By Sharen Kaur
PRIVATE railway operators could help loss-making Keretapi Tanah Melayu Bhd (KTMB) turn profitable, says Railwaymen Union of Malaya president Abdul Razak Md Hassan.
He said the operators should be allowed to use the rail network to move cargoes at a fee payable to KTMB.
This, he said, would help maximise utilisation of the rail network, in the country.
He said there is big demand for cross-border container movements as well as those of refrigerated container and cement cargoes.
Other untapped segments include the transport of automobile, structural and ore products and dangerous items such as oil and chemicals.
Abdul Razak said KTMB, as the sole operator, is unable to meet the demand of the existing cargo business due to a shortage of locomotives and flat wagons.
It is also unable to capture new business segments as it does not have an innovative financing method to move forward.
"KTMB is too dependable on government support.
"Private operators' innovative ways will explore cargo movement and make it feasible and profitable," he said recently.
Abdul Razak said the private railway operators could develop innovative ideas, technologies and cross-border cargo business to raise the market share for KTMB, which is now at three per cent.
The rest of the cargo in Malaysia is moved by air, sea and land transport operators.
According to him, the rail network in Malaysia is underserved in many areas.
"With multiple operators operating on the line and serving untapped business segments and areas, KTMB is able to earn revenues from fees and cargo movement.
"Both the public and private sectors could also enjoy new services at rates lower than other modes of transport.
"KTMB will remain KTMB, as a rail master. The mechanism and methodology of multiple operators must be decided by the board soon," said Abdul Razak.
The total length of the KTMB rail network after the dismantling of the line between Tanjong Pagar and Kranji in Singapore is 1,677km.
KTMB is the sole operator of the rail network and is responsible for the tracks, trains and infrastructure. It runs cargo, commuter and inter-city services.
It, however, has been registering losses since it was corporatised in 1992, though it did post net profits of between RM9 million and RM15 million from 1993 to 1995.
For fiscal year 2012, KTMB recorded a net loss of RM284 million on revenue of RM361 million.
He said the operators should be allowed to use the rail network to move cargoes at a fee payable to KTMB.
This, he said, would help maximise utilisation of the rail network, in the country.
He said there is big demand for cross-border container movements as well as those of refrigerated container and cement cargoes.
Other untapped segments include the transport of automobile, structural and ore products and dangerous items such as oil and chemicals.
Abdul Razak said KTMB, as the sole operator, is unable to meet the demand of the existing cargo business due to a shortage of locomotives and flat wagons.
It is also unable to capture new business segments as it does not have an innovative financing method to move forward.
"KTMB is too dependable on government support.
"Private operators' innovative ways will explore cargo movement and make it feasible and profitable," he said recently.
Abdul Razak said the private railway operators could develop innovative ideas, technologies and cross-border cargo business to raise the market share for KTMB, which is now at three per cent.
The rest of the cargo in Malaysia is moved by air, sea and land transport operators.
According to him, the rail network in Malaysia is underserved in many areas.
"With multiple operators operating on the line and serving untapped business segments and areas, KTMB is able to earn revenues from fees and cargo movement.
"Both the public and private sectors could also enjoy new services at rates lower than other modes of transport.
"KTMB will remain KTMB, as a rail master. The mechanism and methodology of multiple operators must be decided by the board soon," said Abdul Razak.
The total length of the KTMB rail network after the dismantling of the line between Tanjong Pagar and Kranji in Singapore is 1,677km.
KTMB is the sole operator of the rail network and is responsible for the tracks, trains and infrastructure. It runs cargo, commuter and inter-city services.
It, however, has been registering losses since it was corporatised in 1992, though it did post net profits of between RM9 million and RM15 million from 1993 to 1995.
For fiscal year 2012, KTMB recorded a net loss of RM284 million on revenue of RM361 million.
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