By Sharen Kaur
sharen@nstp.com.my
Published in NST on January 4, 2013
KUALA LUMPUR: Syarikat Prasarana Negara Bhd aims to be profitable for the first time next year, following expected reduction in operating cost, and increasing revenue via diversified resources, says its chief.
Prasarana wants to improve its non-fare revenue from eight per cent to 20 per cent by 2017. To achieve that, it will be expanding its property development activities.
It now has two joint venture (JV) projects in Kuala Lumpur with Crest Builder and Naza TTDI worth a combined RM1.2 billion. It is planning a new development in Brickfields worth around RM1.2 billion, and a RM700 million project in Ara Damansara, where its JV partner is TRC Sdn Bhd.
Set up in 1998 and operational from September 1 2002, Prasarana operates 170 bus routes within Klang Valley, Penang and Kuantan under RapidKL, RapidPenang, and RapidKuantan, respectively. It also owns and operates the Ampang and Kelana Jaya Light Rail Transit (LRT) lines, and the KL Monorail.
Group managing director Datuk Shahril Mokhtar said the bus operation has been loss-making since the start, with only 10 per cent of the routes making money.
Last year, although bus revenue was RM180 million, the operating cost was RM280 million. The rail business however, recorded profit of about RM50 million on revenue of RM240 million, Shahril said.
"We have spent up to RM10 billion in the last 10 years. How do we make money when we pay interests of almost RM400 million a year to service our debts of RM9 billion? The money comes from Prasarana and not the government.
"We want to be profitable which is why we are segregating the businesses to be more focused and result-orientated," he said yesterday at the unveiling of its new organisation structure and five-year Go Forward Plan (GFP) 2.0.
The new organisation structure includes the setting up of four new subsidiaries, each headed by a chief executive officer (CEO). This confirms a Business Times report yesterday.
The subsidiaries are Rapid Rail Sdn Bhd, Rapid Bus Sdn Bhd, Prasarana Integrated Management & Engineering Solution Sdn Bhd and Prasarana Integrated Development Sdn Bhd.
Shahril said each CEO will be responsible to improve the quality of services for their respective entity, and explore new business opportunities.
"We are targeting a positive and sustainable Ebitda (earnings before interest, taxes, depreciation, and amortisation) from this year. We plan to sell more MyRapid cards and optimise overall cost.
"From 2015, we will plan for network expansion to cater for the Mass Rapid Transit and new monorail developments. We may also take our rail network to other states," Shahril said.
sharen@nstp.com.my
Published in NST on January 4, 2013
Prasarana wants to improve its non-fare revenue from eight per cent to 20 per cent by 2017.
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Prasarana wants to improve its non-fare revenue from eight per cent to 20 per cent by 2017. To achieve that, it will be expanding its property development activities.
It now has two joint venture (JV) projects in Kuala Lumpur with Crest Builder and Naza TTDI worth a combined RM1.2 billion. It is planning a new development in Brickfields worth around RM1.2 billion, and a RM700 million project in Ara Damansara, where its JV partner is TRC Sdn Bhd.
Set up in 1998 and operational from September 1 2002, Prasarana operates 170 bus routes within Klang Valley, Penang and Kuantan under RapidKL, RapidPenang, and RapidKuantan, respectively. It also owns and operates the Ampang and Kelana Jaya Light Rail Transit (LRT) lines, and the KL Monorail.
Last year, although bus revenue was RM180 million, the operating cost was RM280 million. The rail business however, recorded profit of about RM50 million on revenue of RM240 million, Shahril said.
"We have spent up to RM10 billion in the last 10 years. How do we make money when we pay interests of almost RM400 million a year to service our debts of RM9 billion? The money comes from Prasarana and not the government.
"We want to be profitable which is why we are segregating the businesses to be more focused and result-orientated," he said yesterday at the unveiling of its new organisation structure and five-year Go Forward Plan (GFP) 2.0.
The new organisation structure includes the setting up of four new subsidiaries, each headed by a chief executive officer (CEO). This confirms a Business Times report yesterday.
The subsidiaries are Rapid Rail Sdn Bhd, Rapid Bus Sdn Bhd, Prasarana Integrated Management & Engineering Solution Sdn Bhd and Prasarana Integrated Development Sdn Bhd.
Shahril said each CEO will be responsible to improve the quality of services for their respective entity, and explore new business opportunities.
"We are targeting a positive and sustainable Ebitda (earnings before interest, taxes, depreciation, and amortisation) from this year. We plan to sell more MyRapid cards and optimise overall cost.
"From 2015, we will plan for network expansion to cater for the Mass Rapid Transit and new monorail developments. We may also take our rail network to other states," Shahril said.
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