Expanding pipeline of metro projects-

Southeast Asia is emerging as a prominent investment destination for urban metro rail projects. The emphasis on expanding existing metro networks, or developing new ones, has increased considerably in recent years due to rising demand for fast, clean, and efficient urban public transport.

Currently, urban rail networks are operational in Bangkok, Kuala Lumpur, Manila, and Singapore; their combined length is about 240 km. Singapore has the largest operational network system at about 150 km, followed by Kuala Lumpur (56 km), Bangkok (20 km), and Manila (about 17 km). Rail systems in these cities have propelled economic growth and meet residents’ mobility requirement. Spurred by the positive impact, these cities are planning to expand their existing networks. In addition, new projects are being implemented in Jakarta, Hanoi, and Ho Chi Minh City.

By 2020, the total operational metro network is projected to increase to over 770 km at a reported CAGR of more than 13 per cent. Another 170 km of metro lines will be added between 2020 and 2030. These developments will increase the demand for various sectors such as civil works, rolling stock, and IT services, thus opening up business opportunities for both domestic and international players.

Southeast Asia Infrastructure presents a review of upcoming metro projects in the region…

Expansion projects

Bangkok, Thailand

The current metro network in Bangkok comprises a 20 km underground line (Blue line), covering 18 stations, which extends from the Hua Lamphong railway station to Bang Sue. Under a concession agreement with the Mass Rapid Transit Authority (MRTA), Bangkok Metro Public Company Limited (BMCL) is the operator of the network until 2029.

Two extensions that are planned for this line and a 23 km Purple line that is under construction will add 50 km to Bangkok’s metro lines by 2015. In addition, three new projects – Pink line (34.5 km), Orange line (37.5 km), and Yellow line (18 km) – are under way. With these projects, the city’s metro rail network will cover 160 km by 2022.

In October 2012, BMCL was awarded a 30-year contract to construct the Purple line in two phases. Phase I involves the design, supply, installation, and testing of the mechanical and engineering (M&E) systems at a contract value of 20.7 billion baht. Phase II entails the operation, service, and maintenance of the M&E system at a contract value of 80.3 billion baht. The MRTA will make monthly payments for the work during the first 10 years of operation. As the construction of the line is expected to take 40 months, the line should be operational in 2016.

 

Kuala Lumpur, Malaysia

The 56 km long metro network in Kuala Lumpur has been in operation since 1998. In November 2010, contracts were awarded to extend the two existing lines by approximately 35 km. In addition, the Malaysian government launched the 156 km long My Rapid Transit project in 2011, which is owned and promoted by Syarikat Prasarana Negara Berhad (Prasarana). Prasarana, a state-owned enterprise that was incorporated in 1998, is also the owner of the existing network.

Under the project, the 51 km long Sungai Buloh–Kajang (SBK) line – the first of the three lines that is currently under construction – will be configured for driverless operations. It is scheduled to open in 2017. The Malaysian government has, as the first tranche, issued RM 8 billion guaranteed sukuk (Islamic financial certificate, similar to a bond in Western finance) for financing the line. The sukuk is estimated to be worth more than RM 30 billion.

Manila, Philippines

The Philippines Department of Transportation and Communications (DOTC) owns the 16.95 km metro network in Manila, which is currently operated and maintained by Metro Rail Transit Corporation Limited (MRTCL), a private consortium. In addition to the ongoing rehabilitation of the existing network, a 22 km new line stretching from North Avenue in Quezon City to San Jose del Monte in Bulacan, covering 14 stations, is currently under construction.

The Universal LRT Corporation (ULC), a consortium of Philippines-based Tranzen Group, EEI Corporation, and SM Prime Holdings, has secured the $1.6 billion contract for this expansion on a build-operate-transfer basis. This project is expected to be operational by 2014.

Recently, the following contracts related to the project were also awarded:

  • Germany-based Siemens and Malaysia-based SMH Rail (RM 1.37 billion): a fleet of driverless trains
  • Bombardier (RM 281 million): signalling and train control systems
  • Japan-based Meidensha Corporation (RM 459 million): power supply and distribution
  • Consortium of Siemens and Malaysia-based Hisniaga (RM 418 million): depot equipment and maintenance vehicles.

 

Singapore

Singapore has the largest and the oldest operational metro network in Asia. The Land Transport Authority (LTA), a statutory board under the Ministry of Transport, developed the 150 km network that comprises four lines. SMRT Corporation and SBS Transit, two publicly listed firms, are licensed by LTA to operate and maintain these lines. Three of the existing lines (North–South, East–West and Circle) are currently being extended, while three new lines are also under construction.

