The Star reported today that Syarikat Prasarana Negara Bhd (SPNB) has completed feasibility studies on Klang Valley’s third Light Rail Transit (LRT) line. The study and its associated recommendations have already been submitted to the Land Public Transport Commission (SPAD) for review and approval. The proposed route – measuring a total of 36km – runs from Bandar Utama in Damansara to Klang. At Bandar Utama, this proposed LRT line will intersect the MRT system. It would then go on towards Centre Point before cutting across towards Kelana Jaya. Effectively, the Bandar Utama station will serve as a transportation hub within this part of Selangor. Based on this, the indicative cost – bar land – is estimated at ~RM250mil/km or ~RM9bil – per our back-of-the-envelope calculations. This compares with the Sg.Buloh-Kajang MRT line under MRT Corp, which is estimated to cost ~RM22bil (or ~RM440mil/km). However, close to 10km of the latter’s 51km track consists of tunnel works, which normally cost more than elevated structures.

The major contractors that have been involved in the civil portion of the existing LRT extension works are TRC, UEM Builders, Sunway and MRCB. The systems works went to a JV which is made up of the UK’s Colas-Uniway and Malaysia’s CMC Engineering Sdn Bhd under a RM674mil contract. Likewise, we also see suppliers of building materials as benefitting from any go-ahead from this new LRT works. Ann Joo Resources, Lion Industries and Lafarge Malaysia will be at the forefront of any upswing in orders.

Source: AmeSecurities