In this 2022 file photo ECRL workers are being transported into a tunnel near Bentong. The ECRL project is an integral part of the East Coast Economic Region (ECER) since it was formed in 2007. — AZHAR MAHFOF/The Star
RELIEF will come for congested ports in the region, such as Port Klang in Selangor and Port of Tanjung Pelepas in Johor, when the East Coast Rail Link (ECRL) is connected from Port Klang to the Kuantan Port in Pahang four years from now.
Just this week, The Star reported massive congestion at the ports dating back several months ago, caused by a combination of factors such as a massive influx of orders to serve May Day holidays, rerouting of ships around the Red Sea caused by regional conflict, and weather-related issues (“‘Help deal with shipping congestion’”, Aug 6; online at bit.ly/star_ports).
Shipping data in May showed that only six out of 11 Asia-North Europe sailings were on time, leading to significant consequences for costs and supply chain reliability, among others.
Backlog from the Singapore port – which is still the second most congested port in the world as of this week according to Linerlytica – also spilled over to Port Klang and Tanjung Pelepas, putting focus again on ways to bypass most of the Malacca Strait by moving cargo from Port Klang to Kuantan Port directly, and vice versa, using rail.
This is the promise of the eagerly awaited ECRL, which is two-thirds completed, with freight services from the Kuantan to Port Klang expected to commence in early 2028.
“When cargo handling at both ports is done efficiently, there is no reason why containers cannot be moved from end to end – a distance of around 330km – in well under eight hours, which is highly competitive compared with trucking as rails are not subject to road traffic congestion,” says Datuk Ragu Sampasivam, adding that moving freight by rail is can cut ship journeys times by at least two days.
The chief operating officer of the East Coast Economic Region Development Council says this during a recent interview with Sunday Star.
Transforming the East Coast
Giving the big picture of how the ECRL will bring manifold changes, Ragu reveals that the project has always been an integral part of the East Coast Economic Region (ECER) since it was formed in 2007 with the launch of the ECER Master Plan by the federal government.
The ECER is intended to accelerate growth and ensure a more equitable distribution of wealth across the country, especially in Kelantan, Terengganu, Pahang and the district of Mersing in Johor – a cumulative total of 51% of the land area of Peninsular Malaysia that is home to nearly five million people.
Guided by the Master Plan (2008-2020), development is led by the East Coast Economic Region Development Council which has initiated various high-impact projects and programmes to spur the socioeconomic transformation of the region.
The ultimate aim is to close the socioeconomic gap between the East and West Coasts of the peninsula by creating jobs and entrepreneurial opportunities, especially using private or foreign investment. Development is now guided by the ECER Master Plan 2.0, also known as the Next Leap, 2018-2025.
Ragu says with the shortage of industrial plots in Selangor, Pahang and Terengganu are the natural choices when supported by road and rail.
“Easy access to Kuantan Port allows industries in Selangor to export through the South China Sea when the need arises,” he says.
Ragu says the emergence of the ECRL will change how business is done in Peninsular Malaysia. — MENG YEW CHOONG/The Star
On June 10, car manufacturer Perodua signed a memorandum of understanding (MOU) with Malaysia Rail Link Sdn Bhd, owner of the ECRL project, which itself also signed an MOU with Kuantan Port, with the broad understanding that automotive parts may be moved to and from Perodua’s hub in Serendah, Selangor, to the East Coast, by the ECRL when it is ready.
Potential of freight
Backlog from the Singapore port – which is still the second most congested port in the world as of this week according to Linerlytica – also spilled over to Port Klang and Port Tanjung Pelepas. — Agencies
The ECRL, which will rely on freight for up to 70% of its revenue, is cautiously optimistic that its projection for freight will materialise.
Ragu says his team crunched the numbers several times, after hitting the ground to meet all relevant stakeholders and making numerous presentations, before the ECRL got the Cabinet nod in October 2016.
“It needed a lot of work to convince the government as it involves a huge capital expenditure.”
The government was then under the leadership of Datuk Seri Najib Razak.
