Thank God for the “mega setback” to Penang infrastructure projects

Today, I just want to thank God for confounding the proponents of the mega transport projects in Penang and delaying them (just like he confounded those pushing for the PGCC project). The bridge partners are now arguing about cost apportioning and design costs - and the project hasn’t even started! Porr, on the other hand, has not even got off the ground after years of inaction while the monorail salesmen are busy trying to convince the Penang government that the overhead train is the greatest thing since the invention of the wheel.

All these multibillion projects may not be in the best interest of the state and of ordinary Penangites. Think about this:

Fact No. 1 - The oil price today is US$116 per barrel (for dated Brent Spot) - and we can expect the upward trend to continue. Can you imagine how much the petrol will cost just to go up and down the bridge in say 10 years? And let’s not even talk about the toll.

Fact No. 2 - World oil production is close to a peak and it is increasingly more difficult and more expensive to find new oil reserves. Production will not be able to keep pace with demand.

Fact No. 3 - Malaysia will become a net importer of oil within a few years and our oil reserves may not last more than a generation.

Fact No. 4 - The roads of Penang are already congested. In fact, Penang Island already has a higher traffic density than Singapore even though Singapore has about 5-6 times the population of Penang Island. How much more traffic can it absorb before it becomes a living hell?

Fact No. 5 - The ferry service today is operating at half the capacity compared to the late 1970s. The old ferry terminal on the mainland which collapsed was never rebuilt. No wonder the ferry service does not have the economies of scale that it once did. No wonder there is so much congestion on the bridge.

Fact No. 6 - Climate change and global warming are here to stay.

Fact No. 7 - More cost effective alternatives have not been considered.

With this in mind, it is amazing that our “planners” want to take us down the (tolled!) path of unsustainable transport infrastructure projects that promote private vehicle ownership and more fossil fuel consumption and which will lead to congestion, pollution and global warming.

Let’s tot up the bill for going down this unsustainable path:

Second Penang Bridge - RM4.3 billion (UEM is said to have come up with a figure of RM4.8 billion!)*
Penang Outer Ring Road - RM1.1 billion
Monorail - RM3.5 billion

Total cost: RM8.9 billion

Allowing for further cost escalations, say a total of RM10 billion at least.

* This cost is probably inflated, as one expert told me that material costs for the second bridge should not exceed a billion ringgit - RM2 billion at most. Even The Edge business weekly in its cover story this week suspects that the RM4.3 billion figure could be inflated.

With a fraction of that RM10 billion total bill, we could do wonders for public transport - and other social spending - in Penang.

What could we do with say RM3-4 billion?

  • Expand the ferry service and build more ferry terminals at different locations
  • Introduce trams
  • Build a cross-channel rail link perhaps alongside the Penang Bridge

The Penang state government’s new high-powered team for the second bridge should shift its focus to public transport for the whole state.

It is incredible that we can even think of mega transport projects when we haven’t even come up with a transport masterplan for the state that would promote public transport. We haven’t even considered the implications for traffic and the environment in the state.

Why the hurry to spend billions before thoroughly studying the situation and looking at feasibility studies? In the first place, why even borrow US$800 million from China to finance the second bridge? And where are the EIA reports?

We still have time to do some proper planning before throwing away billions - which ordinary Penangites will have to bear for years.

In the meantime, expand the ferry service. That should immediately reduce congestion on the bridge.

And then let’s consider ALL the alternatives which would include an improved bus service, trams, ferries and a cross-channel rail link. Come up with an integrated masterplan and don’t work on a piece-meal, ad hoc basis.

Penangites cannot make an informed choice if we have not considered all the various options thoroughly and listened to the views of the best public transport experts from around the world (ie those who do not have any vested interests in infrastructure projects). Why not invite public transport experts from cities with excellent public transport to tell us how they reduced their traffic nightmares at a fraction of the cost?

The good thing about promoting public transport is that it will create more long-term local jobs. Think of the construction of new ferries and ferry terminals, assembling of buses, laying of rail tracks for trams, more ferry pilots, ferry crew, tram drivers, bus drivers, admin staff, maintenance personnel…

It will lead to less stress and congestion on the roads as pedestrians and cyclists reclaim the streets. It will also be a lot more sustainable and spark more economic activity in the town centres as the experience of other cities with excellent public transport amply demonstrates.

Wouldn’t you want to live in a charming heritage city where you could walk past old shophouses along the tree-lined streets in town, use efficient public transport that won’t cost an arm and a leg, sip a drink at a road-side cafe and watch the world go by without choking from the fumes of passing vehicles? I know I would.

