The developer of Aman Siara townhouses in Rawang, Wirama Sdn Bhd has agreed to submit a final piece of safety report to the Public Works Department (JKR) in two weeks.
The report on a completed flyover bridge that connects the residential area to Jalan Ipoh heading towards Kuala Lumpur, is needed for JKR’s approval before the bridge can be opened for public use.
The bridge, which was completed in August, is still awaiting approval from JKR and this is frustrating the residents who currently have to drive out extra two kilometres to make a U-turn at Templer’s Park to access the other side of the road.
Before the Templer’s U-turn was made available, motorists from Aman Siara were forced to drive five kilometres to make a U-turn.
The growing frustration is also largely due to a broken promise by the developer to provide a connecting passageway from Aman Siara.
The buyers were promised this when they bought the properties.
The matter was sorted out in a dialogue session between the residents, Aman Siara joint management body chairman Huzaini Samsudin and representatives of the developer.
Selayang MCA parliamentary coordinator Jessi Ooi mediated the session.
Also present at the meeting were Selayang Munucipal Council president Datuk Zainal Abidin Aala and councillor Husnal Azahari Sanusi Ooi said she would follow up with the developer and JKR on the matter and if it could not be solved as promised, then it would be referred to the tribunal under the Housing and Local Government Ministry for further action.
Zainal Abidin said the residents should wait a little longer for the flyover to meet all safety requirements.
“More than anything, we have to make sure the flyover is safe for public use as we do not want any untoward incident to happen,” he said.
Source: http://www.starproperty.my/PropertyScene/TheStarOnlineHighlightBox/15745/0/0 dd Oct 17, 2011.
Wednesday, November 30, 2011
For MAHB, new low-cost carrier terminal is a calculated risk
Sometimes, the market should trust what a company is doing. The case in point is CIMB Group Holdings Bhd when it acquired PT Bank Niaga in Indonesia. The deal was first panned by investment analysts but as it turned out, it was one of the best deals done by the CIMB Group.
Hindsight is always twenty-twenty as opinions are framed at the point of a deal. The same can be said of Malaysia Airports Holdings Bhd (MAHB) when it revealed that the cost to build KLIA2, the new dedicated low-cost terminal, was anything but that. Cost has ballooned from an original estimate of RM2bil to between RM3.6bil and RM3.9bil.
The company justified that by saying the scope of the airport was far larger than planned. The floor space is up 71%, the aircraft stand is 61% larger, the runaway has 65% more tarmac space and the public infrastructure is up to 260% more extensive. It will have a fully automated baggage-handling system and most of the bells and whistles a major airport will provide.
KLIA2 will set the new standard for low-cost terminals. It’s more swanky than a glorified warehouse the current building is and the larger, roomier building will not make people, of which there are more middle-income travellers taking cheaper flights, wonder if they should have put up with a terminal that has an ambience of a football stadium.
And yes, the controversial aerobridges will be built for those airlines that want to use them.
The final cost can be seen as a major savings from the estimated RM10bil MAHB would have had to spend had it built the second wing for KL International Airport (KLIA).
So by building a high-cost, low-cost terminal, MAHB might in a way defray the need to spend so much more just to cater for more inbound travellers.
The low-cost carrier terminal (LCCT), which can handle 15 million passengers, will see many more people pass through its doors. There is a need for expansion but the question remains as to why the new terminal has 50% more capacity than its original plan, 300% more than the current capacity of LCCT and 180% more than the main terminal of KLIA?
The crux of the issue is why build so much capacity ahead of demand? Is it a wise and prudent move?
Analysts don’t think so. Many are worried about under-utilisation of capacity when the airport opens and with the higher cost and depreciation, that will whack the bottomline of MAHB. They are also worried about the potential issuance of new shares that will dilute earnings even more to fund the expansion.
They have a right to be concerned as their recommendations are based on their clients’ interest first.
But for MAHB, the airline operator sees things differently. It feels that by front loading its capital expenditure (capex), it will be able to avoid an additional RM750mil-plus in cost by bringing forward RM700mil in capex.
The bigger floor space with five times the commercial space of the main terminal will lower unit costs and bring in more revenue. It will offset the cost from revenue it gets from the Government over the years of the concession in the form of rental income or tax breaks. It also feels that the dynamics of the bigger terminal will see an internal rate of return that is equal the original cost of the terminal.
The new airport will be built during a time when MAHB is expecting a big increase in air travel. It knows just what the airlines that use its airports are expecting in terms of passenger growth and feels that once a critical mass is reached, more airlines will divert flights to Kuala Lumpur to grab passengers.
MAHB has said that capacity utilisation of the airport will be about 50% when it opens in 2013 but will gradually rise and reach 45 million by 2020-2022. Passenger travel might grow faster than gross domestic product but some analysts don’t agree with that assumption as it is hard to fathom how a low-cost airport can see a near three-fold increase in travellers in just about a decade.
