Loke: Putrajaya to help fund Johor’s RM10b E-ART as private funding alone ‘not viable’

KUALA LUMPUR, July 2 — The federal government will provide funding for Johor’s Autonomous Rapid Transit (E-ART) project, while the initial phase will be financed by the appointed consortium, Transport Minister Anthony Loke told Parliament today.

The project, estimated to cost RM10 billion, received Cabinet approval just last month. The E-ART is meant to complement the Johor Bahru-Singapore Rapid Transit System (RTS) Link as a solution to the projected rise in traffic resulting from the state’s rapid development.

“Fundamentally, the initial phase of the project’s financing will be borne by the appointed consortium,” Loke replied to a question by Datuk Seri Wee Ka Siong (BN-Ayer Hitam), who is also a former transport minister.

“However, current assessment results indicate that this mega-scale infrastructure project is not viable if it relies entirely on private sector financing. In view of this, the federal government will provide financial funding to cover the project costs.”

However, the financing model, the federal government’s financial commitment, and the repayment mechanism during the concession period are still under negotiation.

Loke said the agreed terms would subsequently be tabled to the Cabinet for consideration and approval before the concession agreement is signed.

The E-ART project is expected to be completed within four years from the date the Letter of Acceptance is issued.

The E-ART is intended to serve as a mass transit network aimed at easing chronic traffic congestion in Johor.

Designed to run along three main corridors — Skudai, Tebrau and Iskandar Puteri — the trackless smart tram system will also connect with the upcoming Johor Bahru-Singapore Rapid Transit System (RTS) Link.

A new traffic dispersal plan developed jointly with the Johor state government is also in the pipeline to overhaul local public transport services ahead of the RTS Link’s completion.

Loke said the blueprint outlines an expanded Bus Stop Transit network using 254 buses, including electric buses, across 28 routes.

According to officials, 157 of the buses will serve the key JB Sentral-Bukit Chagar corridor when the first phase begins in early 2027.

To support the hub, a high-frequency RTS shuttle bus service will connect the station with surrounding areas, while an upgraded Demand Responsive Transit (DRT) system is expected to improve last-mile connectivity.

Loke said authorities will gazette 16 dedicated bus lanes to reduce traffic bottlenecks, including a 5.6km stretch along the Skudai corridor and a 10.3km lane along Tebrau.