KUALA LUMPUR (June 27): The workers' union of Keretapi Tanah Melayu Bhd has urged transport minister Anthony Loke Siew Fook to restructure Railway Assets Corporation (RAC) and to place it under KTMB so that the latter can be a more multi-faceted business organisation.

By restructuring RAC, KTMB will have additional revenue sources through the existing assets developed by KTMB, and not have to depend only on its operations and government assistance, its president Abdul Razak Md Hassan said in a statement today.

"The new government has to step up by imposing a more drastic policy change that can transform KTMB into a multi-faceted business-oriented organisation rather than just focusing on its operations," he said.

Abdul Razak said KTMB has failed to transform into a profit-driven business entity following the amendment of the Railways Act 1991, which saw the establishment of RAC.

"The purpose of the establishment of RAC to supposedly help KTMB had been missed entirely. The Union did not see RAC's ability to assist KTMB other than its role as an agency that manages railway assets. In fact, KTMB had lost its revenue through the assets that had been handed over to RAC ever since the amendment of the Railways Act 1991.

"Today, KTMB is experiencing financial difficulties whereby cash flow has not been managed well and operation-oriented business ie passenger and cargo are facing problems with the lack of backup passenger trains and cargo trains due to the upgrade of the Klang Valley railways," he said.

Abdul Razak noted the restrictions had interrupted KTMB's operations and eroded its earnings. Users have also complained that the service is unreliable.

In addition, the union also called on the government to cancel the Railway Network Access Agreement (RNAA), which it said will only worsen the overlapping of job scopes between KTMB and RAC.

On the government's efforts to implement railways land transfers through open tenders instead of direct negotiations, the union said it was in support of the policy. "The Union also hopes that the government will invite representatives from the Union to engage in any discussions in the formation of new policies involving the railway industry, especially KTMB. This is to ensure that the development of KTMB and its employees can be benefited more effectively."