Gemas-Johor Bahru Electrified Double Track Project

Gemas-Johor Bahru Electrified Double Track Project

Project Summary

The Malaysian Ministry of Transport (MOT) is undertaking the construction of a double-track electric rail line from Gemas to Johor Bahru in Malaysia at the expected cost of RM8.9 billion. The project was awarded in October 2016 to a Chinese consortium consisting of China Railway Construction Corporation Ltd (CRCC), China Railway Engineering Corporation and China Communications Construction Co Ltd. The Gemas-Johor Electrified Double-Tracking Project (GJBEDTP) involves the upgrading and construction of a 197km double-track electric rail line between Johor Bahru in the state of Johor and Gemas in the state of Negeri Sembilan. It also includes the construction of stations, depots, yards, underpasses and bridges, the installation of signalling and communication systems, and the remodelling and renovation of 11 intermediate stations. The main objectives of this project are to improve the quality of rail infrastructure, provide better quality train services to passengers, and to improve rail safety for operations. The GJBEDTP is also the final package for the MOT’s electrified double-tracking project and its completion will ensure a continuous double track line from Padang Besar to Johor Bahru. The project received a groundbreaking ceremony marking the start of the construction on 3 April, 2018 and is expected to be completed by October 2022.

Figure 1. Gemas-Johor Bahru EDTP within the Malaysian railway network

Source: Hutchinson (2020)

Project Background

a. Context of Malaysian Railways

Keretapi Tanah Melayu Berhad (KTMB) or Malayan Railways Limited, was established as a government-linked company (GLC) under the Ministry of Finance Incorporated (MOF Inc.) in 1992 to operate the railroad networks in Peninsular Malaysia. Prior to its establishment, it was previously known as the Federated Malay States Railways (FMSR) and had consolidated the once-fragmented state railway operations under one company. During the corporatisation exercise in 1992, the government had separated the ownership and management of railway assets under FMSR to a statutory body called the Railway Assets Corporation (RAC), thus allowing KTMB to dedicate its focus on the successful operations of the railway line as a business.

During the 1990s, the government seeked to undergo a modernization programme for the country’s railway infrastructure, which included the upgrading and electrification of existing lines, renovation of existing stations and the construction of new stations. In 1995, KTMB began operating the country’s first electrified railway service, KTM Komuter, to provide local rail services in Kuala Lumpur and the surrounding Klang Valley suburban areas. Services were later expanded to other parts of Malaysia with the introduction of the Northern and Southern sections, and the expansion of the West Coast railway line. The MOT’s electrified double tracking project refers to the large scale project to electrify KTM’s West Coast railway line, which provides transport services to the western states of Peninsular Malaysia.

b. Context of West Coast rail line electrification

In early 2000s, Malaysia had started planning for the domestic segment of a proposed Pan-Asian railway that would connect China with Southeast Asian railways. This involved setting aside an estimated RM4.5 billion under the Eigth Malaysia Plan for the double-tracking project. This massive cross-country infrastructure project, spanning some 5,600km and running through 6 ASEAN countries as well as China, was first mooted by then prime minister Mahathir Mohamed during the ASEAN Summit in 1995. 1

The Government had commissioned a study to analyse the economic feasibility and engineering design of the domestic portion of the regional project, which required the electrification of the West Coast railway line. The line runs from Padang Besar railway station close to the Malaysia-Thailand border in Perlis (where it connects with the State Railway of Thailand) to the Johor Bahru station (where it connects to the Woodlands Train Checkpoint in Singapore).

1 Chin, P. Y. 2003. “Double-tracking rail vision”. Accessed through:
http://lib.perdana.org.my/PLF/Digital_Content/Prominent_Leaders/Mahathir/News_1968-2004/2001-2005/nt2003aj/doail%20vision.pdf

Project Structure

The Gemas-Johor Bahru EDTP (GJBEDTP) is owned wholly by the Government of Malaysia through the Ministry of Transport (MOT). It is a public procurement project funded by the Government of Malaysia through the Ministry of Finance (MOF). Established under Article 89 of The Railways Act 1991, the Railway Asset Corporation (RAC) is a statutory body under the MOT that owns and manages the railway assets of the GJBEDTP. Keretapi Tanah Melayu Berhad (KTMB), which is a state-owned entity under the Ministry of Finance Incorporated (MOF Inc.), will operate the EDTP line.

