Malaysia Airports Holdings Bhd (MAHB) has announced that Alstom, a French rolling stock manufacturer, will be the new original equipment manufacturer (OEM) for the replacement of the Aerotrain system at Kuala Lumpur International Airport (KLIA). According to The Star, despite the increased cost of RM456.1 million, the project is set to be operational by the original schedule, before the end of March 2025. Pestech Technology Sdn Bhd, a subsidiary of Pestech International Bhd, has been reappointed as the contractor, with IJM Corp Bhd joining as the joint-venture (JV) partner.

Key Points:

1. Cost Increase: The new contract with Alstom will incur a cost increase capped at 15%, bringing the project cost to RM456.1 million, excluding operation and maintenance. Factors contributing to the cost hike include interest holding costs, foreign-exchange considerations, remobilisation expenses, and project coordination fees to Alstom.
2. Project Schedule: Alstom will serve as the project coordination lead and is tasked with coordinating the recommencement of the project, delivering three new trains and two lines by the first quarter of 2025. The project will replace the Aerotrain system that shuttles between KLIA’s terminals.
3. Partnership: Alstom has selected IJM Construction Sdn Bhd and Pestech Technology Sdn Bhd as partners for civil engineering and train power supply components. Alstom’s role in spearheading project management and coordination is expected to provide assurance, given the company’s successful track record in similar ventures globally.
4. Controversial History: The Aerotrain replacement project faced controversy when MAHB terminated Pestech Technology’s contract in August 2023, citing non-performance and breach of obligations. The termination led to the search for a new OEM and contractor, resulting in Alstom taking over the project.

MAHB’s acting group CEO, Mohamed Rastam Shahrom, stated that the increase in cost was an “acceptable variance” to ensure the project gets back on track. Alstom’s Singapore and Malaysia cluster managing director, Yann Maixandeau, expressed the company’s commitment to overcoming challenges and delivering the project on time. The Aerotrain project aims to enhance the travel experience at KLIA by replacing the existing system with more advanced technology.