The Railway Assets Corporation (RAC) has taken a significant step towards better optimisation of limited resources by refurbishing KTM Bhd's fleet of old rolling stock for cargo operations, instead of relying fully on outright purchases.
In a contract exchange ceremony in Putrajaya on Friday (Mar 15), Transport Minister Anthony Loke said RAC would be roping in the private sector to refurbish 44 diesel locomotives.
00:52 which will provide a huge boost to food transportation operations, where the request for this transportation mode will show positive improvement.
01:04 The amount of food traffic and containers operated by KTMB shows an increase of 63.3% from 198,897 TEU,
01:18 in 2020 compared to 324,764 TEU in 2022.
01:26 Although the government has sought financial support from KTMB to provide MRO services
01:34 for rolling stock, the high demand from users has increased the amount of assets.
01:43 In addition, KTMB has asked the government to implement the possibility of buying new locomotives
01:51 and services provided by the abandoned wagons.
01:55 In this regard, RISC as a manager and asset owner has launched a new initiative known as the Rolling Stock Strategy.
02:05 Through this initiative, abandoned locomotives and wagons will be repaired and reused by private companies.
02:15 The main objective of this Rolling Stock Strategy is to improve cargo operations in Malaysia
02:22 by reducing the cost of new rolling stock to provide an expensive rail transportation system.
02:29 The main objective of this strategy is to place the necessary rolling stock dynamics for the entire rail industry for 30 years.
02:38 The goal is to optimize the mobility of the rail industry, availability and reliability of cargo transportation operations.
02:47 Through the contract that has been signed on 19 February 2024, SMH Rail will repair 44 abandoned locomotives.
02:58 After the repair of these abandoned locomotives is completed,
03:01 all of these locomotives can be reused for cargo operations for a 25-year period.
03:08 The exchange of 256 wagons of RISC wagons, which are still low in capacity,
03:14 with wagons that can carry heavier loads, can help KTMB to generate higher revenue.
03:22 In 2023, KTMB will generate Rp112 million from cargo operations,
03:29 which is 23.3% of the total revenue.
03:33 I am confident that RISC's vision will emerge as a pioneer in the transformation of rail assets and services in 2030.
03:42 Many other initiatives will be introduced by RISC
03:46 for the purpose of strengthening the rail sector with support from the cargo and air sector operators.
03:54 So, I once again congratulate RISC and SMH Rail on this contract.
04:06 We will ensure that all of the decisions we make will be based on the best of our knowledge and the best of our skills.
04:21 I am confident that RISC has implemented a comprehensive and professional assessment.
04:29 I have also ordered the KSU to ensure the continuous assessment
04:37 so that we no longer want any contracts that do not benefit the government.
04:43 So, I hope that SMH Rail, which has been given confidence in this project or contract,
04:50 can carry out its responsibility well.
04:53 We want to say that the company's profits will be paid.
04:59 So, I want to give a statement first.
05:02 We hope that this responsibility can be carried out properly.
05:08 So, I hope this is a challenge to whichever companies that want government contracts,
05:14 do your work well.
05:16 As far as the current government is concerned, you do not need to know the minister.
