Malaysia: Malacca revives straits bridge project

R.S.N. Murali The Star 16 Oct 13;

MALACCA: The Malacca Government has revived the controversial 48.69km-long Malacca-Dumai, Indonesia, bridge project across the Straits of Malacca, after a seven-year lull.

Chief Minister Datuk Seri Idris Haron said finer details of the project linking Teluk Gong in Malacca in the peninsula to the port of Dumai, in Sumatra, would be revealed when all mechanisms were in place.

If implemented, the bridge straddling the busiest international shipping waterway would be the world’s longest, even without including a 71.2km-long highway to be built between Dumai and Pulau Rupat, the closest connecting point.

“The project was discussed during the 10th Chief Ministers and Governors’ Forum (CMGF) of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) convened in Koh Samui, Thailand, on Sept 12.

“The forum took note of the economic potential and strategic positioning of the IMT-GT with the construction of the Malacca-Dumai Bridge,” Idris said yesterday.

Insights on a feasibility study on the bridge undertaken by Strait of Malacca Partners Sdn Bhd were given during the meeting.

The company had earlier appointed the Hunan Provincial Communi-cations Planning, Survey & Design Institute of China to prepare documents pertaining to the study.

The idea of the bridge was first mooted in 1995 to foster new economic opportunities, especially in trade and tourism, between the two countries but died down during the Asian financial crisis in 1997.

In 2006, then Chief Minister Datuk Seri Mohd Ali Rustam restored interest in the project by saying that the groundwork for it had started and that studies showed that the bridge was technically feasible.

He also announced that the Export-Import (Exim) Bank of China had agreed to finance 85% of the link’s total cost, then estimated at RM44.3bil.

The proposal was submitted to the Economic Planning Unit with details on how the bridge would stimulate economic activities between the peninsula and Sumatra.

However, the plan came under strong objection from various quarters, including environmentalists.

Works Minister Datuk Fadillah Yusof, when contacted, said he was yet to be briefed on plans to revive the project.

Concern over straits bridge plan
The Star 17 Oct 13;

PETALING JAYA: While a bridge between Malacca and Dumai, Indonesia, could be a catalyst for economic growth, the Maritime Institute of Malaysia is concerned about its effects to shipping, safety and the environment.

According to maritime analyst Nazery Khalid, there are grounds to be concerned over how the bridge will affect the smooth passage of ships through the Straits of Malacca, which is one of the world’s busiest sea lanes.

“Ships would have to slow down when sailing through the construction site and traversing under the bridge to avoid collision with the structures.

“This may also affect their sailing schedules, to the detriment of the supply chains and the interests of stakeholders such as ports, businesses, industries and consumers,” said Nazery, who was among a team of experts from the institute who conducted a study on the subject four years ago.

Nazery was responding to the plan to revive the project, which was first mooted in 1995, and then again in 2006.

On Tuesday, Malacca Chief Minister Datuk Seri Idris Haron raised the idea again, which he claimed was discussed during the 10th Chief Ministers and Governors’ Forum (CMGF) of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) at Koh Samui, Thailand, on Sept 12.

The 2009 Mima study entitled “A Bridge Too Far? An Analysis of the Proposed Bridge Across the Straits of Malacca From a Maritime Perspective” stated that the shipping community was not comfortable with the increase of transit time through the straits, while the slower speed could increase the risk of being attacked by pirates.

The report also stated that such a massive project would adversely affect coastal ecosystems on both ends of the bridge.

Vital nesting areas for hawksbill turtles on the Malaysian side near Padang Kemunting (near Tanjung Bidara) could also be affected, along with other marine life, as well as the coastal tourism industry.

The report also stated the 2004 earthquake that hit Sumatra, triggering the massive tsunami, served as warning about the safety of the bridge.

“One shudders to think of the effects of a bridge collapse on the marine environment and also the economy of the region,” said Nazery, who was speaking in his personal capacity.

Idris said the details of 48.69km-long bridge linking Teluk Gong in Malacca to Dumai, Sumatra, would be revealed when all mechanisms were in place.

The bridge would be the world’s longest, even without including a 71.2km-long highway to be built between Dumai and Pulau Rupat on the Indonesian side.

Malacca businessmen want say in bridge project discussions
The Star 17 Oct 13;

MALACCA: The Malacca business community has urged the state government to include it in discussions on the proposed Malacca-Dumai Bridge project.

Malacca Chinese Chamber of Commerce and Industry chairman Tan Poh Seng said the government should convene a round-table discussion with local business leaders from all communities before reviving the multi-billion-ringgit pro­ject.

Tan said under current economic conditions, many locals were employed under minimal salaries and matters would worsen with an influx of foreigners via the bridge into the already saturated local job market.

“It would be easier for Indo­nesians to cross over here where some employers might prefer hiring them on lower pay scales.

“Both the federal and state governments should iron out adverse impacts of the project first,” he said.

Tan said the government must be transparent on how the funding from the Exim Bank of China was to be repaid, the period of repayment, the interest rate imposed and the commitment of the Indonesian counterpart on the repayment.

“We have to evaluate whether the local business community will benefit or suffer from the project.

“Local tourists could also frequent the other side more often in search of cheaper products due to the exchange rate between the ringgit and the rupiah.

