September 21, 2014 2:42 AM ET

Road and Rail

Company Overview of Keretapi Tanah Melayu Berhad

Company Overview

Keretapi Tanah Melayu Berhad provides electrified commuter train services in Malaysia. The company offers its integrated rail services for people and goods. It offers its services connecting Kuala Lumpur City Centre with surrounding of the sub-urban areas, such as Tanjung Malim, Rawang, Seremban, Sungai Gadut, and Pelabuhan Klang. The company was founded in 1995 and is based in Kuala Lumpur, Malaysia.

Jalan Sultan Hishamuddin

Kuala Lumpur,  50621

Malaysia

Founded in 1995

Phone:

60 3 2267 1200

Key Executives for Keretapi Tanah Melayu Berhad

Chief Executive Officer
Age: 60
President and Director
Age: 64
Compensation as of Fiscal Year 2014.

Keretapi Tanah Melayu Berhad Key Developments

KTMB Privatization Likely To Damage The Business

Privatizing Assets owned by Keretapi Tanah Melayu Bhd (KTMB), will cause more damage to the business, says Railwaymen’s Union of Malaya (RUM). RUM President Abdul Razak Md Hassan said although KTMB is currently loss-making, there are many ways to turn around the company. "This includes boosting the revenue for cargo, intercity and commuter through effective marketing and promotion, and selling advertising space at trains and stations," he said. “The government is forgoing the future earnings of KTMB if it accepts MMC Corporation Bhd’s (KLSE:MMCCORP) plan to privatize the cargo unit. KTMB would no longer receive income stream from the unit, which is its only profitable business”. Business Times reported recently that MMC has presented a proposal to KTMB board to privatize the cargo operation. If found both viable and profitable, a joint-venture company would be set up with KTMB to privatize the cargo business, with MMC holding the majority share. “The privatization of the cargo business is not a rescue plan as it will only benefit MMC, which is to complement its port operation,” Abdul Razak said.

MMC To Privatize KTMB

MMC Corporation Bhd (KLSE:MMCCORP), which aims to control Keretapi Tanah Melayu Bhd (KTMB), has presented a proposal to privatize the cargo operations, and initial estimates put the sum at MYR 2 billion. People with knowledge of the matter said the proposal was presented to KTMB president Datuk Elias Kadir two weeks ago and he was in favor of it. They said MMC had received approval to conduct a due diligence, beginning today, on the privatization. “MMC has been given two months for the due diligence. If it is viable, a joint venture will be set up with KTMB to privatize the cargo business, with MMC holding the majority share,” said a source. The loss-making KTMB has been the target of several companies keen to take it private, including MMC and Gamuda Bhd (KLSE:GAMUDA).

Government Rejects MMC And Gamuda's Plan To Acquire KTMB

The government of Malaysia has rejected plan by MMC Corporation Bhd (KLSE:MMCCORP) and Gamuda Bhd (KLSE:GAMUDA) to jointly acquire operations of Keretapi Tanah Melayu Berhad (KTMB). Gamuda and MMC are already involved in a joint venture to carry out the double-tracking railway project from Ipoh to Padang Besar on a design-and-build basis, which is now nearing completion. It is understood that besides privatising KTMB operations, both parties want to take control of the landbank parked under Railway Assets Corp (RAC) and build housing and commercial properties. KTMB has assets and land worth an estimated MYR 50 billion. It is the operator of the national railway line, while the assets and land are owned by RAC. Although the assets are parked under RAC, KTMB has a big influence on how the assets are utilised. According to a source close to MMC, the company now plans to take over the freight business of KTMB after its proposal with Gamuda was rejected.

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