CEO Morning Brief

Transport Ministry to Sharply Raise Railway Track Utilisation Rate to 80% by 2030

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Publish date: Tue, 21 Jan 2025, 10:24 AM
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TheEdge CEO Morning Brief

SEREMBAN (Jan 20): The government aims to increase the utilisation of railway tracks in Peninsular Malaysia to 80% by 2030 from the current 30%, Transport Minister Anthony Loke Siew Fook said.

More rolling stocks will be needed to achieve the target, and the government is currently discussing its options and plans, Loke told a press conference on Monday. “We have initiatives to add more” rolling stocks, he said.

A leasing agreement has been signed for Keretapi Tanah Melayu Bhd (KTMB) to have 62 train sets from China Railway Rolling Stock Corp, he said. On top of new trains, the existing fleet would need to be serviced with proper maintenance, repair, and overhaul, he noted.

Loke was speaking to reporters following the handover ceremony of the ETS Class 93 train to the Transport Ministry after its maintenance, repair, and overhaul. The overhaul was carried out by M Rail Technics Sdn Bhd (Railtec), a strategic joint venture between Destini Bhd (KL:DESTINI) and KTMB.

In 2022, Railtec was awarded maintenance contracts for two types of train sets totalling RM695 million, including 35 units of six-car set Class 92 and 10 electric train set Class 93, all operated by KTMB.

To date, six sets have been successfully maintained and returned to the Transport Ministry for operation by KTMB.

Loke to visit Thailand for discussions on enhancing rail network

Loke also announced that he will visit Bangkok, Thailand, in either March or April this year to further discuss strategic collaboration aimed at improving the rail network, particularly the Pan-Asian rail system, which connects China, Singapore, and all countries in mainland Southeast Asia.

“I will meet my counterpart” Prasert Jantararuangtong, who is also Thailand’s deputy prime minister, Loke said. “Thailand's cooperation and support are vital for the success of the pan-Asia rail network,” he added, stressing that the trains would not be able to travel north without their backing.

The pan-Asian rail network already exists, including the Asean Express, a cargo train service between Malaysia and China. However, he pointed out that its expansion has been limited due to several challenges, including customs issues and goods clearance procedures.

Loke had previously emphasised the pan-Asian rail link as a crucial alternative trade route between China and Southeast Asia, particularly in light of escalating tensions in the South China Sea, in an interview with This Week in Asia last November.

Source: TheEdge - 21 Jan 2025

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