Highlights

ECRL project draws huge interest from local construction firms

 Publish date: Wed, 12 Jun 2019, 11:24 AM

KUALA LUMPUR: More than 1,000 construction companies nationwide are eyeing the 40 per cent civil works portion of the RM44 billion East Coast Rail Link (ECRL) project following a Pre-Qualification (Pre-Q) exercise to identify potential subcontractors.
 
A total of 1,321 submissions from CIDB-registered companies were received by ECRL’s main contractor, China Communications Construction Company Ltd (CCCC), during the Pre-Q exercise on May 29 and 30, 2019.
 
Malaysia Rail Link Sdn Bhd (MRL) and CCCC in a joint statement said participation from the G7 category of CIDB-rated companies topped the list with 859 submissions or 65 per cent.
 
“This was followed by the Grade G5 category with 134 submissions and Grade G4 category with 132 submissions. The remainder consisted of Grade G3 and Grade G6 with 104 submissions and 92 submissions respectively.
 
“Bumiputera participation was also very encouraging. The two-day ECRL Pre-Q exercise had recorded submissions of 994 Bumiputera engineering and construction companies representing 75.25 per cent of the overall registration,” it said.
 
The companies said the number of submissions in the Pre-Q exercise is a further endorsement of the improved RM44 billion ECRL project as its rail network would traverse the East Coast states of Kelantan, Terengganu and Pahang as well as Negri Sembilan, Selangor, and the Federal Territory of Putrajaya.
 
“The level of enthusiasm shown by Malaysian construction companies in particular from the G7 CIDB rating companies augurs well with the increase in civil works participation for local contractors from 30 per cent to 40 per cent of the ECRL project as per the inking of the supplementary agreement between MRL and CCCC on April 12, 2019,” it said.
 
MRL said the company, as the ECRL project owner, highly encourages local industry players especially local contractors to proactively seize any opportunities to participate in the ECRL project not just as contractors but also as suppliers, consultants and other relevant scopes.
 
MRL chief executive officer Datuk Seri Darwis Abdul Razak also expressed hope that the ECRL project would be an exemplary government project that demonstrates the capabilities of local contractors to work with an international contractor in carrying out and meeting the high standards of a large-scale infrastructure project.
 
“The participation of local contractors will not just act as a stimulus to the local construction sector but will also serve as a catalyst in the transfer of knowledge and technology in view of the ECRL project being among the most challenging engineering and construction projects in Malaysia,” Darwis added.
 
Following the Pre-Q exercise, MRL will be working closely with CCCC in the evaluation and shortlisting process of 1,321 construction companies as potential tenderers of the ECRL’s civil works packages.
 
Companies that are successful in the shortlisting will be notified in writing by CCCC, it said.
 
MRL, a wholly-owned subsidiary of the Minister of Finance Incorporated, is the project and asset owner of the ECRL.
 
The 640-km rail network is scheduled for completion by December 2026 and is expected to link Kota Bharu to Putrajaya in approximately four hours.
 
 
 - Bernama

 

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calvintaneng 1000 construction companies vying for Ecrl jobs. Which ones to choose leh?

Very difficult to pin point

There is an easier way to invest

No matter who wins they will need to buy cement and long steel material for the 688 km Ecrl rail link

So just buy up cement and long steel companies

There are only a handful. So investing is so simple and easy
16/06/2019 7:19 PM
InvestsucessTrader @ calvintan, 1000 construction companies vying for Ecrl jobs. Which ones to choose leh?

Very difficult to pin point

There is an easier way to invest , Just buy Econbhd the piling specialist and biggest capable of taking large project.
16/06/2019 7:24 PM
calvintaneng Econbhd is a so so company

These are some difficulties econbhd must overcome

1. Econbhd bid at too low prices to win projects in fierce bidding.
So there is razor thin profit

2. Ytl after buying over Lafarge has raised holcim cement prices from Rm16 to Rm18 per 50kg bad last month. So future trend for cement prices will be uptrending

To bid for projects against 1,000 others and not knowing cement price for certainty will be risky

Also as iron ore prices gone up due to Value iron ore mine flooding long steel prices also bound to increase

So construction companies will face margin squeeze

Stick to masteel as it will do better as it's feedstock is cheap scrap metal
16/06/2019 7:31 PM
InvestsucessTrader Econbhd will starts first for groundworks,bridges, piling and hillslopes,etc Then only steel will be needed. I agreed Masteel will be top priority as it's also one of my portfolio but dormant since DEC ,
16/06/2019 7:40 PM
calvintaneng Posted by InvestsucessTrader > Jun 16, 2019 7:40 PM | Report Abuse

Econbhd will starts first for groundworks,bridges, piling and hillslopes,etc Then only steel will be needed. I agreed Masteel will be top priority as it's also one of my portfolio but dormant since DEC ,

AM I SPEAKING TO A 15 YEAR OLD BEHIND THE KEY BOARD?