Right now, its a case of wait and see. There is no guarantee that plans and projections will materialise but like any business, expansion decisions are made by what the company thinks is going to happen in the future. It’s a calculated risk and if they prove detractors wrong, then no one will really complain. If they don’t, then the additional cost will be a huge price to pay.
Deputy news editor Jagdev Singh Sidhu wonders if the new high-cost, low-cost terminal model will be a game changer for future airports.
Source: http://www.starproperty.my/PropertyScene/PropertyScene/17160/0/0 dd Dec 1, 2011.
Hindsight is always twenty-twenty as opinions are framed at the point of a deal. The same can be said of Malaysia Airports Holdings Bhd (MAHB) when it revealed that the cost to build KLIA2, the new dedicated low-cost terminal, was anything but that. Cost has ballooned from an original estimate of RM2bil to between RM3.6bil and RM3.9bil.
The company justified that by saying the scope of the airport was far larger than planned. The floor space is up 71%, the aircraft stand is 61% larger, the runaway has 65% more tarmac space and the public infrastructure is up to 260% more extensive. It will have a fully automated baggage-handling system and most of the bells and whistles a major airport will provide.
KLIA2 will set the new standard for low-cost terminals. It’s more swanky than a glorified warehouse the current building is and the larger, roomier building will not make people, of which there are more middle-income travellers taking cheaper flights, wonder if they should have put up with a terminal that has an ambience of a football stadium.
And yes, the controversial aerobridges will be built for those airlines that want to use them.
The final cost can be seen as a major savings from the estimated RM10bil MAHB would have had to spend had it built the second wing for KL International Airport (KLIA).
So by building a high-cost, low-cost terminal, MAHB might in a way defray the need to spend so much more just to cater for more inbound travellers.
The low-cost carrier terminal (LCCT), which can handle 15 million passengers, will see many more people pass through its doors. There is a need for expansion but the question remains as to why the new terminal has 50% more capacity than its original plan, 300% more than the current capacity of LCCT and 180% more than the main terminal of KLIA?
The crux of the issue is why build so much capacity ahead of demand? Is it a wise and prudent move?
Analysts don’t think so. Many are worried about under-utilisation of capacity when the airport opens and with the higher cost and depreciation, that will whack the bottomline of MAHB. They are also worried about the potential issuance of new shares that will dilute earnings even more to fund the expansion.
They have a right to be concerned as their recommendations are based on their clients’ interest first.
But for MAHB, the airline operator sees things differently. It feels that by front loading its capital expenditure (capex), it will be able to avoid an additional RM750mil-plus in cost by bringing forward RM700mil in capex.
The bigger floor space with five times the commercial space of the main terminal will lower unit costs and bring in more revenue. It will offset the cost from revenue it gets from the Government over the years of the concession in the form of rental income or tax breaks. It also feels that the dynamics of the bigger terminal will see an internal rate of return that is equal the original cost of the terminal.
The new airport will be built during a time when MAHB is expecting a big increase in air travel. It knows just what the airlines that use its airports are expecting in terms of passenger growth and feels that once a critical mass is reached, more airlines will divert flights to Kuala Lumpur to grab passengers.
MAHB has said that capacity utilisation of the airport will be about 50% when it opens in 2013 but will gradually rise and reach 45 million by 2020-2022. Passenger travel might grow faster than gross domestic product but some analysts don’t agree with that assumption as it is hard to fathom how a low-cost airport can see a near three-fold increase in travellers in just about a decade.
Right now, its a case of wait and see. There is no guarantee that plans and projections will materialise but like any business, expansion decisions are made by what the company thinks is going to happen in the future. It’s a calculated risk and if they prove detractors wrong, then no one will really complain. If they don’t, then the additional cost will be a huge price to pay.
Deputy news editor Jagdev Singh Sidhu wonders if the new high-cost, low-cost terminal model will be a game changer for future airports.
Source: http://www.starproperty.my/PropertyScene/PropertyScene/17160/0/0 dd Dec 1, 2011.
Tuesday, November 29, 2011
Developers: Foreign labour cut could lead to delays and higher property prices
KUALA LUMPUR: Developers are concerned that the Government’s move to reduce the number of foreign workers in the country will result in project delays, leading to possible price increases in property.
Almost 100% of construction workers in the country are foreigners, according to International Real Estate Federation (FIABCI) Malaysia president Datuk Richard Fong.
“We have already seen the effect of tightening labour market five years ago when workers were sent home on an amnesty programme. We will have the same problem again,” he said at a press conference here after a talk by FIABCI World president (2010/2011) Enrico Campagnoli entitled Fiabci in front of Financial Crisis.
He said this resulted in delays in completion of projects which allowed buyers to claim penalties from developers for late delivery.
