Breakthrough in overland transportation of Thai rice

A significant breakthrough in the transportation of rice from Thai by rail has been achieved, opening new possibilities for expansion in the role of KTM Bhd in the freight transportation but more importantly offering a more economical mode of transportation of rice. 

The maiden landbridge movement of rice by rail from Bangkok to Tanah Merah, Kelantan marked a new chapter in the transportation of Thai rice to Malaysia, which traditionally had been transported only by sea. 

This is significant breakthrough for KTM Bhd which has been trying to convince the government, particularly Ministry of Agriculture, to review a policy that prohibits the overland transportation of rice from Thailand. 

The policy, prohibiting the overland transportation of rice from Thailand was introduced more than three decades ago essentially to prevent smuggling of the commodity. 

The government had decreed that the transportation of rice (from Thailand) could only be made by sea. 

A complicated process of tendering contract was put in place with initially Kontena Nasional Bhd, as the government freight forwarder, disbursing contracts to local freight brokers to secure the shipping services for the carriage of rice from Thailand. 

Although the priority was to be given to Malaysian ships to carry the rice to local ports, often because of an indiscipline and errant market practices, the Malaysia-bound rice often sailed in Thai bottoms. 

The practice, not only caused leakages in the outflow of foreign exchange, but created problems of waste and pilferage arising from poor condition of shipments since the quality of Thai tonnage used to carry rice often did not meet expectation. 

Thus, the recent move by KTMB to offer transport rice overland by rail is seen offering an efficient and a more economical alternative. 

The first shipment of rice for Padi Beras Nasional arrived on 28, November, 2001 at the Tanah Merah railway station in Kelantan. 

Under the agreement between Malaysian government and Thai counterpart a shipment of 40 containers of rice weighing 800 tonnes was transported by PTP Landbridge (M) Sdn Bhd, the sole landbridge operator via emplyong the East Coast line. 

“Although it was only a trial run, KTM Bhd’s wagons can ferry up to 1,200 tonnes of rice each trip per week. However, KTM Bhd is capable of operating up to four trips from Bangkok to Tanah Merah in Kelantan per week if Padi Beras Nasional Bhd decides to use rail transportation of rice from Bankok,” said KTM Bhd’s general manager  (freight services), Abdul Razak Abdul Malek. 

KTM Bhd is confident that the landbridge service is the best alternative mode of transportation to move rice from Bangkok. 

The journey between Bangkok and Tanah Merah by rail would only take 40 hours compared to the all-water movement from Bangkok to Port Klang, which would take seven days.       

“After several discussions with Ministry of Agriculture and working very closely with the Ministry and Padiberas Nasional Bhd, KTM managed to get clearance form authorities to transport rice from Bangkok, Thailand via international landbridge operators,” he said. 

He said the efficacy of the rail transportation has been made all the more feasible with the regular scheduled the inter-state landbridge services linking Malaysia and Thailand. 

“Few years ago there were not even a single landbridge service between Malaysia and Thailand. But today we are operating a total of 28 landbridge train services in this sector per week,” said Radzak. 

There are four landbridge operators providing regular landbridge services. 

TS Transrail Sdn Bhd, Freight Management Sdn Bhd and TS Allied Sdn Bhd plying via Padang Besar to Lat Krabang, Bangsue and Mapta put in Thailand. 

PTP Landbridge Sdn Bhd operates via East Coast network though Sg Golok to inland destinations in Thailand. 

If approval is granted to employ rail transportation on a regular basis, KTMB will be able to count rice transportation as one of the major commodities moved. 

Currently Malaysia imports some 600,000 tonnes of rice annually, of which 40 per cent come from Thailand. 

“We are looking at capturing some 100,000 tonnes of the rice from Thailand. This could allow us to operate some 16 block train services per month,” noted Radzak.

If the 46-km stretch of track near Aranya Prathet repaired by the Thai Government we may even have great potential to transport rice from other neighboring countries like Cambodia, Vietnam even China.