Cargo transition hinges on infrastructure upgrades, says Loke
PETALING JAYA: Much work remains as the government aims to move the needle on shifting cargo from roads to rail – which currently stands at a paltry 1%.
In a press conference after chairing a National Logistics Task Force meeting in Putrajaya last October, Transport Minister Anthony Loke said the government aims to have at least 10% of freight be moved via rail following improvements under the 13th Malaysia Plan (2026-2030) that was unveiled last July.
The move from roads to rail is expected to confer a variety of benefits such as reducing the number of vehicles, road accidents and increasing sustainability by reducing the use of fossil fuels.
He said several improvements will be made to the country’s rail infrastructure to facilitate this shift that is necessary to address traffic congestion, reduce the rate of accidents involving heavy vehicles and support the sustainability agenda.
“This initiative aims to create a more efficient, safe, sustainable logistics ecosystem that also lowers the cost for logistics industry players when rail becomes another competitive option,” he said.
When contacted, the Association of Malaysian Hauliers (AMH) said it fully supports the Government’s policy to promote a more balanced and sustainable modal share between road and rail freight, including the strengthening of enforcement against overloading on roads.
“AMH agrees that rail transport plays an important strategic role in moving heavy and long-distance cargo efficiently while reducing road congestion, infrastructure wear and environmental impact,” said Mohd Azuan Masud, AMH secretary general.
“In particular, AMH had expressed its full support during the last National Logistics Task Force Meeting, where the importance of enhancing rail freight capacity was strongly emphasised.”
AMH pointed out that a credible rail infrastructure is especially critical in southern Johor, where cargo volumes through Port of Tanjung Pelepas, Pasir Gudang Port (also known as Johor) and surrounding industrial zones continue to grow rapidly.
KTM Bhd (KTMB) is the sole operator of the 71km single-track that is dedicated for cargo connecting PTP with Pasir Gudang Port.
“The region is in urgent need of stronger rail connectivity and capacity to support long-haul cargo distribution, reduce pressure on highways, and improve overall logistics efficiency,” said Azuan, adding that it is also important to recognise that rail and road transport serve complementary roles within Malaysia’s logistics ecosystem.
AMH said rail is suitable for long-distance and high-volume cargo movements between major hubs.
Road transport, meanwhile, is essential for first-mile and last-mile movements, particularly for container movements between ports, depots, factories and warehouses, many of which do not have direct rail access.
“As such, any transition towards greater rail utilisation must be supported by a balanced and integrated infrastructure strategy, including expansion of rail freight infrastructure and inland terminals, increased freight train capacity and service frequency, as well as improved integration between ports, rail operators and logistics hubs,” said AMH.
Meanwhile, KTMB has seen an uptick in demand for its cargo services.
“We are encouraged by the positive momentum recorded in January 2026, where road-to-rail volumes increased by 23.5% compared to the same period last year.
“This strong year-on-year growth reflects improving market acceptance and continued collaboration with our customers,” said KTMB in a statement to The Star, where it also acknowledged current operational constraints.
These include the ongoing Klang Valley Double Track rehabilitation, along with nearly similar work along the East Coast Line (from Gemas to Tumpat) that temporarily limit network capacity.
“While locomotive capacity is being progressively enhanced through leased units, infrastructure readiness remains the primary enabler for sustained volume growth.
“Additional locomotives will yield optimal results once network capacity is fully stabilised and access windows are expanded,” said KTMB, which maintains that its fundamentals remain strong.
“With infrastructure upgrades nearing completion and capacity enhancements underway, we are confident that the pace of cargo migration from road to rail will accelerate.”
