BEST PRACTICES IN CONSTRUCTION INDUSTRY SEMINAR (BPCI 2008)

1. BEST PRACTICES IN CONSTRUCTION INDUSTRY SEMINAR (BPCI 2008) “ TOLLED ROAD-PAST, PRESENT & FUTURE “ By: Y. Bhg. Dato’ Ir. Haji Mohamad Razali B. Othman Director General Malaysian Highway Authority

2. CONTENT • INTRODUCTION • HIGHWAY DEVELOPMENT • PAST • PRESENT • FUTURE • CONCLUSION

3. INTRODUCTION • Road privatization policy started in 1983 North Klang Straits Bypass (NKSB) By Shapadu Comp. Ltd. (1983) CHRONOLOGY JalanKuching Highway by Kamunting Corporation (1986) North – South Expressway (1989)

4. HIGHWAY DEVELOPMENT

5. Total Road Length in Malaysia ('000 km) 100.0 77.2 80.0 65.2 64.3 60.0 38.9 Total Length ('000 km) 40.0 18.0 20.0 14.5 10.4 - 55 65 75 85 95 99 `07 Year From the Bar chart showed the increase of the road length in Malaysia (excluding rural & village road) from 66,391 kilometers to 77,240 kilometers in 2007.

6. PAST • Federal Government decided to embark construction of a toll expressway (1977) • The decision was based on : From Bukit KayuHitam to Johor Bahru known as North – South Expressway • The general Transportation Study of Malaysia (1967-1968) • The Malaysian Highway feasibility Study (1970-1971) • Feasibility study and Toll Application (1977-1979)

7. Provide an efficient network system of highway Provide a smooth, comfortable and safe ride Help to alleviate traffic congestion along Federal Route 1 Accelerate economic growth MAIN OBJECTIVE HAVING THE HIGHWAY Supplement the existing Federal Route 1 Facilitate fast and uninterrupted movement of traffic • Using international standards • Able to reduce vehicle operating cost • Reduce traveling time

8. PRESENT • Under Planning: • 2 nos of highway TOLL HIGHWAYS • Under Construction: • 7 nos of highway • Under Operation: • 23 highways operated by 17 Concession Company

9. Highway In Operation :

10. Cont..Highway In Operation :

11. Highway In Operation : NORTH - SOUTH EXPRESSWAY (PLUS) ( 848 KM ) TOLL PLAZAS - OPEN 7 NOS., CLOSED - 60 NOS.

12. Highway In Operation : (before upgrading) KUALA LUMPUR - KARAK HIGHWAY (KL-KARAK) ( 60 KM ) TOLL PLAZAS (OPEN) - 2 NOS.

13. Highway In Operation : WESTERN KL TRAFFIC DISPERSAL SCHEME (SPRINT) (26 KM) TOLL PLAZAS – 3 NOS. INTERCHANGES – 13 NOS.

14. Highway In Operation : AMPANG-KL ELEVATED HIGHWAY (AKLEH) ( 7.4 KM ) TOLL PLAZAS OPEN -1 NO.

15. PRESENT CONSTRUCTION • Most of present toll highways – urban area • Through heavily populated area • Mitigation measure needed in solving problem

16. MITIGATION MEASURES: • ENVIRONMENTAL PROBLEM (SENAI – DESARU EXPRESSWAY) • Safeguarding water Catchment from contaminated spillage • SDE highway alignment traverses through Sg. Layang Water Catchment • Pollutant Removal System (PRS) sited at strategic location • The objective to remove the chemical/pollutants from the surface runoff, preventing them from reaching the water catchment • PRS essentially comprises 4 component:- • Grass Swale • Grass Pollutant Trap • Oil / grease / chemical Filtration • Retention

17. MITIGATION MEASURES: Pollutant Removal System Process

18. LAND USE PROBLEM • Land scarcity • Space constraint – urban area • Increase usage of highway by local commuter – cause congestion • The experience of dealing with the problem:- • DUKE Highway • SPRINT Highway

