Kuala Lumpur’s public transport makeover-

 

Since its formation in 2004, Rangkaian Pengangkutan Integrasi Deras Sdn Bhd (RapidKL) had been operating two light rail transit (LRT) lines, one monorail line, and a trunk feeder bus route in the Malaysian capital ofKuala Lumpur. However, as RapidKL had been incurring losses, Syarikat Prasarana Negara Berhad (Prasarana), Malaysia’s biggest urban public transport asset owner under which RapidKL functions, has unveiled a major corporate restructuring endeavour in January 2013. Its objective is to boost RapidKL’s financial performance, accelerate the decision-making processes, and deliver improved services to customers.

Prasarana has decided to split its main activities into four separate entities – Rapid Rail Sdn Bhd, Rapid Bus Sdn Bhd, Prasarana Integrated Management and Engineering Services Sdn Bhd (PRIME), and Prasarana Integrated Development Sdn Bhd (PRIDE). The restructuring is part of the company’s five-year long-term plan as described in its Go Forward Plan 2.0 (GFP 2.0) blueprint.

Dato’ S. Mokhtar, group managing director, Prasarana, explained the company’s strategic shift in a company release: “It is an initial strategic step for the group to implement the five-year plan GFP 2.0. In line with our vision to be the World-Class Mass Public Transportation System Preferred Provider, the maturity level of our management must be dynamic in order to meet the expectations of our customers, stakeholders and business partners. The corporate restructuring will allow us to make decisions fast.”

Prasarana’s rail operations, both light rail and monorail, will be placed under Rangkaian Pengangkutan Integrasi Deras Sdn Bhd (RAPID) whose name will be changed to Rapid Rail Sdn Bhd. The bus operations ofKuala Lumpur, Penang, and Kuantan will be grouped under Rapid Bus Sdn Bhd. Meanwhile, PRIME and PRIDE will undertake Prasarana’s engineering consultation and property development businesses, respectively. Prasarana intends to utilise the existing and future railway land to develop commercial properties.

Prasarana’s brand names for rail and bus services in the Klang Valley would remain as RapidKL Ampang Line, RapidKL Kelana Jaya Line, RapidKL Monorail Line, and RapidKL Bus. The brand names of the public transport services it offers in other states will reflect the names of the host states such as RapidPenang in Penang and RapidKuantan in Pahang.

Rail operations

The rail system currently comprises three lines: the Kelana Jaya Line, the Ampang Line, and the KL Monorail. Their average daily ridership was 420,000 in 2012.

The Kelana Jaya Line, formerly known as PUTRA LRT, consists of a single line that stretches over 29 km from Kelana Jaya to Gombak. This line has a total of 24 stations: apart from the two terminal stations, 16 are elevated, five are underground, and one is at-grade. Tracks are non-ballasted and the trains have direct rubber suspension.

It primarily serves the Petaling Jaya region in the south, the southwest, and central Kuala Lumpur (including Kuala Lumpur City Centre), along with various low-density residential areas further north in Kuala Lumpur. Links with other transport systems are an important part of the network. For instance, each station has dedicated feeder bus stops. Furthermore, KL Sentral serves as an interchange with connections to other urban rail services such as the KTM Commuter, KLIA Express, and KL StarRail. It is also connected to the Ampang Line at the Masjid Jamek station in Jalan Tun Perak. Elevators, escalators, and wheelchair access are available at all stations.

The Ampang Line, formerly known as STAR LRT, is a driver-operated light rail transportation system. It consists of two routes with a total length of 27 km: they run from two stations in the south to a common station in the north, while passing through the city centre and meeting at an interchange station. The Ampang–Sentul Timur Line begins at Ampang, while the Sri Petaling–Sentul Timur Line starts at Sri Petaling. Both lines converge at Chan Sow Lin and the merged line leads to the north, terminating at Sentul Timur. Unlike earlier laid railway lines in Malaysia, which were metre gauge, the standard gauge was adopted for the Ampang Line.

