PUTRAJAYA: The joint venture agreement between Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction (ECRL) Sdn Bhd (CCCECRL) has established a 50:50 partnership for the operation and maintenance of the East Coast Rail Link (ECRL).
Transport Minister Anthony Loke said both companies would equally share the risks if the operational company incurs a deficit.
"China (through CCCECRL) will not only build the ECRL system, but will also assume operational risks.
"The key goal is for the operation to be sustainable, competitive and not run at a loss.
"We know profitability in the rail sector is challenging, but we are committed to trying."
He said if the operation incurred losses, China would cover 50 per cent, while profits would be split, with Malaysia receiving 80 per cent of the operational profits and China taking 20 per cent.
"This is the result of the 2019 renegotiations and we are seeing it come to fruition today."
Loke officiated the signing ceremony for the joint venture agreement and the launch of the Electric Multiple Unit train design and the ECRL logo.
MRL chief executive officer Datuk Seri Darwis Abdul Razak represented the company, while CCCECRL was represented by its managing director, Kong Qi.
The new ECRL logo was unveiled along with a model of the train, set to be fully operational in January 2027.
Loke said MRL, on behalf of the government, would fully own the ECRL assets during the operational phase, ensuring national interests were protected while enabling local empowerment.
He said the 665km ECRL project had reached 76.06 per cent completion last month.
He said the first phase of the project from Kota Baru to the Gombak Integrated Terminal was set for completion by December 2026 and the second phase to Port Klang by December 2027.
Loke said the first of 11 sets of the six-car EMU trains manufactured by CRRC Dalian was expected to arrive in Malaysia by year end.
He said the six-car EMU train can accommodate up to 430 passengers at a time and is equipped with facilities to ensure passenger comfort, including seating for wheelchair users and those requiring special assistance.
Loke addressed the impact of recent floods on residents near ECRL construction sites, saying the contractor would help affected homes, including providing compensation.
The project spans four states: Selangor, Pahang, Terengganu and Kelantan, which were recently affected by flooding.