Express Rail Link Sdn Bhd (ERL) has secured a 30-year extension of its concession agreement, allowing it to operate the KLIA Transit and KLIA Ekspres rail services in Malaysia till 2059. The extension grants ERL the flexibility to introduce a market-driven fare structure. Starting in 2029, the Government of Malaysia will cease paying ERL fees from collecting passenger service charges (PSCs).
The adoption of a market-driven fare structure offers ERL the opportunity to innovate its pricing model, aligning services with market demand efficiently.
In addition, under the new agreement, the government is entitled to a 30 per cent share of ERL’s profit if a specified threshold is met. This threshold is set at a 10 per cent stakeholder internal rate of return (IRR) for ERL.
