China claims that its abroad-based railway projects are proceeding well. (Photo : Reuters)
The construction of the proposed high-speed railway project that will link Kuala Lumpur and Singapore is likely to be awarded to Chinese firms, according to a report by Malaysian media on Sunday, April 3.
The Sunday Star, a Malaysian English newspaper, reported that Chinese state-owned enterprises have recently made investments in the project, giving them an edge in the bid for the 350-kilometer high-speed railway project.
China Railway Group Limited (CREC), one of China's largest state-owned companies, said last month that it has invested $2 billion for the construction of its regional headquarters in Bandar Malaysia, the site of a proposed terminal for the Kuala Lumpur to Singapore line, the Xinhua News Agency reported.
Three months ago, CREC was awarded the bid to acquire 60 percent of the equity in the Bandar Malaysia project, in tie-up with its Malaysian joint-venture partner.
Competitors from several countries which include Japan, France and South Korea will face China in the railway bid, according to the report.
The Sunday Star said that Chinese firms have the advantage since they have experienced working with Malaysia on its light rail transit projects and regular railway system. About 75 to 80 percent of the locomotives, coaches and related equipment in Malaysia came from Chinese suppliers.
A manufacturing center for Southeast Asia has been built by China Railway Rolling Stock Corporation (CRRC) in Malaysia, the report added.
Goh Bok Yen, a well-known transportation planning consultant, said that China's research and development on major train projects as well as its long track record have enabled it to develop the most cost-effective rail system in the world, despite being a latecomer in the field.
Goh, however, told the Sunday Star that the project is still in its early stage and it was not yet a done deal.
The report said that the procurement stage may start this year as soon as the governments of Malaysia and Singapore finalize the commercial model for the project.
