You pay – even if you don't use ERL

[Naim 6]

This sucks, I tell ya!

 

You pay – even if you don't use ERL

 

http://www.sun2surf.com/article.cfm?id=21581

 

Terence Fernandez and R. Nadeswaran

 

PETALING JAYA (April 21, 2008): Passengers who fly off from Sepang have been paying an additional RM2 to RM6 in airport tax for the last six years – no thanks to a lopsided deal between the government and Express Rail Link Sdn Bhd (ERLSB) which operates the Express Rail Link (ERL).

 

The KLIA Express connects KL Sentral and KL International Airport.

 

According to sources, under the terms of agreement for the RM2.8 billion ERL project, a portion of the airport taxes that departing passengers pay goes to the company – RM2 for domestic passengers and RM6 for international travellers from KLIA as well as the Low Cost Carrier Terminal (LCCT).

 

It is learnt that the rationale behind the concession agreement signed in 1997 is to ensure a return on investment for the service which started in 2002.

 

YTL Corporation holds a 50%-stake in ERLSB, which is responsible for building and operating the high-speed rail link. Tabung Haji Technologies Sdn Bhd holds 40% and Nadicorp Holdings Sdn Bhd the remaining 10%.

 

ERLSB operates under a 30-year concession, including an option to extend for another 30 years to own and operate the express rail link. The ERL faces competition from other public transport operators due to its fare of RM35 for a one-way trip.

 

Airport tax for KLIA is RM45 for international travellers and domestic passengers pay RM6. Airport tax for departures from the LCCT is RM6 for domestic and RM35 for international passengers.

 

KLIA handled about 25 million passengers last year and the LCCT about eight million. "Half of these figures were departing passengers, which means ERL would be receiving in the region of RM80 million a year (from airport tax)," said a source.

[Seth K 3]

I also wonder how they make profit after one year in operation, the amount of people ERL carry is not that great.

[Azri M. 0]

I think its fair to charge the passengers some fees (as part of airport tax) even though they are no using it. Its like charging operating fees for FOOD GARDEN even though not all passengers eat there, and it should be part of the operating fees in the airport tax. Without these fees, the facilities wont exist. Though the high amount may be arguable.

 

What is not right is, charging the fees to LCCT passengers, it is because it is very inconvenient for the LCCT passengers to take it, so the airport should NOT charge them these fees.

 

my 2 sen

Edited April 21, 2008 by Azri M.

[Radzi 2]

Paying extra tax for the facility is fair enough. What not fair is paying for facilities owned by a private company.

 

I believe many of Malaysian infrastructure should be owned by the government, paid by taxpayers. Whatever fees or toll should go into maintenance of the facility, any profit should go back to the people.

 

Hopefully this form of corruption can be corrected in the next 4 or 5 years....

[Ryan Soh 3]

I do not see any reason why those agreed monies cannot be given to ERLSB. XKL and KUL are all IATA-approved airport facilities so anything directly linked to these 2 locations are considered airport property, no? So if you have related cost to keep them running, why shouldn't an express train link be thrown in as well? Without the KLIA Ekspress, what would be the viability of KL Sentral as a city terminal? Nada...

 

I see XKL as a very convenient alternative to sitting in a RM90 taxi ride that takes almost an hour (or more is the city is jammed) to get to the airport. It is cheaper and I never fail to use it whenever I am flying into KUL.

 

So if you want convenience, you must pay for it lah.

 

 

[Seth K 3]

I have to agree with Capt. Radzi, paying tax to support private owned company is ridiculous. Unless if they are GLC.

Edited April 21, 2008 by Seth K

[Mohd. Helmi 0]

Paying extra tax for the facility is fair enough. What not fair is paying for facilities owned by a private company.

 

I believe many of Malaysian infrastructure should be owned by the government, paid by taxpayers. Whatever fees or toll should go into maintenance of the facility, any profit should go back to the people.

 

I disagree, if a company can see a profit by building infrastructure, then they should be the one building it. The government building that infrastructure, you'll see it time and time again around the world, they'll be much more wasteful with public funds, you'll see the private money being more efficient, after all it's their money. The government spends other people's money.

 

Hopefully this form of corruption can be corrected in the next 4 or 5 years....

 

Yes, this is what ticked me off reading that article. It is corruption! IF YTL and Co think ERL will be a profitable venture, then they should proceed, but definately without public money in the form of taxes. If it's not viable. Don't build it. Why do I have to pay in the form of my taxes for some shmuck to ride ERL, for ERL to make a profit!

[Yusoff 1]

From The Sun newspaper, pg14:

 

Non-users Pay The Price

by R. Nadeswaran

 

Question: Why should I pay when I don't use the service?

Answer: Because the govt agreed that thou shall subsidise thee and signed on the dotted line.

 

Q: How come we never knew about this?

A: Because no one chose to tell you.

 

Q: Didn't anyone see the documents to this contract and blow the lid off this whole thing?

A: Even if they had, they would have said: Not my money-lah.

