A PROPOSED project connecting Melaka to Sumatra in Indonesia – by bridge or tunnel – has been criticised by a transport expert who questioned where the traffic would come from.
Transportation consultant Dr Rosli Khan also raised doubts over the traffic volume ever justifying the cost of building the 120km or so bridge or tunnel from Telok Gong in Masjid Tanah, Melaka to Dumai in Sumatra when it is up and ready.
“I think the cost will also be so enormous that it would be very hard to justify its potential returns,” Rosli told FocusM.
Rosli further noted that while a tunnel project would be more costly than a bridge, the latter will still be expensive as it has to be built high above sea level so large vessels can still safely navigate underneath.
“Don’t forget, these are international waters so a safe, secured and efficient passage must be provided to the international shipping community,” he said.
Rosli also spoke of physical risks to travellers, noting that Sumatera is prone to earthquakes as it is part of the so-called Ring of Fire.
“A very tall bridge in the middle of an open sea, built in an area that is not guaranteed to be safe, carries too many risks which will not be covered by any insurances,” he added.
Earlier today, Melaka investment, industry, entrepreneur development and cooperatives committee chairman Datuk Seri Ab Rauf Yusoh said the private sector had submitted a proposal for such a project and Malaysia and Indonesia agreed to a detailed study.
He added that the proposed development would take 20 years and have a major impact on the economic development of both countries when completed.
Nothing new
The plan to link Sumatra and Malaysia by land is far from new, with several proposals being made in the past by both countries.
If materialised, the project would be the longest sea-crossing bridge in the world, cutting travel time to just one hour.
The idea first came about in the 1990s but was likely put on hold due to the 1997 Asian financial crisis.
In 2006, the then Melaka chief minister revived the idea and said it was technically feasible. The Export-Import (Exim) Bank of China had also agreed to finance 85% of the project’s total costs.
However, the project was heavily opposed due to concerns over the management of ship movements through the Melaka Straits – one of the busiest shipping channels in the world – piracy, lost business and environmental implications, and was shelved once more.
A similar proposal was proposed in 2013 but scrapped again.
Then in 2019, the Indonesian Government reportedly considered building a bridge linking Melaka and Sumatra as part of an ambitious plan to build toll highways to link Indonesia’s islands together. That too did not materialise.
Commenting on why previous proposals for such a project flopped, Rosli said there were several major issues at hand.
“Funding is the biggest issue. No banks or funding institutions will want to fund such a mammoth project when it is not commercially viable in the first place.
“With no funders interested, such a project will not happen,” he said, adding that the Melaka state Government would not be able to finance such an “uneconomical” project on its own.
On the other hand, when the project’s cost is too high and with no clear certainty on the revenue, the risks on the returns of investment (ROI) will be considered very high, which indicates that many things could go wrong.
Besides that, uncertainty on the revenue side will make the ROI low and unattractive to the funders, institutions as well as private funders.
“Cost escalation could be a major risk when the building period stretches for too long,” he added. – Sept 8, 2022
Main pic credit: Wikimedia Commons