Do you really think those boys in Putrajaya share this vision of Penang? Do you think they care about the environmental consequences?

In a sense, we are at a crossroads. Penang is in a unique position to do something different - something sustainable, environmentally friendly and people and pedestrian friendly - which could be the talking point of the region. If we go down the wrong road, I don’t even want to think of the consequences. It will be the end of Penang as we know it.

Anyone up for a ‘Bloggers for Trams’ in Penang campaign?

35 Responses to “Thank God for the “mega setback” to Penang infrastructure projects”

  1. Dear Anil

    Please petition LGE to cancel all these projects pronto. Spend the money where it will really matter - education, health-care, inflation control, public housing etc and on more economical & enviro-friemdly alternatives such as trams, ferries, CBD Traffic control a la S’pore,involving less concrete and cars on the road.

    Anyway, China & CHEC are not doing us any favours at 3% finance cost when we can get Japan funding at at 1/2 - 1%.

    Something is seriously NOT KOSHER with the Bridge costings. Especially UEM’s portion. My gut feel is that the costs are grossly inflated. At the same time, given today’s world food shortage, record inflation & raw material & petrol prices, we are probably looking at something closer to 7-8 billion, with cost-overruns and delays.

    Vehicle owners will have to hock their grandmothers to pay for the toll in 2011, if not 2013!

  2. Agreed with donplaypuks… it seems like we need another petition to create awareness for Penang… :)

  3. Dear Anil,

    Wondeful write up.Keep going

  4. Anil,
    Looks from another angle of politics,if Bn won Penang the cost is not a issue.They can inflated any amount they wish and goes on with the project.

    Its not their money,its ours.Who cares about spending others money.Unless u r the human angel.

    Come back to to transport problem,if we really have the 10 billion and can get a good retired consultant to do good traffic monitoring studies,i beleive 10 billion is can solve alot of Penang traffic problems.

    The problem is not the money issue here,the problem is the attitude of people in power.Infact with 10 billion you can arrange whatever transport for public to be send direct to their doorstep.

    Raj Raman.Money will do wonders but cant buy you happiness in true sense of soul searching.

  5. Agree … petition before it is too late …

    Merely a hypothesis here: China is expanding its grip around the world — sinking so much money into the bridge, what kind of returns are they expecting? Surely, they know the population of Penang and the limited in and out traffic on the bridge? They can toll us to death for generations to come — but is that all they want? What is the ulterior motive? Perhaps, in exchange for strategic military location?

    And perhaps, China is playing for time so that they can hand over the cash to the winning horse to ensure that the next phase i.e. their military implementations can follow through?

    rhino

  6. Dear Anil,
    You have said it rightly.
    I wonder if there is any cost benefit study done before the project is launched. If the bridge is meant to ease Penang traffic, a comprehensive traffic study has to be done for Penang taking into consideration the bridge as a component.Other alternatives must also be considered.
    We have seen a lot of Mega projects built in Malaysia in recent years.They look glamorous.Have they really generated economic growth for the country? Have cost effectiveness of each project been evaluated?
    People of Penang should not be disappointed if these Mega projects are scrapped. It is better to realise now what would be the finacial impact of these Mega projects on them rather than later they have to suffer and live with it for generations.
    DAP being “the new broom” should critically examine each of these Mega projects,and quantitatively and qualitatively inform the people of Penang and all the tax payers in the country the cost benefit of each of these projects.

  7. It is uneconomical or viable for ferry service to thrive in a fast pace lifestyle as we are no longer in the slow and easy by-gone days.
    Expanding the ferry service will not reduce congestion on the bridge.
    It would be crazy to expect the ferries to be able to carry the same or even half load as the current bridge.

    Looking at Penang, the best city that has this problem is Hong Kong.
    The HK ferry is more for the tourist then being the logistic player for HK manufacturing or financial sector.
    HK has at least 3 major crossing between Kowloon and HK island.

    Yes Anil, multibillion projects may not be in the best interest of the state and of ordinary Penangites but
    Penang do need another bridge, there are no 2 ways about it!
    Everyday thousand of people and goods crosses the current bridge are stuck in a jam burning fuel and wasting time unnecessary!

    donplaypuks, with the UMNOputra helming the Federal govt, it would be naive to think it’s seriously going to be KOSHER with the Bridge costings!
    Likewise this UMNOputra is making life difficult for PAKATAN govt and the residents.
    Can we expect otherwise from losers that shredded document, missing files and pinda RM9.9 juta!

    Unless PAKATAN is the Federal government, things will not be “CAT” (competency, accountability and transparency.
    Time for you and me to play our part in promoting good governance!

