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Malaysia Steel Works to scrap proposed Iskandar rail project

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Iskandar intra-city rail line plan scrapped

KUALA LUMPUR: The RM1.23 billion intra-city rail line for Iskandar Malaysia in Johor, as proposed by a private party, will be scrapped, said people with first hand knowledge on the matter.

This is because the government wants to focus on the high-speed rail system linking Kuala Lumpur and Singapore, which will likely have a stop in Iskandar Malaysia, and the Rapid Transit System from Johor Baru to Woodlands, Singapore.

“It does not make sense to have too many railway lines in Johor.

It will be congested. We also have the Gemas-Johor Baru double-tracking project coming up,” a source told Business Times.

Metropolitan Commuter Network (MCN), a 60:40 joint venture between Malaysia Steel Works (KL) Bhd (Masteel) and KUB Malaysia Bhd, had proposed to build the intra-city rail project.

The joint venture first mooted the idea in 2009.

Under the plan, MCN was to build a 30km double-track railway line linking Kulai and Johor Baru city centre and a 50km link between Pasir Gudang and Port of Tanjung Pelepas using the existing alignment.

The development of the railway line would be similar to the concept undertaken by Syarikat Prasarana Negara Bhd for its light rail transit project in the Klang Valley.

The source said the MCN proposal was not approved by the Transport Ministry and Minister of Finance Inc.

“This project is not part and parcel of the government plan to develop the railway infrastructure in Malaysia,” the source said.

It was also to have come under the public private partnership scheme, where both parties fund the venture.

Masteel managing director and chief executive officer Datuk Seri Tai Hean Leng had said MCN would invest RM300 million to carry out the project, with the remaining RM700 million coming in the form of a government “soft loan”.

MCN expected to pay the government the RM700 million over an agreed duration, Tai said.

He also said then the company had not obtained full approval to undertake the project.

-Business Times 26 Aug 2013-

Only RTS and HSR had been acknowledged by both Malaysia and Singapore governments which are under feasibility study.RTS is Rapid Transit System to connect Singapore and Johor Bahru point-to-point.
HSR is High Speed Rail to connect Kuala Lumpur, Iskandar and Singapore.

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