Gamuda is part of group likely to get Gemas-Johor Baru double-track link

KUALA LUMPUR: Gamuda Bhd
has been roped in to be part of a group which is the front- runner for
the construction of the Gemas-Johor Baru electrified double-track
railway line.
A source said Gamuda was in a consortium led by China Railway Construction Co (CRCC)
and another local party linked to the Johor royal family and that this
group is the current front-runner for the RM8bil project, known as
Gemas-Johor Baru electrified double-tracking project (EDTP).
Another
source from the Government, confirmed that it was “close to” choosing
CRCC for the extension of the railway line, but it also wanted to know
how the management and engineers from this group could keep “possible
cost-overruns in check”.
“There is some progress but it is
important to ensure that cost overruns are kept in check. The Government
would like to ensure that the parties eyeing this deal have an advanced
plan to deal with expected cost overruns,” the source told StarBiz.
“We
like Gamuda as it has a strong track record in building this
infrastructure in the country. At this stage, we favour its
participation in this upcoming Gemas-Johor Baru rail link,” the source
added.
Two other China firms confirmed to be in the running for the job are China Railway Engineering Co and the China Communication Construction Co.
Earlier news reports had stated that Prime Minister Datuk Seri Najib Tun Razak, during his visit to China, had said that the Gemas-Johor Baru project would be given to a company from the republic.
“We would like to see which China-based company would eventually be picked and how it can work with Gamuda.
“The
local company picked can eventually offer its insight and experience in
other projects it had carried out,” another government source said.
Should
the CRCC group be chosen, Gamuda could redeploy its machinery from the
ongoing Ipoh-Padang Besar EDTP for the southern rail upgrade link, an
industry observer pointed out.
“It can save on capital
expenditure with its contribution in this role and the Chinese partner
would not have to spend extra for ferrying huge equipment to Malaysia,”
said the observer.
Gamuda is the joint-venture partner in the
ongoing upgrading of the RM12.5bil Ipoh-Padang Besar EDTP link, which is
expected to be completed by the end of next year. It has also won other
rail infrastructure projects in Malaysia.
The company is the
project delivery partner in the construction of the Klang Valley Mass
Rapid Transit Project, Sungai Buloh-Kajang Line with MMC Corp Bhd in a 50:50 joint venture.