MAHB terminates Pestech Technology’s Contract for KLIA Aerotrain Replacement Programme
Malaysia Airports (Sepang) Sdn Bhd (MA Sepang), a wholly-owned subsidiary of Malaysia Airports Holdings Berhad (MAHB), has issued a notice of termination on 16 August 2023 to PESTECH Technology Sdn Bhd (PTSB), in respect to the contract for the Kuala Lumpur International Airport (KLIA) Aerotrain Replacement Programme. PTSB had been appointed by MA Sepang as the Design and Build (D&B) contractor for the KLIA Aerotrain Replacement Programme on 14 December 2021 through an open tender process. The KLIA Aerotrain is supposed to be be replaced by Alstom Innovia APM 300R trains, with the project awarded to PESTECH Technology Sdn Bhd.
The termination is a result of various factors, one of which is PTSB’s lack of performance. This situation has led to the compromise of important project milestones and the potential for delays in meeting the project’s required deadline. The decision to terminate was made by MAHB’s Board of Directors, in accordance with MAHB’s governance principles. This choice was based on thorough monitoring of the APM project’s development by MAHB’s management and independent consultants. PTSB has been found to be in significant violation of its contractual obligations and has not rectified the situation within the specified timeframe.
Following this Notice of Termination, which was preceded by a Notice of Default to PTSB, MA Sepang will be able to resume and finalize the project through involvement of other relevant parties. The main focus will be on ensuring that the project is completed on time.
With immediate effect, MA Sepang will expedite consultation and discussions with all existing stakeholders who are presently involved in the APM Project for continuity and to mitigate any delays. These include working closely with all relevant parties involved in the replacement project of the train’s tracks and system, as well as identifying an experienced and credible third-party contractor to ensure consistent progress of all project components.
KLIA Aerotrain Replacement Programme supposed to be completed by July 2024
The KLIA Aerotrain is supposed to be be replaced by Alstom Innovia APM 300R trains, with the project awarded to PESTECH Technology Sdn Bhd. Alstom has acquired Bombardier Transportation on 29 January 2021.
While originally scheduled to complete by March 2025, Minister of Transport YB Anthony Loke has insisted to speed up the KLIA Aerotrain Alstom Innovia APM 300R project, and the first new train was supposed to be in service latest by July 2024. With less than 12 months to the target opening date, and no third-party contractor named yet, it remains unclear if the KLIA Aerotrain Replacement Programme will still be completed latest by July 2024.
Looks like the airside shuttle bus service will be a permanent fixture to Malaysia’s gateway to the capital for the foreseeable future.