business

Pestech bags aerotrain contract from MAHB for RM743mil

KUALA LUMPUR: Pestech International Bhd has bagged a contract from Malaysia Airports Holdings Bhd (MAHB) to build and supply a new automated people mover (APM) or aerotrain project in Kuala Lumpur International Airport (KLIA) for RM742.95 million.

In a filing to Bursa Malaysia today, Pestech said its wholly-owned Pestech Technology Sdn Bhd, had accepted the letter of award from Malaysia Airports (Sepang) Sdn Bhd for the works, in relation to design, supply, installation, testing and commissioning for the APM and associated works.

Pestech said the contract was under Option 2, which included financing as well as operation and maintenance of the facility from March 14, 2025 until February 11, 2034.

Development of the project will take three years, starting from March 14, 2022.

"The project involves the replacement of new APM vehicles, power supply, communication and signalling systems, station APM equipment, maintenance facilities and equipment, amongst others.  

"The rehabilitation works of the existing 1.2 kilometres of APM infrastructure will be implemented whilst the service of the APM between the Main Terminal Building and Satellite A Terminal is to be maintained under minimal interruption during all phases of the project," it said.

Pestech said the project would bring progressive momentum to the company's endeavour towards putting resources into electric mobility. 

"Pestech will also foster the relevant technological knowhow of the full-fledge APM system, and apply such knowledge in cultivating local talent in the sustainable electric mobility industry," it added.

In a separate statement, MAHB said the current aerotrains had been in service shuttling more than 300 million passengers between the satellite and main terminal buildings since the airport opened 23 years ago. 

It said over the past few years, the ageing aerotrain system had frequently faced service disruption, contributing to operational inefficiency. 

This caused inconvenience to the passengers who must use the alternative busing service instead. 

"These problems will soon go away as three years from now, international passengers travelling through KLIA will get to ride in brand spanking new Aerotrains," it added.

MAHB managing director Datuk Iskandar Mizal Mahmood said the current aerotrains were approaching their end-of-life stage and needed to be upgraded so that passengers can be better served. 

"It is no longer feasible to maintain the current aerotrains. Old assets are more prone to break down and this will inconvenience passengers. 

"They are also running on old technology, making it difficult to get parts. The new aerotrains will be upgraded together with the track system infrastructure, and this will also provide the airport with better operational efficiency," he said.

MAHB said the new aerotrains would be improved in terms of safety, comfort, appearance, energy consumption and diagnostics, among others. 

"It will also offer flexibility for seamless connections for new terminals in the future," it added.

MAHB had undergone a robust competitive tender process which started in August 2020, that placed priority on meeting its business objectives, as well as the project's technical and performance requirements.

The tender was also preceded by three feasibility studies to determine the requirements, and a series of stakeholder engagements with the Ministry of Transport, Civil Aviation Authority of Malaysia, Malaysian Aviation Commission and Land Public Transport Agency to gather the necessary feedback. 

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