MMC, a company which has successfully participated in Malaysian rail projects such as the electrified double-tracking project from Ipoh to Padang Besar and the mass rapid transit (MRT) project, is clearly a likely participant in this HSR project. In this regard, it is noteworthy that MMC said this week that it has partnered with the Japanese.
It is understood that this move would bolster its chances of winning HSR’s assets company (AssetsCo) concession. Speaking on the sidelines of the Invest Malaysia 2017 conference this week, MMC group managing director Datuk Seri Che Khalib Mohamad Noh says the group is tying up with a Japanese consortium, which will provide mechanical and engineering solutions for the HSR project.
The tender for the AssetsCo is due to be called by the fourth quarter this year.
Essentially, there are three components that make up the HSR project, namely, AssetsCo, Infrastructure company (InfraCo), and Operations company (OpsCo).
According to a recent joint media statement by MyHSR Corp Sdn Bhd and Land Transport Authority of Singapore (LTA), the AssetsCo is responsible for the designing, financing, building, and maintaining of the rolling stock as well as rail assets, including track work, power, signalling and telecommunications.
Both Malaysia and Singapore’s governments have appointed MyHSR and LTA as InfraCos to design, build, finance and maintain the civil infrastructures and operate the HSR stations within their respective territories. Meanwhile, the OpsCo would be operating the express, domestic and shuttle services of the trains.
The joint venture between MMC and the Japanese consortium should be a symbiotic relationship, given the reliability and track record of the Japanese experience with building high speed trains in their home country, and MMC’s ability to execute various rail projects in Malaysia.
Che Khalib also says that the Government is exploring the possibility of implementing the PDP structure for the HSR project.
“Our MRT project is a proven case where the PDP model works, in terms of ensuring that the project is completed on time and within budget,” he says.
An analyst notes that MMC’s strength lies in its prior experience in managing an entire transportation project, through the MMC-Gamuda joint venture, by taking on a PDP role for the two MRT lines in the Klang Valley.
Additionally, the Japanese consortium’s involvement in the HSR would present a funding opportunity at lower cost, due to the availability of cheap debt in Japan.
While the MMC-Japan consortium tie-up may place MMC in a strategic position to vie for the HSR project, there is no certainty that this is a match that could trump the other potential tie-ups.