PLUS eyes more overseas highway jobs

PLUS eyes more overseas highway jobs
By Zuraimi Abdullah
BTimes
Published: 2008/06/19

There are tremendous opportunities in India and Indonesia, says PLUS Expressways managing director

PLUS Expressways Bhd will focus on getting more highway jobs abroad, particularly in India and Indonesia, as domestic opportunities dwindle, its top executives say.They said the government's plan to spend on projects that benefit the masses more amid tough economic conditions means that the prospects for new highways in the country "will be quite minimal".Managing director Noorizah Abdul Hamid said there are tremendous opportunities in India and Indonesia. Already, PLUS has toll concessions and highway construction contracts in the two countries.India has planned to add another 1,500km to its highway network, while Indonesia wants to put up an extra 1,000km.

"The tender for the Indian job will be called out by this year," Noorizah told reporters after PLUS' annual general meeting in Kuala Lumpur yesterday.She said PLUS is also keen to offer its services in highway maintenance, both locally and abroad.PLUS' toll rates are scheduled for a raise by 10 per cent once every three years based on the revamped concession agreement sealed in January 2002.The first three years expired in 2004, meaning that the new rates for the subsequent three years were effective from 2005 and 2008. Noorizah said the current new rates would have been implemented from January this year, if not for a deferment following the government's decision to review all highway concessions.The company has since been partially compensated by the government for not charging the new toll rates on its highways, including the North-South Expressway."We have yet to engage in official talks on the toll revision, but we have been providing the information requested by the government," she said.

PLUS' chairman Tan Sri Mohd Sheriff Mohd Kassim said it is still early to estimate the impact of the recent fuel hikes on the traffic at PLUS highways, but generally a slowdown can be expected in the interim.He added that during the previous increase in 2005, the traffic decreased, with the downtrend lasting for about six months before demand stabilised once the public finally got a grip with the reality."Last year, our traffic grew 7.5 per cent, the highest year-on-year growth since 2001. "The figures for January also showed strong growth," Sheriff said.