He said the rail journey from the Integrated Transport Terminal (ITT) in Gombak, Selangor, to Kota Bharu, Kelantan, was expected to be less than four hours.
This compares with the average eight hours and even up to 12 hours or more, during festive seasons, thus making the ECRL a comfortable alternative transport medium once completed, he added.
“The ECRL project also sets the tone for an economic spin-off effect, and positive social impact for the east coast states.
“It will be a catalyst for economic equality between the west and east coast as it will stimulate investment, spur commercial activities, create ample jobs, facilitate quality education and boost tourism in Pahang, Terengganu and Kelantan.”
Najib said this in his speech during the ECRL groundbreaking ceremony held at the ECRL KotaSas central station project site here today.
It was witnessed by, among others, China State Council vice-premier Wang Yang, China Communications Construction Company Ltd (CCCC) executive director and chairman Liu Qitao, and Malaysia Rail Link Sdn Bhd (MRL) chairman Mohd Irwan Serigar Abdullah.
Present were Transport Minister Liow Tiong Lai and the three east coast states’ menteri besar – Adnan Yaakob (Pahang), Ahmad Razif Abdul Rahman (Terengganu) and Ahmad Yakob (Kelantan).
Najib noted that the ECRL would become the nation’s longest rail project with a total rail link of 688km, costing RM55 billion.
It will be built by the CCCC, one of the leading transportation infrastructure groups, and the third top international contractor in the world. MRL is tasked as the project owner.
Malaysia also received attractive financing terms for the ECRL, with 85% of the project financing, including a soft loan of 3.25% from China Exim Bank, with the moratorium period of seven years, with the remaining 15% to be funded through a sukuk programme managed by local investment banks, he added.
Najib also stressed that the government had mapped out the interest of Malaysians in the project, including coming to an agreement with China that at least 30% of Malaysian contractors would be involved in the high-impact project, while the ECRL industrial training programme, launched on June 14, would provide Malaysian students with the necessary skills to work with the ECRL.
“Therefore, I urge local contractors with capabilities and know-how to seize this opportunity and participate in this momentous project that will stimulate economic growth for the East Coast Economic Region (ECER).
“We plan to incorporate 3,600 Malaysian students under this training programme.
“They will be trained according to the syllabus jointly developed by two prominent Chinese universities and nine institutions of higher learning in Malaysia.
“Students who complete the training will automatically be offered jobs by MRL, the project owner and CCCC as the main contractor or their subcontractors,” he said.
Najib said the ECRL alignment would also promote the development of industrial areas and the growing trend of Transit Oriented Development (TOD) that would nurture compact residential districts and commercial centres along the rail stations, hence benefiting major towns designated as main stations for the project.
For example, he said, the ECRL would link the key economic industrial areas with the ECER such as the Malaysia-China Kuantan Industrial Park (MCKIP) and Gambang Halal Park in Pahang, Kertih Biopolymer Park (Terengganu) and Tok Bali Integrated Fisheries Park (Kelantan).
“I would like to emphasise that the ECRL is rakyat-centric.
“The government has forecast the gross domestic product (GDP) for the three east coast states to grow by 1.5% at the current rate with the implementation of this project.
“The viability of the ECRL is undisputed as it is estimated that 5.4 million passengers and 53 million tonnes of cargo will use the service annually by the year 2030 as the primary transport between the east and west coasts.
“The revenue from the operation of the ECRL is projected to be obtained through a transportation ratio of 30% passengers and 70% freight,” he said.
The prime minister also described the development of the ECRL as timely with the ongoing expansion of Kuantan Port into a deep-water terminal that would soon be able to cater to larger vessels of up to 200,000 deadweight tonnage or 18,000 twenty-foot equivalent unit container ships.
Despite lots of advantage to be gained from this mega project, Najib regretted that some parties were trying to derail the ECRL. He however gave his assurance that the government would ensure the ECRL would be completed successfully in 2024, as promised.
“The federal leadership is also grateful to the state governments of Kelantan, Terengganu, Pahang and Selangor for their full cooperation and support to this project, particularly in matters of land acquisition.”