“When the workers finally returned, we had to retrain them because they were unskilled. So, it is a cycle which keeps repeating itself. The workers return but the issue that cropped up was quality, which in turn led to high rates of defects in the properties,” Fong, who is also Glomac Bhd group executive vice-chairman, said.
FIABCI World President Datuk Alan Tong said “with reference to reducing foreign workers, before the authorities come up with new rules, it would be prudent for more dialogue between the Government and the private sector to facilitate a better understanding of the sector, which today, depends almost 100% on foreign labour.”
“If the authorities want to reduce the number of foreign workers in the country, they must first think of the alternatives. Notwithstanding that, we laud the Government’s proposed plan to wean the country off subsidies,” added Tong, who is also Bukit Kiara Properties (BKP) group chairman.
Tong’s views are shared by See Hoy Chan Holdings group director Datuk Teo Chiang Kok, the developer for Bandar Utama township. Teo, who is also the first vice-chairman of the FIABCI Asia-Pacific Secretariat, said there must be safety nets for the lower income groups with the removal of subsidies.
“Do not look at subsidies as purely a setback suffered by consumers because flour and sugar prices are going to go up. The removal of subsidies also involves water, electricity and petrol which will impact the housing sector in no small way. We have to look at the bigger picture,” Teo said. Earlier, Campagnoli said the debt situation in the euro zone would affect the property sector in different ways because the countries have different economic strengths.
Source: http://www.starproperty.my/PropertyScene/PropertyNews/5031/0/0 dd Jun 3, 2010.
Almost 100% of construction workers in the country are foreigners, according to International Real Estate Federation (FIABCI) Malaysia president Datuk Richard Fong.
“We have already seen the effect of tightening labour market five years ago when workers were sent home on an amnesty programme. We will have the same problem again,” he said at a press conference here after a talk by FIABCI World president (2010/2011) Enrico Campagnoli entitled Fiabci in front of Financial Crisis.
He said this resulted in delays in completion of projects which allowed buyers to claim penalties from developers for late delivery.
“When the workers finally returned, we had to retrain them because they were unskilled. So, it is a cycle which keeps repeating itself. The workers return but the issue that cropped up was quality, which in turn led to high rates of defects in the properties,” Fong, who is also Glomac Bhd group executive vice-chairman, said.
FIABCI World President Datuk Alan Tong said “with reference to reducing foreign workers, before the authorities come up with new rules, it would be prudent for more dialogue between the Government and the private sector to facilitate a better understanding of the sector, which today, depends almost 100% on foreign labour.”
“If the authorities want to reduce the number of foreign workers in the country, they must first think of the alternatives. Notwithstanding that, we laud the Government’s proposed plan to wean the country off subsidies,” added Tong, who is also Bukit Kiara Properties (BKP) group chairman.
Tong’s views are shared by See Hoy Chan Holdings group director Datuk Teo Chiang Kok, the developer for Bandar Utama township. Teo, who is also the first vice-chairman of the FIABCI Asia-Pacific Secretariat, said there must be safety nets for the lower income groups with the removal of subsidies.
“Do not look at subsidies as purely a setback suffered by consumers because flour and sugar prices are going to go up. The removal of subsidies also involves water, electricity and petrol which will impact the housing sector in no small way. We have to look at the bigger picture,” Teo said. Earlier, Campagnoli said the debt situation in the euro zone would affect the property sector in different ways because the countries have different economic strengths.
Source: http://www.starproperty.my/PropertyScene/PropertyNews/5031/0/0 dd Jun 3, 2010.
New, better KLIA2 takes wings
SEPANG: Improvements have been made to KLIA2’s design because “it does not mean that a person who travels on a low-cost carrier need not arrive or depart from a very nice terminal”, said Malaysia Airports Holdings Berhad (MAHB) chief.
Its managing director and CEO Tan Sri Bashir Ahmad added that in view of public appeals – especially by people with restricted movements, the elderly, expectant mothers and children – aerobridges would be installed at KLIA2.
“We hope the airlines operating at KLIA2 will support our decision by using the aerobridges to meet the needs of the travelling public,” said Bashir at a press conference yesterday.
He added that the airport operator would go ahead with the building of aerobridges (to connect airplanes to the terminal gate) despite the refusal of a low-cost airline to use them.
When the new low-cost terminal is completed, it will be equipped with facilities to cater to passenger comfort, including a public shopping mall and a fully automated baggage handling system.
Other facilities are an airside transit hotel, premium lounges, as well as a seven-storey parking lot which will be able to accommodate up to 6,000 vehicles.
Bashir said KLIA2 had been significantly upgraded in terms of floor space, the length of its runways and the number of aircraft stands.
All these improvements resulted in an increase of the terminal’s building cost from a provisional budget of RM2bil to between RM3.6bil and RM3.9bil.
