Photo: KAMARUL ARIFFIN/The Star
PETALING JAYA: A total of 450 new locomotive wagons are now available to be leased for cargo transportation as part of Keretapi Tanah Melayu Berhad’s (KTMB) and Railway Assets Corporation’s (RAC) new pay-as-you-use leasing model, says Anthony Loke.
The Transport Minister said the wagons comprised 246 units owned by RAC and 204 units owned by KTMB.
Each of the new wagons will come with a 20-tonne axle load capacity and the ability to carry up to 60 tonnes per wagon.
He said the new wagons and leasing model were a significant step towards making rail, especially freight operations, a more sustainable and competitive mode of cargo transportation for the country.
He also revealed that this comes after a pay-as-use contract was signed between homegrown rail equipment manufacturer SMH Rail and RAC last year.
As part of this contract, Loke said that 44 old locomotives from KTMB would be sold to SMH Rail before being refurbished and leased back to KTMB for 25 years along with another six new locomotives.
“The leasing programme will benefit local vendors working with SMH Rail in carrying out maintenance, repair, and overhaul (MRO) activities throughout the lease period.
“This will in turn enhance the capabilities of the local industry, strengthen the national economy, and accelerate the growth of the rail transport sector.
“This also demonstrates how public-private sector collaboration can drive economic growth without a complete reliance on government funding,” Loke said in a speech during the launch ceremony of the new wagons at Sentul KTM station on Thursday (Feb 27).
He added that the government would explore additional methods to expand locomotive and wagon leasing to more private industry sectors, aiming to optimise the utilisation of rail track capacity, which is currently at only 30%.
‘Improving this utilisation rate will ensure that government investments in rail infrastructure are fully maximised as a 40-wagon freight train can replace the workload of up to 80 lorries.
“This will reduce traffic congestion with less trucks on the road, enhancing road safety while also cutting carbon emissions,” he said.
