ECRL targets RM418mil in operating revenue in 2029, says Loke

KUALA LUMPUR: The East Coast Rail Link (ECRL) is projected to generate RM418 million in operating revenue in 2029 from passenger and freight services.

Transport Minister Anthony Loke said the projection comprised RM204 million from passenger services and RM214 million from freight operations.

He said a study conducted by consultants in 2025 projected passenger revenue of RM192 million in 2027, rising to RM198 million in 2028.

"Freight revenue is projected at RM68 million in 2027 and RM71 million in 2028, before increasing to RM214 million in 2029.

"These projections are subject to actual operational performance, including passenger numbers, freight volumes and changes in market demand," he said.

Loke was responding to a question from Datuk Wan Saifulruddin Wan Jan (PN-Tasek Gelugor), who sought details on the total construction cost of the ECRL, the annual payments the government would have to bear to finance its construction, estimated annual operating revenue and measures to ensure the sustainability of its operating costs.

His reply was published in a written response on the parliament website yesterday.

Freight services expected to drive revenue

Loke said the ECRL's long-term business model was based on a combination of revenue from freight and passenger services.

About 70 per cent of projected revenue would come from freight services, while the remaining 30 per cent would be generated by passenger services.

He said this approach would enable the ECRL to capitalise not only on passenger travel demand, but also on the potential movement of goods between the east and west coasts, as well as access to the country's major ports.

"To ensure operational sustainability, revenue from both services will be used to cover operating, maintenance and related costs.

"At the same time, ECRL Operation Sdn Bhd (EOSB), as the operator, will optimise non-fare revenue through commercial activities such as space rentals, advertising and other suitable sources.

"This joint venture model also involves sharing operational risks between the two shareholders to increase revenue, optimise asset utilisation and manage operating costs prudently," he said.

On a related matter, Loke said the construction cost of the 665km ECRL project, which runs from Kota Bharu to Port Klang, was RM52.43 billion.

He said the project was financed through several sources, including a term loan from China EXIM Bank (CEXIM), sukuk issued by Malaysia Rail Link Sdn Bhd (MRL), development allocations from the Transport Ministry and financing from the Finance Ministry.

"As a large-scale strategic infrastructure project, the ECRL should not be assessed solely on the direct financial returns from its operations.

"Its long-term benefits and wider economic spillover effects for the country must also be taken into account," he said.