KLIA2 - New Mega Low Cost Carriers Terminal

[alberttky 0]

 

Main contractor of KLIA2 to appeal fine for delay

SEPANG: UEM-Bina Puri JV, the main contractor of KLIA2, is appealing against the liquidated and ascertained damages (LAD) fine slapped on it by Malaysia Airports Holdings Bhd (MAHB).

Bina Puri Construction Sdn Bhd director Henry Tee Hock Hin said the joint venture (JV) would appeal based on the terms and conditions of the contract that stated that the contractor could appeal for an extension of time (EOT) to finish up the work, as there had been many last-minute requests and additional changes made by stakeholders.

“We have already written in our appeal. Right now, our physical completion is about 93% and we will complete our portion of work by year-end,” he told StarBiz.

Tee is the brother of Bina Puri Holdings Bhd group managing director Tan Sri Tee Hock Seng.

With MAHB invoking the LAD, the JV stands to pay an RM6mil monthly fine, amounting to RM63.42mil, assuming it only hands over the airport on April 30, 2014, the new completion date for KLIA2.

Tee pointed out that UEM-Bina Puri JV was not the only contractor that was behind schedule, as the runway and taxiway had not been completed too for the earlier planned June 28 opening.

The JV's work totalled about RM1.15bil out of the RM4bil projected cost of KLIA2.

“We received a handful of instructions at end-2012 and early-2013. These last-minute changes were impossible to be completed on time,” he explained.

Among the instructions it received were expanding the gross floor area by 60,000 sq m to 295,000 sq m.

Adding 45 additional counters to the immigration department and additional ticket booths and counters was also among the other instructions it had received from March to May.

“The final design is supposed to be frozen but it was not due to the last-minute changes, and we have been very accommodative of this,” he said.

According to him, the company's bankers, including Malayan Banking Bhd and CIMB Bank, had expressed concerns on the company's credit facility due to the LAD.

“Not only would this hit our bottom line but our reputation is also on the line. This is going to hurt us not only locally but also internationally,” he said.

On the 212 non-compliance reports lodged by MAHB, he said these were just minor technical rectifications that happened across the construction industry.

“Whatever works that have an NCR (non-compliance report), we will rectify the defect,” he assured.

Thus far, the JV has rectified about 70 of these NCRs.

MAHB and UEM-Bina Puri JV had recently been embroiled in a spat blaming each other for the works that could not be completed in time for the opening of KLIA2.

http://biz.thestar.com.my/news/story.asp?file=/2013/6/28/business/13299993&sec=business

[alberttky 0]

The blame game of KLIA2

 

IN the game of corporate “tai chi”, or the skill to push responsibility over to another party, it is a never ending game.

Some have honed the skill to an art form. In the case of the public spat between Malaysia Airports Holdings Bhd (MAHB) and its KLIA2 main contractors, UEMC-Bina Puri joint venture, it is more than just finger-pointing. The spat has resulted in a RM60mil fine on the main contractors.

MAHB is pointing the gun at UEMC-Bina Puri for the delayed completion of KLIA2, which was due to the delayed works of the main terminal that currently stands at about 93%.

In turn, the main contractors laid bare the details of the delay which includes last-minute instructions by MAHB which were received from March to May 2013, which the main contractors deemed were given insufficient time to complete the works.

According to MAHB operations senior general manager Datuk Azmi Murad, the last-minute instructions are just minor changes needed by stakeholders, and this doesn't affect the completion date of the seven sectors of the terminal itself.

Among the requests are the addition of 45 more immigration counters, and additional ticket booths and counters.

“The instructions for the immigration counters are a valid point, and the contractors can apply for extension of time (EOT) to justify the extension. This may take only a further two to four weeks to complete, but does not justify an EOT for one year. The JV already has enough time to complete the works before June,” he says.

He says the previous periods of extensions were not conjured up from thin air, as all are mutually agreed and planned by parties involved including consultants, and the main contractors.

On Thursday in an interview with StarBiz, Bina Puri Construction Sdn Bhd director Henry Tee Hock Hin said the JV company would be appealing against the LAD, as the delay was due to last-minute changes by MAHB. He also said there should be a design freeze on the terminal, but the main contractor had been very accommodative on the changes. UEMC-Bina Puri's work totalled about RM1.15bil out of the RM4bil projected cost of KLIA2.

UEMC-Bina Puri was given an extension before this to complete the terminal after MAHB accommodated AirAsia Bhd to change to an automated baggage handling system, that compelled the main contractors to dig an entire floor the size of a football field, hence the time completion was revised previously.