GROUND WORK PILING NEED LONG STEEL

BRIDGES NEED LOTS OF LONG STEEL

PILING ALSO NEED LOTS AND LOTS OF LONG STEEL

HILLSLOPES NEED STABILITY BY RETAINING WALLS = AGAIN LOTS OF LONG STEEL NEEDED

SEE

https://www.youtube.com/watch?v=xp9f2ZURD1s

https://www.youtube.com/watch?v=4KzDgQjWyHM

https://www.youtube.com/watch?v=Coeig9wdeIY
16/06/2019 8:58 PM
calvintaneng The whole length of 688km for Ecrl needs lots of cement & also lots and lots of longsteel bars

for reinforcement against hill slope, embankment of low lying area, bridges, foundation & others

https://www.youtube.com/watch?v=z1fjaQbDvxI
16/06/2019 9:05 PM
InvestsucessTrader @calvintan ,AM I SPEAKING TO A 15 YEAR OLD BEHIND THE KEY BOARD?
What about your Talam ,destini,Asia Pac, Mui ? I think you already bought Masteel,
16/06/2019 9:08 PM
calvintaneng Why divert the subject?

We are talking about Long Steel Bars being used for ECRL construction

Others can be discussed in their respective treads
16/06/2019 9:10 PM
InvestsucessTrader The technics and sophisticated skills with advanced machinery together with the concrete piling are the main menu in this type of project.In piling steel doesn't need much.
16/06/2019 9:33 PM
calvintaneng the concrete piling are the main menu in this type of project

MAY I ASK

WHAT KIND OF CONCRETE PILES?

in this type of project.In piling steel doesn't need much.

HOW COME IN PILING STEEL NOT NEEDED?
16/06/2019 9:36 PM
calvintaneng CEMENT PRICES UP BY 40% TO 50%?

KUALA LUMPUR (June 17): Cement manufacturers said today that cement prices in Peninsular Malaysia, which have been falling since 2016, have reached a level that is not sustainable, amid the various cost increases the industry is facing.

The Cement and Concrete Association of Malaysia said this in a statement today in response to various recent reports about cement price adjustments, though it said it cannot comment as cement prices that are independently set by each cement manufacturer based on their respective circumstances.

While it said its members understand the concerns expressed by their customers and participants in the construction industry, it stressed that the cement industry is highly capital intensive and hence needs to have a reasonable return on its investments in order to be able to meet the expectations of all its stakeholders.

In the statement, it also highlighted that the industry has been suffering from cost increases such as higher electricity tariffover the past few years following the withdrawal of the special industrial tariff or SIT, and the implementation of the imbalance cost past through or ICPT mechanism.

In addition, it said packing materials have become costlier following the increase in pulp prices, while imported fuel materials, engineering spares as well as equipment have further compounded the problem of rising costs.

"While the industry has been absorbing these cost increases, cement prices in Peninsular Malaysia have been on a downward trend since 2016 and have reached the level that is not sustainable.

"As a result of the significant margin erosion brought about by the declining cement prices and cost increases, the cement manufacturers have incurred significant losses and negative cash flows for the past many quarters.

"Collectively, the cement industry provides hundreds of thousands of jobs directly and indirectly. These jobs will be put at risk if the industry continues to operate at a loss," the association added.

According to news reports, cement suppliers have been notifying their customers that cement prices will be going up between 40% and 50% from July, with some taking effect from Saturday (June 15).

It was also reported that the Finance Ministry and the Domestic Trade and Consumer Affairs Ministry (KPDNHEP) will meet over the 50% price hike, after the Real Estate and Housing Developers Association Malaysia (Rehda), Penang Master Builders & Building Materials Dealers Association (PMBBMDA) and Federation of Malaysian Manufacturers (FMM) met with Finance Minister Lim Guan Eng yesterday here over the matter.

NO WONDER LAFARGE UP SO MUCH

NEXT LONG STEEL PLAYERS LIKE MASTEEL, ANNJOO & SOUTHERN STEEL WILL ALSO ASK FOR PRICE INCREASE DUE TO ECRL NEW IMPETUS
17/06/2019 12:54 AM


 

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