Lower project cost, fare for Johor Baru-Singapore transit

KUALA LUMPUR: The cost of the revised Rapid Transit System (RTS) project linking Johor Baru and Singapore’s Woodlands will be cut by 36% to RM3.16 billion, compared with RM4.93 billion, and the fare charged will be lower than the initial rate of RM15 per ride.

“We will go ahead with the project and solve a little bit on the issue of traffic congestion. Details of the project would be discussed with the Singapore government,” Tun Dr Mahathir Mohamad was quoted by the media as saying.

During his visit to Bangunan Sultan Iskandar Customs, Immigration and Quarantine complex in Johor Baru yesterday, the prime minister told the media that an important feature of the revised structure of the project is the involvement of the owner of the Bukit Chagar land — Sultan of Johor Sultan Ibrahim Sultan Iskandar — to waive the land cost.

The Sultan is willing to cooperate with the federal government to build the RTS station on the tract that is worth RM800 million to RM900 million, according to Transport Minister Anthony Loke, who was also present during the visit.

Loke said Putrajaya has made an official proposal to the Singapore government to switch to the Light Rail Transit (LRT) system, from the initially Mass Rapid Transit system, in the RTS project.

“The condition given by the Singaporen government is to have a capacity that is able to cater [to] 10,000 passengers per hour, and the LRT system that we proposed can achieve that. This is the LRT system in KL (Kuala Lumpur) not the one in Singapore, so it can cater [to] that capacity,” he said.

Speaking at a press conference yesterday, Loke said adopting the LRT system could bring down the capital expenditure needed, and the fare.

“The fare will be decided by both parties. At this point in time, it is unfair for me to make the announcement. But what we are looking at is a downward revision in terms of what has been proposed before this,” he said.

Previously, Loke reportedly said that under the original project structure, the one-way fare would be RM15 or S$5 for a RTS passenger.

Loke revealed that the new RTS proposal will rely on both countries’ national border as the key parameters in terms of project financing.

“The project involves two governments; whatever on our side will be borne by Malaysia, after the border, it is up to Singapore.

“So we build the station[s] in Malaysia, and Singapore builds the station[s] there. The viaducts and bridges [in Malaysia] will be built until the border,” he said.

In terms of financing in Malaysia, Loke said the government intends to finance the construction of stations and infrastructure via a private finance initiative.

Under the new proposal, Loke said Prasarana Malaysia Bhd will remain as Malaysia’s representative in the Joint Venture Operating Co or JV OpCo.

“Prasarana Malaysia is mandated by the Malaysian government to consult with the Singapore rail company, SMRT Corp, to finalise the terms of the joint-venture agreement,” he said.

Meanwhile, Mass Rapid Transit Corp Sdn Bhd or its subsidiary will be appointed the railway infrastructure company, responsible for the project implementation and completion, including infrastructure such as bridges, viaducts, stations, depots and Customs, Immigration and Quarantine buildings.

Source: TheEdgeMarkets