ever with low oil prices now. With o&g investors in Pengerang running away, we need different types of investments

    Like or Dislike: Thumb up 5 Thumb down 2
  • why to singapore? i thought Thailand was planning to make canal segenting kra? So, The planning should be toward Thailand. https://en.wikipedia.org/wiki/Thai_Canal

    if this happen. Singapore gone.

    Like or Dislike: Thumb up 13 Thumb down 5
    • Not feasible on Apr 19, 2016 at 3:57 pm

      It takes time for vessel moving and canal wall system open close 1 by 1, end up a vessel takes 3 days to cross this canal. Would any vessel willing to pay to use this new canal that only shortern 1500km and save 2 days?

      Like or Dislike: Thumb up 2 Thumb down 1
    • Facebook on Apr 19, 2016 at 5:05 pm

      If Canal Kra is going to happen, your no longer living at peninsular Malaysia… your living at Malaysia island…same as Singapore…

      Canal Kra is not going to happen in 30 years time, many of the country will not agree on this…

      Like or Dislike: Thumb up 0 Thumb down 1
    • Nongseng Popkornlemau on Apr 19, 2016 at 10:12 pm

      Map of the world. Look at the shipping distance Panama canal and Suez canal saved. Then look at Kra and laugh at the Thais…

      Like or Dislike: Thumb up 1 Thumb down 0
  • ‘Proposed Pan Asean Rail Transit to Bangkok’.

    Actually the vision is larger, or literally longer than that. It is called Singapore-Kunming Rail Link (SKRL). Part of ASEAN Connectivity initiatives.

    Well..as any Governments’ projects, the idea is bombastic and the intention is noble. But when it comes to implementation, that is when people should really scrutinize.

    Like or Dislike: Thumb up 4 Thumb down 1
  • Eddy Irwan on Apr 19, 2016 at 3:24 pm

    why we need a train since we have cheap airlines…

    cuba amik satu ticket dari klia ke singapore menggunakan low cost airlines? if still have some more empty seats left, means the railway track is not viable

    Like or Dislike: Thumb up 9 Thumb down 2
    • I couldn’t agree more!

      Like or Dislike: Thumb up 2 Thumb down 1
    • Bryan on Apr 19, 2016 at 5:43 pm

      I agree ….. Firefly from Subang check-in plus flight time only need about 2 hours to Changi.
      Why do we need the train if we do not have the numbers???

      Like or Dislike: Thumb up 3 Thumb down 3
    • savvykl on Apr 19, 2016 at 11:55 pm

      simple, time slot at airport, went passenger is more, but Airport time slot can’t increase. every hours total flight lake off or landing already fix. not calculate any issue like delay, weather issue, plane issue, traffic issue, emergency maintenance at runway close down, etc.
      A320 can carry 180 passenger, but a hsr train can carry 550 passenger, is 3x ridership compare to A320.

      Like or Dislike: Thumb up 0 Thumb down 0
    • Peter on Apr 20, 2016 at 11:40 am

      … if you consider how much need to pay to reach airport, airport tax/duties. There’s once someone got RM1 Airasia ticket from PNG-KL and end up need to pay > RM150 (including taxi & airport tax). And overall it took > 3 hrs (from home to KL city) overall. By bus, PNG to KL city only took 5 hrs

      Like or Dislike: Thumb up 0 Thumb down 0
    • nhtan on Apr 21, 2016 at 7:07 am

      think big… think far… please dont limit yourself to emtpy aircraft seats.

      Like or Dislike: Thumb up 0 Thumb down 0
  • thepolygonal on Apr 19, 2016 at 4:11 pm

    I fear that end of the day only Singaporeans can afford to use to come to KL to shop.

    Like or Dislike: Thumb up 2 Thumb down 0
    • Look at the bright side, the land value and economy of Johor, Melaka and Negeri Sembilan will continue to prosper. However, the cost of living in this areas will rise rapidly.

      Like or Dislike: Thumb up 2 Thumb down 0
    • Ahmadjr on Apr 19, 2016 at 6:16 pm

      Then is it a good news for us? Retail businesses already suffering after the gst

      Like or Dislike: Thumb up 1 Thumb down 4
  • Lpost on Apr 19, 2016 at 5:32 pm

    this project was proposed by YTL and has been rejected long time ago by Unit perancang ekonomi negara as it is not viable and not economical to rakyat dan negara. just cancel this project!!

    Like or Dislike: Thumb up 3 Thumb down 1
    • savvykl on Apr 19, 2016 at 11:46 pm

      that was on 2006-2008, but rapid budget grow airline from MY & SG from 2008 to 2013 cause air time slot for both country air space become more congestion, specially Singapore Airport so congestion and Q up at run way. you can check how many flight Kl-SG from AA, MAS, SA, Tiger and etc each day. and those fight regional not give much profit to Sg/my, better give for oversea flight like in Europe/US or at lease east/west asia.
      so with HSR KL-SG, those flight will reduce 90% in 2022.

      Like or Dislike: Thumb up 0 Thumb down 1
  • kopiokaokao on Apr 19, 2016 at 6:10 pm

    Fix the slow custom clearance issue at the 2 bridges to SG and you can scrap this white elephant…alternative…build a super highway like Autobahn in parallel to the NS highway….SG to KL distance is just ~300km….you can reach in about 2 hours if you drive at 150/kmh :)

    Like or Dislike: Thumb up 8 Thumb down 1
  • savvykl on Apr 19, 2016 at 11:27 pm

    well, people like to compare the current air ticket price, but should think air ticket price on 2022 went HSR is on service. price will more expensive. and even HSR same price with Air ticket, i still take HSR because still much convenient than plane, and no need waiting at Airport and cost & time travel to Airport.

    Like or Dislike: Thumb up 2 Thumb down 1
  • Nuradi Hamzah on Apr 20, 2016 at 10:31 am

    Well if you asked the frequent flyer, in terms of travelling time this will helps a lot given the fact that our wonderful airport is 45 minutes from the city. Imagine the traffic time on peak hours. For example our mate in Alor Star ask them whether they prefer to take plane or the new train service now. Furthermore if they are linked to ERL, it will help KLIA to be a hub or big transit point for internationals.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Really?? on Apr 20, 2016 at 10:52 pm

    My guess it’s the Singaporean has its hand as well. Cross the border and they have the budget tripled.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Rail to Hell on Apr 21, 2016 at 2:40 am

    I prefer 70bil to be spend on widening the NS highway & extend the current ETS train services to JB.Seriously ETS service not being utilise to the max,only few selected time schedules per day.Singapore or KL is not Tokyo where the people living very far out of city to who depend on bullettrain to rush for work everyday.But this is Jibby Arrogant Mega Project so it will gonna get through eventually no matter how much money will take to sucking out till drought from Mof book sheet.

    Like or Dislike: Thumb up 1 Thumb down 0
 

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