TRANSIT took note of this article which describes plans for another corporate restructuring at KTMB.
It is sad that the Malayan Railway has still not managed to figure out whether it is supposed to be a government agency, corporate entity, or something in between.
TRANSIT remembers earlier corporate restructurings that have happened for KTMB. Well, at least they were started but then they got stalled either because of a lack of government support, an unclear vision, or resistance from workers (among other reasons).
The corporatization of KTM began nearly 2 decades ago but it was never finished. A lack of government funding and deferred maintenance since the corporatization has helped bring KTMB to its knees.
Recently one President of KTMB started an RM1 campaign, promising to take KTMB back to profitability. That campaign died aborning, when the president was quickly replaced (it might have had something to do with his “hybrid” trains).
The most recent KTMB President has talked about restructuring KTMB into a holding company, with various railway service subsidiaries (freight, Komuter, ETS, power systems, maintenance, terminal management, etc). and selling track warrants to other companies interested in providing railway services. He believes that this model will be successful because it has worked in Europe – despite the fact that it has not worked in many European countries and that Malaysia lacks the density that makes railway travel profitable.
We wonder what this latest restructuring will bring for KTMB but we wish to share one important point – KTMB needs to have a clear vision of the kind of transport service provider that it needs to be over the next 10-20 years.
Without that clear vision, this latest restructuring will be as effective as the last ones.
Railway revamp (Star Biz)
Thursday October 27, 2011
By SHARIDAN M. ALI
PETALING JAYA: KTM Bhd (KTMB) will undergo a two-year corporate restructuring programme to turn around the ailing national rail operator and a consultant will be hired to manage this, according to the Treasury, in its reply to the Auditor-General’s (A-G) report.
The A-G’s report had stated that KTMB posted a loss of RM92.6mil in 2009 compared with RM84.6mil loss in the previous year.