Govt considering leasing transportation assets — Loke

KUALA LUMPUR: The government is considering a new model by using the leasing method for products and assets for transportation services, such as trains to maximise their lifespan.

Transport Minister Anthony Loke said that through this method, the government no longer focuses on buying new assets, but leasing them where the lessor will also be responsible for their maintenance.

“We don’t need to buy new assets, but we lease the product and the facility. This is because many transport sectors, especially airlines, don’t buy aircraft, they lease the aircraft.

“If we lease, the deal also includes maintenance, where the lessor is also responsible for maintenance and ensuring that the asset can be used to the maximum at all times,” he said during the Minister’s Question Time in the Dewan Rakyat Thursday. Loke was responding to a supplementary question from Khairil Nizam Khirudin (PNJerantut) regarding maintenance of the trains which is estimated to cost approximately RM250 million to avoid technical problems during the festive season.

Loke, in acknowledging maintenance as a big issue in railway services, said that the matter will be discussed with the Ministry of Finance and the Ministry of Economy to see the suitability of the model in maximising transport services.

Meanwhile, in response to a supplementary question from Wong Shu Qi (PH-Kluang) regarding additional stations along the Gemas-Johor Bahru Double Track Project, Loke said that the ministry encouraged public-private partnership in collaboration with the Railway Asset Corporation (RAC) and Keretapi Tanah Melayu Behad ( KTMB).