Malaysia and China have signed a joint operating agreement for the East Coast Rail Link (ECRL) project to ensure its sustainability and prevent it from becoming a white elephant. The agreement, signed between Malaysia Rail Link Sdn Bhd (MRL) and China Communications Constructions ECRL Sdn Bhd (CCCECRL), outlines profit and loss sharing during the project's operations. If the ECRL becomes profitable, Malaysia will retain 80% of the profits, while CCCECRL will receive the remaining 20%. Conversely, if the project incurs losses, both companies will share the burden equally.
ByGame changer: CRRC Dalian Co Ltd president Gao Zhongde, CCC ECRL managing director Kong Qi, Chinese Ambassador to Malaysia Ouyang Yujing, Loke, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar, Deputy Transport Minister Datuk Hasbi Habibolah and CEO of MRL Datuk Seri Darwish Abdul Razak posing behind a model of the ECRL train and the project’s new logo in Putrajaya.
“This was part of the result of a renegotiation back in 2019, where the Chinese company will bear half of operational losses. “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.
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.
ECRL Malaysia China Joint Operating Agreement Infrastructure Transport
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