KTM Bhd (KTMB) targets to grow its freight services revenue by 20% next year.
Managing director Datuk Mohd Salleh Abdullah said this would be achieved on the back of increased high margin shipments, especially long haul bulk cargoes.
“High margin cargoes use our South Thai cargo and landbridge services (from Bangkok to Port Klang and to Port of Tanjung Pelepas), which contribute 20% and 30% respectively to our total freight revenue,” he told StarBiz on the sidelines at the 28th Asean Railways CEOs Conference and UIC Meter Gauge Conference yesterday.
Salleh said the Singapore-Kunming Rail Link (SKRL), once completed, would boost its long-haul cargo business, as KTMB would be able to carry more volume over long distances.
Transport Minister Datuk Seri Chan Kong Choy, in addressing the conference yesterday, said the SKRL, which links Malaysia, Thailand, Cambodia, Laos, Myanmar, Vietnam and Singapore, would widen trade and economic development between the seven countries and China, especially through cross-border cargo transportation.
Salleh said that KTMB, at present, transported about 3.3% of total cargoes within Peninsular Malaysia. This is based on tonne-kilometres and not by tonnage.
He said the company targeted to increase its share to about 20% when the double tracks, linking Rawang to Ipoh, were completed by end 2007.
The double tracks, he said, would enable the company to achieve greater economies of scale and efficiency in freight services, as it would be able to increase its trains' capacity.
He added that the freight division was expected to achieve RM111mil in revenue in this financial year ending Dec 31.