A joint venture agreement has been signed between Malaysia Rail Link (MRL) and the China Communications Construction ECRL (CCCECRL) to oversee the operations of the 665 km-long East Coast Rail Link (ECRL) that will connect Kota Baru, Kelantan with Port Klang, Selangor, reported Malay Mail.
The newly formed partnership will establish a new operating company with both parties holding equal stakes and responsibility for operational risks, including financial deficits, said transport minister Anthony Loke.
“The Chinese company built this track and they need to take the burden of risk in its operations as we want this to be a sustainable and profitable endeavour. As we all know, turning a profit in the rail sector is very hard,” Loke said.
“But we try and through this agreement both parties will share the losses 50:50, but as far as operational profits go, the government of Malaysia will take 80% of all profits, and they will only take 20%. This agreement was renegotiated back in 2019 and has now materialised,” the transport minister said.
Even with the new agreement, Malaysia Rail Link will retain full ownership of all ECRL assets, Loke added. Malaysia Rail Link has confirmed that 80% of operational and maintenance workforce for the ECRL will be sourced domestically, and the ECRL is approximately 76.06% complete as of last month, said the transport minister according to New Straits Times.
The design of the new electric multiple unit (EMU) trains was also unveiled through Chinese firm CRRC Dalian, and the six-car trains are designed to carry up to 430 passengers and will be equipped to accommodate persons with disabilities.
Some 11 sets of EMU trains have been allocated CRRC Dalian, and the first train set is expected to arrive by the end of 2025, transport minister Loke said. “These trains will move at a speed of 160km/h and will begin operations in January 2027, running from Kota Baru terminal to the Gombak terminal, a journey that will take around four hours,” he said.
CRRC Dalian has also committed to sending two E-Loco trains for cargo and for their assembly at the ECRL train depot in Kuantan Port City, as part of efforts to promote local participation in the programme and as part of technology transfer initiatives, Malay Mail reported.
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