The story
Express Rail Link Sdn. Bhd. (ERL) is a joint venture company between YTL Corporation Berhad, Lembaga Tabung Haji, SIPP Rail Sdn. Bhd. (a company linked to Sultan Ibrahim Ismail of Johor) and Trisilco Equity Sdn. Bhd. with each partner holding 45%, 36%, 10% and 9% of the company respectively. On 25 August 1997, the Malaysian government presented the company with a 30-year concession to finance, build, maintain and control the operations of the railway.
Construction began in May 1997 and was completed 5 years later. It was then handed over to SYZ consortium, a joint relations consortium between German and Malaysian companies consisting of Siemens, Siemens Electric Engineering Sdn. Bhd and Syarikat Pembenaan Yeoh Tiong Lay Sdn. Bhd (SPYTL), a wholly owned subsidiary of YTL Corporation Bhd.
ERL Maintenance and Support was set up in 1999 and is responsible for the operations and maintenance of trains owned by ERL. The company was initially a joint venture between Express Rail Link Sdn. Bhd. and Siemens, but since June 2005 it has been wholly owned by Express Rail Link Sdn. Bhd.
The 1997 financial crisis that hit Asia caused a brief setback to the project but due to strong governmental support, the project went on to completion. The project racked up a cost of RM2.4 billion which was financed through equity mergers (RM500 million), loans from Development and Infrastructure Bank of Malaysia (RM940 million) and the remainder through import credit from four German financial institutions.
In January 2024, the concession for Express Rail Link Sdn. Bhd. to operate the KLIA Ekspres and KLIA Transit, which was originally to expire in 2017, was extended for a further 30 years (to 2059), after seven years of negotiations. The revised concession includes the introduction of “market-based”/variable fare pricing (ticket prices are currently fixed) and a profit-sharing mechanism with the government (30% of any additional profit if the rate of return exceeds 10%). ERL will still be entitled to receive a share of the Passenger Service Charge paid by all passengers departing from Kuala Lumpur International Airport until 2029.
From Wikipedia’s article on Express Rail Link, shared under CC BY-SA 4.0.4
