[sustran] FW: [msia-plan-transp] Kuala Lumpur public transport amalgamations

[Barter, Paul]

-----Original Message-----
From: klbloke 
Sent: Thursday, 6 November 2003 7:42 AM
To: msia-plan-transp at yahoogroups.com
Subject: [msia-plan-transp] Malaysia's KLIG/Transport: Prasarana Still
Owns Assets


Thursday October 30, 3:31 PM 

Malaysia's KLIG/Transport: Prasarana Still Owns Assets 

KUALA LUMPUR (Dow Jones)--Malaysia's government Thursday named 
monorail operator KL Infrastructure Group Bhd. (5067.KU), diversified 
company KUB Malaysia Bhd. (6874.KU) and businessman Mohd. Nadzmi 
Salleh as joint operators of Kuala Lumpur's public transport system, 
Bernama news agency said. 

The report, which cited a statement from the Prime Minister's 
Department, said KLIG and Nadzmi will each hold 40% of the joint-
venture company that will operate the system, while KUB will own the 
remaining 20%. The company has yet to be named, Bernama said. 

"The master operator (of the transport system) will be set up as a 
joint-venture company with an equity shareholding of 40:40:20 to 
ensure internal checks and balances," Bernama quoted the statement as 
saying. 

Bernama said the government's Syarikat Prasarana Negara Bhd., a 
company set up by the government to hold its Kuala Lumpur transport 
assets, will remain the "Main Asset Owner" under the government's 
arrangement to integrate Kuala Lumpur's fragmented public transport 
system. 

Late Wednesday, Prasarana signed an agreement to buy the bus assets 
of conglomerate DRB-Hicom Bhd. (1619.KU), marking its latest 
acquisition of public transport assets. 

Prasarana also owns Star and Putra LRT, two rail lines in the Klang 
Valley, while the government-owned railway company KTMB Bhd. owns the 
KTM Commuter line. 

Prasarana will lease all its rail and bus assets to the joint-venture 
company KLIG, KUB and Nadzmi will form, which the government has 
dubbed "Master Operator". 

The report didn't say how much the lease will cost. 

"All major asset and infrastructure expenses in the future will be 
financed by SPNB (Prasarana) as the Main Asset Owner," Bernama quoted 
the government's statement as saying. 

Bernama also quoted the statement as saying the government plans to 
cut financial assistance to the operator by increasing passenger 
loads, reducing operating and maintenance costs, restructuring debt 
and increasing commercial revenue. 

Kuala Lumpur and its surrounding areas - collectively called the 
Klang Valley - total 3,000 square kilometers and are served by four 
rail systems including KLIG's KL Monorail, and a myriad of bus 
companies. 

Most of these rail and bus services are currently loss-making due to 
high financing costs and poor efficiency. 

However, Nadzmi is credited with turning around the Transnasional 
intercity bus service, while KLIG plans to be profitable by 2007. 

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