Japan to Gain From Bandar Malaysia Deal Collapse
Japan may gain from the possible fallout of the Malaysian and Chinese governments due to the lapsing of the deal to sell 60 percent of Bandar Malaysia project, reported Free Malaysia Today.
The deal fell through after the consortium comprising Iskandar Waterfront Holdings and China Railway Engineering Corp (CREC), a unit of state-owned China Railway Group, failed to meet the payment obligations, revealed TRX City Sdn Bhd.
Japan is reportedly ramping up its efforts to win the tender for the 350km high-speed rail (HSR) link between Kuala Lumpur and Singapore.
"We will push for a specific proposal involving financing, talent development and collaboration with local companies" said Keichi Ishii, Japan's Minister of Land, Infrastructure, Transport and Tourism during a high-speed rail symposium in Kuala Lumpur.
Highlighting the reliability and safety of Shinkansen technology, the symposium also saw the attendance of representatives from various Japanese companies including Mitsui Fudosan, Sumitomo Corp, Hitachi, Mitsubishi Heavy Industries, Nikkei Sekkei, JR East Railway, Daiwa House Industry, NEC Corp and Taisei Corp.
Nikkei Asian Review reported that Ishi will meet three Malaysian ministers involved in the proposed HSR project before meeting his Singapore counterpart.
Aside from China and Japan, companies from France and South Korea are also expected to bid for the HSR project.
Singapore's Land Transport Authority and Malaysia's MyHSR Corporation are expected to invite bids for the joint development project for the HSR later in the year.
Connecting Bandar Malaysia in KL with Singapore's Jurong Lake District, the HSR project will have stops in Melaka, Seremban (Negeri Sembilan) as well as the Johor towns of Batu Pahat, Iskandar Puteri (formerly Nusajaya) and Muar.
With a potential speed of up to 320kph, the HSR is expected to reduce travel times from Kuala Lumpur to Singapore to just 90 minutes.
The winning firm will be responsible for the railway system's design and construction including rolling stocks, power, tracks, signalling and telecommunications.