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 project delays, says Datuk Seri Dr Wee Ka Siong (pic).
The MCA president said under the model, the private sector would finance and operate the project before recovering its investment 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 because private companies would ultimately seek to recover their investments and generate profits,” he said on Wednesday.
Dr Wee also 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 System (RTS) Link is set to begin operations in another seven months.
“An LOI from Ukas does not mean the project is confirmed. It is not a notice to commence work nor a final contract. It is merely a document expressing the intention to begin negotiations on commercial terms with the concessionaire,” he said.
Dr Wee 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 and implementation while safeguarding public welfare.
“Until all these matters are clarified, do not confuse the people of Johor with announcements of RM10bil as though the federal government is funding the project. Do not present the LOI as though the project is already finalised, and do not claim political credit when the final contract has not even been signed,” he said.
Dr Wee compared the proposed E-ART project with the federally funded Penang LRT, which he said allowed fares to remain lower 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 strange treatment. Why is Penang treated differently from Johor when both are part of the same country?” he asked.
Dr Wee also cited previous failures involving concession-based urban rail projects such as the Putra LRT, Star LRT and KL Monorail, which were eventually rescued by the federal government at the cost of billions of ringgit after taking over the projects in the 2000s.
Dr Wee said this experience led to subsequent mega public transport projects, including MRT1, MRT2, LRT3 and the Penang LRT, being funded by the government instead of relying fully on concession models.
He noted that Johor Mentri Besar Onn Hafiz Ghazi had previously made repeated calls for an 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 began operations at the end of last year, as well as the upcoming RTS Link. The heavy traffic pressure and large passenger flow into Johor Baru city centre have become major concerns,” he said.
Dr Wee added that an explanation was needed on why Johor was not receiving the LRT system initially requested by the state government and why the plan had shifted towards negotiations with a selected consortium.
On Sunday, 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 major concern for Johoreans, including Johor Regent Tunku Ismail Sultan Ibrahim, who has called for urgent approval of 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.
