Rafizi RamliKUALA LUMPUR (Nov 17): Lawmaker Rafizi Ramli (pictured) has questioned the financial viability of the RM55 billion East Coast Rail Link (ECRL), citing the under-utilisation of an existing 70km rail track which connects Kertih to Kuantan and Port Kuantan.

Rafizi questioned whether there are enough exports to fully utilise the 600km ECRL as the 70km rail is not fully utilised now.

Speaking to reporters at the Parliament lobby yesterday, he said as part of the development of the petrochemical corridors connecting Kertih Integrated Petrochemical Complex and Gebeng Integrated Petrochemical Complex, there is an existing 70km track connecting Kerteh to Kuantan and the port.

"It was not viable. No one wants to use it and therefore it was abandoned," he said.

This was despite economic activities at the two petrochemical plants that was seen as one of the most valuable and accounted for the majority of industrial activities on the east coast.

Rafizi cited the example of resin, which is usually transported in containers.

He said the capacity of the two petrochemical plants is relatively small and only serves the local market.

"Whatever volume we have is more for liquid chemical and not resin. Therefore, the logic about connecting the east coast to Pelabuhan Klang, for economic value doesn't make sense," he added.

Rafizi also said the ECRL is the biggest financial threat and risk to public finance.

"It is something we must stop. We can't afford it. If it was not approved at RM29 billion then, it was not viable then, what more when it is (now) RM55 billion?" he questioned.

He said the government has a moral duty to justify why it has to commit RM55 billion and make the project a top priority, when it has limited financial resources whilst implementing several austerity measures.

He also criticised the government for not getting Parliament's consent to incorporate the special purpose vehicle (SPV) to undertake the project.

"Just because it's an SPV, it does not mean that it can skip all the checks and balances, and control has to be in place. The shares will still be held by MOF Inc. Any injection of capital into it, any commitment of large financial commitment, will have to go through Parliament because we pay for it," he said.

On Tuesday, Transport Minister Datuk Sri Liow Tiong Lai said ECRL is viable as it will not only be used to ferry passengers but also to transport cargo. The rail network will link Kuantan Port to Port Klang.

Meanwhile, according to the official website of the East Coast Economic Region (ECER), a number of locations within the ECER have been earmarked for the establishment of several major industrial initiatives.

For manufacturing, planned projects include the Pekan Automotive plant, Malaysia-China Kuantan Industrial Park, Gambang Halal Park, Pasir Mas Halal Park and Kemaman Heavy Industry Park. — theedgemarkets.com

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