Aerotrain back on track but at higher cost


MAHB said the Aerotrain is set to be operational as per the original schedule, i.e., before end-March 2025.

PETALING JAYA: The delayed replacement of the Aerotrain system at the Kuala Lumpur International Airport (KLIA) is back on track, although it comes at an increased cost of RM456.1mil.

French rolling stock manufacturer Alstom has been appointed as the new original equipment manufacturer (OEM) for the project, according to Malaysia Airports Holdings Bhd (MAHB).

Meanwhile, Pestech Technology Sdn Bhd, a unit of Main Market-listed Pestech International Bhd, was reappointed as the contractor, despite its earlier contract terminated last August.

IJM Corp Bhd, which is in the midst of acquiring a 44.83% stake in Pestech, will be the joint-venture (JV) partner of Pestech in undertaking the project.

With this new development, MAHB said the Aerotrain, which runs between KLIA’s terminals, is set to be operational as per the original schedule which was before end-March 2025.

The new contract with Alstom, however, is expected to incur a cost increase that will be capped at 15%, bringing the project cost to RM456.1mil, excluding operation and maintenance.

The increase in cost is attributed to interest holding costs, foreign-exchange considerations and remobilisation expenses, as well as project coordination fees to Alstom.

In a statement yesterday, MAHB announced that it had entered into an agreement with Alstom Transport Systems (M) Sdn Bhd and a JV consisting of IJM Construction Sdn Bhd and Pestech Technology Sdn Bhd.

Under this new agreement, Alstom will serve as the project coordination lead and be responsible for the coordination works to recommence the project and deliver three new trains and two lines by the first quarter of 2025.

In appointing Alstom, MAHB said it considered two key focus areas, which were keeping to the agreed, fit-for-purpose technology, and ensuring the project can meet the original timeline for the operations of both lines.

The operator of KLIA also noted that Alstom’s involvement as the new project coordination lead provided a layer of assurance to the project, given the company’s successful track record in similar ventures.

Notable examples include automated people mover installations at global airports such as the Los Angeles International Airport, Dubai International Airport, King Abdulaziz International Airport in Jeddah, and Munich International Airport.

“In assuming the role to spearhead the project management and coordination, Alstom was accorded the prerogative in selecting their partners for works outside their scope.

“In this regard, Alstom has selected to work with the IJM Construction-Pestech JV for work scopes involving civil engineering and train power supply components, among others.

“Alstom will take up the majority of the scope of work in the project,” according to MAHB.

MAHB acting group chief executive officer Mohamed Rastam Shahrom said the increase in cost was an “acceptable variance” to allow the project to get back on track.

“The decision to deliver three trains and completing both lines simultaneously allows for optimal replacement works, to achieve the project completion date as originally planned.”

Meanwhile, Alstom’s Singapore and Malaysia cluster managing director Yann Maixandeau said, “We are glad to resume work on this important national project in partnership with MAHB and the IJM Construction-Pestech JV.

“Our team is committed to overcoming challenges, ensuring timely delivery of the project and enhancing the travel experience at KLIA.”

The Aerotrain project has been mired in controversy after MAHB terminated the contract to Pestech in August 2023 to undertake the aerotain replacement project.

“The termination is due to, among others, Pestech Technology’s non-performance, compromising significant project milestones and risking delays to deliver the project within the required deadline.

“Pestech Technology has been found to be in material breach of its obligations under the contract and had failed to remedy the same within the specified time period,” MAHB had said in a statement to Bursa Malaysia on Aug 16.

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