ECRL benefits

THERE have been calls by several quarters to put a stop to the billion-ringgit East Coast Rail Link (ECRL) project, with suggestions that the money could be put to better use.

Notably, these calls gained traction after the China-backed infrastructure project was described as a bailout for the debt-ridden 1Malaysia Development Bhd (1MDB) in court recently.

To be sure, Transport Minister Anthony Loke has said that the commitment to see the project through remains, and has reiterated the fact that costs have been brought down.

Recall in April, it was announced that the ECRL would proceed – after being cancelled – at a total construction cost of Rm44bil, representing a 34% reduction from the original cost of Rm65.5bil.

Loke reportedly said just recently that the focus now should be on “how to maximise the ECRL to bring benefits for all the states involved.”

Are the recent calls to cancel the project more of feasibility calls then, since the mega-project is assumed to have already taken on a life of its own?

Proponents argue that the ECRL is needed within the transportation and construction industry.

According to analysts, it is expected to benefit local rail-based construction players, create a spillover effect for local port operators and potentially open up corridors for property development routes.

Alliancedbs Research says contractors with urban rail-based experience would benefit the most - in particular those that have done work for the local double-tracking project.

Consequently, MIDF Research says the ECRL could lead to a possible spillover effect on local port operators.

Others like politicians say the ECRL is able to lift the economy of people in the states involved. The Malaysian Investment Development Authority has established a team to promote the development of industrial parks, infrastructure, a logistics hub and transit-oriented developments along the ECRL.

While time is the only thing which will be able to tell how everything will pan out in the end, one should certainly keep a close eye on the developments.