“The findings should be tabled prior to the construction of the project apart from details like border controls to safeguard the interest of locals,” he added.

Tan said the government should also consider the security aspects of the project as the bridge would make it easier for foreigners to commit crime and escape in just hours.

It's back: Malacca Strait bridge plan
China's Exim Bank to 'fund most of the project' linking Malaysia and Indonesia
Yong Yen Nie Malaysia Correspondent In Kuala Lumpur And Wahyudi Soeriaatmadja Indonesia Correspondent In Jakarta Straits Times 17 Oct 13;

A CONTROVERSIAL proposal for an almost 50km-long bridge from Malacca in Malaysia to Dumai in Indonesia is back on the table, with funding lined up from China's Export-Import Bank.

Feasibility studies are starting again for the bridge over one of the world's busiest shipping routes, the Strait of Malacca. The project was previously thwarted by the regional economic crisis and then by environmental concerns.

Now the Malacca state government has re-appointed Strait of Malacca Partners to be the master planner and builder of the bridge, estimated to cost RM44.3 billion (S$17.3 billion).

"The project is definitely on, but it will take time as we are still at the feasibility stage," Datuk Lim Sue Beng, the private firm's managing director, told The Straits Times yesterday. He said approval from the federal government is still needed.

The bridge is to span 48.7 km, with an additional 71.2 km-long expressway from Pulau Rupat, where the bridge ends, to Dumai in Riau province, which is known for its oil palm plantations, including some owned by Malaysian companies.

The bridge will make it easier to transport raw materials from Indonesia's Sumatra island to Malaysia while opening new markets for businesses in both countries.

Datuk Lim said the Exim Bank, an equity partner in the project, has agreed to loan 85 per cent of the bridge's cost. The rest will come from regional sovereign funds and private investors.

The partners, he said, plan to charge motorists US$80 (S$99) each way.

China's Exim Bank could not be reached for comment. Officials at Malaysia's Economic Planning Unit, which oversees national projects, did not respond to The Straits Times' queries.

However, Dr Mohd Hazmi Mohd Rusli, a researcher from Universiti Sains Islam Malaysia who has done studies on the bridge proposal, said planners will have to figure out the impact on the environment and on shipping.

Also, he said, economic benefits beyond palm oil are limited. "Unlike Malacca's proximity to Kuala Lumpur or even Singapore, Dumai is not near any of Indonesia's major cities... The bridge is still not viable enough yet."

The idea of a bridge between the two countries was first mooted in 1996 by then Malaysian Prime Minister Mahathir Mohamad when he met Indonesia's President Suharto in Kuala Lumpur. Then came the 1997 Asian financial crisis. Over the years, the Malacca government has tried but failed to revive it.

Malacca Chief Minister Datuk Seri Idris Haron said the project was discussed at a chief ministers and governors' forum for Indonesia, Malaysia and Thailand recently.

Some Indonesian counterparts fear this bridge might rival another29-km bridge linking Java and Sumatra, called the Sunda Strait Bridge. Currently, most goods are manufactured in Java and shipped to Sumatra by sea via the Sunda Strait.

Dumai's mayor Khairul Anwar said a bridge across the Malacca Strait will benefit Malaysia at the expense of Indonesia. He has urged the Indonesian government to hasten the construction of the Sunda Strait bridge.

"We must have that bridge first or at least the same time"


'Bridge project needs careful study'
New Straits Times 20 Oct 13;

JAKARTA: Indonesia is in no hurry to revive the Malacca-Dumai Bridge project across the Straits of Malacca although Malaysia is keen.

The project has been put on hold since the Asian financial crisis in 1998.
Indonesian Public Works Ministry's director-general for highways, Djoko Murjanto, said the ministry, together with other relevant ministries and departments such as the foreign ministry and the National Counter-terrorism Agency, would need to study how Indonesia could benefit from the project.

"We know the project's importance in strengthening connectivity across Asean, particularly between Indonesia and Malaysia.

"But we have to be prepared in terms of infrastructure, safety and security before the bridge can be constructed, as it will not only connect our country to Malaysia but the whole of Asia," Djoko said yesterday in The Jakarta Post.

He said Indonesia was not rushing the project as there was no urgency for it.

The idea of building a bridge between Malaysia and Indonesia was mooted in 1996 by former prime minister Tun Dr Mahathir Mohamad when he met then Indonesia president Suharto in Kuala Lumpur.
The idea, however, was thwarted by the regional economic crisis and environmental concerns.
The project was discussed again during the 10th Chief Ministers and Governors' Forum of the Indonesia-Malaysia-Thailand Growth Triangle convention in Koh Samui, Thailand, on Sept 12.
The project will involve the construction of a 48.7km bridge from Teluk Gong in Malacca to Indonesia's Rupat Island, with an additional 71.2km-long expressway running from Rupat to Dumai.

It was reported recently that the Malacca government had re-appointed Strait of Malacca Partners to be the master planner and builder of the bridge, estimated to cost RM44.3 billion, with financial backing from China's Export-Import Bank.
Malacca Chief Minister Datuk Seri Idris Haron had said the project's details concerning the linking of Teluk Gong and Dumai Port would be revealed when all relevant mechanisms were in place. Bernama

With additional reporting by Kor Kian Beng in China