The federal government and Express Rail Link (ERL) have signed a new supplementary concession agreement. The 30-year concession agreement will run from 2029 to 2059 and will allow the operator of the KLIA Ekspres and KLIA Transit city-to-airport services to implement a ‘market-driven’ fare structure.
According to The Edge, under the new agreement, the government will stop paying ERL a cut from airport passenger service charges (PSC) from 2029. PSC collected from outbound airline passengers at KLIA Terminal 1 (RM5) and Terminal 2 (RM1) are shared between Malaysia Airports Holdings Bhd (MAHB) and the government – currently, ERL gets a share of the government’s portion.
Transport minister Anthony Loke said the supplementary concession agreement is a win-win situation between ERL and users, where the best service can be provided without burdening the operation in terms of costs. “The government remains committed to improving alternative services to KLIA that will create healthy competition in terms of competitive fare options,” he said.
The Seremban MP said that he hopes the supplementary concession agreement will pave the way for ERL to be self-sustaining. The service is loss-making – in the financial year that ended June 30, 2022, ERL incurred a net loss of RM156.34 million, down from RM209.95 million in FY2021, according Companies Commission of Malaysia (CCM) filing. Revenue more than doubled to RM43.35 million in FY2022, from RM18.17 million in FY2021.
Since the start of operations in 2022, ERL fares were maintained at RM35 before an increase to RM55 in late 2015. According to the report, ERL’s original fare schedule should have been increased to RM41 in 2004, RM56 in 2009 and RM74 in 2014. This year, the fare for a single trip would be RM126.
ERL’s majority owner is YTL Corp with a 45% stake. Lembaga Tabung Haji owns 36% of the company, SIPP Rail 10% and the remaining 9% interest is owned by Trisilco Equity.
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It is so irresponsible to sign something so far in the future. Your government also don’t know can last beyond 1 term.
Xpe asal janji wang sogok sudah masuk poket manada kesah 30 taun kemudian.
We built a airport far away from the city and then made a transport system that is expensive to get there. And made other travellers using the airport subsidies the service.
We didn’t do anything. One old man who wanted to erase Tunku’s legacy and bought up land around Sepang/Prang Besar to have ongoing income and enrich his cronies. Apa kita mau buat?
Sydney has moved their Int Airport to further outskirts of city. This must be old mans fault.
HK also had their Int Airport away from their old one. This must be old mans fault.
If you been to Subang do you really think it is still safe for high volume planes in & out?
Ya…might as well just throw away the airport, pinjam the singapore one and have a bullet train to KL.
The whole journey including immigration clearance and luggage claim could still be faster than the current if we outsource our airport operations to singapore.
Whenever i fly to singapore, i will always check in my stuff even if its only a hand carry, knowing that when i touvh down, the luggage will always be waiting for me at the conveyor belt. But i avoid checkin on my return trip to KL.
You must not be a rakyat Malaysia. For us it is a simple touch of our passport and out we go to collect baggage. Non Rakyats wait in line is common in any countries laa.
After 30 years, YTL gets another 30 years ERL concession somemore.
YTL is sole provider for MLFF
YTL also getting new solar farm contracts.
Memang jelas dah tau dorang banker utk PH dan PMX. Kalau PMX jatuh, pasti nasib YTL sama macam Daim & wife skarang.