The upgrade of the baggage system to a fully automated one had also resulted in the delay of the terminal’s estimated date of completion from October next year to April 2013.
However, Bashir insisted that the cost of the terminal, estimated at RM5,000 per sq m, would be among the lowest compared to other similar airport terminal projects.
“The industry standard is within the range of RM5,000 to RM10,000 per sq m,” he said.
Bashir also said the passenger service charge for KLIA2 would remain the same as the current tax imposed at the low-cost-carrier terminal (LCCT).
When the terminal is completed, it will be made accessible via the Express Rail Link (ERL), taxis, buses and in the future, even via the KTM.
The terminal will have the capacity to serve up to 45 million passengers annually. This is three times the capacity of the main KLIA terminal.
Source: http://www.starproperty.my/PropertyScene/TheStarOnlineHighlightBox/17130/0/0 dd Nov 30, 2011.
Its managing director and CEO Tan Sri Bashir Ahmad added that in view of public appeals – especially by people with restricted movements, the elderly, expectant mothers and children – aerobridges would be installed at KLIA2.
“We hope the airlines operating at KLIA2 will support our decision by using the aerobridges to meet the needs of the travelling public,” said Bashir at a press conference yesterday.
He added that the airport operator would go ahead with the building of aerobridges (to connect airplanes to the terminal gate) despite the refusal of a low-cost airline to use them.
When the new low-cost terminal is completed, it will be equipped with facilities to cater to passenger comfort, including a public shopping mall and a fully automated baggage handling system.
Other facilities are an airside transit hotel, premium lounges, as well as a seven-storey parking lot which will be able to accommodate up to 6,000 vehicles.
Bashir said KLIA2 had been significantly upgraded in terms of floor space, the length of its runways and the number of aircraft stands.
All these improvements resulted in an increase of the terminal’s building cost from a provisional budget of RM2bil to between RM3.6bil and RM3.9bil.
The upgrade of the baggage system to a fully automated one had also resulted in the delay of the terminal’s estimated date of completion from October next year to April 2013.
However, Bashir insisted that the cost of the terminal, estimated at RM5,000 per sq m, would be among the lowest compared to other similar airport terminal projects.
“The industry standard is within the range of RM5,000 to RM10,000 per sq m,” he said.
Bashir also said the passenger service charge for KLIA2 would remain the same as the current tax imposed at the low-cost-carrier terminal (LCCT).
When the terminal is completed, it will be made accessible via the Express Rail Link (ERL), taxis, buses and in the future, even via the KTM.
The terminal will have the capacity to serve up to 45 million passengers annually. This is three times the capacity of the main KLIA terminal.
Source: http://www.starproperty.my/PropertyScene/TheStarOnlineHighlightBox/17130/0/0 dd Nov 30, 2011.
A bigger-than-planned, more efficient low-cost terminal
PETALING JAYA: The new low-cost air terminal, or KLIA2, that is taking shape next to KLIA will nearly doubled its original size and will cost nearly twice its initial costing of RM2bil to between RM3.6bil and RM3.9bil.
The increase in the size and cost will cater to 45 million passengers and is being built by Malaysia Airports Holdings Bhd (MAHB).
MAHB managing director Tan Sri Bashir Ahmad said it was slated for commercial operations in April 2013.
Speaking to the media yesterday, Bashir said the new airport was 40% complete, would have a 4km runway instead of the earlier planned 2.5km, a fully-automated baggage system, a new air control tower, 68 gates and eight remote stands.
The original size of the two-storey terminal building was 150,000 sq m but to cater to government requirement to segregate domestic and international passengers, it has been upgraded to nine storeys on a 257,000 sq m site.
It will have the most modern facilities and amenities to cater to future growth.
Base on the original design the airport could only cater to 30 million passengers.
Bashir also announced that the airport would have aerobridges and it was up to the airlines to use them. This is a decision the majority of the travelling public has been waiting for but AirAsia boss Tan Sri Tony Fernandes poured cold water on it by saying yesterday that “we will not use the aerobridges.”
MAHB has come under fire over allegations of cost over-runs and delivery dates but Bashir said that “KLIA is built as a national infrastructure asset to cater to the needs of airlines, Government, public and the airport.
As a result of these requirements, KLIA2 has been significantly upgraded with superior facilities compared with the original design.”
Bashir added therefore the issue of cost over-runs did not arise.
He cited the runway and baggage system as a case of requests made by airlines and to meet that meant additional investment and time taken to expand the runway. It is also increasing commercial space by 50,000 sq m.
“The longer runaway allows airlines to cruise longer and use less fuel,’’ he told a packed room of reporters who were earlier taken for a tour of the KLIA2 construction site.
Similarly, the adding of a fully-automated baggage system had also pushed the timeline to 2013 from October 2012 and the request, he said, “only came in June this year.”
