JOHOR BARU: The public-private partnership model proposed for the elevated autonomous rapid transit (E-ART) project in Johor carries significant risks, including the possibility of high fares and delays, says Datuk Seri Dr Wee Ka Siong.
The MCA president said under this model, the private sector would finance and operate the project before recovering investments through fares or other mechanisms negotiated with the government.
“This is where the risk lies. Negotiations can fail if both parties cannot agree on terms involving costs, concession periods, subsidies, revenue guarantees and fare rates.
“Johoreans are concerned that fares could become too expensive as private companies would ultimately seek to recover investments and generate profits,” he said on Wednesday (May 20).
Dr Wee questioned why only a letter of intent (LOI) had been issued by the Public-Private Partnership Unit (Ukas) to the E-ART consortium earlier this month when the Rapid Transit (RTS) Link is set to begin operations in another seven months.
“A LOI from Ukas does not mean the project is confirmed - it is not a letter to start work nor is it a final contract; it is merely a document expressing the intention to begin negotiations on commercial terms with the concessionaire,” he said.
He said the Madani government should either directly fund the project, similar to the Penang light rail transit (LRT), or retain a majority stake in the concession company to better control fares, implementation and safeguard the people’s welfare.
“Until all these matters are made clear, do not confuse the people of Johor with the announcement of RM10bil as if the federal government is funding the project.
“Do not sell the LOI as if the project is already completed and do not claim political credit when the final contract has not even been signed,” he said.
He compared the proposed E-ART with the Madani government-funded Penang LRT, which allowed lower fares to be maintained despite concerns over profitability.
“But for Johor, which has a larger urban population and far higher tourist arrivals, the government is only offering an LOI for a concession project that is still not finalised.
“This is a strange treatment. Why is Penang treated differently from Johor when both are part of the same country?” he asked.
He also cited previous failures involving concession-based urban rail projects such as Putra LRT, Star LRT and the KL Monorail, which were eventually rescued by the federal government using billions of ringgit and taking over the projects in the 2000s.
Dr Wee said this led to subsequent mega public transport projects including MRT1, MRT2, LRT3 and the Penang LRT being government-funded instead of relying fully on concession models.
He noted that Johor Mentri Besar Onn Hafiz Ghazi had previously made repeated requests for a LRT system in Johor Baru due to worsening traffic congestion.
“The system was needed to support the Kuala Lumpur-Johor Baru Electric Train Service, which started operating in end last year, as well as the upcoming RTS Link.
“The heavy traffic pressure and large passenger flow into Johor Baru city centre have become a major concern,” he said.
He added that explanations are needed on why Johor is not getting LRT as the state government initially requested for and why the plan had shifted towards negotiations with a selected consortium.
On Sunday (May 17), Transport Minister Anthony Loke announced at the Pakatan Harapan national convention that the Cabinet had approved a RM10bil E-ART project to ease traffic congestion in Johor Baru.
Traffic dispersal issues in the city centre have become a concern for Johoreans, including Johor Regent Tunku Ismail Sultan Ibrahim, who called for urgent approval for projects to ensure seamless connectivity and reduce congestion.
Once operational early next year, the RTS Link is expected to shuttle up to 10,000 passengers per hour in each direction between Johor Baru and Singapore.
