MRT line 2 current awaiting approval from government to commence. Think goods news soon in q1 2014.

Nod for MRT Line 2 likely by Q1 2014

Posted on 19 December 2013 - The Sun Daily

PETALING JAYA (Dec 19, 2013): Approval for the RM25 billion Mass Rapid Transit (MRT) Line 2 project as well as the appointment of MMC Corp Bhd-Gamuda joint venture (JV), as the project delivery partner (PDP), is expected to be out by the first quarter of 2014.

Gamuda Bhd told RHB Research Institute that physical work for the MRT Line 2 or Sungai Buloh-Serdang-Putrajaya Line, could start in early 2016.

The government was initially expected to give approval for the MRT Line 2 before the end of this year.

"Gamuda believes that given the scale of the project, it is natural that the project will have to "go through the procedure" encompassing studies, bureaucracy, arguments and justification," the research firm said.

Analyst Joshua Ng said assuming that it takes about two years for the completion of land acquisition, public feedback, design and tendering as was in the case of Line 1, physical works for Line 2 should start around early 2016.

"This means there will not be discontinuity where construction equipment is laid idle and staff are redeployed to other projects. Gamuda believes the government is mindful of the situation," he said.

RHB Research said as at end of the first quarter for the financial year ending July 31 2014, financial completion (i.e. works certified done and billed) of the elevated portion (for which MMC-Gamuda earns a project delivery partner (PDP) fee of about 6% of the estimated RM14 billion of the elevated portion contract) stood at 17% (vis-à-vis 12% three months ago).

The RM8.3 billion tunneling portion (for which it assumes MMC-Gamuda JV earns a construction margin of 12%) is at 24% (vis-à-vis 18% three months ago).

At present, all 10 tunnel boring machines worth about RM1 billion have been delivered to the sites, with seven operational while the remaining three are being assembled, he said.

"With Line 1 worth RM23 billion currently under construction and Lines 2 and Line 3 worth RM25 billion each under planning, this mammoth mega project will keep players busy until 2019," Ng said.

However the KVMRT project is the sector's lifeline over the medium term.

"As such, it is extremely crucial that the government does not backpedal on its commitment to its implementation, and equally important, the timeliness of project execution," Ng said.

RHB Research said it liked Gamuda as it is the best proxy to public infrastructure spending in Malaysia given its dominant role in Line 1 of the KVMRT project, and most likely, in Lines 2 and Line 3 as well.

It also pointed out that Gamuda has secured the best parts of Line 1 of the KVMRT as a PDP with a 6% fee and a contractor for the high-margin tunneling jobs, and was likely to take the lead in terms of reacting to new sector price catalysts for instance, cabinet approval for the Line 2 of the Klang Valley project, given its large market capitalisation, high beta and share liquidity.

Propelled largely by the RM73 billion Klang Valley MRT project, which consists of three lines, RHB Research maintained its "buy" call on Gamuda. It has kept Gamuda's fair value unchanged at RM5.45..

KUALA LUMPUR, March 15 (Bernama) -- Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) says the MRT second line has been approved by the Federal government.

Chief Excutive Officer Datuk Wira Azhar Abdul Hamid said the company is waiting for the official announcement to enable it to begin work on the MRT Line 2, which will probably link Sungai Buloh with Putrajaya.

"The second line has been discussed by the government. So now the government is considering when the project can start," he told reporters after a visit by Deputy Finance Minister Datuk Ahmad Maslan to the Kajang MRT construction site near here Saturday.

"This is a good sign, because now we have continuity in the provision of transportation services to the public and its contribution to the economy," he said.

Azhar said construction of the underground section of the MRT Line 1, scheduled for completion in July 2017, is now 50 per cent completed.

"Basic construction work for the overall project is expected to be ready in the middle of 2015, and will be followed by upgrading works on the operations system," he said.

He also expressed satisfaction with the project's progress, saying putting safety measures in place will continue to be a priority, especially when they affect the public and workers.

-- BERNAMA

MRT Sg Buloh - Kajang Line trains.
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THE REPLICA ::: At this minute, MRT Corp is officially unveiling "The Guiding Light" - Malaysia's first MRT train at KL Sentral. The train is designed based on the Siemens Inspiro series with "The Guiding Light" theme chosen for Malaysia. It was reported that the interior of the train is designed by BMW DesignWorks.


https://www.facebook.com/MRTMalaysia