19. MITIGATION MEASURES: • DUKE HIGHWAY PROJECT LIMITATION OF RIGHT OF WAY (R.O.W) Redesigning the drainage system to suite the R.O.W condition

20. MITIGATION MEASURES: • DUKE HIGHWAY PROJECT LIMITATION OF RIGHT OF WAY (R.O.W) Application of Reinforcement Concrete wall for a spacious carriageway

21. MITIGATION MEASURES: ii) Reconfiguration of Interchanges LIMITATION OF RIGHT OF WAY (R.O.W) • Reconfiguration of interchanges (eg: SentulPasar Interchange) • Advantages :- • No acquisition for drainage reserve • Providing free flow of water • No interfacing with flood mitigation structure *Interchange Design to skirt around the Existing detention pond by JPS as a flood mitigation measure

22. MITIGATION MEASURES: iii) Sharing of TNB power line reserve LIMITATION OF RIGHT OF WAY (R.O.W) • Original proposal – separate reserve for highway and TNB power lines • Benefits:- • 29 houses & 5 shops not to be acquired • Live line maintenance from the deck

23. MITIGATION MEASURES: • SPRINT HIGHWAY PROJECT • Designed using innovative methods to minimiseland use and disruption to the environment during construction. • 700 m Bored tunneling construction method through a hill as a direct access through Penchala • To preserve the ecology and environmental

24. MITIGATION MEASURES: • SPRINT HIGHWAY PROJECT • Designed using innovative methods to minimise land use and disruption to the environment during construction. • First in Malaysia to feature double deck structure

25. MITIGATION MEASURES: • Traffic congestion problem at toll plazas • Introduction of Electronic Toll Collection (ETC) occurs after completion of the NSE in Sept. 1994. • Earlier stage of implementation, less number of highway users using this system. • Number had increase yearly due to the increase in number of highway users which resulted to traffic congestion at toll plazas especially during peak hours and festive seasons. • Starting from 1 July 2004, Government decided to use only one ETC system namely Touch & Go. • It can be used for other purposes such as public transport and public parking.

26. MITIGATION MEASURES: • Traffic congestion problem at toll plazas Only 41% use ETC (TnGo & smart Tag) Comparison between the use of Electronic Toll System (ETC) and total number of traffic

27. ISSUES • TOLL • A sensitive issues and become major problem in the country • LAND • Land cost much higher than estimated in implementation stage • Mitigation measures: • Government compensation • Re-evaluating C.A and renegotiate the term • Mitigation measures: • Preparing Guideline ISSUES • IMPROVEMENT TO • CONCESSION AGREEMENT • Set-up committee to re-evaluate the existing C.A and improve it. • CONGESTION • Growth development - generated traffic & saturated • Bottleneck and user’s behaviour • CUSTOMER SATISFACTION • Engage consultant to get feedback from customer • Mitigation measures: • Impose penalty • Established KPI • Mitigation measures: • Coordination between Government agencies and private company • Improve C.A 80% as a benchmark, improve some complain and comment from customer

28. Land issue • Land cost – critical components and big impact to overall project cost • Planning stage – estimated land cost • Implementation stage – land cost are higher than estimated • Due to affected lots converted their status (plantation to residential / commercial) • Solution : • MHA currently preparing new guideline in handling the unacceptable increase in the land cost

29. Toll issue • Sensitive issues and major problem in the country • Toll rate and frequency toll rate review – agreed in the Concession Agreement (C.A) • Toll rate agreed – must be sufficient to cover capital expenditure (CAPEX), operating expenses (OPEX), financial obligations and returns to the promoters. • No increment toll rate as stipulated - Government must compensate concessionaires • Major issues – acceptable & affordable toll rate • Solution: • Currently MHA re-evaluating all the existing C.A term for affordable toll rate • Action taken – concession period extension, toll rate restructuring

