RAC embarks on journey towards financial stability
The Railway Assets Corporation (RAC) has taken a significant step towards better optimisation of limited resources by refurbishing KTM Bhd's fleet of old rolling stock for cargo operations, instead of relying fully on outright purchases.
In a contract exchange ceremony in Putrajaya on Friday (Mar 15), Transport Minister Anthony Loke said RAC would be roping in the private sector to refurbish 44 diesel locomotives.
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In a contract exchange ceremony in Putrajaya on Friday (Mar 15), Transport Minister Anthony Loke said RAC would be roping in the private sector to refurbish 44 diesel locomotives.
Read more at https://shorturl.at/azRS5
WATCH MORE: https://thestartv.com/c/news
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Transcript
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00:52 which will provide a huge boost to food transportation operations, where the request for this transportation mode will show positive improvement.
01:04 The amount of food traffic and containers operated by KTMB shows an increase of 63.3% from 198,897 TEU,
01:18 in 2020 compared to 324,764 TEU in 2022.
01:26 Although the government has sought financial support from KTMB to provide MRO services
01:34 for rolling stock, the high demand from users has increased the amount of assets.
01:43 In addition, KTMB has asked the government to implement the possibility of buying new locomotives
01:51 and services provided by the abandoned wagons.
01:55 In this regard, RISC as a manager and asset owner has launched a new initiative known as the Rolling Stock Strategy.
02:05 Through this initiative, abandoned locomotives and wagons will be repaired and reused by private companies.
02:15 The main objective of this Rolling Stock Strategy is to improve cargo operations in Malaysia
02:22 by reducing the cost of new rolling stock to provide an expensive rail transportation system.
02:29 The main objective of this strategy is to place the necessary rolling stock dynamics for the entire rail industry for 30 years.
02:38 The goal is to optimize the mobility of the rail industry, availability and reliability of cargo transportation operations.
02:47 Through the contract that has been signed on 19 February 2024, SMH Rail will repair 44 abandoned locomotives.
02:58 After the repair of these abandoned locomotives is completed,
03:01 all of these locomotives can be reused for cargo operations for a 25-year period.
03:08 The exchange of 256 wagons of RISC wagons, which are still low in capacity,
03:14 with wagons that can carry heavier loads, can help KTMB to generate higher revenue.
03:22 In 2023, KTMB will generate Rp112 million from cargo operations,
03:29 which is 23.3% of the total revenue.
03:33 I am confident that RISC's vision will emerge as a pioneer in the transformation of rail assets and services in 2030.
03:42 Many other initiatives will be introduced by RISC
03:46 for the purpose of strengthening the rail sector with support from the cargo and air sector operators.
03:54 So, I once again congratulate RISC and SMH Rail on this contract.
04:06 We will ensure that all of the decisions we make will be based on the best of our knowledge and the best of our skills.
04:21 I am confident that RISC has implemented a comprehensive and professional assessment.
04:29 I have also ordered the KSU to ensure the continuous assessment
04:37 so that we no longer want any contracts that do not benefit the government.
04:43 So, I hope that SMH Rail, which has been given confidence in this project or contract,
04:50 can carry out its responsibility well.
04:53 We want to say that the company's profits will be paid.
04:59 So, I want to give a statement first.
05:02 We hope that this responsibility can be carried out properly.
05:08 So, I hope this is a challenge to whichever companies that want government contracts,
05:14 do your work well.
05:16 As far as the current government is concerned, you do not need to know the minister.
05:23 You just need to know how to do your work.
05:25 That's important.
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