“The agencies looking at the numbers also involved the Public-Private Partnership Unit under the Prime Minister’s Department, the Transport Ministry, and the Land Public Transport Commission.
“Capital and operating expenditures are separate matters, and as long as the operational numbers can be shown to be viable, then it is something that can go ahead. One of the key things is to determine the amount of cargo that can be moved, and we were as conservative as we could be.
“And then, the government also sought a second opinion, so we had to work with another consultant around 2013 to do one on the financial aspects.
“It took a lot of work to convince the government,” says Ragu emphatically.
There is already a thriving petrochemical hub in the Kuantan-Kerteh area that serves as a ready client base.
“For example, at one point, Petronas was moving up to 1,000 trucks a day around the area, and they actually prefer rail,” says Ragu.
In fact, before the turn of the millennium, Petronas built a 77km single-line metre-gauge railway to connect its oil refinery in Kerteh to Kuantan Port; sadly, though, the line was forced to cease operations in 2010 due to issues believed to be linked to either construction supervision or construction quality or subsequent maintenance, or a combination of these.
However, the ECRL was able to reuse parts of the abandoned alignment, thus minimising the need for land acquisition.
The ECER team also met with Felda Plantations (including numerous palm oil mills), cement companies around Kelantan’s Gua Musang, and also steel companies such as Eastern Steel in Chukai, Terengganu, and Alliance Steel in Gebeng, Pahang.
“We met with many companies and got their output figures, and also projections on new investments, to make the case for cargo,” says Ragu, adding that the ECRL will cater to a lot of domestic cargo movements from the many heavy industries in the Kuantan-Kemaman area at the Pahang-Terenggau border, such as those in the Malaysia-China Kuantan Industrial Park, and the Kerteh Biopolymer Park, to name just two.
The Kuantan Port is also game to deal with the ECRL, having completed Phase 1 of its deepwater wharf in 2019; it is now readying itself for Phase 2 development to meet future challenges.
Previously, the port only had a draft of 11m, Ragu says, which limited its role to just a feeder port. The expansion of the port with the addition of a 4.6km breakwater now allows it to have a draft of 16m, thus allowing it to host ships up to 180,000 deadweight tonnes.
Ragu led the study on the port’s expansion, which was also subject to intense back and forth debates on whether it could be justified. Sailings from Kuantan Port can reach Qinzhou Port in the southern part of China in three days, or Hong Kong in five days, underlining the strategic value of this port that was privatised in January 1998.
Faster, cheaper, safer
When it comes to moving bulk and potentially hazardous goods, examples from all over the world have shown that rail is greener and more efficient, as well as allowing roads to be freed up.
To synergise the potential of rail, the standard-gauge ECRL will have cargo transfer stations at Temerloh (via a spur line to the Keretapi Tanah Melayu Bhd – KTMB – network) in Pahang, and at Serendah in Selangor, to allow freight to be exchanged with KTMB trains that operate on the metre-gauge line.
The Temerloh-Mentakab cargo exchange will play an important role in serving the southern part of Kelantan, such as Kuala Krai and Gua Musang.
The addition of the ECRL to the country’s rail network will also offer a relief for KTMB’s congested network running on the West Coast, especially when it approaches the Klang Valley.
Due to legacy issues, all cargo trains from the north headed for Port Klang (and vice versa) have to pass through KL Sentral, posing a risk as hazardous cargo is also moved through this route, says Yuslizar Daud, former head of the Land Public Transport Commission’s rail division.
He says that the Kuala Lumpur network is congested and KTMB’s cargo operations – the only part of its business that is actually profitable other than the intercity ETS (Electric Train Service) – is restricted to a tight window of just a few hours after midnight to avoid clashes with ETS and KTM Komuter trains plying the Klang Valley.
The ECRL, which comes via the Serendah rail bypass to Port Klang, will allow freight trains from the north to skip Kuala Lumpur altogether, thus providing a much-needed alternative, says Ragu.
“The ECRL helps connects all the dots, especially when it comes to logistics. You now have options,” he points out.
More on the ECER can be found at ecerdc.com.my.