For that the terminal building needs to be hacked and that involves the size of a “football field.”
Commenting on the higher cost of the new airport, Bashir said “when you increase the scope by so much, certainly cost will be incurred. We are building a better place and it will be the icon for low-cost travel in the world.’’
He added that it was not uncommon to change the design when construction was ongoing.
Bashir also denied the notion that the higher cost to build a bigger airport would result in higher passenger service charges (PSC) for KLIA. He said it would remain the same as the current low-cost carrier terminal (LCCT). The fees were regulated by the Government and the next review was only in 2014. The Government allowed MAHB to raise the PSC recently and a RM7 increase for LCCT to RM32 was obtained after a nine-year request.
Contrary to suggestions that public money is used to build KLIA, Bashir said MAHB was funding the project.
“We are even paying the Government to build the public infrastructure and air control tower costing RM530mil,” he said.
MAHB, which has a AAA rating from RAM Ratings, has only drawn down RM2.5bil from the RM3.1bil raised from the sukuk it issued.
“We have several options in terms of raising additional funds including internal funds, debt and going to the equity markets,’’ chief financial officer Faizal Mansor said when asked how MAHB will source for more funds to complete the job. Bashir expects MAHB to break even almost immediately when KLIA2 opens for commercial operations.
He said MAHB had also completed earthworks for “AirAsia to have its building with apron access and this is a special dispensation. It would also have its own parking facilities and Tune Hotel. We have tried as much as possible to meet the requirements of our partners. We have also been very professional with our partners.”
The entire project has 42 contractors. Asked why the need for so many, Bashir said it was part of the stimulus package. The airport will have a Express Rail Link with the potential to be connected to KTM in the future
Asked to comment on a report that he would be replaced, Bashir said: “How would you like me to answer that?”
Source: http://www.starproperty.my/PropertyScene/TheStarOnlineHighlightBox/17127/0/0 dd Nov 30, 2011.
The increase in the size and cost will cater to 45 million passengers and is being built by Malaysia Airports Holdings Bhd (MAHB).
MAHB managing director Tan Sri Bashir Ahmad said it was slated for commercial operations in April 2013.
Speaking to the media yesterday, Bashir said the new airport was 40% complete, would have a 4km runway instead of the earlier planned 2.5km, a fully-automated baggage system, a new air control tower, 68 gates and eight remote stands.
The original size of the two-storey terminal building was 150,000 sq m but to cater to government requirement to segregate domestic and international passengers, it has been upgraded to nine storeys on a 257,000 sq m site.
It will have the most modern facilities and amenities to cater to future growth.
Base on the original design the airport could only cater to 30 million passengers.
Bashir also announced that the airport would have aerobridges and it was up to the airlines to use them. This is a decision the majority of the travelling public has been waiting for but AirAsia boss Tan Sri Tony Fernandes poured cold water on it by saying yesterday that “we will not use the aerobridges.”
MAHB has come under fire over allegations of cost over-runs and delivery dates but Bashir said that “KLIA is built as a national infrastructure asset to cater to the needs of airlines, Government, public and the airport.
As a result of these requirements, KLIA2 has been significantly upgraded with superior facilities compared with the original design.”
Bashir added therefore the issue of cost over-runs did not arise.
He cited the runway and baggage system as a case of requests made by airlines and to meet that meant additional investment and time taken to expand the runway. It is also increasing commercial space by 50,000 sq m.
“The longer runaway allows airlines to cruise longer and use less fuel,’’ he told a packed room of reporters who were earlier taken for a tour of the KLIA2 construction site.
Similarly, the adding of a fully-automated baggage system had also pushed the timeline to 2013 from October 2012 and the request, he said, “only came in June this year.”
For that the terminal building needs to be hacked and that involves the size of a “football field.”
Commenting on the higher cost of the new airport, Bashir said “when you increase the scope by so much, certainly cost will be incurred. We are building a better place and it will be the icon for low-cost travel in the world.’’
He added that it was not uncommon to change the design when construction was ongoing.
Bashir also denied the notion that the higher cost to build a bigger airport would result in higher passenger service charges (PSC) for KLIA. He said it would remain the same as the current low-cost carrier terminal (LCCT). The fees were regulated by the Government and the next review was only in 2014. The Government allowed MAHB to raise the PSC recently and a RM7 increase for LCCT to RM32 was obtained after a nine-year request.
Contrary to suggestions that public money is used to build KLIA, Bashir said MAHB was funding the project.
“We are even paying the Government to build the public infrastructure and air control tower costing RM530mil,” he said.
MAHB, which has a AAA rating from RAM Ratings, has only drawn down RM2.5bil from the RM3.1bil raised from the sukuk it issued.
