"China set to build, finance Malaysia's East Coast Rail Line project - Bernama/Agencies/am 31 Oct 2016
BEIJING: China is set to build and finance the RM55 billion (US$13.1 billion) East Coast Rail Line (ECRL) project that will span four states in peninsular Malaysia, according to Malaysia's secretary-general to the Treasury.
Dr Irwan Serigar Abdullah said Malaysia and China will sign the Framework Financing Agreement and Engineering, Procurement, Construction (EPC) Contract for the project on Tuesday (Nov 1).
Dr Irwan spoke to Malaysian media upon arrival in Beijing on Monday as part of the delegation accompanying Prime Minister Najib Razak who is on a six-day visit to the Chinese capital.
He said the railway link will lower transportation costs between the west and east coasts of peninsular Malaysia, bring down prices of goods and reduce travelling time.
"It will also will help create more jobs and business opportunities for Malaysians, especially the rural folks," Dr Irwan said.
Although the agreement has not yet been finalised, Dr Irwan said the financing offered by China was a lower rate compared to the international market, coupled with a long repayment period of 20 years.
He said the project was crucial to Malaysia and should not be delayed as it would not only spur the country's transportation industry development, but also help to speed up growth of small towns along the way.
The project would also assist in the transfer of technology in the railway industry, he said. "Future development of railways is the in thing, and Malaysia needs to make the move in getting the technology and new systems in railway construction." he said.
Dr Irwan said the project will be built in phases: First from Port Klang to Dungun in Terengganu followed by Dungun to Tumpat.
PM Najib, in tabling the 2017 Budget, said the project would be launched in phases and would connect townships such as Port Klang, ITT (Integrated Transport Terminal) Gombak, Kuantan, Kuala Terengganu, Kota Baru and Tumpat.
The construction of the project is expected to start next year and it is due to be complete by 2022."
In a world what money talk. It is perfectly understandable how this type of deals are welcomed by Malaysia. This is especially so when the scandalous 1MBD saga still has many unknown 'deep holes' (or maybe not?) to be uncovered or revealed?
IF these projects really get going, they will have impact on Singapore. Do the ships still need to go all the way to Singapore and make their ways up the Gulf of Thailand and South China Sea if they can unload in the West Coast and trained to the East Coast and all the way to China eventually? The trade finances relating to these diverted cargoes will be significant if the shippers and their customers can cut delivery time and costs!
Of course, hardware are easy to build while software, where Singapore claimed the highest productive port crown for many years do not have to lose too much sleep over this supposed development. Or should we?
Well, the government will come up with something. They have done it many times in the past. Singaporeans just have to trust them to come up with another rabbit from the hat!!
A bit depressing to end the last day of October 2016 on such 'bad news'. Guessed we have to look at the bright side on Asean solidarity. What is good for our Asean friends can only be good for us. One for all and all for one! Yes?
BEIJING: China is set to build and finance the RM55 billion (US$13.1 billion) East Coast Rail Line (ECRL) project that will span four states in peninsular Malaysia, according to Malaysia's secretary-general to the Treasury.
Dr Irwan Serigar Abdullah said Malaysia and China will sign the Framework Financing Agreement and Engineering, Procurement, Construction (EPC) Contract for the project on Tuesday (Nov 1).
Dr Irwan spoke to Malaysian media upon arrival in Beijing on Monday as part of the delegation accompanying Prime Minister Najib Razak who is on a six-day visit to the Chinese capital.
He said the railway link will lower transportation costs between the west and east coasts of peninsular Malaysia, bring down prices of goods and reduce travelling time.
"It will also will help create more jobs and business opportunities for Malaysians, especially the rural folks," Dr Irwan said.
Although the agreement has not yet been finalised, Dr Irwan said the financing offered by China was a lower rate compared to the international market, coupled with a long repayment period of 20 years.
He said the project was crucial to Malaysia and should not be delayed as it would not only spur the country's transportation industry development, but also help to speed up growth of small towns along the way.
The project would also assist in the transfer of technology in the railway industry, he said. "Future development of railways is the in thing, and Malaysia needs to make the move in getting the technology and new systems in railway construction." he said.
Dr Irwan said the project will be built in phases: First from Port Klang to Dungun in Terengganu followed by Dungun to Tumpat.
PM Najib, in tabling the 2017 Budget, said the project would be launched in phases and would connect townships such as Port Klang, ITT (Integrated Transport Terminal) Gombak, Kuantan, Kuala Terengganu, Kota Baru and Tumpat.
The construction of the project is expected to start next year and it is due to be complete by 2022."
In a world what money talk. It is perfectly understandable how this type of deals are welcomed by Malaysia. This is especially so when the scandalous 1MBD saga still has many unknown 'deep holes' (or maybe not?) to be uncovered or revealed?
IF these projects really get going, they will have impact on Singapore. Do the ships still need to go all the way to Singapore and make their ways up the Gulf of Thailand and South China Sea if they can unload in the West Coast and trained to the East Coast and all the way to China eventually? The trade finances relating to these diverted cargoes will be significant if the shippers and their customers can cut delivery time and costs!
Of course, hardware are easy to build while software, where Singapore claimed the highest productive port crown for many years do not have to lose too much sleep over this supposed development. Or should we?
Well, the government will come up with something. They have done it many times in the past. Singaporeans just have to trust them to come up with another rabbit from the hat!!
A bit depressing to end the last day of October 2016 on such 'bad news'. Guessed we have to look at the bright side on Asean solidarity. What is good for our Asean friends can only be good for us. One for all and all for one! Yes?
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