An A Plus Organisation

PLUS Expressways enhances the road infrastructure of Malaysia

There is little doubt that out of the many laudable features of Malaysia, the country's infrastructure is one that receives the most kudos from foreign visitors. And what impresses them most is the state of the nation's roads, particularly its highways. More than just being impressive though, Malaysia's highways are vital contributors to its economic growth. With the adage that time equals money in mind, one has to realise that the network of expressways that link the various parts of Peninsula Malaysia has enabled faster and safer travel that has helped enhance business.

Of course, the highways cannot be built and maintained by themselves. An entity is needed to ensure that the roads are kept in order, to repair wear and tear, and to ensure that they are safe to travel on... in short to keep them in fit and working condition. One such company is PLUS Expressways Berhad (PLUS) - the oldest and largest toll expressway operator in Malaysia. In the following pages, Technology Business Review takes a closer look at how PLUS is contributing to Malaysia's infrastructure development and reputation at home and abroad.

A history of excellence

With 21 years of experience, six toll concessions, assets worth around RM17b, and with operations stretching up to 973 kilometres, PLUS is not just the oldest and largest toll expressway operator in Malaysia but also the largest in South-East Asia. In fact, it is also one of the largest in the world in terms of market capitalisation.

Although the company was incorporated in its present form in 2002, its history stretches years beyond that. Originally set up in 1986 as Highway Concessionaires Berhad under the UEM Group - of which it still remains a member - it changed its name to Projek Lebuhraya Utara-Selatan (PLUS - The North-South Highway Project) in 1988.

The North-South Highway was incidentally the first national expressway in Malaysia which linked the southern half of Peninsula Malaysia with the northern half. Currently, the highway stretches around 846 kilometres in length and provides a direct route from Batu Kayu Hitam in the northern state of Kedah - near the Thai border - to the southern city of Johor Bahru in Johor, just before the
Singapore Causeway.

This highway was historic as it managed to cut travel time across the country by leaps and bounds, thus ensuring that intra-peninsular trade was made faster and more expedient. Furthermore, by eliminating the need for drivers to ply narrow trunk roads, and instead enabling them to travel on a wide, spacious and well-lit highway; the North-South Highway has helped cut down the road accident rate.

Over the years, PLUS added more expressways to its portfolio. At present, it manages the Federal Highway Route 2 - which is part of the Federal Highway from Kuala Lumpur to Klang, the New Klang Valley Expressway (NKVE) - from Bukit Raja in Selangor to Jalan Duta in Kuala Lumpur, and the Seremban - Port Dickson Highway. The latter three highways are, incidentally, extensions of the larger North-South Highway.

Apart from that, PLUS also owns, operates and maintains the ELITE Highway - otherwise known as the North-South Expressway Central Link - which connects the city of Shah Alam in Selangor to Nilai in Negeri Sembilan, passing through the Kuala Lumpur International Airport (KLIA) on the way. Other concessions under its portfolio include the KLBK - or the Butterworth - Kulim Expressway which joins Butterworth in the mainland of Penang to Kulim in Kedah, and the Linkedua - or Second-Link which connects Senai Airport in Johor to the Republic of Singapore.

Services and operations

As a toll expressway operator, not only does PLUS maintain and plan the expressway network under its purview, it is also responsible for other aspects as well. These include the operation and maintenance of the toll and the management of traffic and systems facilities. These include provided rest and service areas (RSAs) and lay-bys where travellers can stop to rest, relieve, and
refresh themselves.

Apart from that, the smooth running and safety of the expressways are also enhanced through 24-hour traffic surveillance by the Traffic Monitoring Centre. As such, information is then relayed to digital sign-boards along the highway informing drivers of important developments on the road. Furthermore, PLUS's own team of highway patrolmen - otherwise known as PLUSRonda - ply the routes to provide service to drivers whose cars are in need of minor repairs or towing.