The Ministry of Transport awarded the contract to a Chinese consortium, CRCC-CREC-CCCC Consortium Sdn. Bhd., which consists of China Railway Construction Corporation Ltd (CRCC), China Railway Engineering Corporation (CREC) and China Communications Construction Company Ltd (CCCC) under a ownership breakdown of 40:30:30, respectively. A local consortium consisting of SIPP Rail Sdn Bhd & Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd has also been appointed as the main subcontractor for the project works.

Figure x. Project ownership structure of Gemas-Johor Bahru EDTP

Source: Author’s compilations

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Project Information Score Response Link to Information
Project owner Malaysian Ministry of Transport MOT Website: http://www.mot.gov.my/en/lands/rail-transport/plbegjb
Sector, subsector Transport; Railway MOT Website: http://www.mot.gov.my/en/lands/rail-transport/plbegjb
Project name Electrified Double Track Gemas-Johor Bahru Rail Project; Projek Landasan Berkembar Elektrik Gemas-Johor Bahru MOT Website: http://www.mot.gov.my/en/lands/rail-transport/plbegjb
Project Location begin in Gemas and will cover 4 main districts in Johor which are Segamat, Kluang, Kulai and Johor Bahru, ending at JB Sentral. MOT Website: http://www.mot.gov.my/en/lands/rail-transport/plbegjb
Purpose To improve the quality of rail infrastructure, provide a better quality, conducive, safe and passenger-friendly train service, and improve rail safety for operations. MOT Website: http://www.mot.gov.my/en/lands/rail-transport/plbegjb
Project description
Project Scope (main output) The project scope includes 197km of electrified double track, stations, electric trains depots, Land Viaduct, bridges, electrification and signaling systems. MoT Site Collection Documents: http://www.mot.gov.my/SiteCollectionDocuments/Darat/Gemas-JB%20bi.pdf
Environmental impact Not available
Land and settlement impact Relocation issues of residents on the pathway of the railway led to some delays: Through a Statement of Need (SON) Clause 1.8 issued by the Ministry of Transport on the Gemas-Johor Bahru Electrified Double Tracking Project (PLBEG-JB), RAC was given the responsibility to remove all obstructions (squatters) at the project site. A total of 1,306 squatter units of various categories were identified as obstructions to the project and had to be removed. Construction report on the project:
Contact details Postal address is: No. 26, Tun Hussein Road, Precinct 4, Federal Government Administrative Centre, 62100 Putrajaya, electronic address for the ministry of transport is aduan@mot.gov.my Ministry of transport site contact site: http://www.mot.gov.my/en/footer/contact-us
Funding sources the Malaysian public through the Federal Malaysian public coffers Construction report on the project:
ISEAS report: https://www.iseas.edu.sg/wp-content/uploads/2020/06/ISEAS_Perspective_2020_72.pdf
Project Budget •total cost of RM200 million for consultations, RM400 million for coaches.
•Forecasts of approximate RM120 million to RM140 million in pretax profit per annum.
•From the 2016 budget of this project, US$24 million has been allocated initially to start construction of the project.
News sources are The Edge: https://www.theedgemarkets.com/article/gemasjb-rail-contract-sole-mega-rail-job-2019-says-cimb-research
Free Malaysia Today: https://www.freemalaysiatoday.com/category/nation/2020/06/21/no-increase-in-cost-of-rm9-55-bil-gemas-jb-double-track-rail-project/
Construction report on the project:
Project budget approval date Not available
Project status (current) Ongoing; construction Construction report on the project:
Completion cost (projected) installation of the Gemas-Johor Baharu electrified double-tracking project, starting next year, is expected to cost RM7.13 billion. https://www.astroawani.com/berita-malaysia/china-consortiums-proposal-for-gemasjb-rail-line-being-evaluated-ministry-84871
Completion date (projected) • October 2021 was the projected date but the Corona Virus lockdown occured and Malaysia went into a movement control order.
• Thus, the date of completion is October 2022.