“We have several options in terms of raising additional funds including internal funds, debt and going to the equity markets,’’ chief financial officer Faizal Mansor said when asked how MAHB will source for more funds to complete the job. Bashir expects MAHB to break even almost immediately when KLIA2 opens for commercial operations.
He said MAHB had also completed earthworks for “AirAsia to have its building with apron access and this is a special dispensation. It would also have its own parking facilities and Tune Hotel. We have tried as much as possible to meet the requirements of our partners. We have also been very professional with our partners.”
The entire project has 42 contractors. Asked why the need for so many, Bashir said it was part of the stimulus package. The airport will have a Express Rail Link with the potential to be connected to KTM in the future
Asked to comment on a report that he would be replaced, Bashir said: “How would you like me to answer that?”
Source: http://www.starproperty.my/PropertyScene/TheStarOnlineHighlightBox/17127/0/0 dd Nov 30, 2011.
Project Management Templates
There are countless project management tools that claim to be much superior over their rivals. Personally I feel that when a person stamps his mark on his 'brain-child', he has his own right to do so.
I would like to share, periodically, those articles or publication or tools and techniques that I came across for knowledge enrichment for those project management enthusiastic.
Here you go...
Project Management Templates
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I would like to share, periodically, those articles or publication or tools and techniques that I came across for knowledge enrichment for those project management enthusiastic.
Here you go...
Project Management Templates
Click Here!
KLIA2 cost overrun poser to be answered on Tuesday
PETALING JAYA: The billion dollar question as to whether the construction of KLIA2 has incurred significant cost overruns will be answered this Tuesday by Malaysia Airports Holdings Bhd, sources close to the matter told StarBizWeek.
MAHB issued a statement yesterday stating that it would conduct a media conference and preview of KLIA2.
“All will be revealed as to what has transpired,” said a source. The media will also be offered a “walkabout” at KLIA2 on Tuesday, according to the advisory note.
Some reports have suggested that the cost of building KLIA2 has escalated to RM4bil and that would mean a huge cost overrun for the airport operator in constructing Asia's biggest low cost air terminal.
Recently, when an MAHB official was asked to comment on the recent reports suggesting the RM4bil cost overrun, he had said that “the only avenue for us to recoup the costs is from non-aeronautical revenue such as the retail segment.''
This comment gave AirAsia boss Tan Sri Tony Fernandes enough ammunition to poke fun at the airport operator.
Fernandes has been the airport operator's biggest critic in recent times. He had been unhappy about the raising of the passenger service charge by MAHB.
He had also questioned the need to have a third runway. (The third runway was not part of the initial plans but was added on later by MAHB at the request of airlines and to cater to both KLIA and KLIA2.)
Fernandes had also expressed his displeasure over the RM7 hike in passenger service charge (PSC) from RM25 to RM32 for the LCCT. (MAHB had not increased its PSC charges for the last nine years and Malaysia's charges are one of the lowest in the region.)
Fernandes also had a “war of words” with Transport Minister Datuk Seri Kong Cho Ha over the PSC issue where AirAsia initially did not want to collect on behalf of MAHB. Since then, AirAsia has conceded, and has agreed to collect the PSC as part of their ticket pricing.
Hence industry observers say MAHB would do itself a favour by revealing the whole story about the cost it has been incurring in putting up KLIA2.
Sources said that a key aspect of Tuesday's explanation by MAHB would involve the airport operator explaining how they had bumped up the size of KLIA2 from what was originally envisaged.
KLIA2 was initially conceptualised as a low cost terminal which would have an area of 150,000 sqm, but to accommodate regulatory requirements it will now be a much bigger airport with 255,000 sqm and that would mean the cost would also be higher.
“There was a need for a new design to be done and to also include the government's security requirement for the full separation of arriving and departing international passengers and segregation of domestic and international passengers.
“If the terminal building is bigger, the apron also has to be bigger and the cost will surely rise from the original amount,'' said the source.
The entire development will comprise a 3-storey main terminal building, a satellite building and domestic and international contact piers.
The superstructure's initial cost was bandied at RM2bil for 150,000 sqm but could have swelled to RM2.8bil or over RM3bil because the plans had been changed and the airport is much bigger than originally planned.
It is meant for over 30 million passengers.
Source: http://biz.thestar.com.my/news/story.asp?file=/2011/11/26/business/9981851&sec=business dd Saturday November 26, 2011.
MAHB issued a statement yesterday stating that it would conduct a media conference and preview of KLIA2.
“All will be revealed as to what has transpired,” said a source. The media will also be offered a “walkabout” at KLIA2 on Tuesday, according to the advisory note.
Some reports have suggested that the cost of building KLIA2 has escalated to RM4bil and that would mean a huge cost overrun for the airport operator in constructing Asia's biggest low cost air terminal.
Recently, when an MAHB official was asked to comment on the recent reports suggesting the RM4bil cost overrun, he had said that “the only avenue for us to recoup the costs is from non-aeronautical revenue such as the retail segment.''
