Saturday, October 24, 2015

Commercial challenges facing the Singapore-KL HIgh Speed Rail project

I expect there will be a lot of challenges to be overcome when it comes to negotiating the commercial terms for the joint venture to build the high speed railway between Singapore and Kuala Lumpur.

Some of them include:
a) Who will be invited to tender for the different parts of the project?
b) Who will form the selection committee?
c) Will the award process be transparent?
d) Will the ticket prices be on commercial terms?
e) Can the high speed rail compete with budget airlines?
f)  What will be the ownership split between the two governments?

I wonder if these terms have already been agreed between the two governments. We need to know the details - at least what has already been agreed and what remains to be negotiated. It is so opaque now.

Maybe, I overlooked the details. I hope someone can point them out to me.

The Indonesian government appear to adopt a better approach in building its high speed rail between Jakarta and Bandung. The government decided that it will be a commercial project and there will be no government funding or guarantee for the loan. However, they will probably provide the land at a nominal cost.

The operators have to ensure that it is viable and the prices are competitive compared to other modes of transport.

1 comment:

simple said...

1) Singapore G had already raised the wish to have an express service run through bewteen KL and Singapore. So far didn't hear any response from Malaysia

2) At what cost will land use in both countries be transferred to the company ownng the HSR

3) see my letter to VOICES - TODAY at

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