The system comprises 25 stations: 11 along the Chan Sow Lin–Sentul Timur Line, with seven each along the Ampang–Chan Sow Lin Line and the Sri Petaling–Chan Sow Lin Line. The service depot and primary train depot are located at Ampang, with a secondary train depot at Sri Petaling. Though the line could handle a capacity of 500,000 passengers per day and its break-even point was 170,000 passengers per day, ridership on the line has been far below expectations.

The KL Monorail is an intra-city public transit system that links many key destinations including major hotels and the central business district (CBD) within Kuala Lumpur. The 8.6 km long route passes through the CBD and runs across 11 stations from KL Sentral in Brickfields to the Titiwangsa station in Jalan Tun Razak.

Although KL Infra constructed and operated the system, Prasarana took over the system in 2007 and RapidKL is currently in charge of its operations. MTrans, a Malaysian monorail manufacturer, constructed the carriages. The system uses trains with “married pairs” of two cars: each has a regular capacity of 158 passengers and a full capacity of 244 passengers.

As the number of passengers on the KL Monorail is exceeding capacity by about 35 per cent during peak hours, Prasarana has embarked on the KL Monorail Fleet Expansion Plan: it has already awarded a contract worth RM 494 million (RM 1 [Malaysian ringgit] = USD 0.325) to Malaysia-based Scomi Transit Projects Sdn Bhd, a subsidiary of Scomi Engineering Bhd. Scomi Transit Projects is expected to supply 12 four-car trains that will replace the existing 12 two-car trains. Moreover, the contract also includes upgradation works on the monorail stations and the electrical and mechanical system, as well as the construction of a new depot. All the trains will join the existing fleet by the second half of 2013.

Bus operations

Prasarana has 1,431 RapidKL buses, of which about only 850 are in operation due to the lack of drivers. Rapid Penang and Rapid Kuantan have 350 and 32 buses, respectively. In the Klang Valley, the buses service a total of 167 routes in six key areas. The five types of bus services provide the following interrelated functions:

 

  • The Tempatan service (local shuttle) carries residential passengers to the main routes.
  • Utama buses (trunk shuttle) that ply the main routes transports passengers into city hubs.
  • The Bandar service (city shuttle) transports passengers from the city hub to the centre.
  • The Ekspres service (express shuttle) offers commuters a direct, non-stop ride from key points around the Klang Valley into the city.
  • The Bus Express Transit is the latest service that was introduced in February 2010 under NKRA Transport Initiatives. Under this service, four Utama routes have been converted into express routes.

 

The buses are a mixed fleet of European and Asian chassis, equipped with modern components and advanced safety features such as the auto interlocking door system. Information on destinations is displayed on the front, side, and rear electronic destination boards. Buses have low floors and some buses are equipped with ultra-low flooring to accommodate disabled-friendly facilities such as a ramp and a wheelchair lock.

Financial performance

According to the 2012 Auditor General’s Report of National Audit Department of Malaysia, RapidKL suffered huge losses in 2011 – fares have remained the same for the past six years, even as operational costs have increased. Moreover, since the non-fare box revenue constitutes about 8 per cent of RapidKL’s total revenue, the low fares have had a major impact on the company’s revenues. RapidKL incurred losses amounting to RM 67.71 million and RM 48.88 million in 2008 and 2010, respectively. It only managed to register a profit of RM 54.57 million in 2009, after receiving an allocation of RM 112.23 million under the Economic Stimulus Package to improve the country’s transportation system.

Further, during financial year 2011, earnings before interest, taxes, depreciation, and amortisation for RapidKL’s rail business amounted to about RM 50 million, on the back of RM 240 million in revenue. At the same time, bus services generated a loss of about RM 100 million: its operating costs were about RM 280 million, compared to its revenue of just RM 180 million in revenues.

As the rail business is profitable, while the bus service is incurring losses, Prasarana has split the rail and bus transport services into two separate entities. This strategy of separation will give the respective managements greater freedom to make decisions about their businesses.

Prasarana aims to list its rail division assets on Bursa Securities in Malaysia by 2018. The proceeds from the listing will be used to reduce the company’s borrowings, thus enabling it to pursue its expansion plans. At present, Prasarana’s debt amounts to about RM 9–10 billion.

