Penang Transport Master Plan

Previously we heard about Consortium Zenith, now it is Gamuda. Who is actually "in charge" of the multi-billion Penang Transport Master Plan (PTMP)?

PTMP first started in 2009 after a change in state government to replace the rejected Penang Outer Ring Road (PORR) project by previous government.

PTMP has 3 components:

Public transport

• Bayan Lepas LRT
• Air Itam Monorail
• Tanjung Tokong Monorail
• Georgetown Tram
• Raja Uda - Bukit Mertajam Monorail
• BRT (Bus Rapid Transit)

Highways & Roads

• Pan Island Link (PIL) 1
• PIL 2/2A
• BKE - PLUS Interchange
• Juru - PLUS Interchange

Penang Major Roads & Third Link (PMRT)

• North Coastal Paired Road (Tanjung Bungah - Teluk Bahang)
• Air Itam - LCE bypass
• Gurney - LCE bypass
• Penang Third Link (Undersea Tunnel)

PTMP is not a dead project. It has already started with PMRT, which consists of 3 major roads & an undersea tunnel third link. This RM6.3 billion project was awarded in 2013 to Consortium Zenith Construction Sdn Bhd (CZC) which is not a listed company. 

However, Vertice Bhd which is a listed company, has 13.21% stake in CZC.

CZC has awarded its first contract in Sep 2018 to a joint-venture company Buildmarque Construction which is 50:50 owned by Vertice and Vizione, another listed company.

This Package 2 PMRT contract involves a 6.0km Air Itam - Lebuhraya Lim Chong Eu bypass. It is worth RM815mil and will be completed within 36 months in year 2023. There is a 4.2km elevated portion but no tunnel.

Groundbreaking has been carried out in Nov 2019 and early works are reported to have started in the first quarter of 2020. However, due to Covid-19, the work will be postponed towards end of 2020.

Recently we read that Gamuda has been confirmed to be the Project Delivery Partner (PDP) of PTMP. This PDP is actually SRS Consortium Sdn Bhd led by Gamuda (60%), Loh Phoy Yen Holdings Sdn Bhd (20%) and Ideal Property Development Sdn Bhd (20%).

Ideal Property Development Sdn Bhd should be related to listed company Ideal United Bintang. However, I can't find its name in IUB's subsidiary list, so it might not be a listed company.

SRS Consortium has already been appointed PDP of PTMP since 2015, so this is not a fresh news. It's reported that Gamuda (or SRS?) will be paid a fee of 5-5.75% base on the project cost which is estimated to be RM46 billion.

So there are 2 PDPs in PTMP, CZC gets the small portion in PMRT while SRS gets a big chunk of it.

For SRS, the first 2 priority projects should be the Bayan Lepas LRT and PIL 1 Highway.

The LRT line from Georgetown to Bayan Lepas is about 30km in length with 27 stations. Its estimated cost is RM8.4bil.

The 19.5km PIL 1 links Gurney Drive to Bayan Lepas and may cost as much as RM7.5bil. The relatively high cost is due to the presence of 10km tunnel.

PMRT by CZC will be funded by land swap deal at Bandar Tanjung Pinang, while sales of land in the 3 man-made islands in Penang South Reclamation project will be used to partly fund the SRS projects.

I read that the LRT, PIL & south reclamation projects are not officially approved yet, perhaps due to a sudden change in the federal government. These projects are subjected to objection by some locals as well, especially Penang South Reclamation. 

Even though not exactly part of the PTMP, this reclamation project should also be implemented early as the sale of industrial lands in Island A is essential to fund the LRT & PIL.

Once green light is obtained, RM15 billion worth of construction contracts will be handed out. I think this is the largest construction project I've ever seen in Penang. Previous second bridge construction cost was RM4.5 billion.

PTMP will certainly help to stir up construction sector and its related industries such as steel, concrete and construction materials. 

As a Penangite, I hope that PTMP can be carried out successfully without further delay.

Stocks To Watch In 2014

Saw this chart in i3investor which is obtained from Nanyang finance. I think I better keep it in my blog for future reference.

This chart from JF Apex list out the companies/stocks that have the potential to benefit from various events at the moment.

Translation to English

• Improving sales of semiconductors and electrical appliances
• MPI, GTRONIC, KESM, VITROX, UCHITEC

• Export-orientated companies who can benefit from global economy recovery
• WELLCAL, TONGHER, CHINWEL, LATITUD, POHUAT, EKOWOOD

• Companies that supply construction materials may benefit from booming property market
• LBALUM, WTHORSE

• Recovery of global trading
• FREIGHT

• Implementation of GST and electronic payment
• CENSOF, MYEG, GHLSYS

• Mega projects may benefit security system provider
• WILLOW

• FIFA World Cup in June
• ASTRO, GAB, CARLSBG, BAT

• Pengerang RAPID and its related projects
• SKPETRO, DAYA, BARAKAH, PANTECH, MHB, DIALOG, WASEONG, MUHIBAH, PCHEM

