High Speed Rail KL-Singapore 330km. Do we really need it?

China currently have a Shanghai- Pudong Airport Maglev opened since 2003

Malaysia have KL-KLIA rail transit. Express Rail Link Sdn Bhd (ERLSB) has been awarded the concession on 25 August 1997 to finance, design, construct, operate and maintain the KLIA Ekspres and KLIA Transit and other ancillary activities related to railway services. ERLSB’s shareholders are YTL Corporation Berhad , Lembaga Tabung Haji Bhd and Trisilco Equity Sdn Bhd with 50%, 40% and 10% shareholding respectively.The KLIA Ekspres which commenced operation on 14 April 2002 is a daily high speed, non-stop air-rail connection between KLIA and Kuala Lumpur City Air Terminal (KLCAT) at KL Sentral station with a journey time of 28 minutes at 15-minutes interval during peak hours and 20-minutes frequencies during off-peak hours.The KLIA Transit is a commuter service that stops at three intermediate stations i.e. Bandar Tasik Selatan, Putrajaya/Cyberjaya and Salak Tinggi with a total journey time of 37 minutes at 30-minutes frequencies. It first started operation on 1 June 2002.

China will be hosting Olympics in 2008 and World Expo 2010. By 2008 China should overtake Germany as the 3rd largest economy. By 2010 China high speed rail will connect Hangzhou-Shanghai-Nanjing-Tianjin-Beijing. The Shanghai - Hangzhou will be via Maglev and Beijing Tianjin HSR will completed by 2007.

Meanwhile outside of Japan, South Korea (population 58m, GDP USD 793b) launched commercial high speed rail from Seoul-Busan in 2004.
Taiwan high speed rail (population 23m, GDP USD 346b) is schedule to launch by end of 2006 from Taipei - Kaoshiung.

KL (Klang Valley) and Singapore have about 10 million population. The high speed rail will link KL and Singapore in 90 minutes. The cost of this project estimated around RM 8b will probably benefit close to 15 million of the population of both country. None of the ASEAN country currently has high speed rails. Due to the fragmented geographical location of ASEAN countries, a more efficient transportion and affordable currently is the aviation LCC.

Malaysia and Singapore have a combined 2005 nominal GDP of USD 250b. By 2010 estimated combined nominal GDP will be around USD 320b. The prospect of having a high speed rail by 2010 will enhance the economy of both Malaysia and Singapore. In view that ASEAN is schedule to liberalise passenger aviation between ASEAN capitals by Dec 2008, it remains unclear how the competition between air and rail for the sector KL-SG will turn out.