Will leasing transportation assets improve lifespan and maintenance?

Question

Accepted Answer

Leasing Transportation Assets Could Enhance Lifespan and Maintenance

The government is exploring a new model for transportation assets, such as trains, by adopting a leasing approach to maximize their operational lifespan and ensure consistent maintenance. This strategy, inspired by the airline industry's leasing practices, shifts the focus from outright purchase to leasing, with the lessor assuming responsibility for asset upkeep. Transport Minister Anthony Loke indicated that this method aims to guarantee that these assets are meticulously maintained and utilized to their fullest potential.
New Leasing Model for Transportation Assets

The proposed leasing model entails the government leasing transportation products and facilities rather than owning them outright. Under this arrangement, the lessor would be contractually obligated to perform maintenance. This mirrors the common practice in the airline sector, where aircraft are typically leased, and the lease agreements inherently include comprehensive maintenance provisions, ensuring the aircraft are consistently serviced and operational.
Addressing Train Maintenance Costs

This consideration for a leasing model arises amidst discussions about the significant costs associated with train maintenance, estimated to be around RM250 million. Minister Loke acknowledged maintenance as a substantial issue within railway services. The viability and suitability of the leasing model for enhancing transport services will be thoroughly examined in consultation with the Ministry of Finance and the Ministry of Economy.
Public-Private Partnerships for Infrastructure Development

Beyond asset acquisition, the ministry is also encouraging public-private partnerships for infrastructure development, particularly for additional stations along the Gemas-Johor Bahru Double Track Project. The intention is for developers to bear the costs of constructing stations within their housing development areas, thereby leveraging private investment for public amenities. This approach could also enhance the value of developments by providing direct transit connectivity.
Gemas-Johor Bahru Project Timeline and Future Services

The 192-kilometer Gemas-Johor Bahru Twin Track Project is on track for completion by April 21, 2025. Concurrently, Keretapi Tanah Melayu Berhad (KTMB) is planning to introduce KTM Commuter services in the southern sector, covering the Gemas – Paloh – Johor Bahru route. To support these new commuter services, the Ministry of Transport, through the Railway Asset Corporation, is actively working on procuring new electric train sets on a lease basis.

Reading history

Hide →

This history is cleared when the page is closed.

Will leasing transportation assets improve lifespan and maintenance?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends