Ensuring ECRL’s success together: M’sia and China sign joint agreement to split any losses equally

A joint operating agreement has been signed between Malaysia and China to ensure that the East Coast Rail Link (ECRL) that connects Kota Baru with Port Klang will not become a white elephant, says the Transport Minister.

The companies – Malaysia Rail Link Sdn Bhd (MRL) and China Communications Constructions ECRL Sdn Bhd (CCCECRL) – will split any losses during operations equally, if any, while Malaysia keeps the bulk of any profit generated, said Anthony Loke.

“This was part of the result of a renegotiation back in 2019, where the Chinese company will bear half of operational losses.

“Meanwhile, if it’s profitable, then 80% will go to MRL and the rest for CCCECRL,” he told reporters here yesterday after attending the launch of the ECRL passenger rolling stock and witnessing the signing of joint-venture agreement on the ECRL’s operation and maintenance.

Loke said the agreement between the two companies will remain in force for the entire tenure of the loan repayment by Malaysia for the project.

“This is to ensure that the project has to strive and operate sustainably. That’s the reason why during the renegotiation we convinced the Chinese government to ensure the success of the project,” he said, adding that the success of the project hinges a lot on the optimisation of the track and rolling stock.

The project is built mainly as a single track, except at stations and passing loops, that will be shared between passenger and cargo trains.

However, allowance has been made for the alignment to add another track in the future should demand justify it.

Loke said the design of the project has taken into account certain flood-prone areas, with appropriate mitigation measures put in place for the project that has reached 76.06% completion as of November.

“With this development, the project’s target has been achieved for this year, and the progress is currently on track – which is the completion of the stretch from Kota Baru to Gombak, Selangor, by December 2026,” he said.

This allows the first phase of ECRL to commence passenger train operations from January 2027.

The second phase, which connects Gombak with Port Klang, is expected to be finished by December 2027.

The passenger train is equipped with the latest train network technology along with amenities such as prayer rooms.

At the same event, Loke also unveiled ECRL’s new corporate identity, which draws its inspiration from the songket bunga tanjung and a compass that points east, to signify the transformative power of the rail link for the east coast of Peninsular Malaysia.

Source: The Star