  8. Original 2nd bridge was supposed to be connecting Tj. Tokong and Bagan Ajam which is much shorter distance apart. Even Samy Vellu was furious when it was changed because when the plan changes, you don’t get your share. Obviously building of the 2nd bridge comes together with the personel interest of BN leaders and cronies while Penangites emerge as the eventual loosers.

  9. Penang does not need a second bridge, it needs Hoovercrafts to supplement the ferries.

    I was discussing this with friend, look at the video clip below. The Penang State Government should start thinking out of the box. The Brits phased it out as they had built a tunnel from Britain to France for the Channel crossing. The Channel is 21 mi (34 km) wide between Dover and Cape Gris-Nez, near Calais. The Penang bridge is around 13 kms, give or take.

    The guys who plan to commence a year-round ferry project between the mainland and Penang in the year 2010 will have to ensure a faster ferry, with crossing times of approximately 20 minutes. The Hoovercarft should generally accommodate 400 passengers, but must have the ability to augment passenger levels to 600 per crossing when needed. At regular passenger levels the hovercraft should carry 55 cars, or four tour buses.

    The service should be made affordable, in line with the target markets. This will be accomplished by a low-cost capital cost structure. Fuel arrangements should be made with a local producer, if available to supply the hovercraft with economical biodiesel fuel. Peak times and special events may cause fare rates to be adjusted. The hovercraft is a means to an end, and as such it will not be necessary to provide extensive on-board…………

  10. selvaraja somiah on April 28th, 2008 at 9.33am

    Yes, i have been on this line of thinking all along and I agree with you Anil that the setback is Divine Intervention.

    The only reason as far as I can see for the 2nd Penang Bridge is to fill the pockets of the UMNOputras at the expense of all Penangites.

  11. Lets be honest about it. All the infrastructure projects announced before PRU 12 by BN were awarded to GLCs and its cronies without any tender being called.

    Try open tender and you will be surprised that the costs would be slashed by half.

    I am from Johor Bahru and extremely impressed with the efficiency of the Singapore Government. Penang should emulate and adopt their system. Clean, efficient, tranparent, progressive and corruption free. Their public transportation is so efficient and user friendly. For your information, many personnel manning and operating the public transportation system are Malaysian! Sad indeed right?

    Penang, being an island state,share many similarities with Singapore. Make a trip down south and learn from the best. It may be a long learning process. So be it. Learn and adopt what is best for Penang.

    You do not need those haphazard and ill planned infrastructure projects from the Federal Government. Do you?

  12. anil,
    I am up Bloggers For Tram Campaign.. Contact me anytime!

    Penang does not need mega projects.. its a chance for Penang to be different! truely different from those KL and Putrajaya and the likes. If Mr Lim wants difference and tourism, concentrate on keeping the Heritage of Penang. I said it on my blog before its about H-E-R-I-T-A-G-E!!

    Monorail would just kill the view of Penang.. Hovercraft? Use the ferry instead.. Its an Icon of Penang. Subways are out of the picture.. Too expensive and take too long to build..

    Second link bridge, I have nothing much to say. There are pros and cons.. PORR is not needed though it would cost the developers in Balik Pulau who wants to make profit upon the PORR completion.. PGCC and Patrick can fly kites!

    Anil.. Bout the “Bloggers for Tram” i wanna get involved.. Mail me.. Cheers Great write!

    Keep it up!

  13. I have been reading your blog for a while now. Although I agree with most of your points, I would have to consider and think about it on the tram idea. I currently live Melbourne, a city full of trams.

    Trams do have their advantages. However, to me, the overhead power cables are unsightly, the tram tracks are unnecessary and costly, and the noise from the tram is overwhelming. Melbourne has one of the best planned public transportation system - Trams, trains and buses.

    While generally I have good feelings about all three, only the buses here seems to be consistently on time. Furthermore, to introduce trams to the narrow streets and roads of Penang, with the current amount of traffic, would cause even more traffic congestions.

    Thirdly, how would a tram “blend in” to the old George Town feel? We could, if we buy older trams with certain designs. However the fact is, Melbourne itself is constantly upgrading their trams to the most innovative and user-friendly ones. The old trams in Melbourne are merely tourist gimmick.

    Thus, I would say Penang needs even more buses, infrastructure changes and mentality changes before we even should start considering trams.

  14. The first city in The Malay Archipelago, Province Wellesley
    and the likes of it. Maintain the serenity and don’t let the hounds of greed ravish this Pearl Of The Orient. Well to start of bring back the Free Port status.

