EXCERPTS of an exclusive interview with MRT Corp chief executive officer Datuk Seri Shahril Mokhtar.
Question: When will construction works start at Line 2?
Answer: For Line 2, advance works are ongoing, such as relocation of buildings and squatters. For the main packages, we had the pre-qualifications done last year. The bids for the first three packages of the northern side of the construction packages will be opened soon.
Since these three packages are the most difficult section of Line 2, we had proposed to the procurement committee chaired by the prime minister that we give a chance for the current contractors to bid.
These are the contractors who have gone through the mill, they understand (the project) better. It will be opened to them; one package for Bumiputera status (contractors), the other two as open category. They are much more prepared to do these difficult sections. These are not easy jobs. It’s very tough and very tight. We call these three packages restricted... where we call all the current contractors. We want to give them a chance because they have done Line 1.
The remaining seven of 10 construction packages will be opened to all. The bids for the seven packages will be evaluated by stages until the middle of this year.
We do pre-qualification for systems contract such as signalling, electric train, track work. We shortlist five or six and then we call them for the next round of tender process. We want the best of the best to participate. That is ongoing and hopefully, it’ll pan out until the third quarter of this year.
The biggest packages are the underground portion. A few have pre-qualified and the procurement committee is evaluating. The response has been very good. There are international bidders, too, from China, South Korea and Taiwan. We have Hyundai Engineering & Construction Company Ltd from South Korea, Taisei Corp from Taiwan and two others from China. The Chinese companies are China Railways Group Ltd and China Communication Construction Company Ltd.
If you ask me, there’s a good spread because there’s also a local player. MMC-Gamuda has submitted its application for the pre-qualification of Line 2 tunneling job.
When it comes to the stations, there are 10 packages; six of them are for Bumiputera-status (contractors), the rest, including depots, are open to all. For the multi-storey packages, all 15 are for Bumiputera contractors. They will be open for bidding by end of June. The rest are small ones, such as signages, to make up the total 66 packages.
Q: How is the overall Bumiputera contractors’ participation in the MRT lines?
A: For Line 1, 23 of 84 packages were given out to Bumiputera contractors, valued at 43 per cent of RM23 billion (contract value). That’s quite huge, including underground packages.
For Line 2, I’m confident it will be higher. I expect 37 out of 66 packages to go to Bumiputera contractors. That works out to be a minimum 45 per cent of the total value. For Line 2, a minimum of 30 per cent consultancy jobs must be given to Bumiputera contractors. We put this requirement upfront.
When you look at Line 1, sub-contracts to Bumiputera contractors of Class G (1 to 6) was RM200 million. For Line 2, it will be expanded to RM900 million. For underground packages, we’ve specified a minimum of RM300 million worth of jobs for small Bumiputera contractors.
Q: When is Line 2 going to complete?
A: For Phase 1, which is from Sungai Buloh depot to Kampung Batu, the target completion is July 2021. As for Phase 2, which spans from Batu Cantonment to integrate at Bandar Malaysia and then end at Putrajaya, it is July 2022.
Q: How about Line 3?
A: We’re carrying out the feasibility study. Hopefully, by the last quarter of this year, it will be completed. From there we will take it up to the government. Line 3 is meant to close the loop. We don’t have to wait until we finish construction of Line 2. We want to do this as soon as possible because if we don’t do it now, the cost is going to be much higher later. This is for the rakyat.
When I say loop, it doesn’t necessarily mean city centre. It’s a circle and it is meant to connect as many points along existing lines. The idea is to disburse all these passengers. The focus is on connectivity.
Q: With regard to Bandar Malaysia, has MRT Corp met up and spoken with its new shareholders about Line 2 passing through the development?
A: We had a discussion with 1MDB Real Estate. They are the conduit to the new owner. So far, the feedback from the new owner is good. They give their full support. Their development is not going to start tomorrow, but we’re going to start very soon. It’s best to work around us. We explained to them and they fully agreed.
Bandar Malaysia is very important as an integrated station. It will be the new catalyst for Kuala Lumpur. We’re working closely with high-speed rail (HSR), Express Rail Link (ERL), Keretapi Tanah Melayu (KTM), 1MDB, the Air Force and the Police. It is very crucial that leaders at the top talk to each other so that people at the ground level can integrate their tasks.
