Lafarge Malaysia Secures RM270 million Deal with China Communications Construction for East Coast Rail Link (ECRL)


Lafarge Malaysia Berhad announced today that its subsidiary Lafarge Cement Sdn Bhd (Lafarge) has entered into a cement supply agreement with China Communications Construction (ECRL) Sdn Bhd (CCC) for the proposed East Coast Rail Link (ECRL) project.

The contract which has a provisional value of RM270 million will see Lafarge supplying cement, from now to 31 December 2019, to all eight packages of work for the ECRL project. The agreement is renewable for a further two years subject to mutually agreed renewal terms and conditions.

Lafarge Malaysia President and CEO Thierry Legrand said, “This agreement marks a major milestone in our relationship with CCC. We are very pleased to be awarded the trust to supply such a landmark project. Working closely with CCC, we are privileged to support the country’s infrastructure requirements.

The ECRL is a 688km railway line stretching over four states, linking the Klang Valley to Pengkalan Kubor, Kelantan. In 2016, China’s state-owned China Communications Construction Company Ltd the RM55 billion contract to be the main contractor for the ECRL via its Malaysian unit CCC. The project will have two phases: Phase 1 from the Integrated Transport Terminal (ITT) Gombak, Selangor to Kota Bharu, Kelantan; and Phase 2 from Gombak North to Port Klang, Selangor and Kota Bharu to Pengkalan Kubor, Kelantan.

This rail link has been identified as one of the high impact infrastructure projects under the 11th Malaysia Plan that will form the backbone of Malaysia’s East Coast Economic Region’s (ECER) multimodal transport infrastructure. It is projected to be a key enabler for the region, connecting economic centres and providing an efficient link to the Klang Valley. Construction works for the first phase of ECRL began in 2017.