Article from the New Strait Times: https://www.nst.com.my/news/nation/2020/06/602265/gemas-jb-double-tracking-project-be-completed-oct-2022-nsttv
Report from ISEAS: https://www.iseas.edu.sg/wp-content/uploads/2020/06/ISEAS_Perspective_2020_72.pdf
Scope at completion • Through the project, 22 train services should pass through daily.
• Designated train speed of 160km/h.
• There is a seating capacity of 346 passengers per train.
• This project will pass from Gemas towards Johor Bahru covering 11 stations.
Ministry of Transport Site: http://www.mot.gov.my/en/lands/rail-transport/plbegjb
Reasons for project changes •Changes in cost were due to the fact there was a change in government.
•There was a change in timing because of the occurence of the Corona Virus, thus further delaying the project.
Article from Yusof Ishak institute: https://www.iseas.edu.sg/wp-content/uploads/2020/06/ISEAS_Perspective_2020_72.pdf
Reference to audit and evaluation reports Not available
Procuring entity •Ministry of Transport together with the consortium of three Chinese contractors
•China Communications Construction Co Ltd
•China Railway Construction Corporation Ltd
•China Railway Engineering Corporation
Construction report on the project:
Procuring entity contact details •The address for the China Communications Construction company in Malaysia is: Level 10, Menara 1 Dutamas, Solaris Dutamas, No. 1 Jalan Dutamas 1, 50480 Kuala Lumpur, Malaysia. Their email address is kl.management@cccc.com.my.
•The address for the China Railway Construction Corporation is No. 40 Fuxing road, 100855, China and their email address is webmaster@crcc.cn
•The address of the China Railway Engineering Corporation is No.69, Fuxing Road, Haidian district 100039,China and their email address is crecwebmaster@163.com
Websites for the companies in question: http://www.cccc.com.my/contact-MY
http://www.crecg.com/english/2687/39952/index.html
Procurement process Contract was directly awarded with a percentage ownership breakdown of the chinese consortium is between CREC:CRCC:CCCC is 40:30:30. The Edge Markets news site: https://www.theedgemarkets.com/article/newsbreak-doubletracking-project-moving-again
Contract type Engineering, Procurement and Construction (EPC) Construction report on the project:
Contract status (current) Active Construction report on the project:
Number of firms tendering Not available
Cost estimate 2100.00 US$ million (No conclusive evidence has been found in regard to this topic)
Contract administration entity Not available
Contract title Not available
Contract firm(s) China Communications Construction Co Ltd, China Railway Construction Corporation Ltd, China Railway
Engineering Corporation, SIPP Rail Sdn Bhd and YTL Corporation Berhad
Construction report on the project:
Contract price MYR 8 Billion https://web.archive.org/web/20080618200528/http://www.btimes.com.my/Current_News/BTIMES/Monday/Latest/DHB.xml/Article/index_html
Contract scope of work The scope of the project will include the
design, construction, material supply, installation, completion, testing, trial operation and maintenance of the GemasJohor Bahru electric double-track railway.
Construction report on the project:
Contract start date and duration Not available
Variation to contract price Not available
Escalation of contract price Not available
Variation to contract duration Contract states project should be finished by 2020, however due to the Corona virus outbreak, the date got postponed towards October 2022, with train services starting to run. Construction report on the project:
ISEAS report on project: https://www.iseas.edu.sg/wp-content/uploads/2020/06/ISEAS_Perspective_2020_72.pdf
Variation to contract scope Not available
Reasons for price changes Project is expected to cost RM7.3 Billion https://www.astroawani.com/video-malaysia/projek-landasan-berkembar-gemas-johor-diteruskan-1702025
Reasons for scope & duration changes There were changes in the time duration due to the movement control order that was imposed by the government, thus delaying the project. ISEAS report on the project: https://www.iseas.edu.sg/wp-content/uploads/2020/06/ISEAS_Perspective_2020_72.pdf

Gemas-Johor Bahru Electrified Double Track Project