ECRL project: local contracts surge to RM12.99 bil, exceeding RM10.8 bil goal

74% of RM3.5 bil for civil works allocated to Bumiputera contractors, consultants, suppliers

2:39 PM MYT

 

KUANTAN – The contract value of local companies’ involvement in the East Coast Rail Link (ECRL) project has reached RM12.99 billion, surpassing the set target of RM10.8 billion, said Transport Minister Anthony Loke Siew Fook.

As for the involvement of Bumiputera companies, Loke said that a total of RM2.59 billion, or 74% of the target of RM3.5 billion, for ECRL civil works had been given to Bumiputera contractors, consultants, and suppliers.

Loke said that Malaysia Rail Link Sdn Bhd (MRL), as the project owner, and China Communications Construction Company Ltd (CCCC), which is the engineering, procurement, construction, and commissioning contractor of ECRL, will gather energy to ensure that the involvement of Bumiputera companies continues to increase.

“Among the initiatives being taken is a collaboration with the state government to screen Bumiputera contractor companies from the G1 and G2 categories, further opening up opportunities for them to jointly develop the ECRL project within a suitable scope of work.

“MRL and CCCC are in the process of shortlisting companies for that purpose,” he said today at the launching ceremony for the installation of the first ECRL track at the Section 10 ECRL Station Site in Gebeng, here today.

Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, accompanied by Raja Permaisuri Agong Tunku Azizah Aminah Maimunah Iskandariah, officiated the ceremony

Also present were Chinese ambassador to Malaysia Ouyang Yujin, MRL chairman Tan Sri Mohd Zuki Ali, CCCC chairman Wang Tongzhou, and the menteris besar from the three east coast states involved in the project.

Loke added that as many as 2,800 local companies, consisting of contractors, consultants, and suppliers, have been involved in the implementation of the ECRL, starting from 2017 until October this year.

The 665km railway line, across Kelantan, Terengganu, Pahang, and Selangor, was inaugurated on August 9, 2017, and is scheduled to operate in 2027, involving passenger trains at a speed of 160km/h and freight trains at a speed of 80km/h.

Loke said that the Transport Ministry’s recommendation that a 50:50 joint venture company between MRL and CCCC to successfully operate the ECRL could be established in 2024 demonstrates both parties’ confidence in the prospect of the ECRL’s operating profit as well as guaranteeing the quality and sustainability of the service.

The joint venture, according to Loke, will also provide technical assistance and intensify the transfer of railway technology, as well as in the aspects of operation and maintenance of the ECRL for the long term. – December 11, 2023

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