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3 firms picked to take part in South rail-link pro
calendar24-08-2001 | linkNULL | Share This Post:

THREE Malaysian companies have been identified as partners forlead-contractor China Railway Engineering Corp to undertake the RM6billion project to double-track the rail-link between Seremban and JohorBaru.

They are DRB-HICOM Bhd, Emrail Sdn Bhd and Kien Huat Group, sources said.

The Government is understood to have endorsed their participation in theproject which comes under the RM12 billion counter-trade programme withChina and India involving the payment for rail contracts in crude palmoil.

The three companies will be allocated 30 per cent of the work, they said.

A detailed proposal on the contra deal is being prepared.

It will see delivery of about 8 million tonnes of palm oil over a periodof five to six years.

Talks between the two countries had earlier been said to have stalledbecause of disagreement over terms.

The stretch, together with the Northern segment of the Peninsula's railnetwork which is also being double-tracked, will form part of theTrans-Asia railway that links Singapore with Kunming in China.

The Ipoh-Padang Besar stretch, also valued at RM6 billion, has alreadybeen awarded to India's Ircon International Ltd.

The counter-trade programme was initiated by the Government as part ofefforts to secure markets for palm oil and boost its price.

It was first mooted last October.

Kien Huat Group, which is linked to Datuk Lim Chee Wah, the youngest sonof Genting Bhd chairman Tan Sri Lim Goh Tong, will partner the Chinesecompany to facilitate payments and transfer of the commodity.

Construction concern Kien Huat Development is owned by Kien Huat Realty,which in turn has a 33.88 per cent stake in Genting as at April 20.

DRB-HICOM's appointment as sub-contractor for the Southern stretch hasbeen widely expected, as it is already involved in the first phase of thedouble-tracking project to connect Rawang with Ipoh.

The company, together with Mitsui of Japan, is leading the RM4.2 billionproject, a 170km link expected to be completed by 2004.

Emrail meanwhile has been involved in railway engineering since 1973 andis one of the sub-contractors for the Rawang-Ipoh project.

It is 30 per cent owned by Tan Sri Ahmad Kamil via Lanvik Sdn Bhd, and 70per cent by Datuk Hari Narayanan Govindasamy's Noblemax Resources Sdn Bhd.

Emrail, a former subsidiary of Time Engineering Bhd, has a paid-up capitalof RM10 million as at May 31 2000.

Among the projects that have been undertaken by Emrail are the turnkeyconstruction of the Seremban rail depot in 1998 and track-work for thePutra-LRT project in joint venture with SNC Lavalin of Canada in 1999.

Talks between China and Malaysia was earlier stalled as both parties wereunable to agree on terms of the counter-trade.

23 August 2001Business Times

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