KUALA LUMPUR (Dec 14): While the government is aware of the shortage of public transport networks in the country, especially in its major urban areas, it is looking at innovative ways to fund the development of the various systems that would not adhere to its inspiration to keep its finances in check.

In an exclusive interview with The Edge, Minister of Transport Anthony Loke Siew Fook said the government is looking at innovative ways to finance public transport developments, including through leasing of assets, public-private partnerships as well as monetization of Railway Assets Corporation’s lands.

“If we were to use our conventional method, through development expenditure (devex) and ask for funds [from the Ministry of Finance] for rolling stocks, for maintenance and all that, we would have a limit to what we can get, and our procurement in terms of rolling stocks would have to be staged out,” said Loke.

In August, Loke announced that the government would enter into a 30-year lease programme with China Railway Rolling Stock Corp to lease 62 new passenger train sets at an estimated cost of RM10.7 billion. The first batch of train sets is expected to arrive in 2027.

There is a lot to be done to develop a comprehensive and efficient public transport infrastructure and network in the country, especially if the government were to meet its aspiration of having a 40% modal share of public transport by 2030, compared with about 18% currently.

However, the lack of devex for public transport, especially urban transport, could hamper its plan.

But while the government is counting pennies when it comes to land urban transport development, the country does not seem to be lacking private investment projects for ports.

Besides the expansion of Westports Holdings Bhd’s (KL:WPRTS) container terminal in Port Klang, Johor Corporation is also developing a container terminal at its Tanjung Langsat Port, Johor, while Tanco Holdings Bhd (KL:TANCO) is developing a port in Port Dickson, Negeri Sembilan.

When asked whether there should be a national policy or masterplan to guide port developments, Loke said there is no such need, as any port projects could be a catalyst for the development of the surrounding area.

This also applies to airport developments, as while anyone can propose an airport development, they will have to meet the technical requirements set up by the Civil Aviation Administration of Malaysia, he said.

“If any private party wants to develop a port, by all means, come and apply. We have nothing against them. But you have to look at the condition. The reason why a private sector company chooses a location for a port.

“First, they have to look at the potential of the location. Is there any cargo to be transported there?” he said.

Loke also talked about why Malaysian Resources Corporation Bhd (KL:MRCB) is being appointed to redevelop the Kuala Lumpur Sentral station and how the government is improving the Keretapi Tanah Melayu Bhd’s operations.

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