China and Malaysia Agree on Cheaper and Shorter Rail Plan

Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction Co Ltd (CCCC), the East Coast Rail Link (ECRL) will now be 40 kilometers shorter for a total of 648 kilometers and pass through Jelebu, Negeri Sembilan instead of Gombak in the Klang Valley. The cost is RM44 billion (US$11 billion) which is 38% less than the prior plan.

China agreed to a 50-50 joint venture to operate the 640km line across Peninsular Malaysia, reducing Kuala Lumpur’s financial risks.

The new route will have 20 stations.

The cost per kilometer was reduced to RM68 million (US$17 million) from RM90 million previously.

The first phase of the rail line should be completed by 2022 and the entire line by 2026.

SOURCES – Strait Times, The Edge Markets
Written By Brian Wang

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