NEW SEPANG-MELAKA RAILWAY LINE?
Firm to hold briefing outlining details of RM10b project
VIVA Rail Lines Bhd (Viral) is expected to spend RM10 billion to RM12 billion to build an electrified railway line between Melaka and Sepang. It is understood that the railway line will link Melaka International Trade Centre in Ayer Keroh to Kuala Lumpur International Airport in Sepang, covering a distance of 190km.
The RM10 billion price tag includes the railway tracks, installation of the electrification, communications and signalling system, and purchase of train sets.
The project is a private finance initiative and will be undertaken on a build-own-operate basis.
Viral is expected to hold a media briefing tomorrow outlining details of the project.
Interestingly, this project was first mooted more than three years ago by a consortium of three companies. The consortium was led by Permata DRB Corp Sdn Bhd with 60 per cent stake, with Viva Hallmark Sdn Bhd and Satu Teguh Enterprise each holding a 20 per cent interest.
Based on information obtained by NST Business, the consortium claimed in 2016 that it had received the development order for the said project, which was awarded to Viva Hallmark by the Melaka government.
It also claimed that the Employees Provident Fund (EPF) might be a potential investor, with Viva Hallmark having received a letter of interest from the pension fund indicating its interest to participate in the railway project.
The EPF and Viva Hallmark had discussed details like the number of shares the pension fund might take in the consortium after conducting a feasibility study of the master plan.
Back then, the cost of the project was estimated at RM6 billion. The amount excluded the electrification system, station buildings, terminals and other facilities. The RM6 billion was the cost to lay the tracks for a distance of 200km.
The consortium back then had also appointed a project management consultant Arkitek Ilham Karya, while the paymaster was said to be MBSB Bank Bhd and Maybank Islamic Bhd.
Permata DRB Corp had applied for a loan from Maybank Islamic Bhd but it is unclear if the company obtained it.
In 2016, the consortium had called on contractors for direct negotiations for the proposed project. The project was to be divided into 10 packages, with each costing RM200 million and covering a distance of 20km.
The consortium was looking at buying train sets from China, Japan, South Korea or Europe.