MyHSR Corporation Sdn Bhd of Malaysia and Land Transport Authority of Singapore successfully conducted a second Industry Briefing on 26 September 2017 to continue the market engagement process for the Kuala Lumpur – Singapore High Speed Rail (‘HSR’) project.
Similar to the first Industry Briefing, the second Industry Briefing provided further information and details on the Assets Company (‘AssetsCo’) tender, taking into account the key points arising from the first Industry Briefing and discussions with the relevant stakeholders.
The second Industry Briefing continues to receive strong support from industry players globally.
This briefing was attended by over 200 participants from more than 110 international organisations which were envisioned to be directly participating in the AssetsCo tender, such as consortia, suppliers, financial institutions and investors. MyHSR Corp and LTA emphasised that the tender will be carried out in an open and fair manner.
Every bid will be assessed on its own merits and there will not be any requirement for local partners.
MyHSR Corp Chief Executive Officer Datuk Mohd Nur Ismal Mohamed Kamal said, “Our first interaction with the industry was two months ago when we had the Industry Briefing in July. Since then, we have developed additional content and firmed up requirements leading to an effective AssetsCo tender. Additionally, we have successfully completed the submission of the Section 4 Land Acquisition Act and the Environmental and Social Impact Assessment studies. This reaffirms our commitment to ensure that the project runs progressively.”
LTA Chief Executive Mr Ngien Hoon Ping said, “We are heartened by the response from the market for this second Industry Briefing. It gives us confidence that we will receive high-quality and competitive bids for the AssetsCo tender, which we will call by the end of the year. Both Governments are committed to making this project a success.”
Highlights from the second Industry Briefing
1. Malaysia and Singapore have appointed Infrastructure Companies (InfraCos) to design, build, finance and maintain the civil infrastructure and operate the HSR stations within their respective territories (i.e. MyHSR Corp in the case of Malaysia and SG HSR in the case of Singapore).
2. A new double-track line is to be constructed between Kuala Lumpur and Singapore, designed to accommodate all types of conventional high-speed rail trains and technology available in the market with a design speed of 350 km/h.
3. The AssetsCo, a privately-financed Assets Company, is responsible for designing, building, financing and maintaining all rolling stock, as well as designing, building, financing, operating and maintaining all rail assets (e.g. track-work, power, signalling and telecommunications).
4. The AssetsCo will also coordinate the system’s network capacity for operations and maintenance needs.
5. The InfraCos shall pay AssetsCo an Availability Payment, which covers the capital expenditure, and the costs of operations, maintenance and renewal of HSR Assets, excluding rolling stock and equipment in the depot and stabling facilities, in return for AssetsCo making the HSR Assets available for the Operators (OpCos) to operate the Express, Domestic and Shuttle Services.
6. The OpCos shall pay AssetsCo Train Lease Fees, which cover AssetsCo’s train-related costs, as well as the operations, maintenance and renewal costs of the equipment in the depot and in the stabling facilities, in return for AssetsCo making the trains available for OpCo International to operate the Express and Shuttle Services, and OpCo Domestic to operate the Domestic Service.
7. The AssetsCo will be jointly procured by both InfraCos, in an open, fair and transparent manner. The AssetsCo tender will be called by the end of the year.
• The AssetsCo tender will have the following procurement objectives, in order of priority:
• Safety and Security – a strong commitment to delivering a safe and secure HSR system;
• Availability and Reliability – the ability to deliver a rail system to meet expected levels of availability and reliability;
• Proven Technology – the ability to provide proven solutions that are tailored to meet the HSR Project’s needs;
• Operations Flexibility – is able to provide sufficient operational flexibility to accommodate future operators’ requirements;
• Customer-centric Design – a design that is inclusive and customer-centric, taking into account comfort, inclusivity and accessibility;