July 12, 2007 14:50 PM

Ipoh-Padang Besar Double Tracking Rail Project To Begin Early 2008


IPOH, July 12 (Bernama) -- Contruction work for the Ipoh-Padang Besar double tracking railway project is expected to start early next year, Transport Minister Datuk Seri Chan Kong Choy said Thursday.

However, the total cost of the project which is going to be undertaken under the Private Finance Initiative (PFI) was being negotiated between the MMC-Gamuda consortium and the government, Chan said after inspecting the double tracking railway project from Rawang to Ipoh.

"We expect work to commence early next year. The Ipoh-Padang Besar project is expected to take five years to be completed," he said.

On the Seremban-Gemas stretch of the double tracking project, Chan said the government was still negotiating with the parties concerned on the project, which is also expected to start next year.

"We are in the midst of waiting for the reply from Ircon (Indian Railway Construction Company). They have not replied yet until now. They have until middle of August to make a decision on whether to accept or reject the offer," he said.

Ircon has been invited by the government to participate in the project.

On the Ipoh Airport runway expansion plan to accommodate the Airbus A320, Chan said a meeting will be held next week involving the Transport Ministry, Economic Planning Unit, Finance Ministry, Malaysia Airports Holdings Bhd and Perak state government to work out the cost of the project.

"State representatives will be invited. Once the cost has been worked out, we will submit it to the Prime Minister's Department for official approval," he said.

-- BERNAMA

wonderful news...also wonderful to know that the shuttle to Rasa will soon be extended to Tg. Malim...

Cheers, m

Malaysia rail project to start in 2008 - report
Updated : 12-07-2007
Media : Reuters


KUALA LUMPUR, July 12 (Reuters) - Malaysia expects to start construction work early next year on a major rail link in the country's north, state news agency Bernama said on Thursday, confirming the go-ahead for a project estimated at $2.6 billion.

Engineering firm Malaysia Mining Corp Bhd (MMC) and builder Gamuda Bhd won government approval in June for plans to build the 330 km (200 miles) rail line from the northern town of Ipoh to Padang Besar near the border with Thailand.

"We expect work to commence early next year," Bernama quoted Transport Minister Chan Kong Choy as saying. "The Ipoh-Padang Besar project is expected to take five years to be completed."

The rail project had been shelved in late 2003 by Prime Minister Abdullah Ahmad Badawi, who said at the time the money would be better spent on healthcare, education and agriculture.

Last year, Gamuda and MMC revived plans to build part of the track under a private finance initiative that would see the companies fund the bulk of the project.

While the government has not said what the estimated cost of the project is, a source familiar with the plan told Reuters last year that MMC and Gamuda proposed to spend up to 9 billion ringgit ($2.58 billion) to build the northern rail line.

On Thursday, Bernama quoted Chan as saying the government and the two firms were still negotiating over the total project cost.

The Ipoh-to-Thai border line was part of a grander scheme for a double-track line running the length of the Malaysian peninsula, linking its major ports with Thailand and Singapore, that had been valued at as much as 14.5 billion ringgit.

Shares of MMC were up 1.3 percent at 7.85 ringgit while Gamuda stock was down 1.2 percent at 8.15 ringgit by 0706 GMT, with the benchmark index up 0.9 percent.