Keretapi Tanah Melayu Bhd workers’ union president Abdul Razak Md Hassan said disputes over the contract were secondary to safety.
“We don’t care who gets the contract. Our concern is that for each day the project is delayed, the safety risk to passengers and our staff grows,” he told FMT, pointing out the risks of derailments.
His warning comes in the wake of the LRT train collision near Kuala Lumpur City Centre last week, in which more than 200 passenges were injured.
Abdul Razak said the KVDT2 project entailed the replacement of the 26-year-old worn and weather-beaten tracks. Without it, trains run the risk of derailments and delays.
The project has been tied up in a court case after the government cancelled the contract originally awarded to Dhaya Maju-Lembaga Tabung Angkatan Tentera (Dhaya Maju-LTAT) in early 2018.
It has been delayed twice. Both the Pakatan Harapan and Perikatan Nasional administrations terminated the award, citing costs.
Dhaya Maju-LTAT’s contract was cancelled in October 2018 only to be reappointed in July 2019 after the PH government conceded there was no basis to terminate the contract. Costs were however reduced in line with reductions in the scope of work.
Last September, the PN administration cancelled the company’s contract again, ultimately leading to a dispute that has gone to court.
Razak said trains could not travel as fast as they should on certain stretches because of the danger of derailment.
“In the past weeks, we have already had two derailments, one in Shah Alam and another in Bangi. These tracks are part of KVDT2,” he said. “The government cannot delay the project any longer. We ask that Prime Minister Muhyiddin Yassin resolve this issue as soon as possible.”
Razak also said delays could also affect KTMB’s profits as logistics companies and shippers opt for more efficient modes of transport.
Political risk
A government source told FMT that Putrajaya should be aware of the political ramifications of not only stalling the project, but also taking it away from Dhaya Maju-LTAT.
The source said LTAT has a substantial stake in the project and spin-offs from the project in terms of employment and vendor development, among others.
It is understood that LTAT will stand to make a guaranteed profit of RM80 million from the project which is expected to contribute to their dividends.
A decision that does not benefit LTAT, the armed forces retirement fund, could cost the government “a lot of votes”.
“But the bigger concern of course is the safety issue. The government and Prasarana came under heavy criticisms over the LRT collision. What if a KTM train is derailed, and people are injured or worse?
“I am made to understand that the Cabinet is going to discuss this matter in the near future. I am not sure how the government is going to decide, but I hope it makes the right choice,” the source said.