PUTRAJAYA: Malaysia and China have agreed to participate in the operation and maintenance (O&M) of the East Coast Rail Link (ECRL) through a joint venture company.
Prime Minister Tun Dr Mahathir Mohamad said the joint venture company will be formed between Malaysia Rail Link and China Communications Construction Company Ltd (CCCC), with each having an equal stake.
"CCCC will provide technical support and share the operational risk after the project’s completion.
"This arrangement will ease the financial burden on Malaysia, which previously would have had to bear the entire cost of the O&M. In addition, Malaysia can also leverage on CCCC’s expertise in O&M, hence improving the long-term viability of the project.
"We are confident that CCCC’s involvement will attract and spur investment along the rail link corridor, especially from China," he told reporters here on Monday.
Dr Mahathir said that the percentage of local participation in the ECRL project has been raised to 40 per cent in respect of civil works, from 30 per cent in the original deal.
The realigned ECRL, he said, will now cost RM68.7 million per km compared to RM95.5 million per km previously.
The prime minister also listed key technical aspects of the ECRL, including maintaining the standard gauge and double tracking line; having 640 kilometres of tracks inclusive of spur lines, and running 20 stations.
"Therefore, instead of four previously, it will now pass through five states and Putrajaya. This will allow more states to partake in the economic benefits of the improved deal," he added.
Dr Mahathir said the new southern alignment will also provide a direct land link from Kuantan Port to Port Klang, serving as a land bridge between the two ports.
"The new alignment will leverage on the existing KLIA Express Rail Link (ERL) as well as the future MRT2 SSP Line with an interchange in Putrajaya Sentral.
"This will improve passenger connectivity to other parts of the Peninsula’s West Coast as well as provide a direct link to KLIA.
"This is a significant improvement to the single interchange via LRT in ITT Gombak as per the previous arrangement."
The prime minister stressed that the new alignment also maintains the preservation of cultural, heritage and environmental sites by, for example, avoiding passing through the Klang Gates Quartz Ridge in Gombak, Selangor – the world’s longest pure quartz dyke.
The ECRL’s new date for completion is Dec 31, 2026, extended from the original target deadline of June 30, 2024.