MRT Corp formalises MRT handing over agreement

 MRT Corp formalises MRT handing over agreement

KUALA LUMPUR, July 2 — Mass Rapid Transit Corp Sdn Bhd (MRT Corp) and Rapid Rail Sdn Bhd have signed the MRT handing over and operating agreement, which formally appoints the latter as the MRT Sungai Buloh-Kajang (SBK) Line operator.

Besides the operational requirements for the line, the agreement also spelt out the obligations that Rapid Rail, an unit of Prasarana Malaysia Bhd, has with regards to maintenance of the rolling stock, stations, systems and other assets.

MRT Corp Chief Executive Officer, Datuk Seri Shahril Mokhtar said, the event was historic for MRT Corp as it signalled the transformation of the MRT SBK Line as a project that was under construction towards an operational mass rail transit (MRT) line.

“For the past six years, MRT Corp had worked hard to create a modern, state-of-the-art MRT system and now, we are near the moment when we hand over what we have created to the appointed operator,” he said in statement here.

Under the agreement, Rapid Rail is appointed as the operator for 10 years, with an option of an extension of a further five years.

The agreement was drawn up on the basis of asset lease terms with Rapid Rail leasing the asset from MRT Corp for an annual fee, said MRT Corp.

“Rapid Rail will operate the MRT line and retain all fares collected, while MRT Corp will retain non-fare revenue, such as revenue from advertising and retail leasing.

“The fares will be set by the Land Public Transport Commission,” it said.

Rapid Rail will also be responsible for maintaining the assets. However, major refurbishing costs will be borne by MRT Corp, the asset owner.

MRT Corp will set asset performance key performance indicators (KPIs) for Rapid Rail to ensure the assets perform at the highest level. The KPIs will also enable MRT Corp to optimise the asset’s life-cycle cost management. At the end of the lease, the assets would be returned to the asset owner in a fair condition. Prasarana will also operate the feeder bus system that will provide first and last-mile connectivity to the MRT network.

The first phase of the SBK Line – between the Sungai Buloh Station and the Semantan Station – will begin operations in December 2016, with the second stage of operations covering the rest of the line to commence in July 2017.

In view of this, the handover by MRT Corp to Rapid Rail will be carried out in two stages in accordance with the two operations dates. The government had earlier decided that Prasarana, or its unit, would be the operator for the SBK Line, the first line of the Klang Valley MRT Project to be developed by MRT Corp. This is to ensure complete integration of the MRT service with the existing light rail transit and monorail services currently operated by Rapid Rail. MRT Corp would remain the asset owner of the SBK Line.