it is safe to assume that opening of Section 11 will have more solid impact as compared to the opening of Section 7 as it is the first or final section of WCE to divert heavy traffic in and out of PLUS highway...for me Section 7 is just a missing link of the whole project but not as pivotal as Section 11
I believe WCE statement on Section7 completion by end of 2024 is of public relation speak. As usually retailers (1) will not really go deep into the actual progress, (2) will forget about WCE statement sooner and later, they could achieve their target of publicity as of this moment. However, if we just take 1 minute to visit WCE website to view work progress, it show Section 7 (and others' Section) progress with nothing hiding; we see present it stay at 59%., and work progress at 1% per month. So it will take 41 months to complete (if no other bad news), by end 2025.
Agreed with you, more real. Except if other section completed, all the contractor all out to speed up the sect 7 project.( Don't know make sence or not)
albertyek, some value point from your view, sect 7 should start first if it is very important to the entire project, i also doubt why so late to start..
I believe WCE statement on Section7 completion by end of 2024 is of public relation speak. As usually retailers (1) will not really go deep into the actual progress, (2) will forget about WCE statement sooner and later, they could achieve their target of publicity as of this moment. However, if we just take 1 minute to visit WCE website to view work progress, it show Section 7 (and others' Section) progress with nothing hiding; we see present it stay at 59%., and work progress at 1% per month. So it will take 41 months to complete (if no other bad news), by end 2026.
Of course, works could be expedite by project team say push for 2% per month, bring back to 21 months, from now, mean finish by Jan-2025. From the present progress, I do not see the "will" from WCE management to do so; form past 6 months of 1% per month. If WCE have push for 1.5% or 2% per month, I will share here with all for their effort, and wish to have earlier opening of WCE expressway to enjoy the benefit of using good path to Taiping/Penang and yet to have golden goose to lay gold eggs earliest possible. Instead of "sing song" at public media for good days ahead but yet no actual progress at the construction site.
project progress is also an estimation so since IJM is doing the construction I am very sure they themselves want to complete it soonest possible to reduce the rate of interest in their debt repayments for this project...OPR is going off the charts
I'm surprise that the commencement of Section 7 is very late as compare to others Sections, as it is the spin of the whole expressway. Of course, the story behind could be beyond control of WCE management and IJM as construction arm. Nevertheless, if I was the management, I will go all out to push the progress of Section 7 work, to ensure it's progress could meet the others or get much closer to them, not as end 2026 vs 2024 of others.
skynet, other sect yet to be completed, may be difficults for them to move the manpower, if other contractor can complete within this year and relocate the manpower, look like finish by Jan 2025 not the dream.
As of now, Section 1- if of 88% (11km), Section 2 is of 83% (7km), Section 3 is of 80% (10km), average is of 84% at (28km). As compare to Section 7, is of 59% (29km).
We have 2 options now: 1. to recruit similar source of working team, machineries and project management team to undertake half of Section 7 work as separate contract, in order to have 2% progress per month. 2. To stop the working teams at Section 1, 2 and 3, and transfer them to half of Section 7, to expedite Section 7 and complete it first, then return to their original work scope. This rescheduling will help to bring in car flow to use WCE from Klang to Taiping, and left Klang down south to Banting as last and less priority path.
As per progress on Section 1 (88%) ,2 (83%) ,3 (80%) and 11 (82%), each of them will take 12 to 20 months to finish their own section. Which means, wait for their each section to complete then relocate their resource could help to expedite Section 7 work in the near (12 months) future. As concessionaire, this may not be the best approach, my above suggestion could be an good alternative solution for them to focus on the critical route and scarifying the last section to Banting.
I went to Beruas from Taiping (Changkat Jering) 2 weeks ago, via Sungai Rotan, to enter the new Highway (WCE) and traveled until Lekir...Kuala Selangor and Sungai Buloh. Nice. The alternative for PLUS Highway. Very good views for the padi fields also.
Soon the better when it is extended to Changkat Chering.
It is this type of business that EPF would want to invest. It only cost a fraction from those giant counters and the upside potential is so physical and obvious when looking at the future development from that part of the country.
Don't forget every new section opened, will add additional revenues even if at sub-optimal traffic. Each additional adjacent sections opened up will also improve the traffic of the connecting section. New section opening won't improve the profit (due to interest for that completed section will not be capitalized but expense out), but it will improve the cash flow for further construction works
Section 7 slow moving is not purely due to the effort on construction, it is also to do with some buildings are still not vacated. Remember the land acquisitions are only 99% done fairly recently per last QR, and some of the purchases done are probably not due for vacate, hence the existing owners may still have time to vacate
From part 1, seems like there should be no hindrance on progress, just effort required In stark contrast from part 2 videos, some buildings along the way still occupied as of 2 months ago You can also see that some of the land were probably only recently vacated Sungai Tengi area is probably the worst stretch in terms of readiness (final part of section 7 in Selangor)
In the short term, there will be ups and downs, how market movers want to play with news and media, or how traders will influence the share price movement
For long term investors, just don't read this forum too often and get your emotions stirred, weekly glance is good enough
Yes understand government intervention can affect revenue etc. But there are also conditions stipulated in the contract. Hence have to negotiate and maybe find win-win situation. Like recent news about possible extension of highway concessions period, to make up for toll hike freeze.
Litrak was giving speakup 5+ percent dividend every year until it was privatized. Then speakup move funds to REITS like Sunway and Alaqar which give about the same or slightly more dividend than Litrak
For long term concessionaire, the journey until opening of the expressway take years. If I recall correctly, it start work on 2015, in between the work tenure, they faced difficulty on financing issues then covid, all have delayed the completion of the works.
For FI point of view, in between the journey, certain period of times, like opening of some ready Sections for toll collection could be an fresh opportunity for them to push up WCE share prices for a while for them to take some profits, instead of waiting of the actual opening of while WCE line, which is only on end 2026. Just remember, if you buy this share at present price, there is no more good reason (based on actual quarterly report), to push price up further. Buyer shall hold for 3 years + for the good time for fruit.
guess the completion date is roughly end of 2024,by early 2025 will be fully operational,less than 2 years to go,if not wrong,correct me please if I’m wrong,(based on what I read in the edge)
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
albertyek
484 posts
Posted by albertyek > 2023-05-13 11:05 | Report Abuse
it is safe to assume that opening of Section 11 will have more solid impact as compared to the opening of Section 7 as it is the first or final section of WCE to divert heavy traffic in and out of PLUS highway...for me Section 7 is just a missing link of the whole project but not as pivotal as Section 11