ECRL freight revenue seen overtaking passenger takings by 2029
Freight revenue on Malaysia's East Coast Rail Link is projected to reach RM214 million in 2029, more than tripling from RM71 million in 2028 and overtaking passenger revenue for the first time. Transport Minister Anthony Loke revealed the forecasts in a parliamentary reply on Nov 2.
PETALING JAYA (Nov 3): Freight revenue on the East Coast Rail Link (ECRL) is projected to more than triple to RM214 million in 2029 from RM71 million a year earlier, overtaking passenger takings, according to Transport Minister Anthony Loke Siew Fook's written parliamentary reply dated Nov 2.
Based on the disclosed forecasts, freight would account for RM143 million of the RM149 million projected increase in combined passenger and cargo revenue between 2028 and 2029. Total receipts from the two services are forecast to reach RM418 million in 2029, including RM204 million from passengers.
Loke said the projections were based on a consultant's study conducted in 2025 and would depend on actual passenger numbers, cargo volumes and market demand. The reply gave no explanation for the projected jump in freight revenue.
Passenger revenue is forecast at RM192 million in 2027 and RM198 million in 2028, while freight is projected to bring in RM68 million in 2027. Freight's share of combined receipts would rise from about 26 per cent in 2027 to 51 per cent in 2029, still below the longer-term target of about 70 per cent.
The 665km railway from Kota Bharu to Port Klang is designed to include 10 stations serving both passengers and freight, with links to Northport and Westports via Jalan Kastam. The Malaysian Investment Development Authority has identified logistics hubs and cargo-oriented developments among the investment opportunities along the corridor.
Malaysia Rail Link Sdn Bhd (MRL) CEO Datuk Seri Darwis Abdul Razak said in an Oct 29 commentary that the railway could provide a landbridge between Kuantan Port and Port Klang. He identified containerised goods, petrochemicals, minerals and agricultural products among the potential sources of freight demand, and said reliable schedules and efficient terminal operations would help build that demand.
Loke said passenger and freight receipts would go towards operating, maintenance and related costs. The operator, ECRL Operation Sdn Bhd, would also seek income from space rentals, advertising and other commercial activities. Its equal shareholders, MRL and China Communications Construction (ECRL) Sdn Bhd, would share operating risks.
The minister was responding to Datuk Wan Saiful Wan Jan (Tasek Gelugor), who asked about construction costs, annual government commitments, projected revenue and operating sustainability. Loke listed China Exim Bank financing, MRL sukuk, Transport Ministry development allocations and Finance Ministry financing among the project's funding sources. The reply gave no financing breakdown or figure for annual government repayments.
