Malaysia has decided to lease trains from China for KTM. Transport minister Anthony Loke said that the lease would be implemented through a government-to-government (G2G) mechanism, and Phase 1 – which is from 2024 to 2027 – will see Malaysia acquiring 62 new passenger train sets at an estimated cost of RM10.7 billion. The actual cost will be finalised soon after negotiations with China.
Loke said the 62 new passenger train sets in Phase 1 will consist of 36 three-car set (3CS) electric multiple unit (EMU) sets, 12 six-car set (6CS) EMU sets and 14 6CS diesel multiple unit (DMU) sets. At present, almost 90% of the passenger trains in the KTM network are manufactured by the state-owned China Railway and Rolling Stock Corporations (CRRC).
Why lease instead of an outright purchase? “The advantage of this new method is that the leasing cost covers all levels of maintenance, repair, and overhaul (MRO) by the entity supplying the trains for the lease period. This will directly ensure that train operations are more efficient and safer for the convenience of the public,” Loke explained, reported by Bernama.
The Seremban MP added that scheduled maintenance carried out in a structured manner by the OEM would ensure the availability and reliability of the train sets at an excellent level. He added that leasing procurement can also be done more quickly compared to traditional train procurement.
“In addition, the leasing method will help the government manage cash flow more efficiently,” Loke said, adding that the total cost is to be paid in instalments over a 30-year lease period.
He said that it is important to increase the number of trains, of which only 68 passenger train sets are operating nationwide at present. “Besides improving the quality of railway services, track utilisation is also expected to increase from the current 30 to 45% by 2027. Without immediate improvements, the quality of KTMB’s network services is at risk of deteriorating.
“Therefore, there is an urgent need to increase the number of passenger trains for each service route offered, while ensuring that each passenger train is in good condition at all times,” Loke said.
At the same press conference, economy minister Rafizi Ramli stressed on the importance of public transport. “To achieve 80% railway track utilisation in Peninsular Malaysia by 2030, the government has outlined plans to gradually increase passenger train services in Malaysia to 299 trains by 2030. An efficient public transportation system is not only crucial for reducing congestion and improving environmental sustainability, but it is also a key driver of economic growth,” he said.
Looking to sell your car? Sell it with Carro.