This comment gave AirAsia boss Tan Sri Tony Fernandes enough ammunition to poke fun at the airport operator.
Fernandes has been the airport operator's biggest critic in recent times. He had been unhappy about the raising of the passenger service charge by MAHB.
He had also questioned the need to have a third runway. (The third runway was not part of the initial plans but was added on later by MAHB at the request of airlines and to cater to both KLIA and KLIA2.)
Fernandes had also expressed his displeasure over the RM7 hike in passenger service charge (PSC) from RM25 to RM32 for the LCCT. (MAHB had not increased its PSC charges for the last nine years and Malaysia's charges are one of the lowest in the region.)
Fernandes also had a “war of words” with Transport Minister Datuk Seri Kong Cho Ha over the PSC issue where AirAsia initially did not want to collect on behalf of MAHB. Since then, AirAsia has conceded, and has agreed to collect the PSC as part of their ticket pricing.
Hence industry observers say MAHB would do itself a favour by revealing the whole story about the cost it has been incurring in putting up KLIA2.
Sources said that a key aspect of Tuesday's explanation by MAHB would involve the airport operator explaining how they had bumped up the size of KLIA2 from what was originally envisaged.
KLIA2 was initially conceptualised as a low cost terminal which would have an area of 150,000 sqm, but to accommodate regulatory requirements it will now be a much bigger airport with 255,000 sqm and that would mean the cost would also be higher.
“There was a need for a new design to be done and to also include the government's security requirement for the full separation of arriving and departing international passengers and segregation of domestic and international passengers.
“If the terminal building is bigger, the apron also has to be bigger and the cost will surely rise from the original amount,'' said the source.
The entire development will comprise a 3-storey main terminal building, a satellite building and domestic and international contact piers.
The superstructure's initial cost was bandied at RM2bil for 150,000 sqm but could have swelled to RM2.8bil or over RM3bil because the plans had been changed and the airport is much bigger than originally planned.
It is meant for over 30 million passengers.
Source: http://biz.thestar.com.my/news/story.asp?file=/2011/11/26/business/9981851&sec=business dd Saturday November 26, 2011.
MAHB will provide consultancy service to China airport
SEPANG: Malaysia Airports Holdings Bhd (MAHB) subsidiary, Malaysia Airports Consultancy Services Sdn Bhd (MACS), has signed a letter of award for the provision of airport consultancy services for Lingling Airport in Hunan Province, China.
This will enable MAHB to begin providing services such as airport project development plan study, airport planning, operation, management, development, business development and investment for Lingling Airport.
The letter of award was signed on Thursday between MACS and Nagamas Enterprise (HK) Ltd (NEHK) consortium with Huizhou City Longji Mazhong Real Estate Development Co Ltd consortium, in conjunction with the Yongzhou Asean business and investment promotion conference in Nanning, China from Thursday till tomorrow.
At the signing, MACS was represented by MAHB chief operating officer Datuk Abd Hamid Mohd Ali while Nagamas International Bhd executive director Datuk Grace Oyan represented NEHK. The exchange of the documents was witnessed by Prime Minister Datuk Seri Najib Razak yesterday.
MAHB managing director Tan Sri Bashir Ahmad said: “Today marks another milestone for us, as we will be taking another big step in our overseas venture.
“Malaysia Airports sees this strategic alliance with NEHK as an ideal platform for Malaysia Airports to further expand and galvanise our overseas ventures. China is progressing rapidly and we are elated to contribute our expertise in terms of aviation consultancy.”
In July last year, MACS entered into a memorandum of understanding with NEHK to explore the possibility of providing airport operation, management and technical consultancy services to Lingling and other airports in China. Last month, the two companies sealed the joint-venture agreement.
MAHB's other overseas ventures are in India (Delhi and Hyderabad International Airports), in Turkey (Istanbul Sabiha Gokcen International Airport) and in Maldives (Male International Airport). - Bernama
Source: http://biz.thestar.com.my/news/story.asp?file=/2011/10/22/business/9750156 dd Saturday October 22, 2011.
This will enable MAHB to begin providing services such as airport project development plan study, airport planning, operation, management, development, business development and investment for Lingling Airport.
The letter of award was signed on Thursday between MACS and Nagamas Enterprise (HK) Ltd (NEHK) consortium with Huizhou City Longji Mazhong Real Estate Development Co Ltd consortium, in conjunction with the Yongzhou Asean business and investment promotion conference in Nanning, China from Thursday till tomorrow.
At the signing, MACS was represented by MAHB chief operating officer Datuk Abd Hamid Mohd Ali while Nagamas International Bhd executive director Datuk Grace Oyan represented NEHK. The exchange of the documents was witnessed by Prime Minister Datuk Seri Najib Razak yesterday.
