KUALA LUMPUR: Malaysia Rail Link Sdn Bhd (MRL) has signed two memoranda of understanding (MoU) with Perusahaan Otomobil Kedua Sdn Bhd (Perodua) and Kuantan Port Consortium Sdn Bhd (Kuantan Port) to explore East Coast Rail Link's (ECRL) potential to facilitate logistic service.
The three parties said the MoU signals potential long-term collaborations for the ECRL freight transportation services which will come on stream by January 2027.
The collaboration between MRL, who is the owner of ECRL project, and these two firms is also poised to spur various industry players to switch the movement of cargo from road to rail as the ECRL network will facilitate seamless transportation between the east and west coasts of Peninsular Malaysia.
The 665km ECRL will traverse through the east coast states of Kelantan, Terengganu and Pahang before linking the Klang Valley on the west coast.
The MoU between MRL and Perodua will explore the possibility of transporting its products to the east coast of Peninsular Malaysia to supplement the compact car maker's growing need for logistical support.
MRL chief executive officer (CEO) Datuk Seri Darwis Abdul Razak said the MoU unlocks ECRL's value beyond transportation for the public by also providing a reliable logistic service for local and international businesses.
"The ECRL serves as a key enabler in enhancing regional connectivity and economic development, underpinned by its 'landbridge' connecting Kuantan Port wharf to the wharves at Northport and Westports in Port Klang.
"This crucial 'last-mile' connectivity between Kuantan Port and Port Klang will streamline the transfer of goods between ports and address the issue of double-handling of cargo," he said at the MoU signing ceremony here today.
Darwis signed the MoU on behalf of MRL while Perodua was represented by its president and CEO Datuk Seri Zainal Abidin Ahmad, and Kuantan Port by its chairman Lee. The ceremony was withnessed by Transport Minister Anthony Loke.
Zainal Abidin said the MoU enables the three Malaysian companies cooperating to deliver the best value and realising the maximum potential and opportunities that are available.
"We are looking to diversify the way we transport our products, and ECRL is a viable option to this need. This MoU will let us explore in detail all opportunities for both parties," he said.
Kuantan Port chairman Lee Chun Fai believes that the MoU between MRL and Perodua marks a pivotal step in optimising the port's logistics network.
"Leveraging the ECRL, Kuantan Port aims to enhance connectivity and efficiency, offer competitive logistics costs and improve delivery times.
"This strategic collaboration will enhance our logistics capabilities, establish Kuantan Port as a key gateway to the east and strengthen trade links within the region," said Lee, who is also IJM Corp Bhd group CEO and managing director.
According to him, the collaboration will facilitate smoother goods movement, support the economic development of the East Coast, and drive significant economic benefits, including job creation and enhanced trade opportunities.
The ECRL rail alignment from Kota Bharu to Gombak Integrated Terminal is expected to be completed by December 2026 and operational by January 2027.
The second phase of the project consists of the route between Gombak and Port Klang is scheduled for completion in December 2027, with full operations to commence in January 2028.