KTMB Leases 62 New Train Sets for RM10.7 Billion From CRRC

The government unveiled a new strategy to enhance the Keretapi Tanah Melayu Berhad (KTMB) railway network by acquiring passenger train assets on lease. This was announced by Transport Minister Anthony Loke during a joint  press conference yesterday with Minister of Economy Rafizi Ramli.

Loke further added that this approach will be implemented through a government-to-government (G2G) mechanism between Malaysia and China, aiming to improve the quality of public transportation services.

Phase 1 of this initiative, scheduled from 2024 to 2027, involves the addition of 62 new passenger train sets at an estimated cost of RM10.7 billion, which will be paid in instalments over a 30-year lease period. The 62 trains include 36 three-car set of electric multiple unit (EMU) trains, 12 six-car set of EMU trains, and 14 six-car set diesel multiple unit (DMU) trains.

Currently, almost 90% of KTMB’s passenger trains are manufactured by China’s state-owned CRRC (China Railway and Rolling Stock Corporations).

Loke further mentioned that one of the key advantages of leasing is that the cost covers all levels of maintenance, repair, and overhaul (MRO) by CRRC. This strategy will work better after viewing the challenges faced by KTMB’s passenger trains, particularly the Electric Train Service (ETS) and KTM Komuter, in terms of availability and reliability.

Presently, only 68 passenger train sets are operational nationwide. Without immediate improvements, the quality of KTMB’s services could further deteriorate.

Meanwhile Rafizi, in support of this initiative, stated that his ministry is working closely with the Ministry of Transport to transform Malaysia’s public transport landscape, with a specific focus on the Klang Valley.

The government aims to increase passenger train services across Malaysia to 299 trains by 2030, with a goal of achieving 80% railway track utilisation in Peninsular Malaysia by the same year. This will not only reduce congestion and improve environmental sustainability but also act as a key driver of economic growth.

Source: The SUN