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.
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Good luck dealing with people that have very little respect to boundaries and agreements.
@newme I think you have mistaken China as India. I think the only country in the world that has border issues 360 degrees with ALL of its neighnbors is India. You don’t have to nlook far, just look at your nearest taman for any indian house especially the corner lot or end unit. Public walkway sure they will block it or use it as if it is theirs.
All races have their degenerates.
For example, your race has you.
Poor thing. This Clean King punya amoi kena ntr by bbc macha. Now he traumatized for life.
Open tender???
The wumaofication continues… and we wonder why they’re encroaching on our waters.
May I ask Lok Lok at what currency? What currency can you lock in for 30 years? haha
Instead of developing home grown Railway Engineering, development and manufacture. MY imports to run its trains for China. The local Indians ran the Sentul Railway Deport Workshop of decades and Indians in MY want to carry on that legacy. We DO NOT want to be hijacked or strangled by China at all. China has been accused of diverting corruption funds to local Politicians. The Rakyat Pays and Pays. STOP this and let us build out OWN Rail Industry
Anthony loke is fcking dumbass thats why. Our ‘big talk no action’ PM also a dissapointment
Did we read correctly..only 30% track utilisation currently after spending billions on the double tracking?
So,why the hell r we spending rm300 juta plus yearly for next 30 years?
Why worry current services will deteriorate ?Why r we paying salaries?Where r the auditors ? All getting salary increase and ‘biarlah,memang KTM ini macam mah”.
Perhaps,the 4 billion RM saved from diesel floatation is used to fix this issue,but most of rakyat dont benefit except during Raya or Christmas holidays.
The MRTs have 50 percent ridership.
Something is not ngam somewhere,Ahlokekor.Our national debt is 1.5 trillion Rm already.Dont keep spending like there is no tomorrow.
https://www.reuters.com/article/business/autos-transportation/china-commits-to-investing-nearly-39-bln-in-malaysia-pm-anwar-idUSL4N3671S2/
China commits to investing nearly $39 bln(RM173B) in Malaysia – PM Anwar
We have yet to see the above foreign investment come in and yet we are already going to pay RM10.7B.
1% =107,000,000… He and his cucu and cicit are all already saved… no need to study and no need to work!!
Should we get this contract from India, Japan or America instead? Lol. Japan project cost 3 times higher and they can;t even complete 5 km of train track in India after so many years. America does not even have high speed rail. Can you recommend who to give this contract other than China whom have the most advance and longest train tracks in the world? Please recommend
so according to your train of thoughts, you think only India, Japan or America have capability is it?
Do you know Norway, Germany also have train and tram infrasturcture
Loki is a panda in human suit loaned by the ccp to mesia
Leasing only why not make your own it’s not rocket science it’s just kereta api so many country can supply coach wheels tracks etc pelik
Come on! Build local expertise to ensure sustainability of our critical infra… we can build the the efficiency and the utilization capability ourselve.. prioritize local capability, if there are lazy or lousy then do something about not simply take the foreigner
Why don’t you open a company and build locally?
If Kini opens a company, he has to give 30% to your type and the HR manager/director has to be your type and then if the company successful must have partners of your type on the board…doing nothing but still gets paid!!
Bukan sbb tiada servis, tp takers tak cukup. Nak cover cost mcmana? Leasi g dahpasti kena byr. Cukup ke kewangan ktmb? Atau intentinally bankrup kan ktmb then leasing company boleh take over.m?
What’s the exit clause? And penalty for bad service?
We shouldn’t let average politician commit on our behalf such a long term contract without making the contract terms public.
62 sets brand new completed never used trains, right?
30 freaking years is too much time that can happen between 2 countries. How about this scenario; CCP encroaching Malaysian waters and provoking our Navy and cross the line. Are we still cowardly sending diplomatic protest notes to their embassy that they throw immediately in the bin? Scared of China would stopped their trains service interval and supply spare parts? We knew China had the upper hand in many, many government contract. Only idiots signed em gets their *cough* shares. We gets penalize of any breach of one sided contract. Stopped this government stripping away our sovereignty.
30 freaking years is too much time that can happen between 2 countries. How about this scenario; CCP encroaching Malaysian waters and provoking our Navy and cross the line. Are we still cowardly sending diplomatic protest notes to their embassy that they throw immediately in the bin? Scared of China would stopped their trains service interval and supply spare parts? We knew China had the upper hand in many, many government contract. Only idiots signed em gets their *cough* shares. We gets penalize of any breach of one sided contract. Stopped this government stripping away our sovereignty.
Hello Newme, absurdity.
Leasing from China could be a win-win solution. Through leasing from cost effective manufacturer we can improve the train service fast and economically.
What will happen to current team who are doing MRO? All lost of job?
RM10.7B in 30 years assuming MYR will be binding currency. It cost Almost RM 1 mil a day just to rent the car. What is the projected traffic and ticket sale?
Loke9.