KTMB lays tracks to cut RM2.5bil in losses

KERETAPI Tanah Melayu Bhd (KTMB) is considering a review of its fares and halting non-profitable routes to reverse losses amounting to RM2.5bil.

Deputy Finance Minister Datuk Ahmad Maslan said the measures were being considered but a final decision had yet to be made.

“Since KTMB’s corporatisation in 1992, its audited collective revenue as of Dec 31 last year was RM7.4bil.

“However, during the same period, KTMB recorded collective losses amounting to RM2.5bil,” he said when replying to a question raised by Dr Lee Boon Hye (PKR-Gopeng).

He said factors for the losses were due to low fares of 10.8 sen per kilometre for its commuter service compared to 15 sen charged by LRT and high fuel and maintenance costs.

To address this, he said a transformation plan was implemented recen­tly to turn around KTMB’s losses.

“This includes a review of fares for its passenger and cargo trains, which has yet to be decided.

“There may also be a rationalisation of train service timetables and a likelihood of stopping services which are not profitable,” he added.

He also said KTMB was generating revenue through advertisements and was also considering the development of its land, such as in Japan, Singapore and Hong Kong.

Following implementation of such measures, he said KTMB was expected to make a profit of RM33.1mil next year.

He added that KTMB’s annual losses were reduced from RM185mil to RM80mil in 2013.

Ahmad also clarified that KTMB’s action to sack Railwaymen’s Union of Malaya committee members following a picket on May 9 was due to their grouses against an individual rather than on work-related issues.

In the incident, some 400 railway workers picketed in front of the KTMB head office in Jalan Hishammuddin accusing KTMB president Datuk Elias Kadir of ineffective leadership.