KUALA LUMPUR – Pestech International Bhd is the frontrunner to win the aerotrain tender by Malaysia Airport Holdings Bhd (MAHB), but industry sources are raising concerns over the listed integrated technology provider’s bid price.
The Vibes understands that while Pestech, in a joint venture with Canadian jets specialist Bombardier Inc, is the top choice, it is also the highest bidder at RM750 million. The floor or lowest offer from other tenderers is about RM450 million.
Also vying for the project are MMC Corp Bhd and Japan’s Mitsubishi Heavy Industries; Hartasuma Sdn Bhd together with Austrian company Doppelmayr Seilbahnen GmbH; and SMH Rail Sdn Bhd and Malaysian Resources Corp Bhd (MRCB) in a tie-up with Leitner-Poma of America Inc.
The MAHB board is expected to decide on the winning bid for this project at the Kuala Lumpur International Airport when it meets on Friday.
The Edge in its May 31 report said the Pestech-Bombardier, MMC-Mitsubishi, and SMH Rail bids involve self-propelled aerotrain systems, whereas MRCB-Leitner and Hartasuma-Doppelmayr are cable-propelled or pulley system bids.
MAHB currently relies on a self-propelled aerotrain, having begun operations in 1998 and underwent an upgrade in 2011, but the airport operator needs a newer facility.
Cost-wise, industry players say the cable-propelled system is a much cheaper option and has been used in key airports across the globe.
“But it seems that even if the bid price is a deciding factor, it looks like MAHB might be going for pricey Pestech-Bombardier,” a source said.
MAHB has made it clear that the price will be a deciding factor and three options are on the table: the airport operator pays for the entire job; 40% of the contract is paid upfront by MAHB and the remainder at a later date; or the winning joint-venture bears all costs, including design, build, operations, and maintenance.
The last option, which only requires little expenditure from MAHB, would see a transfer in ownership to MAHB and repayment completed on a staggered basis between five and ten years. The caveat here is that the bidder must have a healthy balance sheet to undertake the project.
MAHB manages 39 airports, including five international airports in the country and one in Turkey.
But just like others in the aviation industry, the airport operator was not spared the effects of Covid-19 as pandemic-induced measures saw the company swimming in red in its latest financials.
MAHB posted a net loss of RM221.3 million for the first quarter ending March 31 on the back of RM336.9 million in revenue with retained earnings of RM1.71 billion, and cash and cash equivalents of RM931.72 million. – The Vibes, June 30, 2021
