KLIA Express concession extended 30 years
Deputy Transport Minister Aziz Kaprawi says this was in lieu of the concessionaire ERL being unable to raise fares on three occasions.DEWAN RAKYAT
KUALA LUMPUR: The concession agreement for the KLIA Express service operated by Express Rail Link Sdn Bhd (ERL) has been extended by another 30 years, the Dewan Rakyat was told today.
Deputy Transport Minister Abd Aziz Kaprawi said this was done in lieu of ERL being unable to raise the fares on three occasions â" a system which had been agreed upon under the old concession agreement until 2029, for a fare revision every five years.
âSince 2016, the government has undertaken a new approach to not control the fare prices, and only set a ceiling price at RM64. From here, the ERL has charged only RM55.
âB y right the ERL, after not being allowed to raise fares on three occasions, is entitled to compensation, but we have extended the concession period by another 30 years.
âAfter that 30-year period, we will no longer pay the passenger service charge (PSC) payments of RM5,â he told the Dewan Rakyat today, adding that ERL has sustained losses for the last eight years.
Aziz (BN-Sri Gading) said from 2002 to Sept 2017, the ERL has received PSC payments of RM741,234,295 from MAHB.
Currently, the ERL collects RM5 and RM1 from outbound international and domestic passengers respectively.
PSC collected from passengers in KLIA and klia2 is shared between MAHB and the government based on a formula. ERL gets a share of the portion that the government receives.
Aziz was responding to a supplementary question by Khalid Ibrahim (Independent-Bandar Tun Razak).
Earlier, Khalid had asked an initial question on the total amount paid by MAHB to ERL sinc e 2002 to meet the terms of the concession agreement, the federal governmentâs compensation to MAHB since 2008 and the ERLâs financial performance since it started operating in 1999.
To this, Aziz said ERL had sustained a cumulative loss of RM661.34 million after tax since 2002.
Aziz said the rail service had also previously suffered losses for six consecutive years, between 2009 and 2014.
Aziz further told the lower house that since the ERL began operating, it has had an average of 5.4 million passengers a year, and in 2015, he noted a 20% increase compared with the previous number of 11.03 million passengers.
âHowever, a fare increase from RM35 to RM55 in 2016 resulted in a drop in the number of passengers by 19% to 8.9 million,â he added.
Source: Google News