MAHB managing director Tan Sri Bashir Ahmad said: “Today marks another milestone for us, as we will be taking another big step in our overseas venture.
“Malaysia Airports sees this strategic alliance with NEHK as an ideal platform for Malaysia Airports to further expand and galvanise our overseas ventures. China is progressing rapidly and we are elated to contribute our expertise in terms of aviation consultancy.”
In July last year, MACS entered into a memorandum of understanding with NEHK to explore the possibility of providing airport operation, management and technical consultancy services to Lingling and other airports in China. Last month, the two companies sealed the joint-venture agreement.
MAHB's other overseas ventures are in India (Delhi and Hyderabad International Airports), in Turkey (Istanbul Sabiha Gokcen International Airport) and in Maldives (Male International Airport). - Bernama
Source: http://biz.thestar.com.my/news/story.asp?file=/2011/10/22/business/9750156 dd Saturday October 22, 2011.
New airport to cost RM3.6 billion to RM3.9 billion
SEPANG: The new low-cost airport - KLIA2 - is estimated to cost from RM3.6 billion to RM3.9 billion as the airport will be bigger than originally planned.
Malaysia Airports managing director Tan Sri Bashir Ahmad said at a media briefing on Tuesday that the entire cost of the construction would be fully funded by the company.
The company is the operator of the Kuala Lumpur International Airport.
Bashir said because of the need to add a fully automated baggage system, the new timeline for completion of KLIA2 would now be April 2013 instead of October next year.
“KLIA2 will now be able to cater for 45 million passengers instead of 30 million previously,” he added.
Bashir said the low-cost airport would also have aerobridges and the cost of the aerobridges would come to 25 sen per passenger.
Source: http://biz.thestar.com.my/news/story.asp?file=/2011/11/29/business/20111129175352&sec=business dd Tuesday November 29, 2011 MYT 5:40:00 PM.
Malaysia Airports managing director Tan Sri Bashir Ahmad said at a media briefing on Tuesday that the entire cost of the construction would be fully funded by the company.
The company is the operator of the Kuala Lumpur International Airport.
Bashir said because of the need to add a fully automated baggage system, the new timeline for completion of KLIA2 would now be April 2013 instead of October next year.
“KLIA2 will now be able to cater for 45 million passengers instead of 30 million previously,” he added.
Bashir said the low-cost airport would also have aerobridges and the cost of the aerobridges would come to 25 sen per passenger.
Source: http://biz.thestar.com.my/news/story.asp?file=/2011/11/29/business/20111129175352&sec=business dd Tuesday November 29, 2011 MYT 5:40:00 PM.
About PMi - Project Management Insight
Nowadays, undertaking a project from the initiating phase through to its closing and successful handing over to end user is no more a straightforward affair as compared to the time when the working environment was not as volatile (if not hostile) as it is now. This is due largely to the complexity of the projects; the innovation of modern construction techniques; the conflicting influence and expectations of the project stakeholders; and the increasing demand of standards that need to be attained.
Many projects today failed due to cost overrun; time at large; disputes and eventually arbitration; so on and so forth all in lack of a thorough understanding of the contributory factors that perpetrate to such failure. On one hand, the clients anticipate projects to be completed within unrealistic time scale; at a bargained cost when they fail to clearly define the scope that is supposed to be stipulated within a contract while on the other hand the contractors in their lack of capability to strike a balance between the competing demand of time, cost, and quality; choose to sacrifice one for another. The parties to a project always leave it to the very last to resolve disputes while almost too often did not attempt to put an effort to do things right in the first place.
Project Management Insight, in short PMi, attempts to address the various construction issues that commonly arise throughout the life cycle of a project. Within its best endeavour and available resources and its unparalleled commitment to the passion of project management enthusiasm, PMi will report and/or share reports on 'project derailment' in an attempt to bring forth a better awareness of the importance of strategic project planning, monitor and control.
Many projects today failed due to cost overrun; time at large; disputes and eventually arbitration; so on and so forth all in lack of a thorough understanding of the contributory factors that perpetrate to such failure. On one hand, the clients anticipate projects to be completed within unrealistic time scale; at a bargained cost when they fail to clearly define the scope that is supposed to be stipulated within a contract while on the other hand the contractors in their lack of capability to strike a balance between the competing demand of time, cost, and quality; choose to sacrifice one for another. The parties to a project always leave it to the very last to resolve disputes while almost too often did not attempt to put an effort to do things right in the first place.
Project Management Insight, in short PMi, attempts to address the various construction issues that commonly arise throughout the life cycle of a project. Within its best endeavour and available resources and its unparalleled commitment to the passion of project management enthusiasm, PMi will report and/or share reports on 'project derailment' in an attempt to bring forth a better awareness of the importance of strategic project planning, monitor and control.
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