This article first appeared in The Edge Malaysia Weekly on August 4, 2025 - August 10, 2025
A joint venture between construction firm WCT Holdings Bhd (KL:WCT) and MMC Corp Bhd is said to be the front runner in the bid to construct rail lines connecting the East Coast Rail Link’s (ECRL) station in Jalan Kastam, Port Klang, directly to the two container ports in Selangor, namely Westports and Northport, sources say.
The joint venture (JV), in which WCT owns 49% and MMC 51%, is among four firms that have submitted proposals to build the rail line extension of up to 25km, known as Section D.
A win would mark WCT’s big break into the track-laying segment, adding to its portfolio of highway and port projects in the infrastructure space. It has taken on projects involving MRT2 and LRT3, but these are mainly civil works, such as for the development of elevated stations.
The share price of WCT was re-rated in 2024 on the improved outlook for the construction industry, but interest waned this year partly on uncertainty about the prospects for Subang Airport’s regeneration plan, in which the company’s 60%-owned unit holds a sub-concession, following Malaysia Airports Holdings Bhd’s privatisation earlier this year.
WCT executive chairman Tan Sri Lim Siew Choon is also its largest shareholder, with a 6.74% direct stake and a deemed interest of 16.5% through Dominion Nexus Sdn Bhd and Legacy Pacific Ltd. AmanahRaya Trustees Bhd has a 5.29% stake in the firm.
The well-diversified MMC, which is controlled by Tan Sri Syed Mokhtar Albukhary, has more experience in the rail sector, through the Klang Valley MRT1 and 2 projects as well as the northwest Peninsular Malaysia portion of the Electrified Double Track (EDT). These projects were undertaken via a joint venture with Gamuda Bhd (KL:GAMUDA).
Sources say the other bidders for the construction of ECRL Section D are Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA), DOM Industries (M) Sdn Bhd, as well as a JV between SIPP Rail Sdn Bhd and YTL Construction Sdn Bhd, a unit of YTL Corp Bhd (KL:YTL).
Excluding DMIA, this same group of bidders is said to be also eyeing the elevated autonomous rapid transit (e-ART) system in Johor Bahru but MMC is partnering with DOM while WCT is joining hands with Lion Pacific Sdn Bhd for the project.
Coming back to the 665km ECRL project, it is understood that the bids for Section D range from RM600 million to RM900 million as they take into account a different design and a smaller scope compared with the design that was estimated to cost RM2 billion as previously announced by the government.
The ECRL is owned by MoF Inc-owned Malaysia Rail Link Sdn Bhd (MRL). China Communications Construction Co (CCCC) is the project’s main contractor.
A source explains that a change in the scope of Section D would require the approval of the cabinet.
The scope of Section D, signed off by the cabinet in February 2025, entails two rail tracks running side by side — a 1.43m-wide track that follows ECRL’s specification, and a narrower, 1m-wide track used by KTMB.
Before the February decision, Section D was proposed to provide sharing access, where just one rail track was built and used by both KTMB and ECRL trains.
“The scope must be consistent with the cabinet’s approval,” the source says, adding, “Also, the tender package must benefit bumiputera contractors.”
The RM2 billion construction cost would also cover the refurbishment of parts of KTMB’s railroad as well as a short bypass of less than half a kilometre for KTMB to travel between Westports and Northport without having to go back to the Jalan Kastam station.
Also included is the construction of rail-mounted gantries, which are a fixed infrastructure to efficiently lift containers and place them on trains — also known as rolling stock — instead of having to use mobile cranes that can only lift one container at a time.
Physical work on Section D, which will mainly pass through private land, is expected to begin before the end of this year, as all parties involved race to finish the portion from Gombak, Selangor, to the ports — currently scheduled for completion by end-2027.
WCT just posted its best earnings in 12 years, after net profit came in at RM277.96 million in the last financial year ended Dec 31, 2024 (FY2024) compared to a net loss of RM254.12 million a year ago, although this was helped by a net gain of RM184 million on “measurement of interest in a jointly controlled entity” and fair value gain on investment properties.
The group’s engineering and construction segment continued to be in the red last year, while sales in the property segment grew. Group revenue rose 5.58% to RM1.82 billion from RM1.73 billion in FY2023.
WCT’s latest project wins include a RM365 million job to build additional lanes in the Sedenak-Simpang Renggam section of the Yong Peng-Senai stretch of the North-South Expressway (PLUS) project in Johor.
As for the other bidders’ rail-related expertise, DMIA is the main contractor for the Klang Valley EDT owned by KTMB while YTL Construction, or Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd, constructed the Sentul-Batu Caves EDT extension. The YTL-SIPP JV is constructing the Gemas-Johor Bahru EDT while YTL Corp is a shareholder in Express Rail Link Sdn Bhd, which runs the ERL from the Kuala Lumpur International Airport to KL Sentral.
Save by subscribing to us for your print and/or digital copy.
P/S: The Edge is also available on Apple's App Store and Android's Google Play.