IT was reported that YTL Corp still believes that a high-speed bullet train linking Kuala Lumpur to Singapore — over a distance of 300km and costing RM8 billion — is an economically viable project as it will cut travel time from the present seven hours to about 90 minutes (”YTL: KL-S’pore bullet train project economically viable” — NST, July 1).

Another report on the same day highlighted the proposed double tracking of the KTMB railway system from Johor Baru to Gemas (197km) at an estimated cost of RM7.5 billion. This is an extension of the Gemas-Seremban and Ipoh-Padang Besar double-tracking projects.

The KL-Singapore bullet train will be a privately-funded project where the private sector appears to be willing to take financial risks because of its confidence in the viability of the project. The Johor Baru-Gemas project is to be financed by taxpayers as it could substantially reduce the travel problems of Johor people.

However, in the absence of details, it is not possible to ascertain whether the Johor Baru-Gemas link of 197km costing RM7.5 billion (or RM37 million per km) is fair and reasonable compared with the KL-Singapore bullet train link estimated to cost RM8 billion (or RM27 million per km).

But what is certain is that both projects are viable and will complement each other, as one is an express service whereas the other will mainly be a commuter service for those living along the track.

Each project can be a stimulus for the development of undeveloped areas and generate other commercial and employment opportunities that will benefit the locals, as well as state and federal revenues.

It may be noted that the first double-tracking project (Ra- wang-Seremban and Sentul-Port Klang), constructed in the mid-1980s and covering a 181km, cost less than RM3 million per km without any overhead bridges and functional station buildings.

The 180km Ipoh-Rawang link has been estimated to cost RM40 million per km.

When YTL first proposed the KL-Singapore bullet train project a few years ago, it was estimated to cost RM5 billion (or RM17 million per km. Thus the delay has not only raised the cost of the projects but also delayed the development of the surrounding areas.

Now is the right time to go ahead with the project as it will definitely stimulate the economy. The delay could prove to be financially not beneficial.

A word of caution, though: the government-funded project should be based on competitive tenders and not negotiated. This will promote transparency and accountability while minimising the opportunities for corruption and fraud.

Source: NST – July 3, 2009