Malaysia and China will equally share the operational costs of the East Coast Rail Line (ECRL), says Transport Minister Anthony Loke.
Speaking to reporters on Wednesday (Dec 18), Loke emphasised that the partnership between the two companies – Malaysia Rail Link Sdn Bhd (MRL) and China Communications Constructions ECRL Sdn Bhd (CCCECRL), is designed to ensure the project’s sustainability and prevent it from becoming a white elephant.
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Speaking to reporters on Wednesday (Dec 18), Loke emphasised that the partnership between the two companies – Malaysia Rail Link Sdn Bhd (MRL) and China Communications Constructions ECRL Sdn Bhd (CCCECRL), is designed to ensure the project’s sustainability and prevent it from becoming a white elephant.
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NewsTranscript
00:00The ECRL project is scheduled for completion two years from now, hence I wish to take this
00:05opportunity to commend state-owned China Communications Construction Company for graciously agreeing
00:12to facilitate its subsidiary, CCCC-ECRL, to participate in the operations and maintenance
00:20of the ECRL rail network through a 50-50 joint venture with Malaysia Rail Link.
00:27The Ministry of Transport envisaged that the joint venture between MRL and CCCC-ECRL in
00:33ECRL's O&M phase will further drive cooperation between China and Malaysia, as well as deepen
00:40trade linkages and investment between our two countries.
00:46Today's signing ceremony between MRL and CCCC-ECRL also indicates the level of confidence China
00:53has in the viability of the ECRL, which is a national infrastructure that will catalyse
01:00economic growth, drive development and provide seamless transportation for passengers and
01:07freight between East Coast states and the Klang Valley.
01:10The ECRL alignment will also promote greener modes of transportation and complete the much-needed
01:16land bridge between Kuantan Port on the East Coast and Port Klang on the West Coast of
01:22Peninsular Malaysia.
01:24This land bridge will complement international trade, making it more attractive for businesses
01:29by boosting export-oriented industries.
01:32At its last mile connectivity linking Kuantan and Port Klang will bring both coasts closer
01:38together and easing the transfer of goods along the ECRL network.
01:43In short, the ECRL has vast potential via Kuantan Port to serve cargo from Sabah and
01:51Sarawak as well as the Eastern Regional Corridor with shipping routes to China and Japan, among others.
01:58In addition, the ECRL may potentially be part of the Pan-Asian Railway network should its
02:05alignment in the state of Kelantan be extended to the key connection point of Rantau Panjang,
02:11which borders with Thailand.
02:13If that were to be materialised, the ECRL would be able to tap into Thailand's entire
02:19railway network and link with Kunming in southwestern China via the Lao PDR railway network, achieving
02:27greater free flow of goods and passengers in the region.
02:41Is there a timeline for this agreement, the 50-50 or 80-20, let's say it makes losses
03:05sustained for decades and all that, will this agreement still be in force?
03:11It will be in force during the entire tenure of the loan repayment.
03:16So that is to ensure that the project has to strive to make it operational and sustainable.
03:27So I think that is one of the reasons also why during the renegotiation, the Malaysian
03:32side has been able to convince the Chinese government to ensure the success of this project.
03:37Because as I said, the first round of the model of this project is just purely construction.
03:43So when we renegotiated, the Chinese government also took part in the operations.
03:48Because we know that the challenge is in the operations.
03:51Upon completion of the construction, the most challenging part is to ensure that this will
03:56not turn into a white elephant.
03:58We want to ensure that this project is successful.
04:02Optimisation of the entire track, optimisation of the train is important.
04:06And that's why part of the planning of ECRL is not just in terms of the railway track.
04:12We are also looking at development of industrial zones along the corridor.
04:16Because the moment you have more industrial zones, then there will be more cargos to be
04:20transported through ECRL.
04:22And that is the entire reason why ECRL is built in the first place.
04:27Because we want to bring more development to the East Coast states.
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