KUALA LUMPUR: The East Coast Rail Link (ECRL) is projected to generate RM418mil in operating revenue from passenger and cargo services by 2029, says Transport Minister Anthony Loke.
He said this was based on a study by consultants last year, which estimated passenger service revenue at RM204mil and cargo revenue at RM214mil.
According to the study, passenger revenue is expected to be RM192mil next year and RM198mil in 2028, while cargo revenue is projected at RM68mil and RM71mil respectively.
"These projections are subject to actual operational performance, including passenger numbers, cargo volumes and developments in market demand," he said in a written parliamentary reply to Datuk Wan Saiful Wan Jan (PN-Tasek Gelugor) dated Monday (Nov 2).
Wan Saiful had asked about the project's total construction cost, the government's annual financial commitments, projected operating revenue and measures to ensure its financial sustainability.
Loke said the construction cost of the 665km ECRL alignment from Kota Baru to Port Klang stood at RM52.43bil.
"The project was financed through several sources, including a term loan from China EXIM Bank, sukuk issued by Malaysia Rail Link Sdn Bhd (MRL), development allocations from the Transport Ministry and financing from the Finance Ministry."
Funding commitments, he added, were implemented according to the financing structure and schedule established for the project's construction period.
On long-term sustainability, Loke said ECRL's business model would combine passenger and cargo revenue, with approximately 70% of total revenue expected to come from cargo services and the remaining 30% from passenger operations.
"Revenue generated would be used to cover operating, maintenance and related costs.
"ECRL Operation Sdn Bhd (EOSB), as the operator, will also optimise non-fare revenue sources through commercial activities such as space rentals, advertising and other suitable sources," he said.
Loke said EOSB was a joint venture between MRL and China Communications Construction (ECRL) Sdn Bhd, with each holding 50% equity.
He said the arrangement would allow both parties to share operational risks while encouraging revenue growth, better asset utilisation and prudent cost management.
He added that the project's value should not be measured solely through direct financial returns, but also its long-term economic benefits.
"These include improving connectivity between the east and west coasts of Peninsular Malaysia, strengthening the national logistics network and linking major cities, industrial areas and ports."
