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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

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CONTENT -INTRODUCTION -HIGHWAY DEVELOPMENT -PAST -PRESENT -FUTURE -CONCLUSION

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INTRODUCTION Road privatization policy started in 1983 North Klang Straits Bypass (NKSB) By Shapadu Comp. Ltd. (1983) Jalan Kuching Highway by Kamunting Corporation (1986) North South Expressway (1989)

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HIGHWAY DEVELOPMENT

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Total Road Length in Malaysia ('000 km) 10.4 77.2 14.5 64.3 65.2 18.0 38.9 - 20.0 40.0 60.0 80.0 100.0 556575859599`07 Year Total Length ('000 km) 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.

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PAST Federal Government decided to embark construction of a toll expressway (1977) The decision was based on : From Bukit Kayu Hitam 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)

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

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

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BilHighway Route No. HighwayLength 1.E1North South Expressway823.0 Km 2.E36Penang Bridge13.5 Km 3.E8Kuala Lumpur Karak Highway60.0 Km 4.E15Butterworth Kulim Expressway16.8 Km 5.E5Shah Alam Expressway35.0 Km 6.E6North South Expressway Central Link48.0 Km 7.E29Seremban Port Dickson Expressway22.7 Km 8.E3Malaysian Singapore Second Crossing Expressway 44.7 Km 9.E11Damansara Puchong Highway.40.0 Km 10.E7Cheras Kajang Highway11.7 Km 11.E9Sungai Besi Expressway16.7 Km Highway In Operation :

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Cont..Highway In Operation : BilHighway Route No. HighwayLength 12.E12Kuala Lumpur Ampang Elevated Highway7.4 Km 13.E23Western Kuala Lumpur Traffic Dispersal Scheme 26.0 Km 14.E18Kajang Traffic Dispersal Ring Road37.0 Km 15.E10New Pantai Expressway19.6 Km 16.E35Shah Alam Kuang Expressway25.0 Km 17.E8East Coast Highway (Phase1)169.0 Km 18.E30North Klang Straits Bypass8.0 Km 19.E30New North Klang Straits Bypass7.5 Km 20.E17Butterworth Outer Ring Road12.1 Km 21.E38Storm Water Management And Road Tunnel (SMART) 3.06 Km 22. - Jln Cheras, Sambungan Timur-Barat, Lebuhraya Sungai Besi (Lebuhraya Metramac) 25.0 Km 23.E20Kuala Lumpur Putrajaya Highway26.0 Km TOTAL LENGTH :1507.56 Km

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

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

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

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

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

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ENVIRONMENTAL PROBLEM (SENAI DESARU EXPRESSWAY) MITIGATION MEASURES: 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

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MITIGATION MEASURES: Pollutant Removal System Process

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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

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

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

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ii) Reconfiguration of Interchanges MITIGATION MEASURES: LIMITATION OF RIGHT OF WAY (R.O.W) Reconfiguration of interchanges (eg: Sentul Pasar 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

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iii) Sharing of TNB power line reserve MITIGATION MEASURES: 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

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SPRINT HIGHWAY PROJECT MITIGATION MEASURES: Designed using innovative methods to minimise land 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

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

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Traffic congestion problem at toll plazas MITIGATION MEASURES: 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.

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

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Mitigation measures: Preparing Guideline Mitigation measures: Government compensation Re-evaluating C.A and renegotiate the term Mitigation measures: Coordination between Government agencies and private company Improve C.A Mitigation measures: Impose penalty Established KPI ISSUES TOLL A sensitive issues and become major problem in the country LAND Land cost much higher than estimated in implementation stage 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 users behaviour ISSUES CUSTOMER SATISFACTION Engage consultant to get feedback from customer 80% as a benchmark, improve some complain and comment from customer

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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

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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

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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

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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

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Customer (Highway Users) 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

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FUTURE FLEXIBLE TOLL SYSTEMS TRAFFIC MODEL STUDY TENDERING OF NEW HIGHWAY FLAT TOLL RATE MULTI LANE FREE FLOW (MLFF) SHADOW TOLL MHAS TRAFFIC MONITORING CENTRE FUTURE

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

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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

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

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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

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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

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

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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

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

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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

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THANK YOU TERIMA KASIH