Monorail for Batu Kawan ?

http://www.theedgemalaysia.com/business-news/154625-penang-gives-2-the-nod-to-build-monorail-test-tracks.html

Penang gives 2 the nod to build monorail test tracks

GEORGE TOWN: The state government has given the nod to two local companies to build separate monorail test tracks on the mainland.

Deputy Chief Minister II Prof P Ramasamy told a press conference that the state government has agreed to allow both companies to each build the one-kilometre test tracks, which would be located either in Batu Kawan or Nibong Tebal.

Ramasamy said there was no tender called for the project but the two companies had on their own submitted proposals to undertake the project. However, he declined to reveal the names of the companies or other details of the agreement which he said would be unveiled in due course when things firmed up.

He also said the state was not forking out any money but only allowing the companies to build the test track on state land.“The state government will not have to come up with a single sen for the project which will be borne by the companies. All that we are allowing them to do is to build the test track on state-owned land which we are not selling to them.

“There has been no detailed discussion but they have been given a no-obligation letter by the state government. This is more of an exhibition or test track for the public to see for themselves and also for the state government to ascertain if they are capable of carrying out the monorail project.

“But the state government is under no obligation to appoint any of them in the event that we decide to proceed with the monorail project (in the state). If that happens, these companies would also have to bid via a competitive tender for the same project,” Ramasamy said.

He said the companies have the experience in either building or planning monorail systems.Ramasamy said both companies would also be investing tens of millions of ringgit to set up a plant either to assemble the cars or the tracks at the site either in Batu Kawan or Nibong Tebal.

He did not discount the possibility of the companies setting up the plants to start production for the test tracks and other monorail components for the export market.

“We are talking about an industry which involves millions of ringgit in investments. This is something that would benefit the state economically and since we do not have to come up with a single sen, we are allowing them to go ahead with the test track.

“It will help us assess if the monorail is feasible or compatible for Penang and this is the best way for us to do it without having to spend money,” Ramasamy added.

He said the test track was expected to be completed within a year.The Edge weekly had reported in October that the state has in principle given the green light to businessman Datuk Jeyakumar Varathan to build a monorail test track costing some RM70 million on a 30-acre site in Batu Kawan.

It was reported that discussions between the Penang government and Jeyakumar were initiated three months ago and the promoters were looking to form a consortium that includes Middle Eastern and Chinese investors to undertake the venture.

The promoters were also looking at roping in a Japanese company as a TECHNOLOGY partner.

In Japan , Hitachi is one of the few leading monorail systems developers. Locally, SCOMI ENGINEERING BHD is also in the monorail systems business. It is believed that Jeyakumar’s plans are to build the test track, and eventually a factory that will supply monorail components to South Africa and other parts of the world.

The consortium, if it takes off, will have a chance to bid for a proposed monorail network in Penang , which has been in the pipeline for some time now but has not taken off yet due to lack of funds. The monorail project is a federal government initiative that was shelved during the mid-term review of the 9th Malaysia Plan in 2008. The letter of intent for the RM1.6 billion project had earlier been given to a consortium led by MALAYSIAN RESOURCES CORP Bhd.

Members of the consortium include Scomi and the Penang Port Commission.Other contenders for the monorail project were MELEWAR INDUSTRIAL GROUP BHD and its partner PUTERA CAPITAL BHD , as well as MMC-Metrail Sdn Bhd.

This article appeared in The Edge Financial Daily, November 30, 2009.