More clarity on KL-Singapore high-speed rail project after RFI concludes — CGS CIMB
KUALA LUMPUR: CGS-CIMB expects more information on the structure, cost, development, and timeline of the Kuala LumpurSingapore High-Speed Rail (HSR) project after the Request For Information (RFI) process concludes on November 15, 2023.
In a note, the research house said that in a recent meeting with MyHSR Corporation Sdn Bhd (MyHSR), key management revealed that close to 30 firms have submitted a request to purchase the RFI documents since the opening date on July 28.
CGS-CIMB also stated that key takeaways from MyHSR are that the government may also provide funding for land acquisition and the HSR trains have to reach 350km per hour.
On top of that, the project will be developed via a designfinance-build-operate transfer model with the asset to be handed over after the concession period.
The research house said MyHSR also touched on the potential overlap of the HSR alignment with the Gemas-Johor Bahru double-tracking rail line and pointed out that the HSR will serve different corridors and target different customers.
“The HSR will be more for business travellers who value time while the medium-speed double-tracking line caters to the more price-conscious.
“At a later stage (Phase 2), the HSR may also extend to Bangkok. In terms of land acquisition, Sections 4 and 8 of the Land Acquisition Act 1960 (Act 486) provide that the state may acquire land that is deemed beneficial to the economic development of Malaysia,” CGSCIMB said.
It expects the construction and material sector as a whole to benefit from the HSR revival.
CGS-CIMB also sees YTL Corporation Bhd, Malayan Cement Bhd (MCement) and HSS Engineers Bhd as top beneficiaries.
“YTL could be a front-runner given it was the original HSR promoter in 2008-09 and was appointed project delivery partner for the HSR southern section in 2018.
“Its experience in running Express Rail Link Sdn Bhd and the construction of the GemasJB double tracking and its cement arm MCement provides synergistic benefits,” it noted.