30. Congestion issue • Congestion contribution:- • Development in the vicinity of the highway • Existing bottleneck • Users behavior - weaving • Effect – stress, waste of fuel, waste of time, emits smoke • Solution: • Coordination between government agencies and private company • Improvement to C.A prior to traffic congestion problem

31. Improvement to Concession Agreement • MHA planning department set-up a committee – to re-evaluate & improve C.A • Solution: • To impose LAD – project completed as schedule • To impose penalty – non compliance and non conformity • Established Key Performance Indicator (KPI) – standardize work performance • May instruct Concession Company to review the traffic forecast

32. Customer (Highway User’s) Satisfaction • Overall satisfaction Index of the Highway for the year 2007 reflected that Malaysian road users were satisfied (rated as ‘four star’/’good) With scored for all highways between (66%-85%) • Survey base on five major area as listed below: • Highways Management • Toll Plaza Management • Ronda Services • Rest Service Area • Lay By service • From the finding, mitigation measures to improves the Costumer Satisfaction Index will carried out by Concession company

33. FUTURE FLEXIBLE TOLL SYSTEMS MULTI LANE FREE FLOW (MLFF) FLAT TOLL RATE TRAFFIC MODEL STUDY FUTURE MHA’S TRAFFIC MONITORING CENTRE TENDERING OF NEW HIGHWAY SHADOW TOLL

34. Future highway development programme • Government still embark on privatisationprogramme through:- • Build-Operate-Transfer (BOT) • Private Finance Initiative • Reviewing the Highway Network Development Plan (HNDP) • Viable project for privatisation • Impact on National economy

35. Flexible Toll Systems • Toll discount on non peak hour • 10% discount starting 1 Jan 2009 for NSE and ELITE highway • Discount period from 12.00 am to 7.00am • Massive traffic congestion due to accident / festivals season

36. Flat Toll Rate • One toll rate until the end of the concession period • No toll rate increment

37. Multi Lane free Flow (MLFF) • Latest toll electronic collecting system in Malaysia • Will encourage smooth traffic movement • Capacity of peak hour transition rate – 2200 vehicle per lane per hour • Government in process of trial – December 2008 • Toll Plaza Penchala, Damansara – Puchong Highway • Toll Plaza Batu 3, federal Highway 2 • Expert involved in the trial:- • Mitsubishi Group and Kapsch Com • Objective of the trial:- • Study system effectiveness in term of safety and practicality aspect

38. Shadow Toll • Has been implemented in several countries in Europe • Modified version need to be look before applying in Malaysia • Method:- • No toll paying by user at toll booth • Government pay to the Company based on number of traffic

39. Tendering of new Highway in Malaysia • Implementing an open tender concept for new privatized highway • To ensure transparency – reasonable and competitive price

40. Traffic Model study for Klang Valley and its conurbation • A study for the new traffic model • Basically to develop Traffic Demand Forecasting Model • Finding and analysis – Land use, Socio-economic Framework, traffic survey • Will assist Government in evaluating and choosing viable road project

41. MHA Traffic Monitoring Centre • Collecting and disseminating traffic information in real time basis on toll highway to the public

42. CONCLUSION • Improvement have been done to make sure the toll highway are built of the best quality, maintain and operated in the best conditions. • Continuous negotiation and discussion between Government and Concession Company in all stages are an important for the successful of project. • Innovation and optimisation in the design, construction, operation and maintenance has resulted in having a highway of the best quality and at reasonable price. • When dealing in urban construction – need to reduce impact on social and environmental. • Win-win situation between Government and Private sector: • Government – get infrastructure early, quality • Private sector – get the reasonable return from the investment • Future- to fulfill the customer satisfaction • Way forward-MHA TMC as a National Traffic Information Centre • MHA as a Public Sector Comparator (PSC) to concession companies

43. THANK YOU TERIMA KASIH THANK YOU