KTMB mulls closing cargo services
Published on: Friday, April 28, 2017
Kuala Lumpur: Keretapi Tanah Melayu Bhd (KTMB) is considering to cease cargo services to certain companies which caused the company to lose tens of millions of ringgit in the last few years.Chairman Datuk Ir Nawawi Ahmad said KTMB said this was following the result of a study which showed that KTMB incurred losses due to factors such as imposing old charges to these companies, while it had to bear the increase in fuel cost and staff salary every year."KTMB suffers losses (cargo services) of RM54 million every year. However, last year it reduced to about RM20 million.
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"I found that out of 30 cargo trains in operations, only eight were profitable. Hence, KTMB has to take this action if we still fail to get at least a return on capital for this service this year," he told reporters at the KTMB Excellence Award Ceremony and the launch of its Vision and Mission here Thursday.Nawawi said KTMB had asked its management to discuss with these companies and find a solution."For example, a cement company which uses KTMB services record a profit of RM700 million but KTMB on the other hand incurs a loss of RM15 million for offering (cargo) services to the company," he added.Stay up-to-date by following Daily Express’s Telegram channel.
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"This would be done in stages and KTMB targets profit from non-rail businesses to increase to 30 per cent in five years. Towards this end, we will work with Railway Assets Corporation to develop main stations in the Klang Valley to develop Transit Orientated Development," he said. – Bernama