Besides the incomplete terminal, the taxiway and the new Runway 3 are also unfinished, which according to MAHB would not prevent KLIA2 from a delayed opening as it can direct air traffic to KLIA2 via the existing Runway 2, assuming if the terminal was operational.

First envisioned to become a low cost carrier terminal (LCCT) with a price tag of RM1.9bil, it has ballooned to RM4bil featuring state-of-the-art specifications. It is a LCCT but definitely not a low cost terminal. The grand launch planned to coincide with the 15th anniversary of the KL International Airport yesterday is just empty hope. Despite the perceived delays right now, MAHB and the main contractors are on common ground.

Both parties are of the opinion that the show must go on, and construction will still need to be completed.

With a timeline to complete physical works by November, and given another six months to secure the certificate of completion and compliance (CCC) and operational readiness and Airport Transfer (ORAT), KLIA2 looks set to open in May next year. But, a spanner could be thrown in the works if there are more delays to the other packages.

So who's to be blamed?

http://biz.thestar.com.my/news/story.asp?file=/2013/6/29/business/13303916&sec=business

 

MAHB adamant about LAD fine

 

MALAYSIA Airports Holdings Bhd (MAHB) is adamant on its decision to slap the main contractor of KLIA2 UEM-Bina Puri JV with the liquidated and ascertained damages (LAD) fine.

MAHB operations senior general manager Datuk Azmi Murad tellsStarBiz that the LAD has already been imposed and that the airport operator is just following the terms and conditions stated in the contract.

The airport operator has also issued a Certificate of Non-Completion to UEM-Bina Puri JV for its inability to complete its RM1.15bil worth of work by the approved deadline of June 15.

“There have been numerous extensions of time (EOT) for the company, and the delay is not justifiable. We will have a discussion with the parties involved and they will have to apply for another EOT to justify the slow work progress,” he says.

He adds that thus far, the company had not yet submitted any explanations over the delay.

It was reported that the delay was mainly due to the various design changes, including variation works on the baggage-handling system and unexpected ground conditions which required additional piling and temporary sheet piles.

MAHB's KLIA2 project manager Mohd Zaifuddin Idris says MAHB had highlighted in October 2012 that UEM-Bina Puri JV was not utilising enough workers for the fast-tracked project, and that productivity was low.

“We have advanced monies, inclusive of RM89mil in variance orders, to the joint venture to complete the construction in November last year. But unfortunately, it couldn't stay on course. The board has capped the cost of KLIA2 at RM4bil, and so far, we have not reached that ceiling yet,” he says.

He adds that at present, the total cost of KLIA2 stands at about RM3.75bil, with a little bit of headroom left for additional scope of work to be done.

http://biz.thestar.com.my/news/story.asp?file=/2013/6/29/business/13300133&sec=business

[Branden Ng 0]

saw these photos from bina puri. updated 27/6/2013

 

[Syukri 0]

The glamorous S4 doesn't look spotter friendly at all...

[Fairul 0]

two level at S4. Seems that departing and arriving passenger will be segregated.

[Cire 0]

Pretty spacious for one and plenty of skylight. Looks better than some international airports.

 

The StarOnline reported that many were skeptical of KLIA2 being ready by May2014. Not unless more sub-contractors are poured in, and work is carried out 24/7.

[alberttky 0]

Many doubt KLIA2 contractors can meet next year’s opening date after five delays

 

PETALING JAYA: A huge sign on the control tower of KLIA2 in Sepang proudly proclaims that it was constructed “in 10 months”. However, the contractors apparently forgot about the rest of the project.

The completion of the airport has been delayed five times and many doubt that the contractors can meet the new opening date of May 2, 2014, as announced last month by Malaysia Airports Holdings Bhd (MAHB).

The Starprobe team which spent a week at the site found good reason for the scepticism.

Among the features yet to be completed is a 300m skybridge for pedestrians, the first of its kind in Asia.

Contrary to claims that construction had been sped up and was going on round the clock and seven days a week, the team found that work was actually being done at a normal pace.

It found that the pace was even slower on weekends with hardly any movement of machinery and few workers at the site.

The construction of the main terminal of the building appeared to be only about 60% completed.

The building will house the departure and arrival halls as well as the immigration checkpoints and a train terminal.

The internal roads linking the main terminal to the other parts of the airport have yet to be built.

The cost of KLIA2, which had started off with a price tag of RM1.9bil, has ballooned to RM4bil.

In June 2011, MAHB accused AirAsia, the main airline for KLIA2, for the delay, citing the airline’s request to raise passenger capacity to 45 million a year from the earlier planned 30 million.

