Wednesday, January 19, 2011

Masteel, KUB in RM1b plan for inter-city rail transit infra in Iskandar Malaysia

KUALA LUMPUR: Malaysia Steel Works (KL) Bhd (Masteel) and KUB MALAYSIA BHD [] (KUB) have proposed to build and operate a 100km inter-city rail transit system in Iskandar Malaysia which will connect to the MRT line from Singapore.

The companies said in a joint statement on Wednesday, Jan 19, 2011, the project could cost over RM1 billion and consists of up to 25 commuter stations in major towns in the Iskandar Malaysia region in the initial stage.

"The operation of the inter-city rail transit shall be based on a 25-year concession," they said in the statement after the signing of the head of joint venture agreement to undertake the project.

Masteel and KUB would hold 60% and 40% equity stakes respectively in the JV company, Metropolitan Commuter Network Sdn Bhd. The project would be undertaken in three phases and completed within 24 months from project commencement.

The building of the rail transit infrastructure would also be funded by project financing under the public-private Partnership scheme (PPP).

Masteel managing director and chief executive officer Datuk Seri Tai Hean Leng said this would be a major infrastructure project in Johor as it would greatly boost its connectivity and economy.

"The upcoming inter-city rail transit is a reflection of Johor's continued progress thus far, and I believe that it would serve to bring the state to the next level of growth and vibrancy," he said.

The project will ease traffic congestion, estimated to grow at 4.2% every year along Johor and Singapore.


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