Litrak to spend RM84mil for LDP upgrade

  • Business
  • Wednesday, 29 Aug 2007

SHAH ALAM: Lingkaran Trans Kota Holdings Bhd (Litrak), the concessionaire of Lebuhraya Damansara-Puchong (LDP), will spend RM84mil to upgrade the highway's Taman Tun Dr Ismail interchange at KM6.8. 

The upgrade, which was part of Litrak's efforts to identify enhancement projects within the highway, would begin before year-end and take 33 months to complete, said chief executive officer Sazally Saidi. 

He said plans had been submitted to the Malaysian Highway Authority for approval, which the company should get soon.  

“We are forking out our own money to improve our service and there is no extension to our concession. After the toll hike, it is expected that we will continuously improve the road system,” he told reporters after the company AGM yesterday. 

The road enhancement project will involve widening works and the construction of a flyover to ease the bottleneck at the northbound mainline stretch between KM5.9 and KM7.1, especially during evening peak hours. 

Sazally added that the company had easily spent RM100mil over the last three years to improve traffic flow along the stretch between Motorola and Bandar Utama. 

Besides capacity enhancement to relieve traffic congestion, Litrak is also encouraging the use of an electronic toll collection system to improve throughput and efficiency at the toll plazas. 

Chief operating officer Richard Lim Kim Ong expects a marginal growth in traffic volume compared with the previous year due to the higher toll rate but revenue would increase, as reflected in the financial performance for the year ended March 31.  

“When toll was increased on Jan 1, traffic fell 8% to 10% but it has picked up again. 

“Revenue (for the current year) should probably see a double-digit growth not just due to the toll hike but also the increase in traffic volume,” he added. 

On its investment in Sistem Penyuraian Trafik KL Barat Holdings Sdn Bhd, which operates the SPRINT Highway, Lim said it was still not profitable and would only break even in the long-term. 

“We undertook a refinancing exercise in 2005. Although we know it will still make losses, we have a manageable cash flow,” he added. 

Lim also did not think Gamuda Bhd would divest its stake in Litrak, given that it had increased it to 43.13% as at June 30. 

 LITRAK :  [Stock Watch]  [News]

For latest Bursa Malaysia indices, charts and other information click here

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Did you find this article insightful?


Next In Business News

Summary of business stories March 1 to 7
Austria suspends AstraZeneca COVID-19 vaccine batch after death
ANALYSIS-Excessive exuberance: Canada home prices boil over as policymakers sit back
Yemen's Houthis attack Saudi oil heartland with drones, missiles
INSIGHT-Game of drones: Chinese giant DJI hit by U.S. tensions, staff defections
Santos' biggest shareholder cuts stake by a third, remains top investor
Sulaiman: We considered impact
Singapore builds floating solar farms in climate fight
CIMB to adopt selective loan growth strategy
The Week Ahead - IPI, Top Glove, Japan GDP, China trade, US inflation

Stories You'll Enjoy