A joint venture agreement has been signed between Malaysia Rail Link (MRL) and the China Communications Construction ECRL (CCCECRL) to oversee the operations of the 665 km-long East Coast Rail Link (ECRL) that will connect Kota Baru, Kelantan with Port Klang, Selangor, reported Malay Mail.
The newly formed partnership will establish a new operating company with both parties holding equal stakes and responsibility for operational risks, including financial deficits, said transport minister Anthony Loke.
“The Chinese company built this track and they need to take the burden of risk in its operations as we want this to be a sustainable and profitable endeavour. As we all know, turning a profit in the rail sector is very hard,” Loke said.
“But we try and through this agreement both parties will share the losses 50:50, but as far as operational profits go, the government of Malaysia will take 80% of all profits, and they will only take 20%. This agreement was renegotiated back in 2019 and has now materialised,” the transport minister said.
Even with the new agreement, Malaysia Rail Link will retain full ownership of all ECRL assets, Loke added. Malaysia Rail Link has confirmed that 80% of operational and maintenance workforce for the ECRL will be sourced domestically, and the ECRL is approximately 76.06% complete as of last month, said the transport minister according to New Straits Times.
The design of the new electric multiple unit (EMU) trains was also unveiled through Chinese firm CRRC Dalian, and the six-car trains are designed to carry up to 430 passengers and will be equipped to accommodate persons with disabilities.
Some 11 sets of EMU trains have been allocated CRRC Dalian, and the first train set is expected to arrive by the end of 2025, transport minister Loke said. “These trains will move at a speed of 160km/h and will begin operations in January 2027, running from Kota Baru terminal to the Gombak terminal, a journey that will take around four hours,” he said.
CRRC Dalian has also committed to sending two E-Loco trains for cargo and for their assembly at the ECRL train depot in Kuantan Port City, as part of efforts to promote local participation in the programme and as part of technology transfer initiatives, Malay Mail reported.
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So how much we paying china for this
Must be quite a lot prior to 2018 all MRT, ECRL LRT all balooning prices by the special Wee guy with that 1MDB case guy.
Under previous ECRL is wholly owned by Malaysia so it is our sovereign project, now traitor PMX dah jual 50% to China, PH Gomen have sold us out to China ruler.
Based on experience with several project in Africa, I believe Malaysia got a deal of a lifetime. Zero upfront, profit sharing for certain years and get a free train. Same project with Japan will get older tech but at 4-5 X the price and cash deposit upfront.
Please make sampan can dock
At those stations in East Coast
During flooding season ya
You think only The East Coast & The North that got flooded?
Putrajaya also daily flooding now. Maybe PH mentris need to get a fleet of EV sampans instead.
Your brain must be full of sh*t idea…now every place in this nation jave the possibility of flooding…maybe your house will be one of it…
eh? not coming to Seremban?
It was a stupid idea, lucky they managed to reroute it back to original alignment
This is ECRL lah dude. East Coast dude.
Should build 1 more along the north and south connecting SG to Penang and we will expect sudden economic boom from tourism
80%-20% operational profit sharing is nothing when projects like this rarely will make profit if any.
The Chinese will make their profit from charging service and maintenance to ECRL itself, and as the shareholder it can virtually charge any amount they want as the projects won’t go to other parties.