Monday, August 30, 2010

PM sees tourism boost from new LCCT, to be completed by April 2012

SEPANG: The new low cost carrier terminal (LCCT), officially known as KLIA 2, is slated to be completed by April 2012 based on a 20-month CONSTRUCTION [] period and to date RM2 billion of major works have been awarded in open tender.

Prime Minister Datuk Seri Najib Razak, who officiated at the ground breaking ceremony of the KLIA 2 on Monday, Aug 30 said KLIA 2 would boost tourism in Malaysia. The KLIA can accommodate up to 30 million passengers annually.

'This facility will greatly enhance our vision to create tourism revenue from the current RM53 billion in 2009 to RM168 billion by 2020,' Najib said.

The project had been delayed by the long tendering process. However, Malaysia Airports Holdings Berhad (MAHB) managing director and CEO Tan Sri Bashir Ahmad described the delays as 'good delays' in order to get the best price and design for the KLIA2.

KLIA 2 is located 2 km away from KLIA Main terminal building and can accommodate up to 30 million passengers annually compared to the current LCCT, which had reached its maximum capacity of 15 million passengers annually.

The new terminal can be considered the largest terminal purpose built for low cost carriers in Asia with 242,000 sq metre in terminal size and a 300 metre pedestrian skybridge. Retail and concession area will take 49,504 sq metre.

On the RM2 billion of major works awarded in open tender, the bulk of it was for a RM997.23 million award to a joint venture between UEM Construction Sdn Bhd and BINA PURI HOLDINGS BHD [] as main contractors.

Bashir said the remaining jobs will be awarded in due course, said Bashir. He declined to comment on the final cost of the KLIA 2 citing that it will depend on the final bidding prices of the remaining 'minor works'.

Reports have put the price as high as RM2.5 billion with MAHB looking to raise up to RM3.1 billion via a sukuk issuance.

'I can't commit to any amount yet. There are still minor works to be tendered out. There have been competitive bids. We are looking at the best price,' said Bashir.

Options to install aerobridges are also put forth with a going rate of RM85 per aircraft. However, AirAsia CEO Datuk Seri Tony Fernandez said that it will consider using them not only by looking at the cost but also the turnaround time of its flights. With aerobridges, turnaround time can be reduced.

Bashir added that the KLIA 2 was crucial to accommodate the growing passengers annually. According to Bashir, it is projected that MAHB will handle more than 60 million passengers by 2014 of which close to 50% will be low cost travel.

'Over the last 10 years, low fare travel has increased by leaps and bounds and today constitutes 16% of total travel in the Asia Pacific region and 43% in Malaysia,' said Bashir.

On the connectivity for KLIA 2, he said that an Express Rail Link extension line is being developed and will be in tandem with the development of the new terminal.'' There were plans for a line to link to Keretapi Tanah Melayu (KTM), said Bashir.


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