MAHB said the low-cost airline had also declined to use aerobridges, citing high operating costs, and also decided at the last minute to switch from a semi-automated to a fully-automated baggage handling system.

It added that the realignments had pushed the completion date of the new terminal to April 2013. Early this year, it was announced that KLIA2 would be launched on June 28.

Last month, MAHB announced the airport’s fifth delay, with the completion date set for April 30 next year.

The main contractors, a UEM-Bina Puri joint venture, and the airport operators have also been blaming each other for the delay.

However, the team found that several key features of the airport had already been completed.

Among them are the KLIA2’s control tower and the two ramps linking the airport to the KLIA extension highway.

Security checkpoints have been placed at the entrance and exit of the ramps to stop unauthorised vehicles from entering the construction site.

The construction of the runways along the aprons also appeared to have been completed with tarring having started on the runways.

According to reports, the initial delay was caused by the alleged non-compliance to the standards required by LCCT.

MAHB has also been blamed for the delay since the project is entirely undertaken by the company.

According to an inside source, the work on the project was now taking shape at a faster rate than it was a few months ago.

He said the major issue with the project was the instability of the earth in the area.

“The situation required reinforcement work including additional piling which had caused a considerable delay.

“More time was also taken up because the conveyor belt could not be fitted into the building because of the design.

“A section of the building at the baggage claim area had to be reconstructed to fit the conveyor belt,’’ he added.

Meanwhile, an international expert from the construction industry said the airport could be completed by April 30 next year only if work was carried out at a much more rapid pace.

“Intensity is the key to the completion of the project,” he said.

“From outside, the terminal building looks very raw. However, a lot of things can be done in 10 months provided the remaining work is carried out with greater intensity,” he said

http://www.thestar.com.my/News/Nation/2013/07/02/New-deadline-another-flight-of-fancy.aspx

[alberttky 0]

Berlin airport to 'partially reopen in December'

 

 

Berlin's beleaguered Brandenburg airport (BER) is expected to open for business on December 15 in time for Christmas.

But don't get too excited - it will reopen only partially. The plan is to permit a highly limited number of flights, meaning the new airport would only handle a maximum of 2,000 passengers a day.

According to Berlin's BZ newspaper, the first carriers to use the airport will be concentrated at the North Pier which is intended for use by low-cost carriers (LCCs).

The North Pier is not affected by the issues with the smoke extraction system in the main terminal building which have, so far, prevented BER from opening.

Airport management has already been negotiating with LCC Norwegian and Thomas Cook Group subsidiary Condor and, according to BZ-Berlin, Easyjet has also expressed interest in using the North Pier.

But there is no indication yet as to when the new airport will open in its entirety. It could be some years away.

The idea for a partial opening makes sense. It will test the airport's systems and utilise some of its expensive facilities.

A recent report in Spiegel.de claimed that it was costing no less than €20 million a month just to maintain the empty airport. Spiegel's website says that BER is turning out to be "Germany's most expensive construction site. Round-the-clock lighting and air-conditioning at the ghost airport contribute to energy costs even higher than those of the city's still active Tegel airport."

As previously reported in Business Traveller, the airport’s opening has been postponed four times. Will it be fifth time lucky?

http://www.businesstraveller.com/news/berlin-airport-to-partially-reopen-in-december

Maybe KLIA2 will also open "partially"?

[Wi Ching 0]

Berlin airport to 'partially reopen in December'

 

Maybe KLIA2 will also open "partially"?

 

hard to open partially, due to main terminal Section 2 (S2) still not complete, it include all system Departure, arrival, also custom and immigration.

[Kee Hooi Yen 0]

Maybe KLIA2 will also open "partially"?

 

Open for depature only, arrival not yet ready

[Newitt 0]

hard to open partially, due to main terminal Section 2 (S2) still not complete, it include all system Departure, arrival, also custom and immigration.

can still use the parking bays right? if airasia so insist they haven't got enough parking space

[alberttky 0]

 

It’s time to depart ‘bus stop’ in Sepang

PETALING JAYA: The low-cost carrier terminal (LCCT) in Sepang is little more than a “bus stop” or pasar malam, which is why the new airport, KLIA2, has to be completed as soon as possible, say tour agencies.

The Malaysian Chinese Tourism Association (MCTA) said many tourists were unhappy with LCCT because it was “too messy” and “congested”.

“I do not know why the opening of KLIA2 is being delayed again. We have been waiting very long for it to be completed,” said MCTA president Paul Paw, adding that the delay was affecting the country’s tourism industry and image.

