Search Articles

Find tips, tools and how-to guides on every aspect of property

Chinese Companies Ink Deals to Complete RM55b ECRL, Pengerang Projects


Chinese Companies Ink Deals to Complete RM55b ECRL, Pengerang Projects

BEIJING, 15 May: Two companies from China signed a memorandum of understanding (MoU) on 13 May with its Malaysian counterparts to carry out the second phase of the East Coast Rail Link (ECRL) and gas and petroleum pipeline infrastructure project to Pengerang, Johor.

China Communications Construction Company Limited China (CCCC) signed an MoU with Malaysia Railway Link Sdn Bhd (MRL) for a rail link from Gombak to Port Klang, over a stretch of 88km, while China Petroleum Pipeline Engineering Co Ltd (CPP) inked a deal with Suria Strategic Energy Resources Sdn Bhd (SSER) for a gas and petroleum pipeline from Sungai Udang, Melaka, to the Petronas’ refinery and petrochemical integrated development project (RAPID) in Pengerang, Johor.

Both MRL and SSER are special purpose vehicle owned by the Ministry of Finance.

Prime Minister Datuk Seri Najib Abdul Razak, Transport Minister Datuk Seri Liow Tiong Lai and Minister in the Prime Minister’s Department Datuk Seri Rahman Dahlan witnessed the signing of the MoUs.

Treasury Secretary-General Tan Sri Irwan Siregar signed on behalf of both Malaysian companies.

Speaking to Malaysian journalists, Irwan said both projects were an extension of the first phase of the projects.

“Phase 2 will provide the vital connection to Port Klang. Ultimately, the ECRL underlines the importance of infrastructure to Malaysia and its people.

“Once completed, the people in the east coast of Malaysia will be connected to the central region and west coast with important stops such as industrial hubs, airports and tourism zones located along the way,” he said.

The construction of the 600km ECRL cost RM55 billion.

The stretch from Wakaf Bharu in Kelantan, under the first phase, to the integrated transportation terminal (ITT) in Gombak cost RM46 billion while the second phase from ITT Gombak to Port Klang would cost RM9 billion.

Upon completion of the ECRL in June 2024, the project will link the Greater Klang Valley to the East Coast Economic Region (ECER).

Meanwhile, the pipeline infrastructure project comprised a 370km pipeline that would connect the ongoing Multi Products Pipeline project (commencing from Melaka) to the Petronas refinery project currently under construction in Pengerang, Johor.

The Multi Products Pipeline (MPP) project involved transportation of petroleum products from refineries in Melaka and Port Dickson to Central and Northern region of East Peninsular Malaysia.

“The project, scheduled to be ready within two to three years, is expected to meet the 30-year market demand for petroleum products in Northern Peninsula Malaysia.

Irwan also said that the Prime Minister stressed that the use of local resources, expertise and local talent must be outlined as prerequisites to undertaking the project.


Disclaimer: The information is provided for general information only. Malaysia Sdn Bhd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.

More Articles