KUALA LUMPUR (May 11): Ancom Nylex Bhd's (KL:ANCOMNY) 42.2%-owned subsidiary, Nylex (Malaysia) Bhd, has received a letter of intent (LOI) from the Malaysian government for a proposed public-private partnership rail project in Iskandar Malaysia.

In a filing with Bursa Malaysia, Ancom said the LOI was issued by the Public Private Partnership Unit (Ukas) under the Prime Minister’s Department on May 5.

The company said the government has granted approval in principle to a consortium comprising DOM Industries (M) Sdn Bhd, MMC Engineering Sdn Bhd, BTS Group Holdings Public Company Limited and Nylex.

This confirms an earlier report by The Edge that the consortium would be awarded the project.

The request for proposal for the project was issued by Ukas on March 12 last year.

The estimated development cost of the Johor Bahru rapid transit project — believed to be an elevated autonomous rapid transit (e-ART) system — is nearly RM7 billion, although it is unclear whether the figure includes land acquisition costs.

Earlier reports stated that the JB e-ART system would comprise 32 stations and serve three main corridors — Skudai, Tebrau and Iskandar Puteri — with Bukit Chagar designated as the city’s main interchange station.

The e-ART is an unmanned bus rapid transit system operating on elevated tracks. It has a carrying capacity of between 5,000 and 12,000 passengers per hour, depending on configuration.

The system is intended to complement the Johor Bahru-Singapore Rapid Transit System Link, which is scheduled to begin operations by end-2026, by easing passenger movement within Johor Bahru.

Thailand-listed BTS Group, the developer and operator of Bangkok’s mass transit system, will provide technical expertise for the project, while Nylex will act as the project promoter.

DOM Industries, which is also involved in the Kuching Urban Transportation System project, is 51%-owned by Adil Sayeed Ghulam Mohammed and 49%-owned by Noorfazliyani Mustafa Kamal.

MMC Engineering, meanwhile, brings rail infrastructure experience through its involvement in the MRT Kajang Line. Its parent, MMC Corp Bhd, is controlled by tycoon Syed Mokhtar Albukhary through Seaport Terminal (Johore) Sdn Bhd.

Shares of Ancom Nylex closed unchanged at 90 sen on Monday, valuing the group at RM1.04 billion Over the past one year, the stock has declined 5.2%.