KERETAPI Tanah Melayu Bhd (KTMB) should focus on transporting more cargo as a way to boost revenue and stem its financial bleeding, said Railwaymen Union of Malaysia (RUM) president Razak Md Hassan.

The government-owned rail operator will incur more losses if there are no improvements to its operational structure, which focuses on passenger services, he told The Malaysian Insight.

KTMB is expected to suffer losses of about RM100 million for 2019 as its operations are not profitable, adding further to its accumulated losses of RM2.83 billion as of 2018.

“Our fares are stagnant and are not bringing in revenue, as fares and operations come under the purview of the government.

“If we have more locomotives for cargo, then we will be able to generate revenue.”

Razak said total revenue generated from cargo for 2018 was RM128 million.

“The cargo trains are doing an average of 30 trips a day. Last year alone, they carried six million tonnes of goods.

“If we have 30 more new trains with 1,200 cars for cargo then we can generate more than RM260 million,” said the head of the RUM, which represents 3,500 members nationwide.

Razak said the union’s proposal was submitted to the previous government but to no avail.

The Auditor-General’s Report 2018 Series 2, released in December, attributed KTMB’s accumulated losses in part to the lack of freedom to make its own decisions on operations and use of assets.

“This indirectly contributes to KTMB’s less stable financial position, as it relies solely on train tickets. KTMB is also bound by government policy when it comes to setting train fares,” Razak said.

The audit found that inter-city and commuter train services recorded losses of between RM40 million and RM77.8 million in the period between 2016 and July 2018.

KTMB currently has 65 trains, of which 36 are in use and 16 of these are for cargo services.

The remaining 29 trains are either under maintenance or repair, or in need of overhaul.

Razak urged the Ministry of Finance, Transport Ministry and KTMB board to consider the union’s proposal for more trains, especially for cargo services.

“We understand that it will be difficult for the current government to assist due to the economy.

“One of our suggestions is to lease trains from other countries. Another way is to have a smart partnership with the private sector.

“However, if any deal is to be made, KTMB must have 51% of the agreement.

“KTMB must also be the sole operator and we reject any proposal for a second operator,” he added.

Razak said the RUM fully supports new KTMB chief executive Kamarulzaman Zainal, who was appointed last October and hoped he could bring about change.

“We have raised the issue with Kamarulzaman and he also has very good ideas to improve KTMB.

“We also want to remind the board not to be complacent and support the chief and his proposals for change.” – January 18, 2020.