KUALA LUMPUR (Nov 4): The traffic volume at MRCB Lingkaran Selatan Berhad’s 8.62-km Eastern Dispersal Link (EDL) is expected to be negatively impacted by Malaysia’s move to impose a new RM20 fee on all foreign registered vehicles entering the country, effective Nov 1, 2016. RAM Ratings reports any deterioration in traffic in the immediate term will likely lead to a wider mismatch between the company’s annual cash generating ability and its annual debt payments. Since tolling began on the EDL on Aug 1, 2014, daily toll charges have increased 6-fold (from RM6 to RM36) for cars traversing the causeway. It is believed that this move by the Malaysian government and any move by the Singapore government to match the fee, will result in the ballooning of daily cost of travel (by car) across the causeway. Following the commencement of tolling, EDL’s traffic performance has remained largely volatile, with average daily traffic coming in at 46,808 vehicles in August 2014, and hovering at 41,347 (a decrease of 11.7%) vehicles in September 2016.

Source: The Edge Markets November 04, 2016 10:53 UTC