In January 2013, the Singapore government announced plans to construct two new lines to improve connectivity and accessibility. The Cross Island line will have a length of 50 km and is scheduled to be operationalised by 2030. The second project, the 20 km Jurong Region line, will serve residents of the northern and western parts of the city-state; it is expected to be operational by 2025.

New projects

Jakarta, Indonesia

A 110.8 km metro network for Jakarta is currently being constructed by PT Mass Rapid Transit Jakarta (MRTJ; incorporated in June 2008). The network has two corridors – North–South and East–West. The Japan International Cooperation Agency (JICA) is funding over 82 per cent of the total cost of the project ($1.81 billion), with the remaining $0.31 billion split between the national government (42 per cent) and the city government (58 per cent).

The North–South corridor will be constructed in two phases. Work on the first phase, running 15.7 km with 13 stations from Lebak Bulus in south Jakarta to the Hotel Indonesia traffic circle/Bundaran HI in central Jakarta, is expected to be completed by end-2016.

Phase II involves the construction of an underground stretch of 8.1 km from Bundaran HI to Kampung Bandan in north Jakarta; it will cover seven underground stations. The line is expected to be operational in 2018.

For the second corridor – East–West – feasibility studies are currently under way and the project is expected to be operational by 2024.

Ho Chi Minh City, Vietnam

The City Management Authority for Urban Railways (CMAUR) in Vietnam is currently undertaking the development of a 124.8 km long metro system in Ho Chi Minh City. The project, part of the approved Transport Master Plan, involves the construction of seven metro lines by 2020.

Though the targeted completion date of the first line is 2016, the metro project in Vietnam is facing delays due to operational issues and a lack of skilled manpower. The operational issues stem from the difficulty in adhering to the differences in norms prescribed by various funders of the projects, which include French, German, and Japanese bilateral donors.

A consortium comprising Civil Engineering Construction Corporation No. 6 and Japanese firm Sumitomo Corporation is constructing Line 1 that spans 19.7 km. JICA has extended $2 billion for this line. Scheduled for completion in 2016, the line is estimated to require an investment of $2.27 billion.

Line 2 will be developed in two phases: the stretch of 11.3 km that covers 11 stations is currently under construction, with another 8.5 km to be implemented later. Phase I is scheduled for completion in 2015; the entire line will be operational by 2017. The project cost of $1.37 billion will be split between the Asian Development Bank (ADB) (39.3 per cent), European Investment Bank (EIB) (22.8 per cent), the German government-owned development bank Kreditanstalt für Wiederaufbau (KfW) (14.2 per cent), and the Vietnam government (23.7 per cent).

Another line for which construction has begun is Line 5 that will span 26.3 km across 23 stations. It will also be executed in two phases. In September 2010, GEV signed an agreement with CMAUR to construct Phase I by 2018. The Spanish government has committed $700 million for Phase I. The city government is seeking capital from the World Bank, ADB, and EIB to fund Phase II. The planned completion date is 2016. The project is expected to require an investment of $2.27 billion.

The other two lines (Lines 3 and 4) spanning 52.2 km that are scheduled for operation by 2020 will require an investment of $4.23 billion; funding for these lines has not yet been secured. In the meantime, a feasibility study is under way for a sixth line (6.7 km).

Hanoi, Vietnam

The metro project of Hanoi is part of the Vietnam Ministry of Transport’s Master Plan 2020. The 52.4 km project will have four lines. While the state-owned Vietnam Railways will develop Lines 1 and 2A, the Hanoi Urban Railway Project Group will be responsible for Lines 2 and 3. Line 3 will be operational by 2016 while the others are expected to come up only by 2018.

To conclude, Southeast Asian countries have embarked on an ambitious metro rail expansion programme entailing an investment of over $33 billion by 2020. These projects have generated significant interest, with players from around the globe participating in their construction and operation processes. Singapore continues to lead the way with its plans to more than double its network by 2030; its aim is to ensure that 8 out of 10 households are situated within a 10-minute walk from the nearest railway station. Indonesia and Vietnam are the two other greenfield markets of significant interest. City planners across major cities in ASEAN countries have realised the potential of metro systems as a solution to the long-standing problem of congestion. Completion of these projects in a time-bound manner will not only ensure addressal of the problem, but will also encourage transit-oriented development.