MRL, CCCECRL jointly operate and maintain ECRL project

PUTRAJAYA, Dec 19 – Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction (ECRL) Sdn Bhd (CCCECRL) on Wednesday created an operating company (OpCo) with a 50:50 interest ratio for the purpose of operating and maintaining the East Coast Rail Link (ECRL) project.

The matter was agreed at the signing ceremony of the joint venture agreement between MRL and CCCECRL for the operation and maintenance of the ECRL rail network here.

It was witnessed by Transport Minister Anthony Loke and Chinese Ambassador to Malaysia Ouyang Yujing.

In his speech at the event, Loke said the joint venture agreement allows both parties to share costs for ECRL operations as well as facilitate the exchange of technical knowledge and expertise.

“MRL and CCCECRL will each bear 50 per cent of the risk in OpCo if ECRL operates with a deficit.

“MRL will fully own ECRL’s assets on behalf of the Malaysian government throughout the operational phase of ECRL to ensure that national interests are protected at all times and enable local empowerment in this national infrastructure,“ he said.

MRL is the owner of the ECRL project while China Communications Construction Co Ltd (CCCC) is responsible as the engineering, procurement, construction and operation contractor (EPCC).

At the beginning of this year, the Cabinet gave the green light to the establishment of an OpCo for the purpose of operating and maintaining the ECRL which also has the potential to ease the government’s financial burden.

He said the joint venture agreement drives the direction of national infrastructure in strengthening modern, efficient and environmentally friendly transport services for the well-being of the people and increasing the competitiveness of the national economy.

“This agreement is in line with the government’s desire to empower the country’s rail sector to increase train services and open up job opportunities for the youth, especially related to engineering in the industrial and locomotive sectors,“ he said.

Loke said the ECRL project has reached a proud overall level of progress, which is 76.06 per cent as of November 2024.

“This progress is within the ECRL project target for this year and is on track with the schedule for the completion of the first phase line from Kota Bharu to the Gombak Integrated Terminal in December 2026, and the second phase line between Gombak and Port Klang by December 2027,“ he said.

On whether the ECRL project will be extended to Thailand, Loke said he hoped the project could be connected to the country in question.

“We hope that it can be linked to Thailand. It already reached Kota Bharu. So it’s just 20km away from the Malaysian-Thai border in Rantau Panjang.

“So eventually, of course, our hope as far as the Ministry of Transport is concerned, we want to link it to Thailand. Because that will then link it to the entire Thailand railway network,” he added.

The 665 km long ECRL project involves 59 tunnels and construction works covering Kelantan, Terengganu, Pahang and Selangor.

The joint venture agreement was signed today by MRL chief executive officer Datuk Seri Darwis Abdul Razak and CCCECRL managing director Kong Qi.