 

Q: A lot of people would have seen the contract - Economic Planning Unit officers, Treasury people. How come they never came forward?

A: All the govt contracts are classified. Former Works Minister Datuk Seri S. Samy Vellu said the contracts with toll concessionaires come under the Official Security Act (OSA).

 

Q: But concessionaires would have gone to the bank to raise funds and they would have provided banks with copies of the contract. The bankers and their lawyers would have copies. So, what's so secret?

A: Why ask me? Ask Samy Vellu-lah!

 

Q: How come you know about the ERL deal? You got the documents-ah?

A: Don't speak so loudly. People can use their influence and my office may be raided because they will claim I have classified documents!

:rofl:

[Alan B. 5]

[Mushrif A 3]

Why is YTL always involved in biased deals (in its favour, of course)? And at the same time, potray itself as that kind, gentle, socially responsible corporate entity. It is already making tons of money through lucrative IPP deals with Tenaga, and now it is in the process of doing another one via that much-needed-by-all fast train link to Spore.

[Naim 6]

From The Sun newspaper, pg14:

...

 

Yes, pls read Nades's take on this dodgy deal here:

 

http://www.sun2surf.com/article.cfm?id=21587

[Ivan L. 0]

No wonder YTL is keen to have express train link to SIN. I wonder, if the bus and plane travelers to SIN also have to pay for extra tax to have the "convenience" of this link in the future.

 

This is just simply ridiculous.. LCCT is not even served by ERL, why should AK passengers pay for it?

Let say you transfer for different flights in LCCT or KLIA, why do we have to pay for service we don't use?

What makes me even more upset is this deal was not even disclosed to the public.

 

If it is not viable, then it's time for the operator to find more ways to make money.

Edited April 21, 2008 by Ivan L.

[Louis L. 2]

i totally agree with capt radzi's statement , paying airport tax is not a big problem , but this is so not right , i dunno what else to say.

 

what about ppl travelling like me from melaka to KLIA , i am nuthin to do with the ERL , still ok if i am using the MTB , but i am using LCCT <_ .>

[Jessnor Arif 1]

For me, I question the source. Simply because it's a mysterious source. Since it's mysterious it falls into category: Just a mere rumors. Unless they come up with ERLSB yearly financial statement proving just that.... then I believe it.

 

If you want to blow a whistle and then blow it hard and show your irrefutable evidence. If it is the truth then take full responsibility and prepare for the consequences. The truth will prevail. Don't just go to media, sensationalized the issue, and yet remained anonymous. The source is more important that the report.

 

Just like the article on Universiti Utara Malaysia Vice Chancellor in which he was blame for plagiarism.

 

Apparently it has became a trend in Malaysia to believe anything without any reliable proof.

Edited April 21, 2008 by Jessnor Arif

[Naim 6]

For me, I question the source. Simply because it's a mysterious source. Since it's mysterious it falls into category: Just a mere rumors. Unless they come up with ERLSB yearly financial statement proving just that.... then I believe it.

...

 

I can tell you one thing - a snr mgmt member at ERL, a good friend of mine, says it's true. He adds, early on ERL had a tough time getting MAB to be the "toll" collector for them (as part of airport tax). They managed to pull some strings later to get it into the agreement.

 

[Radzi 2]

Apparently it has became a trend in Malaysia to believe anything without any reliable proof.

 

That is because rumors are normally comes out to be true. Whatever denied by politicians especially will turn out to be facts.

 

Remember the date of parliament dissolution in February?

 

[Mohd. Helmi 0]

That is because rumors are normally comes out to be true. Whatever denied by politicians especially will turn out to be facts.

 

Remember the date of parliament dissolution in February?

 

hhaaahh... how about when a bunch of spotters caught badawi's new baby airbusCJ in Europe, kicked up a fuss with rumors of him buying a VVIP jet , in his defense, I think he said something along the lines of "the government didn't buy the aircraft, we're leasing it from PMB".

 

Here's a little joke, some of you might have already heard it before, it's not the exact wording, but it goes something like;

 

Do you know when a politician is lying?

Punch line: It's when their mouths are moving.

[Louis L. 2]

hhaaahh... how about when a bunch of spotters caught badawi's new baby airbusCJ in Europe, kicked up a fuss with rumors of him buying a VVIP jet , in his defense, I think he said something along the lines of "the government didn't buy the aircraft, we're leasing it from PMB".

 

Here's a little joke, some of you might have already heard it before, it's not the exact wording, but it goes something like;

 

Do you know when a politician is lying?

Punch line: It's when their mouths are moving.

 

hahaha , :rofl:

[kandiah k 0]

Its not surprising, everything is given to YTL for the sake of progress of the country but not entirely especially when we have to pay a crazy price of RM35 per person for a trip to KLIA, even on the multi stops KLIA Transit !! Utter rubbish !!!

