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KTM sees real opportunities in freight transportation

In a move aimed at seizing the vast opportunities for growth in the carriage of freight in the country, as well as in cross-border trades, KTM Bhd, the national railway corporation, is now focusing its business strategy in expanding its capacity by acquiring more rolling stocks and improving its capability in rail freight transportation.
 
A major boost in this direction will come from the delivery of several new units of locomotives the high powered "Blue Tiger" locomotives from General Electric.
 
The first batch of 20 units of the AC/AC mainline diesel electric "Blue Tiger" locomotives at a cost of RM 245 million will be delivered in June this year.
 
According to the managing director of KTM Bhd, Mohd Salleh Abdullah the delivery of the new locomotives will mark an important milestone in the railway corporation's efforts to enhance its service level and freight transportation capacity to shippers.
 
The Blue Tiger locomotives, which have a life-span of 25-30 years lifespan is an improvement version from the present AC/DC locomotives that are being used by KTM.
 
The new locomotives which have 3,000hp will fulfill KTM Bhd requirements to pull heavier and longer freight trains.
 
"Effectively the new equipment will enhance our pulling capacity to 2,300 tonnes compared with present 1,200 pulling capacity, "said Salleh.
 
KTM Bhd requires high powered locomotives like Blue Tiger as the double track line of the north-south rail line will allow a capacity to pull 60 laden containers or 80 empties per train at one time from present of 40 TEUs per train.
 
"This requires high-powered locomotives like Blue Tiger and the deliveries of 40 new units will raise the present fleet of 94 locomotives to 134 by 2004, "said Salleh.
 
Salleh said KTM Bhd was set to aggressively promote rail transportation as the best alternative option to move cargo in bulk efficiently and effectively.
 
"We will continue to enhance the service level and explore market with various new products during the year," said Salleh
 
He said the importance of rail transportation has received adequate attention from the government.
"This is also reflected in the allocation of RM616 million for the upgrading of rail infrastructures for the year 2003-2004," said Salleh.
 
Salleh said as a first step KTM would be upgrading its track capacity to handle 20 axle load from current 16 axle load between Padang Rengas in Perak to Port Klang.
 
"This is important for us to capture additional cement traffic from the key players in the stretch namely Perak-Hanjoong Simen, Lafarge Malayan Cement, Cement Industries of Malaysia and Tasek Cement," he added.
 
Meanwhile, the general manager of KTM Bhd Freight Services, Abdul Radzak Malek said container traffic continued to remain as the core contributor of KTM Bhd' revenue totaling RM99 million in 2002.
 
He said KTM Bhd handled 164,000 TEUs of domestic containers and 50,000 TEUs of landbridge containers.
 
"Carriage of containers contributed some RM55 million or close to 60 per cent of the revenue. Contribution of the sector is expected to grow further with the acquisition of additional rolling stocks in 2002," he added.
 
KTM has taken delivery of 195 bogie container flats from MMC's assembly plant in Perak in 2002.
 
The BCF generally has a load capacity of 45 tonnes and each unit is capable of carrying two 20ft ISO containers and deployed in the various route of the block train service.
 
"The deliveries have raised our total BCF units from 3,200 units to 3,395 units," said Radzak.
 
Radzak also said the railway corporation has started to take delivery of rolling stocks for the carriage of refrigerated cargoes.
 
The first batch of the 55 special bogies with temperature-controlled reefer points was delivered in December 2002.
 
The second batch of 25 units will be delivered in January and are expected to be commissioned by February 2003
 
Radzak said: "Initially we plan to run the service domestically, before extending the service to explore the potential for the transportation of refrigerated goods such as fresh water fish, fruits and flowers from Thailand and Singapore."
 
In year 2003 will also mark the expanding reach of KTM Bhd to the East Coast of Peninsular Malaysia where it would be extending its expertise to operate the new link between Kertih-Kuantan developed by Petroliam Nasional Berhad (Petronas), to serve Kertih integrated petrochemical complexes in Terengganu and Gebeng integrated petrochemical complex in Kuantan.
 
The single-track line of 75km allows freight services a speed of up to 80 kms per hour and will serve for the transportation of raw petrochemical material and finished products (both in liquid and solid state) like ammonia, acetic acid, PVC, VCM, paraxylene, benzene, ethylene and propylene.
 
In the initial stages the new service will handle 35 to 40 TEUs or one and a half trains load of cargo daily via Kuantan Port.
 
"We are also looking into the possibility of acquiring car- carrier units. This will be the new business venture for KTM Bhd as we have the capability to carry cars in bulk from the Proton City and Serendah direct to Port Klang," said Radzak. Ports World. 

               

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