PETALING JAYA: Mass Rapid Transit (MRT) Corp Sdn Bhd intends to leverage its non-fare revenue as a source of funding for the maintenance and upkeep of its MRT train system over the next six-to-seven years.
Chief executive officer Datuk Mohd Zarif Hashim said the group would need to generate RM200mil in funds a year in order to be able to maintain the train system.
He said the percentage of non-fare revenue to the group’s total revenue was between 5% to 10%.
Mohd Zarif noted that while fare money will be sufficient to sustain a train station, a significantly bigger sum will be needed over an extended period of time to maintain the train and track systems.
He said this following a memorandum of understanding signing ceremony between MRT Corp and Deloitte Malaysia for the naming rights of the MRT-Taman Tun Dr Ismail (TTDI) station, yesterday.
On a separate note, Mohd Zarif said the group targets an increase of 10% in passengers on the MRT for 2024, as compared to the current number.
As of today, he said the overall train network’s daily passenger count is 1.1 million, with MRT 1 (Kajang line) carrying 230,000 passengers daily and MRT 2 (Putrajaya line) carrying 130,000 passengers daily.
Deloitte Malaysia has secured the naming rights to the MRT-TTDI station via an agreement with MRT Corp signed yesterday.
“As substantial cost is needed to operate and maintain the public transport system, this MRT Corp Station naming rights programme is an example of how public-private partnerships can help elevate the delivery of public services and infrastructure projects,” he said.
Deloitte Malaysia chief executive officer Yee Wing Peng said via the partnership, the group is looking to play a part in contributing to a more effective transportation system by providing an additional revenue stream to be utilised for current projects, maintenance and future expansion.
“When travelling through the MRT, it gives them a pleasurable experience using the efficient transportation system in Malaysia.
“It will also help foreign visitors and travellers by giving them a quick and good impression about the transportation system that we have and along the way, attract more foreign direct investment to the country,” he told the media.
Both parties did not disclose the amount of the investment size contributed towards the naming rights of the station.
However, Mohd Zarif stated that the investment is quite a substantial amount and it is a strong commitment by Deloitte to proceed with such an investment.
“We will surely take the investment seriously and we will continue to improve our transportation system with the support from Deloitte,” he said.
Source: The Star