 

I think they could have made it cheaper for the non-passengers especially on the KLIA Transit, full profit or more is what they were thinking of. Anyways I am under the impression that YTL or certain people want to build the bullet train or express train from KL to Singapore. But what I dont understand is why build all those facilities when we have a pathetic network of train system in Malaysia, especially in KL. Why not charity at home first ?

 

This is indeed some form of defect by certain people etc.

 

It is no wonder Singapore and Bangkok airports have easy access to everyone, rich or poor.

 

 

[H Azmal 0]

The rail system is the most 'anak-tiri'ed transport system in Malaysia - I'm all for the improvement of KTM and other rail systems - I suppose the SG-KL bullet train, while there is possibly a need and use, is more about making $$$

[KK Lee 5]

 

Due to lack of check and balance, most if not all privatized contracts are for private companies, there is little if any consumer or public protection in the contract. Very often, money is made from building the project rather than from operating, hence, projects are grossly over valued.

 

As there is a chance that bn may lose control of the parliament in the next GE, it is more likely corruption will get worst during this term of parliament.

 

 

 

 

[Naim 6]

April 22, 2008 21:56 PM

 

Govt Drops Plan For High Speed Bullet Train Project, Says EPU Chief

 

PUTRAJAYA, April 22 (Bernama) -- The cost factor was the main reason the government decided not to go ahead with the high-speed bullet train link between Kuala Lumpur and Singapore proposed by YTL Corp Bhd.

 

"The letters on the decision were sent to parties such as YTL and the relevant agencies in early April," said Economic Planning Unit (EPU) director-general, Datuk Seri Dr Sulaiman Mahbob, told Bernama here Tuesday.

 

He said the government would have to bear a significant cost based on the financial model that was submitted by YTL.

 

"Based on the financial model submitted by YTL, the government has decided not to go ahead with the bullet train (project)," he said, without elaborating on the amount the government has to bear.

 

YTL has proposed the RM8 billion project which would take 90 minutes to travel between the two capitals from about seven-and-a-half hours now.

 

It was earlier reported that the government has allowed YTL to do a feasibility study and it (YTL) came back to say the project was feasible.

 

The plan for a high-speed train between the two cities, spanning about 300km, was proposed in late 1990s, but garnered strong interest last year after the government invited companies to come up with ideas for privately-funded projects.

 

-- BERNAMA

[BC Tam 2]

And the plot thickens ! Only time will tell how far this is taken

 

Tee Keat probes ERL deal

Posted by kasee

Wednesday, 30 April 2008

Terence Fernandez, The Sun

PETALING JAYA (April 29, 2008): The new administration of the Transport Ministry is probing the events leading to the contract which requires airline passengers from KL International Airport to subsidise the operations of the Express Rail Link (ERL).

 

Its minister Datuk Ong Tee Keat has requested information from Malaysia Airports Holdings Bhd (MAHB) on monies remitted from airport tax to Express Rail Link Sdn Bhd (ERLSB) which operates the service, following an expose by theSun last week.

 

The front-page report quoted sources as saying that airport tax of RM45 (international) and RM6 (domestic) at the KLIA and RM35 (international) and RM6 (domestic) at the Low Cost Carrier Terminal (LCCT) in Sepang could be cheaper but for a deal between ERLSB and the government.

 

Under the concession agreement signed in 1997, a portion of airport tax, RM2 from domestic travellers and RM6 from international travellers, goes towards financing the ERL’s construction and operations.

 

The service began operations in 2002, and air travellers have been unwittingly subsiding the ERL irrespective of whether they used the service or not.

 

“I am taking a special interest on this issue and I want to get to the bottom of this agreement,” Ong told theSun. “I have asked my officers to get me the documents.”

 

He said he has asked MAHB to furnish him with details, while ERLSB has also submitted a brief report on the deal.

 

“As Transport Minister, I am duty-bound to ensure that all agreements which concern public transport are in the best interest of the public,” he said, when told of ERLSB’s refusal to reveal details of the agreement and how much it has received from the taxing of airline passengers over the last six years.

 

Conservative figures put it at RM80 million a year, a figure which ERLSB has refuted. It has declined to reveal what the real numbers are, saying it’s a private company.

 

Ong said it was too early to reveal what he had learnt so far but assured the public that he will do so once his investigations were complete.

 

“I need time to pore over the documents and the fine print. I will get legal and expert opinions on the agreement before taking the matter up to the cabinet,” he said.

 

ERLSB operates under a 30-year concession, including the option to extend for another 30 years to own and operate the ERL.

 

YTL Corporation holds a 50% stake in ERLSB, while Tabung Haji Technologies Sdn Bhd owns 40% and the balance held by NadiCorp Holdings Sdn Bhd.

 

Copied from Malaysia Today here

Edited April 30, 2008 by BC Tam

[Mushrif A 3]

Of course, the initiative to get to the bottom of things only came about after the bashing that they received on Mar-8.

[kelvin L 1]

That is what happens after the wind of changes, if it is exposed in the news then they will have to start doing investigation....I wonder if it is not exposed how ?