Monday, May 24, 2010

IJM Corporation Berhad : Kajang-Seremban Highway’s Traffic Falls Short Of Projection - 24/05/2010

20-30% below. The local press, quoting CEO of Lebuhraya Kajang-Seremban Sdn Bhd (Lekas) Mr Neoh Soon Hiong, reported that the average daily traffic volume of the 44km Kajang-Seremban Highway is likely to come in at only 70-80k in its first year of full opening, vis-à-vis the initial projection of 100k. IJM owns a 50% stake in Lekas, the concessionaire of the highway. The key reason for the shortfall is the lower-than-expected “local movements”, i.e. those between Kajang Selatan, Semenyih, Mantin and Pajam. Lekas is hopeful that the longhaul traffic will surprise to the upside, making up for the lower local movements. The highway has a total of six tolling points comprising Kajang Selantan, Semenyih, Pajam, Mantin, Setul and Ampangan. Lekas expects the RM1.8bn highway to break even in 8-10 years.

IJM Corporation Berhad :Kajang-Seremban Highway’s Traffic Falls Short OfProjection -24/05/2010

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