  15. Anak Malaysia on April 28th, 2008 at 10.37am

    Anil,
    Thanks for the update on “setback” to Penang’s mega projects.
    As I mentioned in my comments to your previous copy “Watch out! They are still talking about monorail and Porr.” Penang does not need all those mega projects, Penang does not need to go into projects which will leave the state with a 10billion ringgits MEGA HEAD ACHE. Penang does not want to be suckered into all these projects so that some greedy pigs go home rubbing their greedy fingers at the massive “Commissions” that they will get for the deals.
    I would nor even ask the PR Govt to waste their time and money to do a study on the feelings of Penangites to all these icons of stupid “Malaysia Bolehism”. Be assured Penangite need all these projects as much as they need a massive cave in their heads!!!!
    Let the message from Penangites and other concerned Malaysians to the PR Government (on your site as well as all other blog sites) be a simple ” Give BN Mega Projects in Penang The BOOT !
    As per my previous comments (mentioned above) and your very well written copy today, we have many options to take care of the problems which BN and Koh Tsu Khoon have created and left behind. PR and Lim Guan Eng should trust on Penang Pople’s power (and Yes our stingyiness) to clean up the mess that the PR has to clear up.
    Put out a call and be surprised how many Penangites will come forward to help solve these issues.

  16. I don’t know where you guys resite or how often you cross the bridge. But I travel on it everyday and I strongly think that we do need the 2nd bridge.

    Traveling time from Tambun (Prai) to Georgetown (Island)
    Smooth traffic -> 1 and half hours.
    Jam -> maybe 2 hours.
    Super Jam -> Unlimited…

  17. Typo..

    Smooth traffic -> less than 1 hour
    Slow traffic -> 1 and half hours
    Jam -> maybe 2 hours.
    Super Jam -> Unlimited…

  18. Fully agree with your comments. In fact I have written about the same comments to a MP in Penang. I am not a Penangite and I loathe to go to Penang because of the traffic congestion. The last trip I was in Penang was 5 years ago and it was already congested then. I have travelled extensively overseas and find their public transportation user friendly to tourist and locals alike. I am a strong advocate in bringing the tram system as it is relatively cheaper to build, maintain and run.

  19. Angguk2 Geleng2 Saya2 on April 28th, 2008 at 11.58am

    The more bridging more merrier for Penang.MNC’s Investure’s looking for the most convenient and easiest way to transport their products,expatriate and etc,.
    Look like the Southern City State of Singapore,their government more than 100% in daily basis always try find ways to make good of their infrastructure’s system just for the sake to please the so-called tai-tai investure’s and undisputable it’s proven fruitful.Can Penangan’s do what like what their so-called big brother in the south do that?

  20. The Fed Govt put on hold the mega projects not because they are not feasible but out of spite. When did they start listening to the rakyat? They cannot cancel the 2nd bridge because it has been commited to China and there are some political ramifications. Otherwise the bridge would be cancelled to. So while some quarters “celebrate” the Fed Govt moves, let us also question their ethics too. Let us not “support” the Fed Govt decisions for the wrong reasons. Already, they are not going to fund some of the tourism promotion events slated for this year.

  21. I think the Penang CM have to call for a new open tender as there are plenty of construction company around in Asia and I have sure the pricing can tie back to the original price or maybe lower and who know this will save the public money
    and also give the BN a slap in their face.
    Penang CM, please do something to show that you can do it.

  22. Count me in bloggers for trams!

  23. Ferry is still needed and useful in this fast pace life. Hong Kong, eg, has many ferry routes plus hovercrafts on the busy harbour and outlying islands. Ferry supplement other modes of transport. When I worked there, I use a combination of ferry, plus mini bus, subway, double-decker bus, tram, taxi, and walk for work and fun.

  24. Thanks for the your posts on the need for greener alternatives for Penang. I need no convincing as I’m totally with you on Penang setting the precedent as a city with sustainable goals. I fail to comprehend why we are pursuing a policy that adds dependency on a finite non-renewable resource at a time when its scarcity is a constant reminder.

  25. Hi Anil,
    Now that you have toted up a figure of RM10,billion, I can think of many ways to spend that type of money. Given the assumptions on higher petrol price in the near future, there would be less cars on the roads, considering that the majority might not be able to afford the cost.The new highways might be rendered useless as there would be less traffic to cater for.
    It is more essiential that public transport be enhanced rather than cater for more traffic congestion. I have seen that affluent cities cater for pedestrians with covered walkways assisted by escalators. This could be the thing for city centres. Encourage people to walk for healthier lifestyle.
    Trams can help, provided roads with trams on them are closed to other forms of transport during rush hours and you dont have to construct ugly structures to support them as is the case of the monorail.
    Buses have to be increased and made to serve every nook and corner of the island.

