News Item: : Building material suppliers and sub-contractors set to gain
(Category: Publication - The Star)
Posted by Web Master
Monday, 05 November 2007
BUILDING material suppliers and sub-contractors are anticipated to benefit from the Ipoh-Padang Besar double-tracking railway project.
The main contractors, MMC Corp Bhd and Gamuda Bhd, are likely to parcel out some of the jobs as the construction of the 329km track would need to be completed in four years.
“I would imagine that there will be smaller contractors involved in the project like how the Rawang-Ipoh project was done,†said an analyst with a bank-backed brokerage.
As details of the project remain sketchy at this point, a possible indicator could be the 180km Rawang-Ipoh project, which involved the construction of 402.5 kilometres of tracks, 15 stations and 38 overhead, 41 railway and 16 motorcycle-cum-pedestrian bridges.
The almost double length of Ipoh-Padang Besar project would then require much more steel bars and cement, hence benefiting the building material boys, the analyst added.
In the Rawang-Ipoh project, rail tracks had to be imported because there were no local manufacturers. This time around, steelmaker Kinsteel Bhd is evaluating the option of modifying its Gurun plant to make rail tracks.
An analyst with another brokerage said: “The company is still studying the option but if they succeeded, it would be a brown field for them.â€
MTD ACPI Engineering Bhd, on the other hand, has an advantage as it provided the concrete sleepers for the Rawang-Ipoh rails. Following that, it could easily secure some orders for the Ipoh-Padang Besar project.
Loh & Loh Corp Bhd is also expected to benefit as it did the bridge works for the Rawang-Ipoh double-tracking railway project and has experience in laying tracks for the Sungai Siput-Kuala Kangsar stretch in Perak in 2001.
To date, it has completed 46km of tracks, an electrified railway station, eight rail bridges and three bridges over rail.
Loh & Loh was also a turnkey contractor for the Rasa water treatment plant of the Sungai Selangor Water Supply Scheme Phase 3 project, which was 40% owned by Gamuda.
According to a bank-backed brokerage in a report, Gamuda, as the project manager, is anticipated to engage reliable sub-contractors for the railway project to maintain a tight rein over the project cost and Loh & Loh has proven its good delivery track record.
UEM Builders Bhd, a unit of UEM World Bhd and owned by national investment arm Khazanah Nasional Bhd, has indicated that it was also eyeing a piece of the pie.
It completed the unfinished 12% of the Rawang-Ipoh electrified double-tracking railway after the Government terminated the contract of DRB-HICOM Bhd in May 2005 due to work delays.
This news item is from MTD ACPI Engineering Berhad
( http://www.mtdacpi.com/news.php?extend.6 )
(Category: Publication - The Star)
Posted by Web Master
Monday, 05 November 2007
BUILDING material suppliers and sub-contractors are anticipated to benefit from the Ipoh-Padang Besar double-tracking railway project.
The main contractors, MMC Corp Bhd and Gamuda Bhd, are likely to parcel out some of the jobs as the construction of the 329km track would need to be completed in four years.
“I would imagine that there will be smaller contractors involved in the project like how the Rawang-Ipoh project was done,†said an analyst with a bank-backed brokerage.
As details of the project remain sketchy at this point, a possible indicator could be the 180km Rawang-Ipoh project, which involved the construction of 402.5 kilometres of tracks, 15 stations and 38 overhead, 41 railway and 16 motorcycle-cum-pedestrian bridges.
The almost double length of Ipoh-Padang Besar project would then require much more steel bars and cement, hence benefiting the building material boys, the analyst added.
In the Rawang-Ipoh project, rail tracks had to be imported because there were no local manufacturers. This time around, steelmaker Kinsteel Bhd is evaluating the option of modifying its Gurun plant to make rail tracks.
An analyst with another brokerage said: “The company is still studying the option but if they succeeded, it would be a brown field for them.â€
MTD ACPI Engineering Bhd, on the other hand, has an advantage as it provided the concrete sleepers for the Rawang-Ipoh rails. Following that, it could easily secure some orders for the Ipoh-Padang Besar project.
Loh & Loh Corp Bhd is also expected to benefit as it did the bridge works for the Rawang-Ipoh double-tracking railway project and has experience in laying tracks for the Sungai Siput-Kuala Kangsar stretch in Perak in 2001.
To date, it has completed 46km of tracks, an electrified railway station, eight rail bridges and three bridges over rail.
Loh & Loh was also a turnkey contractor for the Rasa water treatment plant of the Sungai Selangor Water Supply Scheme Phase 3 project, which was 40% owned by Gamuda.
According to a bank-backed brokerage in a report, Gamuda, as the project manager, is anticipated to engage reliable sub-contractors for the railway project to maintain a tight rein over the project cost and Loh & Loh has proven its good delivery track record.
UEM Builders Bhd, a unit of UEM World Bhd and owned by national investment arm Khazanah Nasional Bhd, has indicated that it was also eyeing a piece of the pie.
It completed the unfinished 12% of the Rawang-Ipoh electrified double-tracking railway after the Government terminated the contract of DRB-HICOM Bhd in May 2005 due to work delays.
This news item is from MTD ACPI Engineering Berhad
( http://www.mtdacpi.com/news.php?extend.6 )