These services help PLUS move towards the fulfilment of its mission and vision statements. It is committed to "providing efficient and safe expressway networks that enhance the quality of life" and "to be a Premier Global Expressway Group". In order to achieve these goals, the company has determined a set of values that will define its corporate identity. These include having a passion for success, integrity, being trustworthy, having sincerity, practicing teamwork, and being financially prudent.

A year of growth

2008 was a year of growth for PLUS, despite it being a year when the economy slowed down and fuel prices underwent a sharp hike as crude oil prices went through the roof.  The North-South Highway, for instance, experienced a 5.2% growth in traffic volume that year; the ELITE Highway saw a growth of 4% in traffic volume - even after toll rates rose by 10%, and even a 27% toll rate increase in the Second Link did not stop traffic volume rising by 19.6%. In fact, the only concession that saw a drop in traffic volume in 2008 was the KLBK, that experienced only a marginal decrease of 1.9%.

All in all, traffic volume grew by 5.1% year-on-year from 2007, which amounted to 377 million vehicles for the whole year compared to 368 million in 2007. On an average day in 2008, 1,029 vehicles plied the expressways run by PLUS, compared to the average of 1,007 vehicles per day in 2007. As a result, the total amount of toll collected for the year ended 31 December 2008, toll collection increased by RM416.5m to RM2,237.0m from RM1,820.5m recorded last year, mainly attributed to a year-on-year traffic growth of 5.2% for PLUS, giving a higher toll collection of RM92.3m, as well as contribution from Elite, Linkedua and KLBK of RM324.2m.

Thus in 2008, PLUS enjoyed profits before tax of RM1.516b - this is a rise from the RM1.308b profits before tax it enjoyed in 2007. Growth was in line with the higher revenue and also due to consolidation of the results of ELITE, Linkedua and BKE for the first time.

These impressive figures did not, of course, come out of the blue. They are partly the result of the efforts that the Group took to upgrading and improving its infrastructure and services, which in 2008 amounted to RM242.17m which included RM49m for the upgrading of RSAs, lay-bys, toll plazas and other facilities. The remaining RM193.17m were allocated for heavy repair work such as pavement structure overlay, maintenance of payments, slopes, bridges, and drainage, as well as testing of soil integrity.

In 2008, several lay-bys were renovated and upgraded as well as two RSA areas - one in Sungai Perak on the southbound route and the other in Dengkil on the northbound route. The Sungai Perak RSA is not only located close to the scenic and historic Sungai Perak in the state of Perak, but also boasts certain eye-catching design features that make it a must-visit to those looking for a place to rest and relax. Furthermore, with a proposed project to build a jetty to offer scenic boat rides, PLUS is confident that the RSA will become a magnet for tourists.

While the Sungai Perak RSA will cater to southbound travellers from the northern parts of Malaysia, those plying the northbound round will find a similarly beautiful scene at the Dengkil RSA. This RSA, which was launched by the Minister of Works in February, has been dubbed the 'Gateway to Cultural Diversity', and boasts an impressive modern architectural design.

Furthermore, apart from beautifying and upgrading the RSAs and lay-bys, PLUS was also actively upgrading a number of its toll plazas and toll lanes in 2008. Among the ones that went through upgrading were the ones in Kota Damansara, Sg. Petani Selatan, and Juru. These have helped ensure a smoother flow of traffic through these plazas.

For instance, a mixed-mode lane was extended in the Kota Damansara toll plaza which allowed cars using cash and electronic payment methods to pass through. The widening of the Sg. Petani Selatan toll lane and the relocation of the motorcycle lane has allowed for smoother flow of traffic. Last but not least, at Juru toll plaza, semi-permanent staggered lanes for both cash and electronic transactions have improved the service.