That’s why planning is very important. Don’t do things as an afterthought. Let’s plan Line 3 now.
Bandar Malaysia is going to be iconic because it is going to integrate at least four lines — HSR, ERL, KTM and MRT. We’re now discussing with all the operators about a common concourse, for example, passengers transferring from HSR to KTM and so on.
Q: Will Bandar Malaysia be a better version of KL Sentral?
A: Definitely. Bandar Malaysia will be a lot more organised. It will be much better.
Q: Will MRT Line 2 station in Bandar Malaysia need to be aligned with the pace of development?
A: Let’s look at Line 1. There’s a station at TRX (Tun Razak Exchange) but there’s no development (yet). They kept changing their plans. We told them we cannot wait. After a while, we told them: ‘You work around us because we’re going to start first’.
We want to work hand-in-hand and we welcome property developers to work around us or even on top of us. At Bandar Malaysia, the new shareholders are agreeable with this.
Have you been to Singapore? Are you familiar with Raffles City station? It’s surrounded by banks and other high-density buildings but there’s no topside development at that station. If you ask me, that’s a waste of space.
For Bandar Malaysia, I urge property developers to learn from that experience. We can have a station below ground and you can have your topside development. Your GDV (gross development
value) will be much better. So, it’s all about planning.
Q: How about at Cyberjaya?
A: Line 2 has two stations there — Cyberjaya North and Cyberjaya Sentral. We’re working closely with MRCB. The good thing is that they have shared with us their development plans. So when we do our stations, we take into account their development.
Q: Did IOI Mall request for a MRT Line 2 station?
A: IOI Group had tried to convince us but it’s all a matter of alignment. Line 2 is not passing through there (IOI Mall). We cannot cover all areas. If the line goes into IOI Mall, we may cover Malaysia Agro Exposition Park Serdang but we may not be able to cover Cyberjaya and other areas. These are some of the things we have had to deal with.
I think a good feeder system is very important. It’s not necessarily buses. It can include trams and monorail. I feel very bad and upset if the train frequency is every 2½ minutes but the bus frequency is every 30 minutes. It doesn’t jive, right?
The four-car train can carry 1,200 people. A bus, with full load, can carry 60 people every 30 minutes, and those who alight the train could be 150 people at every 2½ minutes.
In this kind of situation, people will get frustrated and say: “That’s it, I’m going to drive my car.” Operating public transportation is not easy. Public transportation is about cost. Even running a railway doesn’t make any money. To be honest, the only company I know that is making money is in Hong Kong and that comes from non-fare business — transit-oriented development.
Q: Why is it important for MRT Line 2 to integrate with light rail transit (LRT) at the Ampang Park station?
A: If you notice, for MRT Line 2, there are a few integrated stations that will boost connectivity to existing LRT lines. Ampang Park is very crucial because it is the LRT station that is most strategic to be integrated with the MRT.
If you’re coming from Kelana Jaya and going to Putrajaya, you would have to stop at Sentul, take a two-car train, then you move on to Masjid Jamek. When you get there, you have to get down to change trains again. There may be three or four transfers. But if we integrate at the Ampang Park station, there is only one transfer. So, it is very critical for MRT Line 2 to integrate at Ampang Park.
Of course, there are challenges when it comes to land acquisitions. When the MRT line goes underground, we need to consider that landowners have rights over what is on top and also underneath. That means the government would need to acquire the land when the MRT line goes underground.
The other way to overcome this problem is to have a mutual agreement, but it is not easy to agree on every single eventuality. The situation is even worse when there are strata titles because we would then need to obtain a 100 per cent consent.
Q: Earlier this month, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced an increase in foreign worker levy. Is this having an impact on the cost of MRT Line 1 and 2?
A: Of course it has an impact. We hope this decision will be relooked. The MRT is a mega project, and I don’t want contractors to take advantage of this foreign worker levy issue. We have many foreign workers. It’s a real challenge to get locals to do these type of jobs. I think other countries, such as in the Middle East, also have to depend on foreign workers in their construction industry.