China Communications yesterday signed a deal to share the operation and maintenance of the forthcoming, 665km-long East Coast Rail Link (ECRL) in Malaysia.

The company, which is currently building the line, concluded the deal with Malaysia Rail Link (MRL), the owner of the project.

The signing ceremony took place in Putrajaya, and was witnessed by Anthony Loke Siew Fook, Malaysia’s transport minister, and Chinese Ambassador Ouyang Yujing.

Loke said the agreement would allow the parties to share operating costs as well as technical expertise, and was beneficial to the Malaysian side.

“As we all know, turning a profit in the rail sector is very hard. But through this agreement both parties will share the losses 50-50,” he said, reports the Malay Mail.

“As far as operational profits go, the government of Malaysia will take 80%, and they will only take 20%. This agreement was renegotiated back in 2019 and has now materialised.”

MRL will also retain ownership of all assets.

Ouyang Yujing said the ECRL would “inject new impetus” into regional development.

As well as making the joint venture announcement, Loke launched the official ECRL logo and unveiled the design of the trains that will ply the line when it opens in 2026. These are to be made by Chinese train-maker CRRC Dalian, and the first will be delivered by the end of next year.

Expected to cost about $10bn to build, the ECRL will connect the relatively underdeveloped states on the east of the Malaysian peninsula with the Klang Valley, a conurbation that includes Kuala Lumpur and Putrajaya.

Trains will run at 160km/h, making an end-to-end journey around four hours.