Several mechanical and engineering (M&E) and telecommunications projects were also implemented in 2008. The Traffic Monitoring Centre (TMC) in the new HQ was constructed in November. This centre integrates equipment such as Automatic Vehicle Detection Systems (AVDS) and Variable Message Sign (VMS) - these two systems have been installed along strategic points in the highways to collect data on traffic and to provide users with real-time information. Also, new street lights were installed along the Nilai-Seremban part of the North South Highway. These have helped enhanced the visibility of the road and thus the safety of road users.

Apart from toll collections, PLUS also receives revenue from other facilities such as the RSAs and billboards. And 2008 proved to be a profitable year for this segment, which saw revenue increased by 33% from RM17.72m in 2007 to RM18.48m. Among the factors which the company has attributed to this increase include the addition of sub-license fees from stalls in ELITE and the Second Link, as well as the successful implementation of measures to boost  commercial activities in the RSAs.

Keeping safety as a priority

As touched upon above, safety is one of the foremost priorities for PLUS. Working on the adage that  "a stitch in time saves nine", it regularly carries out checks and maintenance work on its assets.

For example, in 2008, work was carried out to strengthen the structural capacity of 220 lane-km of pavements, as well as general maintenance work on another 182 lane-km. This thus ensures that the roads are in optimum condition which will engender a sense of security in drivers. Further efforts to enhance the safety of road users have also been taken by the use of modified Stone Mastic Asphalt (SMA) which is a high performance paving material that lasts longer and is more durable than conventional ones.

It should also be noted that PLUS carries out periodical audits of its expressways and their safety features. For example, it commissioned Australia-based VicRoads International - a respected independent consultant - to carry out a Stage 5 road safety audit of the North-South Highway. The same highway was also put under the assessment of the International Road Assessment Programme (IRAP), which measures the safety of road design. It is notable that PLUS received a rating of 4 to 5 stars, which are the highest ratings possible.

Also, one of the problems that we face on the highways in Malaysia is the threat of landslides particularly from slopes that flank the roads. As such, PLUS also carries out regular assessments of the slopes to ensure that they are stable. For instance, in 2008, more than 6,000 inspections were carried out where rain gauges were installed as part of its Real-Time Monitoring System (RTMS). These gauges detect rain fall automatically and transmit the data over to the Web-based Management System (WBMS) in real time, 24-hours a day, allowing for timely maintenance and intervention.

With 70 rain gauges installed in strategic locations along the North South Highway, PLUS has not only introduced an effective measure against landslides caused by soil erosion, it has even contributed to geological research. This is because the data collected has enabled a better study of how rainfall and ground water affect rock and soil slopes. With the problem of landslides having been mitigated through such action, PLUS is currently studying the implementation of RTMS to monitor flood-prone areas, which is yet another problem that Malaysian drivers have to face - especially during the monsoon season.

Of course at the end of the day, while expressway operators like PLUS can do much, they cannot control how people drive. What they can do, however, is to encourage safe and responsible driving. And it does this through running road safety campaigns. Further-more, working on the knowledge that poor and reckless driving is often caused by poor traffic and route planning by drivers, it has worked towards ensuring smoother traffic flow through some innovative features.

For example, there is the Travel Time Advisory during major festivities, which will give advice to drivers as to when to start their journey so as to enjoy the smoothest flow possible. Then there is the PLUS Mobile Alert (PLUSMA) which uses SMS to send updates on the traffic condition. Through these services, drivers will be able to better plan their journey and as such avoid the hassle and the stress that often leads to poor decision making.

Reaching abroad

Being one of the biggest toll expressway operators in the world, PLUS has also expanded its wings abroad particularly in India and Indonesia, where it is involved in one project and two projects respectively.

In India, PLUS is responsible for upgrading, operating and maintaining a 21.6km stretch of highway known as the Bhiwandi-Kalyan-Shil Phata Highway (BKSP) in the State of Maharashtra under the entity PLUS BKSP Toll Limited. At present, the construction of the highway is 99.21% complete and is awaiting the approval of the Maharashtra State Road Development Corporation before it starts tolling.

