Proposed railway line from Kudat to Kota Kinabalu: A Mountain to Climb

 By Ts Dr. Hj Ramli Amir, former President of the Chartered Institute of Logistics and Transport (CILT) Malaysia and Vice-President of CILT International for Southeast Asia

KOTA KINABALU: The following are facts extracted from our research on the status of the proposal:

1. The Sabah Ministry of Infrastructure Development, through the Sabah State Railway Department (JKNS), is preparing the Terms of Reference (TOR) and conducting a preliminary route study for the 175-kilometer Kota Kinabalu-Kudat rail project.
2. The state government has approved an allocation of RM1.5 million for a preliminary study, which is expected to commence in 2025.
3. Physical construction works, including land acquisition and utility infrastructure, are anticipated to begin in 2026 and be completed by 2029.
4. The estimated construction cost is around RM5.2 billion. The state government is considering various funding sources, including state government or federal grants, soft loans, and private sector involvement.
5. In 2019, RM2 million was set aside for a 12-month feasibility study for the Kudat railway project, scheduled to start in 2020.
6. The Sabah State Railway Department aims to improve the existing rail services to be at least on par with those in Peninsular Malaysia.
7. The project is expected to be beneficial for transporting agricultural produce from Kudat and Kota Marudu to Kota Kinabalu.
8. The timeline for the project has been delayed. Initially planned to start construction in 2021 and complete by 2024, the current timeline suggests preliminary studies commencing in 2025 with construction from 2026 to 2029.
   It’s important to note that these plans are still in the proposal and study stages, and the implementation will depend on further approvals, funding, and feasibility assessments.

The main challenges

Funding: The estimated construction cost is around RM5.2 billion, which is a significant amount. The state government is considering various funding sources, including state or federal grants, soft loans, and private sector involvement

1. Technical complexity: The proposed railway line is 175 kilometers long, which presents engineering challenges in terms of route planning, land acquisition, and infrastructure development
2. Timeline delays: The project has faced delays. Initially planned to start construction in 2021 and complete by 2024, the current timeline suggests preliminary studies commencing in 2025 with construction from 2026 to 2029
3. Upgrading existing infrastructure: The project aims to improve the “dilapidated rail services” in the state to be at least on par with rail services in Peninsular Malaysia, which involves significant technical and logistical challenges
4. Land acquisition: Securing the necessary land for the railway corridor may involve complex negotiations and potential displacement of existing properties or land uses.
5. Environmental concerns: While not explicitly mentioned in the search results, railway projects of this scale typically face environmental challenges, including potential impacts on local ecosystems and the need for environmental impact assessments.
6. Regulatory approvals: The project will need to navigate various regulatory requirements and obtain necessary approvals at both state and federal levels.
7. Balancing with other infrastructure needs: There are competing infrastructure needs in the region, such as improving road conditions and water supply, which may affect the prioritization and allocation of resources for the railway project
   These challenges highlight the complexity of implementing such a large-scale infrastructure project in Sabah. The state government will need to address these issues carefully to ensure the successful development of the Kudat to Kota Kinabalu railway.

Impacts on the existing infrastructure in the region

1. Upgrading existing rail services: The Sabah State Railway Department (JKNS) aims to improve the “dilapidated rail services” in the state to be at least on par with rail services in Peninsular Malaysia. This suggests a significant upgrade to the existing railway infrastructure.
2. Land acquisition and utility infrastructure: The project will require land acquisition and changes to utility infrastructure along the proposed 175-kilometer route. This will likely impact existing land use and utilities in the affected areas.
3. Integration with other transportation modes: The railway project may necessitate improvements to connecting infrastructure, such as roads leading to new railway stations, to ensure efficient integration with other transportation modes.
4. Economic infrastructure: The railway is expected to boost the transport of agricultural produce from Kudat and Kota Marudu to Kota Kinabalu. This may lead to the development or expansion of storage and distribution facilities along the route.
5. Urban development: As seen in other high-speed rail projects, there may be increased urban development around new railway stations, potentially changing the landscape of smaller towns along the route.
6. Tourism infrastructure: The improved connectivity may spur the development of tourism-related infrastructure in Kudat and other areas along the railway line.
7. Potential strain on existing infrastructure: During the construction phase, there may be increased pressure on existing roads and utilities due to construction activities and the movement of materials and equipment.
8. Environmental considerations: The project may require the development of new infrastructure to mitigate environmental impacts, such as wildlife crossings or noise barriers.
9. Modernization of existing stations: Existing railway stations along the route may need to be modernized or expanded to accommodate the new rail service.
    
   Analysis of the potential cargo and products that could justify building a railway line
10. Silica Sand: The Kibing Group’s silica sand mining project in Sikuati, Kudat, is a significant potential source of cargo. The project involves extracting and processing silica sand for glass production, with an estimated 400,000 metric tons of silicon sand per year being transported. Unfortunately, transportation of this material will be by sea.
11. Agricultural Produce: The railway is expected to be particularly useful for transporting agricultural products from Kudat and Kota Marudu to Kota Kinabalu. We need to know the volumes that will be carried over a period of time.
12. General Freight: While not specifically mentioned for this route, railways typically carry various types of freight to support local industries and trade. Again, how big a volume is this to justify building a rail line.
     
    Challenges and Considerations:
13. Volume Justification: The railway would only be justified if there are heavy volumes of cargo to be carried. The silica sand project could potentially provide this volume but more likely it will be transported by sea. It’s unclear if other industries in Kudat can generate sufficient cargo to justify the railway.
14. Economic Viability: The estimated construction cost of RM5.2 billion for the railway project is significant.
     
    The economic benefits to outweigh substantial investment
15. Environmental Concerns: The silica sand mining project has faced opposition due to environmental concerns, particularly its impact on the Tun Mustapha Marine Park and local beaches
16. Alternative Options: Widening and upgrading roads and highways might be a more cost-effective and flexible option. This could potentially serve the transportation needs without the massive investment required for a railway.We believe this will be covered under the Pan Borneo Highway project.
17. Federal Funding: Since funding for such large-scale projects often relies on federal support, the project would need to demonstrate significant economic benefits for Sabah to secure this funding.
18. Existing Infrastructure: The current state of “dilapidated rail services” in Sabah suggests that upgrading existing infrastructure might be a priority before expanding to new routes
     
    Conclusion

While the silica sand mining project could provide a significant volume of cargo, it’s unlikely to justify the construction of a railway line from Kudat to Kota Kinabalu since it is already targeted to be transported by sea.
The agricultural produce and potential general freight add to the case but may not be sufficient on their own. Given the high cost of the railway project and the environmental concerns surrounding the silica sand mining, upgrading and widening roads and highways might indeed be a more practical and flexible solution.
This approach could serve the immediate transportation needs while allowing for future reassessment as the region’s economic activities evolve. Unless the project can demonstrate that it would be a game-changer for Sabah’s economy, with benefits clearly outweighing the substantial costs and environmental impacts, it might struggle to secure the necessary federal funding and support. A comprehensive feasibility study, including detailed projections of cargo volumes and economic impacts, would be crucial in making this determination.
In my view, its better to enhance the facilities at Kudat for transportation by sea and look at providing for effective and efficient transportation for both passengers and goods. This also means enhancing port facilities to cater for this increase in cargo and passenger traffic. Sabah is basically surrounded by sea but we have not taken advantage of this freely available seaway.