Thursday, December 29, 2011

KTM unit targets RM220m in 2012

KUALA LUMPUR (Dec 29): KTM Bhd's unit Multimodal Freight Sdn Bhd expects its turnover to increase by 46.6% to RM220 million in 2012 from
RM150 million this year.

Its chairman, Datuk Seri Mohd Zin Mohamed, said on Thursday the company would explore new avenues of growth to achieve the target.

Mohd Zin, who is also KTM Bhd chairman, said currently, about 0.5 per cent of the cargo in the country was transported via rail compared with about 30 per cent in other countries.

"So there is more for us to explore and grab. Currently we're not looking for new investments but will just depend on what we have. We will 'beef up' the maintainance of our locomotives and other facilies," he told reporters here.

He said this after the signing of a collective agreement (CA) between the company and Transport Workers Union (TWU).

Multimodal Freight chief executive officer Datuk Elyas Kadir and TWU general secretary Datuk Zainal Rampak signed the CA.

The CA provides better terms and conditions of employment for 250 employees, comprising among others, annual salary increase, higher trip incentives and a new retirement benefit provision.

He said the company would also pay an ex-gratia of RM200 to its employees.

Multimodal Freight is a wholly-owned unit of KTM and TWU. Currently, it has a fleet of 20 trains.

Mohd Zin said the company was in process of leasing new trains to expand the fleet.
He did not elaborate.

He said KTM Bhd was looking to transform its cargo business as a premier service.

"This agreement is also part of our transformation because we believe that our employees play a major role in our business," he said. - Bernama

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