Malaysia’s trade connectivity with Southeast Asia and China received a boost with the launch of the ASEAN Express, an international freight train connecting Malaysia to Thailand, Laos, and China.
Transport Minister Anthony Loke emphasized that the new service would not only enhance regional logistics and rail connectivity but also expand into new markets, offering cost savings to local businesses and the public.
“This service will provide smoother and more efficient goods flow throughout the region as well as enhance rail cargo transport capacity while reducing logistics costs by an estimated 20% (from) current market rates,” he said after the flagging off of ASEAN Express’s first shipment to Chongqing in China from KNICD here on Thursday (June 27).
The reduced transport times are also anticipated to create opportunities in new markets, particularly benefiting the agricultural sector by enabling faster rail transport of perishable produce, Loke said.
“Rail transport also boasts a significantly lower carbon footprint than road haulage, promoting a sustainable future,” the minister added.
“Pay-per-use” locomotives.
Keretapi Tanah Melayu Berhad Group CEO Mohd Rani Hisham Samsudin said the new service showcases both the Association of Southeast Asian Nations (ASEAN) and Malaysia’s competitiveness in the global market.
“The ASEAN Express also has the potential to handle up to 20,000 TEUs (twenty-foot equivalent unit containers) annually from China to the ASEAN market, which opens up significant opportunities for trade and economic growth while reinforcing the strategic importance of our railway network in the regional supply chain,” he said. “Through this connection of key economic hubs, we expect the service to facilitate greater economic integration among our neighbors while also driving regional development and prosperity,” he added.
Key facts about ASEAN Express
- The service will link new trade routes and various inland ports across the region, including the Kontena Nasional Inland Clearance Depot (KNICD) in Selangor, Perlis Inland Port in Perlis, Latkrabang Inland Port in Thailand, and Thanaleng Dry Port in Laos as key trade hubs.
- The train is expected to significantly reduce transit time for goods within the region, such as taking just nine days from KNICD to Chongqing compared to the usual 14 to 21 days by sea.
- The service would improve regional logistics and rail connectivity.
- The service is expected to transport approximately 20,000 twenty-foot equivalent units (TEUs) of containers annually from the China-ASEAN market.
“Pay-as-use” locomotives and wagons
The new service will also mark the debut of Malaysia’s first “pay-as-use” leased locomotives, manufactured by Keretapi Tanah Melayu Berhad (KTMB).
A total of six locomotives and 204 wagons, manufactured locally by SMH Rail in Selangor, have been leased by KTMB for the service. Initially, the ASEAN Express is projected to operate two round-trip runs per week.
Each week, the service plans to transport 40 twenty-foot equivalent unit (TEU) containers from KNICD, traversing Thailand and Laos before reaching China. KTMB has announced intentions to eventually scale up operations to daily runs, as stated in their press release.
“This project showcases our technical expertise and innovation and also strengthens our position as a key player in the railway industry,” KTMB Group chief executive officer Datuk Mohd Rani Hisham Samsudin said.
“The ASEAN Express also has the potential to handle up to 20,000 TEUs annually from China to the Asean market, which opens up significant opportunities for trade and economic growth while reinforcing the strategic importance of our railway network in the regional supply chain,” he added.