KUALA LUMPUR – The Malaysian government has announced plans to boost its fleet of passenger trains through a leasing arrangement, facilitated by a government-to-government (G2G) agreement between Putrajaya and Beijing.
Transport Minister Anthony Loke said that, as part of this policy, an additional 62 passenger train sets will be acquired at an estimated cost of RM10.7 billion. This expenditure will be spread over a 30-year period, with Phase 1 of the policy running from this year until 2027.
Loke noted that the precise cost of the leasing arrangement will be determined upon the completion of negotiations with the Chinese government.
The leasing will involve the China Railway and Rolling Stock Corporation (CRRC), a state-owned Chinese enterprise that already supplies nearly 90% of the passenger trains used by Keretapi Tanah Melayu Berhad (KTMB).
A key condition of the leasing agreement will see Malaysia becoming the majority shareholder in CRRC’s Stock Centre in Batu Gajah, Perak, or another mutually agreed-upon entity.
“We (Malaysia) want to be part of the assembly factory as well, as it is 100% owned by the Chinese at the moment. Under this agreement, we are taking over 51% of the facilities in Malaysia
“Secondly, the supplier company needs to fulfil the condition of at least 40% local content requirement, technological transfers and involvement of the local workforce.
“We want a cooperation where there will be technological transfers and that locals are trained to learn about this (railway) technology,” Loke said in a joint press conference held with Economy Minister Rafizi Ramli.
The Transport Minister said that the 62 additional train units comprise 36 sets of Three Car Set (3CS) Electic Multiple Unit (EMU), 12 sets of Six Car Set (6CS) EMUs, and 14 sets of Six Car Set (6CS) Diesel Multiple Unit (DMU).
Loke said that the acquisition of the train units using the leasing method comes with several benefits such as scheduled maintenance that is done in a structured way by the original equipment manufacturers (OEMs), which helps ensure a safe and efficient train service.
He also said that acquiring train units through leasing is much faster than the traditional acquisition process, and could help the government plan a much-organised cash flow.
Loke also emphasised that the acquisition of these 62 additional train units is part of the government’s bid to improve the country’s public transportation service as it is well known that ETS and KTM Komuter services are faced with challenges in terms of availability and reliability.
He said that there are only 68 sets of passenger trains that are reliable, and he is concerned that the KTMB’s service quality would decline if there are no improvements made.
“Therefore, there is an urgent need to add the number of passenger trains for every service route apart from making sure that every passenger train unit is in good condition all the time.’’
Improving public transportation in three key areas
Meanwhile, Rafizi said that Putrajaya is considering improvements for the country’s public transportation service in three key areas – bus services, rail networks and integrated “first and last mile” connectivity.
For the bus services, the government will work on expanding the service’s connectivity and coverage, improving its availability and consistency, while introducing dedicated bus lanes along with the Kuala Lumpur Autonomous Rail Transit (KL ART) and Bus Rapid Transit (BRT) systems.
As for the rail network, Rafizi said that it would be expanded to improve the rail service as well as “enhance passengers’ experience.”
“Additionally, the government will upgrade bus stops, pedestrian walkways, and introduce Demand-Responsive Transit (DRT), an integrated journey planner, and micro-mobility options to ensure smoother and more efficient connectivity,” he said in the press conference.
The economy minister also said that in order to achieve 80% railway track utilisation in the peninsula by 2030, the government has developed a phased plan to increase passenger train services across the country from this year to 2030, targeting the operation of 299 passenger trains nationwide.
He said that the initiatives identified in this plan will be implemented in phases, to ensure an orderly approach aligned with the country’s economic and development goals. – August 14, 2024
