By Sharen Kaur
KUALA LUMPUR: A former senior staff member of Keretapi Tanah Melayu Bhd (KTMB), Sarbini Tijian, has been appointed as the new head to help the national railway company return to the black.
Sarbini, who was KTMB general manager for intercity service strategic business unit and executive vicepresident (business), has been appointed company president and chief executive officer (CEO) by the Finance Ministry effective May 1. He will start work tomorrow.
Sarbini replaces Datuk Elias Kadir, whose contract ended last Thursday.
KTMB's debt had risen to more than RM2 billion despite attempts to cut cost and increase revenue.
Elias had faced opposition from the Railway Union of Malaya, which has more than 5,000 members.
"There have been many attempts to revive KTMB without the need to privatise. KTMB needs to improve its overall operation to become a profitable entity. A substantial amount is needed to upgrade the tracks, coaches and locomotives, as well as the signalling and communications system to operate more efficiently," said a source.
"Sarbini may have to tackle several issues at the start of his term before anything can be resolved in KTMB. He has the knowledge and experience, as well as support from KTMB."
Since KTMB's corporatisation in 1992, its audited collective revenue as of December 31 2013 was RM7.4 billion.
However, during the same period, KTMB recorded collective losses amounting to RM2.5 billion.
KTMB chairman Datuk Nawawi Ahmad told Business Times recently that the company needed a turnover of RM650 million to RM700 million to break even.
Its operating revenue of RM137.80 million in 2013 was lower than its RM550.70 million operating cost, mainly due to low ridership, tonnage, tariff and charge rate.
Last year, KTMB recorded a revenue of RM370 million while losses were about RM80 million.
KUALA LUMPUR: A former senior staff member of Keretapi Tanah Melayu Bhd (KTMB), Sarbini Tijian, has been appointed as the new head to help the national railway company return to the black.
Sarbini, who was KTMB general manager for intercity service strategic business unit and executive vicepresident (business), has been appointed company president and chief executive officer (CEO) by the Finance Ministry effective May 1. He will start work tomorrow.
Sarbini replaces Datuk Elias Kadir, whose contract ended last Thursday.
KTMB's debt had risen to more than RM2 billion despite attempts to cut cost and increase revenue.
Elias had faced opposition from the Railway Union of Malaya, which has more than 5,000 members.
"There have been many attempts to revive KTMB without the need to privatise. KTMB needs to improve its overall operation to become a profitable entity. A substantial amount is needed to upgrade the tracks, coaches and locomotives, as well as the signalling and communications system to operate more efficiently," said a source.
"Sarbini may have to tackle several issues at the start of his term before anything can be resolved in KTMB. He has the knowledge and experience, as well as support from KTMB."
Since KTMB's corporatisation in 1992, its audited collective revenue as of December 31 2013 was RM7.4 billion.
However, during the same period, KTMB recorded collective losses amounting to RM2.5 billion.
KTMB chairman Datuk Nawawi Ahmad told Business Times recently that the company needed a turnover of RM650 million to RM700 million to break even.
Its operating revenue of RM137.80 million in 2013 was lower than its RM550.70 million operating cost, mainly due to low ridership, tonnage, tariff and charge rate.
Last year, KTMB recorded a revenue of RM370 million while losses were about RM80 million.
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