THE Malaysia Rail Industry Corporation (Maric) urges the government to ensure participation of local rail industry players in the recent plans for Keretapi Tanah Melayu Berhad's acquisition of 62 new passenger train assets from China Railway Rolling Stock Corporation.
The move was recently announced by Transport Minister Anthony Loke and includes comprehensive maintenance and repair operations at a cost of RM10.7 billion, to be paid in instalments over a 30-year lease period.
Maric president Datuk Mohd Yusoff Sulaiman said: "The rail industry players welcome the new business model which will increase efficiency of delivery, while being a cost-effective solution to meet the increasing demand for reliable and affordable public transportation."
Nevertheless, he believes that a deliberate and purposeful plan to utilise local capacity should be crafted as part of the contracting strategy.
"This long-term project spans a 30-year time frame and incorporates the comprehensive rail service value-chain. It is an invaluable opportunity for industry players to build capacity and technological deepening through a project of such significance.
"Failure to do so will trap us in a loop of dependence on foreign technology, set to repeat the same mistakes of not only not being able to construct, but also to consistently run into problems with maintenance and systems upgrade," he added.
A STRATEGIC INDUSTRY
China has expanded its rail presence in Southeast Asia through its Belt and Road Initiative, launched over a decade ago.
This includes the Laos-China Railway which opened in 2021, and Indonesia's bullet train connecting Jakarta to Bandung which began operating in Oct 2023.
It is a clear signal of the increasing centrality of railway systems as a strategic industry in the Asia Pacific region, not just on the periphery of transportation and logistics.
"Maric looks forward to working together with the Rail Asset Corporation to determine the best fit of local industry players with the end-to-end project value-chain to ensure effective participation.
"This enables the appointment of nominated subcontractors, for example, due to technological match as well as a proven track record. To reflect the serious intent of the exercise, audit and monitoring must be regularly scheduled," he said.
Maric brings together more than 60 rail industry players and more than 3,000 personnel across a wide range of activities including construction, rehabilitation, maintenance as well as repair and overhaul.
It models itself after the Korean Hyundai – Rotem as a national flagship for products and services and consolidates the collective competencies of rail payers in Malaysia.
Maric advocates a coordinated approach to rail industry development and offers a single window of excellence in providing quality services across the rail industry value chain.
"We believe that the members' extensive experience will enable them to effectively contribute to the success of the project. Their expertise has enabled them to undertake significant rail-based development in projects such the Kelapa Gading LRT, Ho Chi Minh Line 1 MRT and the Kuching Urban Transportation System (KUTS), among others," he added.