PROPERTY SECTOR
Firm to jointly develop parcels of land near train stations into mixed residential and commercial units
“Last year, we received the approval from the government to develop these areas, and the success of the project will contribute to KTMB’s profitability.
“It will be a joint venture with developers and right now, for Bangi, we have requested for their proposals to be sent by next month for evaluation,” said Hider, adding that the projects would be done in phases and take four years to complete.
Since its corporatisation in 1992, KTMB reportedly recorded collective losses amounting to RM3 billion as of 2015, despite various attempts to cut costs and increase revenue.
Currently, 95 per cent of its revenue comes from rail business. It provides freight, intercity, commuter and high-speed double-tracking electric train services.
KTMB’s income from non-rail business is derived from retail and advertisements.
Hider was speaking at a press conference yesterday after signing a memorandum of understanding (MoU) with Japan’s Seibu Railway president Hisashi Wakabayashi.
He said much could be learnt from Seibu Railway as the latter had expanded beyond public transportation service such as property development, tourism and sports.
He added that the MoU would act as a stepping stone towards more collaboration between the two railway operators.
“Seibu has been very successful in generating non-fare revenue and earning a stable cash flow, this is what we want to learn from them as we have always been dependent on fare revenue.
“Both KTMB and Seibu Railway would be utilising the advertisement space in their trains, with Seibu promoting Malaysian tourism and vice versa.
“The MoU also touches on the sharing of knowledge and facilities apart from promoting the tourism of each country,” said Hider.
Seibu Railway has started promoting Malaysia through its Malaysia Travel Booking Campaign at Seibu’s travel office in Ikebukuro Station.
Japan National Tourism Organisation records showed that 390,000 Malaysians visit Japan annually, assuring that KTMB is the best partner to expand Seibu Railway’s business in Malaysia.