PUTRAJAYA: Keretapi Tanah Melayu Bhd (KTMB) is set to acquire 62 passenger train sets through a rolling stock leasing agreement between China and Malaysia, aimed at optimising rail services and addressing cost challenges.
Transport Minister Anthony Loke said this initiative, which is expected to cost RM10.7 billion over the first phase from 2024 to 2027, will be financed through payments spread over 30 years.
"The government has invested billions of ringgit in upgrading rail infrastructure, yet track utilisation in Malaysia currently stands at only 30 per cent," he said during a press conference at the Transport Ministry today.
The deal includes 36 Electric Multiple Unit (EMU) three-car sets, 12 EMU six-car sets, and 14 Diesel Multiple Unit (DMU) six-car sets.
Loke said that the goal was to increase track utilisation to 45 percent by 2027.
"The actual cost would be finalised after negotiations via the government-to-government cooperation with the republic are concluded hopefully in the next few months.
"Rolling stock procurement involves a huge capital expenditure and a lengthy process before the coaches can be delivered, in addition to repair and maintenance costs," he said.
He added these issues would be addressed through the leasing method, describing it as a major policy shift.
Loke expressed hope that this initiative would enhance the availability and reliability of the trains and increase usage, while also managing the financial aspects of the rail services.
"Our rail tracks can actually accommodate more trains, but we don't have enough coaches.
"I know, some commuters complain that they have to wait for an hour for KTM komuter, while the KL-North ETS tickets are usually sold out on weekends," he said, adding that there were currently 68 passenger train sets servicing KTMB.
He said almost 90 per cent of passenger trains in KTMB's service network were manufactured by China Railway and Rolling Stock Corporations (CRRC).
Among the terms for the leasing deal were majority shareholding by the Malaysian government in the CRRC rolling stock centre in Batu Gajah, Perak; transfer of technology and employment of local talents, he said.
He said it would also cover maintenance, repair and operations (MRO) throughout the leasing period.
"Scheduled maintenance by the original equipment manufacturer (OEM) will improve the availability and reliability of the train sets; and ensure more efficient and safe train operations for the people."