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Malaysia Rail Link Establishes Joint Venture for East Coast Rail Link Operations With CCCECRL

2024-12-26 11:53

Wedoany.com Report-Dec 26, The partnership introduces a shared operational framework, dividing responsibilities and financial risks equally between the two parties.

Malaysia Rail Link (MRL) and China Communications Construction (CCCECRL) have formalized a joint venture agreement to manage operations of the 665-km East Coast Rail Link (ECRL), which connects Kota Bharu and Port Klang.

Under the agreement, MRL will retain full ownership of all ECRL assets, with CCCECRL contributing operational expertise. The joint venture is structured to balance financial exposure while maintaining oversight of key operational responsibilities.

A part of the partnership is its workforce plan, with up to 80% of the operational and maintenance personnel to be sourced locally from Malaysia. This approach supports workforce development and aims to create employment opportunities while promoting skills transfer in railway operations and infrastructure management.

The operational launch of the ECRL is projected for January 2027, with expectations of reduced travel times across the peninsula and increased economic activity along the railway corridor.

The ECRL forms part of Malaysia's broader infrastructure network, with the joint venture designed to combine local oversight with international operational experience.

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