Emrail may be front runner for MMC-Gamuda rail job

Published: 2008/09/23
BTimes

Emrail's bid is one of four proposals under technical evaluation by MMC-Gamuda, the main contractor for the RM12.5 billion Ipoh-Padang Besar rail project

BUILDERS MMC Corp Bhd and Gamuda Bhd may award a contract worth over RM1 billion to lay parallel railway lines over 329km from Ipoh to Padang Besar by the end of this year.Business Times understands that the MMC-Gamuda team, which holds the main contract for the RM12.5 billion Ipoh-Padang Besar double-tracking project, had called for tenders in June, attracting local and international bidders.A source said four proposals are under technical evaluation and the winning bid will be decided by December.The offers were from
Australia's MVM Rail Pty Ltd, a provider of rail track construction and maintenance services;
Hiss Niaga Sdn Bhd, a local Bumiputera firm;
Emrail Sdn Bhd, a railway engineering expert; and
a China-based consortium.

It is learnt that MVM and the Chinese consortium had offered to do the job for RM2 billion and over RM1 billion respectively. Hiss Niaga, meanwhile, made a partial offer for the track laying contract, worth about RM500 million.Emrail (formerly TIME Salam Engineering Sdn Bhd, a unit under Renong Group) offered to lay the tracks along the 329km stretch for RM1.2 billion.

"Emrail could be the front runner for the job as it has over 20 years of engineering skills and had successfully completed the Rawang-Ipoh job last year," the source said. "It has high-tech machinery that is not in use which can be readily deployed at the Ipoh-Padang Besar site. It was able to work out a proposal lowering the contract sum as it has the equipment," he added. Emrail's portfolio includes a RM700 million contract to lay tracks for the Rawang-Ipoh project, and a RM40-odd million job to lay tracks along the Kerdau-Sg Yu east coast line. Both projects have been completed.

In July, the MMC-Gamuda team awarded the rail systems contract worth RM1 billion to Ingress Corp Bhd's 49 per cent associate company, Balfour Beatty Rail Sdn Bhd, and its joint venture partner, Ansaldo STS Malaysia Sdn Bhd. - By Sharen Kaur

(Note: Ipoh-Rawang is 182 km. Cost of track laying was RM700mil (2007 price). This makes cost per km 3.85mil per km. 2007 price. Apply 40% hike, it becomes RM5.36 mil/km, 2008 price.
Emrail is now offering RM1b for 329km = RM3.04mil/km for Ipoh-Pdg Besar)