Similarly in Indonesia, PLUS managed to acquire a 55% stake in PT Lintas Marga Sedaya which has the concession for a 116km toll road from Cikampek to Palimanan - the longest stretch of the Trans Java Expressway. As of May 2008, the design of the project received regulatory approval from the authorities there and efforts are underway to begin work on
the project.

Apart from that, PLUS also teamed up with PT Bakrie & Brothers Tbk and PT Capitalinc Investment TBK to launch a successful bid for the concession on the Cimanggis - Cibitung toll road in Indonesia. As a result, a company - PT Cmanggis - Cibitung Tollways - that is 60% owned by PLUS was incorporated.

Champion innovations

Just like any company that seeks to have the competitive edge, PLUS Expressways has invested heavily into innovations that will help it in its various processes. As such 2008 was the year which saw the company introducing several initiatives including the establishment of a Re-search & Technical Support Division (RTSD) and the PLUSRonda Mobile Reporting System (PROMPTS).

The establishment of the RTSD was thus confirmation of PLUS's commitment towards research excellence and it has been tasked with intensifying the company's research efforts as well as to market the fruits of these labours. Although at present these efforts are mainly focused on products and processes that will improve operational efficiency, plans are underway for these to be extended to other areas of business.

Through the efforts of the RTSD, PLUS is able to maintain and improve upon its position as one of the leading toll expressway operators in the world. As such, since its introduction, the division has taken oversight of the Database Management Department and is also working on improving the Total Expressway Maintenance Management System (TEMAN) - which is used to integrate and coordinate the maintenance and management of its expressways.

The introduction of PROMPTS has helped enhance the link between the TMC and the PLUSRonda team, thus ensuring a smoother coordination between the system and the team on the highways. Along with the successful integration of the TMC with Region Communication Centres, PLUS has been able to respond even quicker to problems and incidents on the expressways.

Innovations in technology are just one fundamental step in achieving success. At the end of the day, a company has to invest in its people - its staff - in order to say ahead. Needless to say, PLUS has done just that and human capital development is an important part of its business process.

This is reflected in the company adopting Six Sigma methodology to enhance staff performance, while the PLUS Training Centre helps enhances the motivation, character, and skills of the staff as well as give them training in IT and English proficiency. It is therefore no surprise that in 2008, PLUS achieved a highly laudable score of 85% in the Employee Climate Survey in 2008.

Making an impact

From the above, we can see that PLUS is a company that is focused on people - from its customers to its staff. Thus it is only natural that the two core focuses of its corporate social responsibility (CSR) programme in 2008 were in community involvement and education - with the latter concentrating particularly on road safety awareness.

Under the Respect Your Limits campaign in 2008, an attempt was made to raise awareness of safe loading and driving amongst those operating heavy vehicles. As such 1,000 drivers went for seminars organised by PLUS, the Jabatan Kesalamatan Jalan Raya (JKJR - The Road Safety Department), and the Malaysian Institute of Road Safety Research.  Also, in the same year, an MOU was signed with the JKJR to create safe driving programmes and roll them out to the public. As such 30,000 guidebooks on safe driving were printed and distributed to schools and at toll plazas.

While safety is one of the main priorities for PLUS's CSR, it is also heavily involved in community development. This is reflected in several initiatives undertaken last year such as the Rebung Project - where 400 student leaders from MARA Junior Science colleges were given team-building and integrity exercises. Further community building efforts include visits to orphanages and performing community service, which in turn have helped more people become aware of what PLUS does.

It is hard to imagine what travel across the country
before the advent of the expressways. Not only has travel time
been cut down exponentially, the safety of drivers have also been enhanced
as the roads are in good condition and are brightly lit, while RSAs and
lay-bys ensure that those who are tired can have some rest and refreshments.
If time equals money,then PLUS has definitely helped put much back into our pockets.