LRT Line Extension Project

Listed as one of the key initiatives under the National Key Result Areas (NKRA) blueprint, the Line Extension Project (LEP) is a part of the Malaysian government’s endeavour to transform the country’s public transport services. This project that has been assigned to Prasarana is scheduled to be completed by the end of 2014. It involves the construction of two LRT extensions and the introduction of 20 six-car light rail vehicle trains on the Ampang Line.

Dato’ S. Mokhtar highlighted the importance of this expansion project: “A wider LRT network will work wonders for a growing nation likeMalaysia. The effect of the LEP will be life-changing. It will not only enhance the mobility of people in the KlangValley, but also their economic well-being. With enhanced mobility, there will be increased productivity and earnings for the people. The project will also be a catalyst for economic development along the alignment, especially at the new stations and its surrounding areas. Business opportunities and new jobs will be created. Property value will increase… the LEP will provide across-the-board returns for people at all levels.”

Kelana Jaya Line (KJL) Extension: The 17 km guideway that will cover 13 new stations will pass through the busy commercial-cum-residential areas of Subang Jaya and UEP Subang Jaya. It will also provide a connection to the Ampang Line at the Putra Heights integrated station. The work has been divided into two main contract packages: Package A – 9.2 km from the Kelana Jaya station to Summit(Station 7); and Package B – 7.8 km from Station 7 to the Putra Heights station.

 

  • In November 2010, Prasarana selected  Malaysia-based Trans Resources Corporation Sdn Bhd as the main contractor and a joint venture (JV) partner of Malaysian companies UEM Builders and Intria. It also picked Bina Puri Holdings Berhad (BPHB) (also based inMalaysia) to be the subcontractor for the fabrication and delivery of the segmental box girder under Package A.
  • In June 2011, the Malaysian–UK JV, comprising CMC Engineering, Colas, and Uniway, secured the MYR 670 million contract for the engineering, procurement, construction, testing, and commissioning.
  • In March 2012, construction works commenced on the light rail line extension along the Persiaran Kewajipan in Subang Jaya.

 

Ampang Line Extension: Work on the 17.7 km guideway that will cover 13 stations has also been divided into two main contract packages: Package A – 7.4 km from the Sri Petaling station to Station 5; and Package B – 10.3 km from Station 5 to the Putra Heights station.

  • In November 2010, Prasarana selected the JV of Malaysia-based BPHB and Tim Sekata as both the main contractor and the subcontractor for the fabrication and delivery of the segmental box girder under Package A.
  • In April 2012, China-based CSR Zhuzhou Electric Locomotive Company Limited secured the MYR 530 million contract to supply 20 six-car light rail vehicle trains for the Ampang Line Extension.
  • In July 2012, the systems contract was awarded to the JV of Malaysia-based George Kent Bhd and Lion Pacific Sdn Bhd.
  • In September 2012, George Kent Berhad awarded a contract to France-based Thales Group to provide SelTrac communications-based train control for the Ampang Line. Signalling work is scheduled to be completed in 2015.
  • In October 2012, China-based rolling stock manufacturer CSR Corporation Limited secured a contract to supply 120 light rail vehicles for the Ampang Line. Delivery will begin after 33 months and should be completed within 51 months.

 

Ticketing

RapidKL has individual and integrated ticketing systems for its bus and LRT services. In November 2011, RapidKL spent RM 115.2 million to set up an automatic fare collection (AFC) system, MyRapid card, which allows commuters to use a single ticket for both the Ampang and Kelana Jaya Lines. A Malaysian-Spanish JV company, INDRA-IRIS AFC Consortium, installed the AFC system at all 49 LRT stations (25 stations on the Ampang Line and 24 on the Kelana Jaya Line). MyRapid was introduced on the Ampang Line and the KJL in November 2011, followed by the monorail line in March 2012.

Strategic restructuring for a better future

By embarking on the restructuring path, Prasarana has taken a strategic step in diversifying its interests and reducing its exposure to the fare collection business. How the newly formed business units will perform in the future remains fraught with uncertainty. Good performance will be critical for Prasarana so as to ensure its financial sustainability and strengthen its position as the preferred urban public transport provider.