Malaysia: Key Logistics and Transport System (Road and Rail)

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Seminar on the Development of Integrated Transport and Logistics System in ASEAN and Pacific Subregion Malaysia: Key Logistics and Transport System (Road and Rail) By Ellya Masriq Ahmad Sani Ministry of Transport, Malaysia

Background: Malaysia s Logistic Industries Source: Economic Report Logistics services as one of drivers of growth to propel the country into high income economy. 10 th Malaysia Plan Components Share Value (RM bil) Freight 80% 16 bil Logistics Passenger 20% 4 bil Total 100% 20 bil Note: Study carried out in 2008

Snapshot of Malaysia Highway Network 17,474km 137,950km Highway (with toll) length has increased by more than 200% since 1992. Among the tolled highway is the North-South Expressway (846km). Main info: o Total of 34 rest and recreation for both north and south bound. o Connectivity to major industrial areas/port. o NSE covers 81% of population and 89% of GDP in Peninsular Malaysia.

Strengthening the connectivity in North - South of West Coast and East Coast Corridor Part of the Highway Network Development Plan. To spur future socio economy development in potential areas.

NSE - Facilities Rest and Recreation Area 24 locations every 50-80 km Main figures: Petrol & Service Station Restaurant & Coffee/Tea Shops Fruit Stall Public Picnic Grounds Public Parking Areas Prayer Rooms a. Daily vehicles: Normal days: 1.6 million Peak days: 2 million Public Toilets Public Telephone Booths Lay-bys Facilities 45 locations every 20-40 km Public Parking Areas ATM s Children s Playgrounds b.total number of parking lots: Cars: 2,620 Heavy vehicles: 509 c.public toilets: 1,674 d.stalls: 361 e.seating: 5,913 Public Toilets Public Telephone Booths

NSE- Rest & Recreation Area

NSE- Prayer Room

NSE- Restrooms

NSE - Stalls

Rail Transportation Service Rail based freight transportation service in Peninsular Malaysia is operated by KTMB covering a total track length of 2,262 km. Padang Besar Johor Bahru rail (804km) is part of Singapore-Kunming Rail Link network. Other services include land feeder and landbridge services. KTMB also has terminal facilities at 11 locations comprising dry-port, inland container terminal, seaport and freight terminal.

KTMB Railway Network - Main catchment/ industrial area i.e. Ipoh, Klang Valley etc - Connectivity to main ports, inland ports.

SKRL

KTMB Rail Terminal Facilities Facilities Dry Port Inland Container Terminal Seaport Freight Terminal Padang Besar Container Terminal / Butterworth Container Terminal / North Butterworth Container Terminal / Ipoh Cargo Terminal / Setia Jaya, Kontena Nasional / Northport Container Terminal / Westports Container Terminal / Nilai Inland Port / Segamat Inland Port / Pasir Gudang Container Yard / Tanjung Pelepas Port /

The Need To Improve Logistical Efficiency A drop of 0.5 percent in logistics cost to 2 percent growth in GDP and 40% increase in the range of products exported from a county. Inventory costs due to transport delays are equivalent to 0.8%/day of delay of the value of the goods being delivered. Port inefficiency increases distance by 60%. Each additional day required for shipment imposes extra economic distance of 70 km per day. GDP impacts of efficiency improvements of 0.55% in ports and 5.5% in customs. Source: World Bank / UNCTAD

Areas of Improvement

Increasing Efficiency by Improving Transportation Infrastructure & Services Sufficient Modal Capacity Review internal transport flows by modes (road, rail, air, bridges, domestic shipping and inland waterways) with a view to ensuring sufficient modal capacity for efficient flow of freight logistics. Road capacity need to be expanded for better road (and rail) connectivity. More rest bays for drivers of freight logistics vehicles. Improve Last Mile Connectivity De bottlenecking congestion and improve accessibility between cargo terminals and the national road/rail grids. Expanding existing last mile roads and rail network or developing new connections to create new capacity. Modal Shift Fostering multi modal, or intermodal and comodality connectivity in internal transport flows linking all nodes, including ports, airports, rail terminals, inland industrial parks and cargo terminals. Considering fiscal incentives or financial grants to freight logistics operators (and to shippers) to use more efficient internal transport flows.

Malaysia s Electrified Double Track Project Ipoh Padang Besar 329km long with 15 stations, 8 halts, 2 tunnels. Equipped with modern signaling, communication and electrification system. Contract cost RM12.8 billion Scheduled to be completed by 7 November 2014. As of July 2012, the overall progress of the project is 86.72%. Seremban Gemas 98km long with 6 stations Equipped with modern signaling, communication and electrification system. Contract cost RM3.45 billion Scheduled to be completed by 31 July 2013. As of July 2012, the overall progress of the project is 90.55%.

Expected Benefits from Electrified Double Track Project Increase efficiency via rail transportation Facilitate emergence of new industries and creation of new jobs Reduced road fatality Ipoh-Padang Besar Electrified Double Track to provide estimated spin-off effects of 5.9-7.9% to of Perak, Penang, Kedah and Perlis. Next in line, Gemas-Johor Bharu Electrified Double Track upgrade to further benefit states in the southern Malaysian region. Estimated cost RM7-8billion.

Photo credit http://seri kepayang.blogspot.com

THANK YOU