KUALA LUMPUR (Jan 17): Malaysia Airports Holdings Bhd (MAHB) has announced that a consortium consisting of ALSTOM Transport Systems (Malaysia) Sdn Bhd, IJM Construction Sdn Bhd (IJMC) and Pestech Technology Sdn Bhd will be completing the aerotrain replacement project.
The announcement confirms a report by The Edge last month.
In a statement, MAHB said it has entered into an agreement with Alstom and the IJMC-Pestech joint venture (JV) to steer the aerotrain replacement project back on track.
Alstom and Pestech were the original contractors for the train replacement project. MAHB terminated the contract in August last year citing Pestech being behind schedule as the reason.
Under this new agreement, the statement said Alstom, the Aerotrain's original equipment manufacturer, will serve as the project coordination lead and be responsible for coordinating the works to recommence the project and deliver three new trains and two lines by the first quarter of 2025 (1Q2025).
According to MAHB, Alstom was given the prerogative to select their partners for works outside their scope, and Alstom has chosen to collaborate with the IJMC-Pestech JV for work scopes involving civil engineering and train power supply components, among others.
Nevertheless, Alstom will take up the majority of the scope of work in the project.
To ensure project continuity and adherence to the original timeline, MAHB said this new contract with Alstom, excluding operation and maintenance, is expected to incur a cost increase capped at 15%, bringing the project cost to RM456.1 million.
This increase is attributed to interest holding costs, foreign exchange considerations, remobilisation expenses, as well as project coordination fees to Alstom.
In a filing to the stock exchange on Wednesday, Pestech said that the contract sum for the IJMC-Pestech JV is RM175.65 million, with IJMC holding a participating interest of 60% in the portion of the works for the project and Pestech holding the remaining 40%.
MAHB said the board has considered two crucial priorities in making the decision, which is maintaining the agreed fit-for-purpose technology and ensuring the project adheres to the original timeline for both lines.
MAHB acting group chief executive officer Mohamed Rastam Shahrom said this is an acceptable variance for this project and allows it to get back on track.
“The decision to deliver three trains and completing both lines simultaneously allows for optimal replacement works, to achieve the project completion date as originally planned.
“We are looking forward to the contractors delivering the project by 1Q2025, for the comfort and convenience of our passengers at KLIA,” he added.
Meanwhile, Alstom’s Singapore & Malaysia cluster managing director Yann Maixandeau said, "We are glad to resume work on this important national project in partnership with Malaysia Airports and IJMC-Pestech JV. Our team is committed to overcoming challenges, ensuring timely delivery, and enhancing the travel experience at KL International Airport.”
The three-year aerotrain replacement project came with two deadlines originally, the first being July 2024 for the first of the two aerotrains to be operational, followed by the second one in March 2025 for full completion with both aerotrain services — spanning about 1.5km — coming online.
The 25-year-old aerotrain was suspended in March last year, after a major breakdown that resulted in 114 passengers being stranded midway on the track.
This occurred midway through the replacement programme, which was awarded to Pestech in December 2021, with Alstom supplying the aerotrain.
In August 2023, MAHB decided to terminate Pestech, citing “non-performance, compromising significant project milestones and risking delays to deliver the project within the required deadline” as the reasons.