“When it rains, passengers at LCCT have to use umbrellas to get to the aircraft because the pathway is not covered.

“It is so crowded and messy that we often say it is more like a bus stop than an airport,” he said.

Yesterday, The Star reported on the current pace of work at the KLIA2 site, raising questions on whether its contractors could meet the revised opening date of May 2, 2014, which comes after five earlier delays.

Malaysian Indian Tour and Travel Association president K. Thangavelu said the delay in the completion of KLIA2 and the lack of facilities at LCCT were “tarnishing the country’s image”.

“It is the first impression for tourists, especially those visiting the country for the first time and who do not know we have better airports like KLIA.

“Tourists from India who, upon arrival at LCCT, have told me that their airports back home are so much better than the ones in Malaysia,” he said.

Thangavelu added that it was also unfair to passengers, who despite paying airport tax, were not provided with top-notch facilities.

“If LCCT was meant to be a temporary airport, it has been that way for much too long. The completion of KLIA2 must be as soon as possible. We cannot afford more delays,” he said.

Meanwhile, a taxi driver who only wanted to be known as Tan, 55, said LCCT was more like a pasar malam (night market) than an airport.

“I dread going to LCCT. The traffic there is so haphazard and it’s packed with people all the time,” he said.

http://www.thestar.com.my/News/Nation/2013/07/03/Its-time-to-depart-bus-stop-in-Sepang.aspx

[Cheng Long 0]

The problem with these people is that they want top notch facilities while paying peanuts.. They think they only need to pay peanuts, the world owes them a living.

 

 

Thangavelu added that it was also unfair to passengers, who despite paying airport tax, were not provided with top-notch facilities.

 

So in way, they are partly responsible for the delay. We can easily build a budget airport/terminal but people make a lot of noise. So KLIA2 became a bit too posh, a bit too high class..

[flee 5]

The problem with these people is that they want top notch facilities while paying peanuts.. They think they only need to pay peanuts, the world owes them a living.

Yes, they fly on LCCs and yet demand FSC type facilities. Have they thought about how the fares they paid are reduced? Cost cutting definitely means that facilities and service levels will also be cut. Using airport tax to justify their high expectations is unreasonable, especially as he is the President of the Malaysian Indian Tour and Travel Association.

 

If they want to arrive and depart from an airport that is as beautiful as India, they can fly on MAS or Air India!

[Mohd Firdaus Bolong 0]

That's why I now only fly on MH/OD...no more hassle of having to take bus from LCCT to KL/Salak Selatan..

[GeO 0]

The problem with these people is that they want top notch facilities while paying peanuts.. They think they only need to pay peanuts, the world owes them a living.

 

 

So in way, they are partly responsible for the delay. We can easily build a budget airport/terminal but people make a lot of noise. So KLIA2 became a bit too posh, a bit too high class..

 

What do you mean by paying peanuts? Even AK ticket can cost more than MAS nowadays and can get the best environment at lower price with MAS.

[alberttky 0]

‘Hisham not taking KLIA2 seriously’

 

KUALA LUMPUR: Acting Transport Minister Hishammuddin Hussein’s stance that the delayed KLIA2 project in Sepang has no adverse impact on Malaysia Airports Holdings Bhd (MAHB) has courted ridicule from the DAP.

 

In a written parliamentary reply on Monday, Hishammuddin said the delay in the multibillion ringgit airport’s completion “does not impact MAHB’s profits at all because it has no effect on MAHB’s business affairs”.

 

“The delay also does not affect MAHB’s operations as it still maintains its Triple A rating. This means the company is in a good financial position, based on ratings agency RAM Rating Services Sdn Bhd,” said Hishammuddin.

 

DAP’s national publicity secretary, Tony Pua said: “The brief reply over the KLIA2 scandal shows how the [acting] Transport Minister neither cares for this problem nor views it seriously.”

 

He listed three ways in which he believed MAHB’s finances were affected – the rising cost of the project; the annual interest rates MAHB had to pay for its RM 3.1 billion loan, and lost opportunity to gain millions of new customers.

 

“Finally, MAHB maintained its Triple A rating not because it’s in a “good financial position “ but because the ratings agencies understand that if MAHB faces any financial problems, the government would bail it out,” said Pua.

 

He also said that consumers were now shouldering KLIA2’s drastically increased construction costs through higher airport taxes. The airport, which at first cost RM1.7 billion has now ballooned to RM4 billion.

 

“The truth is, airport taxes have increased by 28% on Nov 11, 2011 from RM25 to RM32 at the LCCT to cover the rising costs of the KLIA2 project,” said Pua, who is also the Petaling Jaya Utara MP.