  26. Hi Anil,
    I fully support your analysis on why we shouldn’t rush into the second bridge project. The brain dead Putrajaya goons are not bothered about the consequences Penangites have to endure as long as they receive their massive kickbacks.

    The solution is a total re-invent of the Ferry services & a pararell rail link on the present bridge to the island with efficient public transportation. The total cost would be 50% off the projected 10 billion & great savings to the State Govt & Penangites in general, but those with vested interest would not be happy as they watch their days of wine & roses slip through their fingers. The CM of Penang must be firm in clamping down these corrupt practises which only benefit those who rub shoulders with those that walk the corridors of Power - Amen

  27. Kah Seng, please DO NOT compare HK with Penang.

    HK is made up of SEVERAL ISLANDS, and the mainland (san gai)

    Penang, however, is made up of ONE main island, and the mainland (Prai)

    HK needs boats, because of the several island. Penang, we can do away with the ferry, because we have but one main island which can be hooked up with bridges or tunnels to the mainland.

    I worked in HK too, on assignments. I’m as familiar with HK as you are, Kah Seng. So there’s no comparison, okay?

  28. BTW, Anil, can you please tell our …CM that we don’t need that monorail thing. It just won’t work for Penang.

    With the MAX capacity of ferrying 16K people per hour, which we can do with an additional 300 buses, we ought not spend 2.2 billion on the monorail.

    Rather, we should get a subway system that has a max capacity of more than 200K passengers per hour, PER TRACK, PER LINE. (For example, East-west bound line - from Paya Terubong to Ferry Terminal - can have up to 4 tracks, two on each ways, so they can stop at alternate subway stations, speeding up the deliveries. North-south bound line (Tanjung bunga to Bayan Lepas can have the same too !)

    And please tell that … CM that if he wants to do it, do it properly. Stop looking for patchwork or band-aid solutions. We need something that would work for us for the next 50 years, or more.

  29. dont be so sure oil has hit its peak, $200 per barrel may happen, get ready for a financial crash

  30. Dear Anil,
    do you stand for the truth and fair comment?
    i cannot understand why you lead a one track campaign for trams.
    Trams were removed from Penang because they FAILED in Penang.Its in the book by Vic himself.You dont invite nor appreciate transport experts opinions , in fact your followers
    chide and ridicule them . this makes your blog quite irresponsible , just like main stream media that we deplore.
    This new era is about constructive debate rather than traditional one sided views being pumped into you daily by MSM You are turning into what you despise one sided one tracked opinion that pushes your agenda,…without considering you could very well be wrong.Case in point is trams,totally irrelevant and outdated system for Penang.It is very good system for cities that have wide roads and enoungh space to give up the space for trams or have it for nostalgic reasons like the becha or rickshaw,but not as a mode public transportation for the tight conditions that we have. as many have commented in your blog the answer lies in a good subway system. Trams are not it
    god bless

  31. Dear Tuan Sher

    I am not the only one in favour of trams. But you are free to agree or disagree.

    Ric himself has been advocating a return of trams in Penang.

    Perhaps you might care to look into why the historical and heritage City of Edinburgh is putting up a modern tram system in a big way. Its streets are not any wider than Penang’s.

    Check out this link:
    http://www.tramtime.com/tramfacts.html

    Outdated? Think again.

    best wishes
    Anil

  32. [...] Anil Netto  [...]

  33. Moaz Yusuf Ahmad on April 30th, 2008 at 4.25pm

    Anil

    You have my support in any campaign for improved public transport. Whether it turns out to be tram or subway or bus or BRT does not matter right now.

    Looking at technology is premature right now.

    What does matter is that there is a plan, that this plan is based on realistic numbers, and the plan will prepare us for the next 10 years and beyond.

    Cheers, Moaz Yusuf Ahmad

  34. Dear Anil

    I came ascross this yahoo news posting today about the opening of the 36 km world’s longest sea bridge in Shanghai at US1.7b or RM 5.5 billion. The web link is at:
    http://news.yahoo.com/s/afp/20080501/sc_afp/chinaconstructionbridgeroad

    Perhaps you would like to highlight the comparison with the 24 km RM 4b Penang 2nd Bridge in your blog.

    Our local costings would seem to be way out of whack given the China bridge is all over sea, while our is a mix. This would be so even if you factor in increase in materials cost and inflation.

  35. Everyone, write to Penang state government by email:

    http://www.penang.gov.my

Leave a Reply