Manufacturers are eyeing the East Coast Rail Link (ECRL) for cheaper, greener freight transport, with the operator aiming to keep integrated rail costs below road transport.
KUALA LUMPUR: The East Coast Rail Link (ECRL) is attracting interest from manufacturers and major customers seeking to transport cargo from factories to Port Klang, particularly as companies look for potentially lower-cost and greener transport options.
ECRL Operation Sdn Bhd chief executive officer Mohd Zaidi Sharif said much of the cargo was currently transported by road, but companies had shown interest in shifting some freight to rail.
He said the use of electric-powered trains could also help companies reduce their carbon footprint as part of their corporate sustainability efforts.
“Rail transport is actually a multimodal transport system. It cannot operate on rail alone. We still need to work together with the trucking sector,” he said during an Editor’s Briefing on ECRL Operation Readiness here today.
Mohd Zaidi said the final freight rates were still being determined and would depend on how rail services were integrated with road transport for first- and last-mile delivery.
He said cargo from factories located far from ECRL stations would need to be transported by lorry to a station before being transferred onto trains.
“If the cargo can be transported directly to the port as part of an integrated service, then we are in a very good position in terms of cost,” he said.
Mohd Zaidi said MRL’s target was for the overall cost of an integrated rail freight service to be lower than road transport.
On freight terminal operations, he said MRL’s subsidiary would be able to operate the terminals, although it was still assessing whether to manage the service itself or outsource it to a third-party operator.
“If outsourced, the appointed company would handle the last-mile services at the terminals,” he said.