• Property development around Pengerang
• GADANG, IJM, WCT, SENDAI, IJMLAND

• MRT Line 2 & WCE
• GAMUDA, MMCCORP, IJM, KEURO

• Menara Warisan Merdeka & TRX
• SENDAI, IJM, WCT

       TRX - Tun Razak Exchange

• MAS-SG third link may benefit property developers
• MAHSING, ECOWLD

• Federal development plan at RRIM, TRX & Bandar Malaysia
• GLC: SPSETIA, UEMS, MRCB
• Private: IJMLAND, MAHSING, TROP, SUNWAY, IOIPG

• Development in Seberang Perai Penang (Relocation of RMAF base, re-development of Teluk Air Tawar, Penang Sentral)
• TAMBUN, PJDEV, ECOWLD, SUNWAY, MAHSING

       Penang Sentral, Butterworth

Robertson: City Living Ain't Cheap

Gamuda land is ready to launch its first ever high rise project in the heart of KL city - The Robertson.

The 2.94 acres land at Jalan Pudu next to the abandoned Plaza Rakyat & Pudu Sentral, was bought way back in year 2010 at the price of RM820 psf. Now it will be turned into a mixed commercial development with a GDV of RM670 million.

The development comprises a row of 2.5 storey shops, a 10 storey commercial complex and 2 blocks of 41 & 45 storeys serviced apartment.

        The Robertson

The unit sizes for this freehold commercial title serviced apartment ranges from 538 sqft to 807 sqft. Price is expected to be from RM1300 psf for the fully furnished unit.

There will be 6 shop units measuring 28 x 59 sqft with the price starts from RM1250 psf.

The area near the previous Puduraya is notorious for its traffic and crime, with long-distance buses queuing along Jalan Pudu emitting exhaust smoke, and local people and foreigners zig-zagging across the road. The condition may become better after the upgrade of Puduraya to Pudu Sentral and shifting of some southern-bound long distance buses to Bandar Tasik Selatan.

       Facelifted Pudu Sentral

Though it is considered as KL old town, the location is actually quite strategic. It is located within walking distance from Bukit Bintang, Berjaya Time Square, Petaling Street, new Pudu jail development and the future Menara Warisan Merdeka site. The left-rotten Plaza Rakyat if redeveloped, may make this area more attractive.

The initial plan of Plaza Rakyat comprises a 79-storey office tower, a 46-storey condominium, a 24-storey hotel and a 7-storey shopping centre. 

       Location of The Robertson

The best part of Robertson is the convenience of public transport. The LRT station is just next door at Plaza Rakyat, and Pasar Seni/Masjid Jamek and the monorail are not far away. There are plenty of public buses and taxis at nearby Pudu Sentral and Kota Raya.

The price at RM1300psf is quite high at this moment, but after a few years, people may think that it's not. Smallest unit 538 sqft will cost RM700,000 and if rented out, should ask for at least RM3500 per month. Whether it is worth investing in, it depends on how each investor analyses it.

If Gamuda succeed in turning this area into a "classy" area with al-fresco dining along Jalan Robertson, and the Plaza Rakyat project is revived, then it will be good for the buyers.

MRT: Major Boost For 2012

The Sungai Buloh-Kajang MRT plan has been finalized. The overall line will cover a distance of 51km, with 9.5km underground. There will be 31 stations plus 3 future stations. This RM15 billion project is estimated to be completed in year 2017.

There are 90 packages of jobs to be grabbed for the Sg Buloh-Kajang MRT project, so far about 20 of them has been awarded. In this project, there will be 9 big packages, which include 8 elevated packages and a tunneling package.

      Finalized SBK MRT route and stations

Recently MRT Corp has announced its first two big packages winners, which are IJM Corp and Ahmad Zaki Resources. IJM will be the main contractor for package V5 worth RM974 million, which include the construction and completion of viaduct guideway and the associated works from Maluri to Plaza Phoenix station. AZRB was awarded package V6 worth RM764 million consisting of similar job from Plaza Phoenix to Bandar Tun Hussein Onn station.

According to MRT Corp CEO, the remaining 6 big elevated packages will be released by the middle of 2012 while the single largest tunneling package will be rewarded in April this year. The contenders for the tunneling work are: Gamuda-MMC Corp, Gadang-Hyundai, China’s Sinohydro Group, China Railway Corp and Japan’s Taisei Corp. In this list, only Gamuda-MMC is purely local. Why not award it to local companies since Gamuda-MMC already has vast experience in tunneling work?

 

      Elevated MRT station

For other elevated packages, the contenders include TRS, WCT, Sunway, Mudajaya, Mitrajaya, Muhibbah, MRCB, Fajarbaru, Gadang, Naim, Loh & Loh etc. Surely those big name construction companies will get a piece of cake each. Besides construction companies, companies that provide material such as cement and steel may also benefit from this big project.

     A magnificent view of PB Damansara station

So, for those who like to buy into news, get prepared for Gamuda/MMC in April and other major construction companies by mid 2012.