Firm's director oozing with confidence that the project will succeed despite the fact that it has no track record to trumphet.

Malacca tram will not be white elephant

Nigel Aw

Wary Malaccans concerned over the city tram project yesterday grilled project owner Mrails International Sdn Bhd on how it will ensure that it will not become yet another white elephant.

During a public dialogue yesterday, Mrails director Charles James admitted that there was "phobia" among locals originating from several failed projects in the past, but assured that due diligence has been conducted.

"I cannot answer for the Malacca government and its personnel then and now, but if the question is directed to me, frankly it is part of the challenge.

"We have engaged Halcrow Consultants Sdn Bhd to do a feasibility test... we have done a heritage impact assessment, we have done a traffic impact assessment, we have done all to ensure this project will not fail," said James.

He added that Putrajaya's Economic Planning Unit has also appointed its consultant to look into the project.

James was responding to concerns from the floor that the project would suffer the same fate as the state's RM15.9 million monorail project which was suspended after repeated breakdowns.

The RM272 million tram project is to be fully funded by Mrails International Sdn Bhd in exchange for a 25- year operation concession.

Lack of disclosure

James added that had the project been doomed to fail, bank consultants would not have approved its loan for the project which will consist of 32 stations extending for 40km from Ayer Keroh to Bandar Hilir.

"If the project fails, Mrails will take all the risk, not the government. If Mrails is unable to sustain the service, then the government will takeover and give it to another company, there will be no compensation paid to Mrails," he said.

At one point, Ayer Keroh state assemblyperson Khoo Poay Tiong lamented that the state government has refused to disclose the terms of the contract signed between Mrails International Sdn Bhd and the Chief Minister Incorporated of Malacca.

"I have had 12 years experience working in a bank in charge of commercial loans. For projects such as this, the bank would normally ask the government to provide some kind of guarantee - if the project fails it goes back to the government.

"Even if there are no guarantees, if the project fails, the bank will own the project. It's not easy for the government to simply pass it to another company," he said in reply.

Firm without track record

Responding to claims the company lacked experience, James admitted that it was only incorporated in 2009 but stressed that it had the necessary ingredients to complete the job.

"We are looking at the workers that have experience. For example, our managing director was part of the crew that constructed the Monorail in Kuala Lumpur, he has vast experience," he said.

The trams, he said, would be built on existing roads without the need for new infrastructure.

Among the advantages, he added, would be to reduce traffic congestion in the city caused by tourist buses unloading passengers at narrow roads by offering them parking bays at the tram's depot in Ayer Keroh and tourists can ride the tram into town.

"We will construct enough parking bays for 1,500 vehicles including buses and it may be expanded according to phases to allow for (a) park and ride (system)," he said.

When asked if the tram would create more traffic congestion after it takes up part of the roads particularly at narrow areas, James said the company is looking for solutions including diverting traffic to other areas.

Project postponed before

He added that the company will push for a law to govern trams, but for the moment it will operate on a combination of the Road Transport Act 1987 and the Railway Act 1991 regulations.

It will start with a total of 20 trams, each boasting 50 seats with standing room for 70 passengers that will take an hour to complete its entire track run.

The trams will operate on natural gas, reverting to battery when passing through heritage sites.

For the first 20 years of concession, the company will pay 20 percent of its ticket revenue to the state government, the following five years the amount will be raised to 35 percent.

The project is expected to be completed within 15 months after construction begins.

It was conceived in 2010 and originally scheduled for completion this month.