Bloomberg News

Bombardier, Siemens Shortlisted for Kuala Lumpur Train Order

March 05, 2012

Bombardier Inc. (BBD/B) and Siemens AG (SIE) are among five companies shortlisted for a 1.5 billion-ringgit ($500 million) contract to supply locomotives for the first part of a Kuala Lumpur rail network.

The winner of the deal will be announced by the middle of the year, Azhar Abdul Hamid, chief executive officer of operator Mass Rapid Transit Corp., said in an interview today in the Malaysian capital. Alstom SA (ALO) isn’t on the shortlist, he said. He declined to elaborate further on the bidders.

State-owned MRT intends to open the 51-kilometer (32-mile) line by July 2017, Azhar said, as the government tackles congestion and pollution from rising traffic. The full three- line network will carry 2 million passengers a day when complete and may cost 48 billion ringgit including rolling stock, according to a 2010 government estimate.

The first line will run from the southern suburbs of Kajang to the northern district of Sungai Buloh via the city center. MRT Corp. in January awarded the first major construction contracts, worth a total 1.74 billion ringgit, to IJM Corp. (IJM) and Ahmad Zaki Resources Bhd. (AZR)

The full 156-kilometer long network, which includes some underground sections, is due to be completed by 2020. A new cost estimate will be announced by year-end once key contracts have been awarded, Azhar said.

The government intends to raise as much as 30 billion ringgit through an Islamic bond program this year to help fund construction, Azhar said last month. The project is part of a $444 billion private sector-led investment program championed by Prime Minister Najib Razak to spur growth in the Southeast Asian nation.

To contact the reporter on this story: Chong Pooi Koon in Kuala Lumpur at pchong17@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net.


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