Transport minister says Malaysia’s ECRL to be run ‘50-50’ by new joint-venture with China

KUALA LUMPUR, Dec 18 — Malaysia Rail Link (MRL) and China Communications Construction ECRL (CCCECRL) have signed a joint-venture agreement to oversee the operations of the 665km East Coast Rail Link (ECRL), which will connect Kota Baru, Kelantan on the east coast of the peninsula to Port Klang, Selangor on the west coast.

Transport Minister Anthony Loke today announced that the newly formed partnership will establish a new operating company with both parties holding equal stakes and responsibility for operational risks, including financial deficits.

“The Chinese company built this track and they need to take the burden of risk in its operations as we want this to be a sustainable and profitable endeavour. As we all know, turning a profit in the rail sector is very hard.

“But we try and through this agreement both parties will share the losses 50-50, but as far as operational profits go, the government of Malaysia will take 80 per cent of all profits, and they will only take 20 per cent. This agreement was renegotiated back in 2019 and has now materialised,” he said during the signing ceremony in Putrajaya.

Despite the new agreement, he said MRL will continue to retain full ownership of all ECRL assets.

He added that MRL confirmed that 80 per cent of the operational and maintenance workforce for the ECRL will be sourced domestically.

The ECRL project is now approximately 76 per cent complete.

In conjunction with the announcement, Loke launched the official ECRL logo and unveiled the design of the new Electric Multiple Unit (EMU) trains, courtesy of Chinese company CRRC Dalian.

The six-car EMU trains are designed to carry up to 430 passengers and come equipped with facilities for persons with disabilities.

“I am told 11 sets of these EMU trains have been allocated by CRRC Dalian, with the first set expected to arrive by the end of 2025.

“These trains will move at a speed of 160km/h and will begin operations in January 2027, running from Kota Baru terminal to the Gombak terminal, a journey that will take around four hours,” Loke said.

He added that CRRC Dalian has also committed to sending two E-Loco trains for cargo and assembling them at the ECRL train depot in Kuantan Port City, in an effort to promote local participation and as part of technology transfer initiatives.