 

He said Hishammuddin must take responsibility over the scandal, and expressed hope that he would not follow in the footsteps of former Transport Minister Kong Cho Ha, whom he claimed paid no attention to the matter.

 

“We urge Hishammuddin to set up an independent investigating committee to provide the truth to Malaysians unhappy with the state of KLIA2,” said Pua.

 

According to media reports, the airport’s completion date has been delayed five times, with the latest set at May 2, 2014. English-language daily The Star estimated that the project was only 60% complete, and claimed many doubted the contractors could meet the opening date -

 

See more at: http://www.freemalaysiatoday.com/category/nation/2013/07/03/hisham-not-taking-klia2-seriously/#sthash.40wZODel.dpuf

Traders irked by KLIA2 delay

 

PETALING JAYA: Retailers who have been awarded trading lots at KLIA2 in Sepang are disappointed with the prolonged delay in the airport’s completion.

The retailers also doubt that the airport can open in time by May 2 next year.

They were commenting on The Star report on Tuesday that the airport’s completion has been delayed five times since September 2011, which was the original date for the opening.

Many doubt that the contractors can meet the new opening date, announced last month by Malaysia Airports Holdings Bhd (MAHB).

A businessman, who only wished to be identified as Datuk M. Joh from Subang Jaya, said he had been awarded a contract to operate a restaurant serving Malay delicacies at KLIA2.

He said he was already paying wages for four workers, including a manager, although he had not started his business.

“I have incurred RM7,000 in monthly losses to pay the wages. It seems that I will have to continue paying them for another 10 months,” he added.

Retailer J.S. Lim said he could not install electrical appliances at his outlet because the roads to the place were not ready.

“I have no choice but to receive the goods from my contractor and settle the bill although the trading lots are not ready for renovation,” he said.

Lim said he was considering filing a compensation claim against MAHB for the delay.

Another businessman identified as Teh said he was awarded a spot to sell various types of fast-moving items including souvenirs.

“I am tired of reading about the delays. It’s affecting me financially,” he added.

James Anthony from Kuala Lumpur said he had taken a bank loan to start a new business at the airport.

“I cannot start my business although I’m already paying the bank instalments and inte­rest after getting the loan a few months ago,” he added.

http://www.thestar.com.my/News/Nation/2013/07/04/Traders-irked-by-KLIA2-delay-Retailers-already-incurring-losses.aspx

[Cheng Long 0]

What do you mean by paying peanuts? Even AK ticket can cost more than MAS nowadays and can get the best environment at lower price with MAS.

 

Well.. I'm talking about airport tax, which the person in the article was also referring to.

[Radzi 2]

On hindsight, I think it was better if MAB just let AirAsia design the new LCCT, because AK will be their main customer and know exactly what they need. (There were no OD or even FY back then). That way cost could be kept to minimum and AK can't complain about the design. It could've been sparse, but it will be a proper LCCT.

 

As of now, it should be called HCTFLCC.... High cost terminal for low cost carrier.

[alberttky 0]

Pardon my ignorance but I thought MAHB and AirAsia don't see eye to eye? If so I don't see how MAHB will allow AirAsia to design the terminal.

[Kee Hooi Yen 0]

As of now, it should be called HCTFLCC.... High cost terminal for low cost carrier.

 

or Five Star Value Terminal

[Sharil Abdul Rahman 0]

 

Took this picture from @H2oComms - Hishamuddin's other twitter acc.

 

IS it me or does the runway looks almost done there?

 

Also it looks like we just need some landscaping to cover the red earth...

[Mulyadir Fitri 0]

On hindsight, I think it was better if MAB just let AirAsia design the new LCCT, because AK will be their main customer and know exactly what they need. (There were no OD or even FY back then). That way cost could be kept to minimum and AK can't complain about the design. It could've been sparse, but it will be a proper LCCT.

 

As of now, it should be called HCTFLCC.... High cost terminal for low cost carrier.

 

MAHB finally went on high gear for KLIA2 after the big brouhaha by Tony about KLIA East @ Labu. I guess their ego was bruised too much at that time to properly consult AirAsia about all aspects of the airport.

[flee 5]

[Fairul 0]

 

Took this picture from @H2oComms - Hishamuddin's other twitter acc.

 

IS it me or does the runway looks almost done there?

 

Also it looks like we just need some landscaping to cover the red earth...

no..its not done yet..still need 2 layers of fresh asphalt concrete..

 

on the landscaping side..no worries..mahb has an obsession towards ugly flower pots..they can get big supply from sg buloh..