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Minister of Transport visits klia2

05 July 2013

Sepang, 5 July 2013 - The Minister of Transport during his visit to klia2 site today was assured by Malaysia Airports Holding Berhad's (MAHB) contractors UEMC-BinaPuri JV that the works at the terminal building will be completed on 30 April 2014 to enable the 2 May 2014 opening.

klia2, the purpose-built mega terminal has the capacity to cater to 45 million passengers, with 68 boarding gates, fully automated baggage system, aerobridges, a new control tower, and a 4.0 km runway. It will cost RM 4 billion in total inclusive of government facilities and infrastructure such as control tower, elevated highway, ERL platform and utilities amounting to RM 600 million.

MAHB would like to reiterate that there is no 'cost overrun' in the construction as any increase in cost is due to an increase in scope to cater to the stakeholders' requirements. The cost of RM4 billion commensurates the increase in scope and facilities of klia2.

klia2 has undergone some major changes in scope in order to address the requirements of all airport users and stakeholders, and to ensure a satisfactory level of comfort and safety for the passengers. These changes include the increase in the terminal floor space from 150,000sqm to 257,000sqm, land area from 4.84 mil sqm to 11.19 mil sqm , runway length from 2.5km to 4km, boarding gates from 55 to 68, two-storey to nine-storey building structure, semi-automated to fully-automated baggage handling system and elevated road from 8km to 15km.

The scope of klia2 has been appropriately sized to cater to the rapid growth of low cost travel locally, regionally and to support the Malaysian aviation industry to be more competitive in the future. In addition, the Malaysian public and travellers will stand to benefit greatly from the enhanced facilities, services, and retail and F&B offering made available at klia2 for their convenience.

KLIA is strategically situated within a high population catchment area which includes four of the strongest global growth markets: India, China, Thailand and Indonesia. Over a quarter of the world's population lives within a four-hour flight radius of KLIA. With the business model of airlines evolving continuously from point-to-point to transfer traffic, from low-cost to hybrid, it is imperative that MAHB builds a terminal that will support the different business models of airlines, and not just to cater to a specific airline.

With the overall construction at 91% completed, the terminal building at 93% completed, and some major packages fully completed such as the district cooling system, ERL track and control tower, what is important now is for MAHB and the contractors to work together and focus on finishing the remaining works based on the contractors' new completion timeline.

Based on the available time, the contractors have assured that they will be able to complete the works and have increased the work pace and resources to meet the completion deadline. MAHB will continue to monitor the work progress of the contractors closely in meeting the committed deadline, and will engage all the stakeholders consistently on the project status.

klia2 has become a global benchmark for other airports planning to embark on similar projects. In comparison, Singapore Changi has announced that it will spend SGD 1.2 billion (RM 3 billion) to build a new terminal with a capacity for 16 million passengers in the next 5 years.

MAHB, as a public-listed company with its own Board and governance procedures will determine the ultimate cost of the klia2 project to commensurate with the stakeholders' requirements, taking into account the financial standing of the company.

klia2 is fully funded by MAHB through Sukuk bonds and to date MAHB still maintains its AAA RAM rating without any Government guarantees.

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