PUTRAJAYA: The joint venture agreement between Malaysia Rail Link Sdn Bhd (MRL) and China Communications Construction (ECRL) Sdn Bhd (CCCECRL) has established a 50:50 partnership for the operation and maintenance of the East Coast Rail Link (ECRL).

Transport Minister Anthony Loke said that both companies would equally share any risks in the event the operational company incurs a deficit.

"China (through CCCECRL) not only builds the ECRL system but also assumes operational risks. The key goal is for the operation to be sustainable, competitive, and not run at a loss.

"We know profitability in the rail sector is challenging, but we are committed to trying," he said.

He said that should the operation incurs losses, China would cover 50 per cent, while profits would be split, with Malaysia receiving 80 per cent of the operational profits and China taking 20 per cent.

"This outcome is the result of the 2019 renegotiations, and we are seeing it come to fruition today," he added.

During the event, Loke officiated the signing ceremony for the joint venture agreement and the launch of the EMU train design and ECRL logo.

MRL CEO Datuk Seri Darwis Abdul Razak represented the company, while CCCECRL was represented by its managing director Kong Qi.

The new ECRL logo was unveiled along with a model of the train, set to be fully operational in January 2027.

Loke also said that MRL, on behalf of the government, would fully own the ECRL assets during the operational phase, ensuring national interests were protected while enabling local empowerment.

He said that the 665-kilometre ECRL project had reached 76.06 per cent completion as of last month.

He confirmed that the project remained on track for the first phase's completion from Kota Baru to the Gombak Integrated Terminal by December 2026, and the second phase to Port Klang by December 2027.

Loke also addressed the impact of recent floods on residents near the ECRL construction sites, saying that the contractor would manage affected homes, including compensation payments.

The project spans four states: Selangor, Pahang, Terengganu, and Kelantan, which were recently affected by flooding.

https://www.nst.com.my/news/nation/2024/12/1150121/ecrl-partnership-malaysia-and-china-share-risks-and-rewards