Construction Sector - More details on MRT2 and 3 OVERWEIGHT

- The Edge Weekly revealed over the weekend that the detailed alignments of the Klang Valley MRT 2 and 3 would be unveiled by end-2013.

- The MRT2 is dubbed the ‘circle line’ and forms an orbital loop from Ampang to East Sentul. It would connect existing locations such as Mid Valley, Bangsar, Mont Kiara and the Naza Group‘s Matrade (a major development identified under the KL City Hall City Plan).

- MRT2 would be developed in at least two phases. Broadly, it would be subdivided into the south-western and north-eastern sectors.

- The former would link Ampang with Mid Valley, Matrade and Sentul, while, the north-eastern sector will connect Ampang to East Sentul. MRT2 would be approximately 40.6km-long, with 52 stations.

- On the other hand, MRT3 also follows a north-west to south eastern route that is not unlike the Sg.Buloh-Kajang MRT line (SBK) that is currently being built. Despite the upgrading of the KTMB Line, MRT3 is designed to meet the demands of the growing population base within this area.

- It is designed to link Sg.Buloh, Selayang and Kepong with the eastern portion of the city centre, including Kampung Baru and the Tun Razak Exchange (TRX). The route measures 46km, and is supported by 20 stations.

- We had written previously that feasibility studies on the proposed second and third MRT lines in the Klang Valley are well underway. The federal government could make a decision on the lines by early next year. 

- We understand that all three MRT lines are supposed to be functional by 2020. Indeed, the second and third lines are scheduled to be completed in phases between 2020 and 2030.

- We, however, hold the view that it could be a little premature to expect any tangible decision before the 13th General Election, particularly on its actual implementation.

- While it is still early days for the other local contractors, we believe the MMC-Gamuda JV would be well-positioned to bid for both the tunnelling as well as the Project Delivery Partner (PDP) portions of these future lines. This is given its existing experience working for the SBK line and associated ownership of up to 10 tunnel boring machines (TBM) for the project.

- The good progress on the SBK line (53 out of 85 work packages worth RM19.8bil awarded todate, balance 32 to be awarded by year-end) is also a boon for building material players. 

- We continue to advocate Ann Joo Resources (steel), Lion Industries (steel), Lafarge Malayan Cement (cement), IJM Corp (via ICP: concrete-based products) and KimLun Corp (tunnel lining, segmental box girdles).  

Souce: AmeSecurities