KUALA LUMPUR: Loss-making Keretapi Tanah Melayu Bhd (KTMB), which has had relatively little success in turning itself around, may finally achieve profitability in the next financial year ending Dec 31, 2018, said Deputy Transport Minister Datuk Abdul Aziz Kaprawi.

He expects the implementation of the Railway Network Access Agreement (RNAA) to help drive the national railway company’s profitability. The agreement enables KTMB to focus on providing train services, while having Railway Assets Corp (RAC), which is wholly owned by the transport ministry, to handle all the maintenance for rolling stocks and rail assets.

“Definitely [KTMB will turn profitable] because they will be more focused on their services and will not be burdened [with the task] to maintain the [railway] tracks. They will focus on providing these four modes of services — commuter,

intercity, ETS (electric train service) and cargo,” Abdul Aziz told a press conference in Parliament yesterday.

The RNAA entails KTMB transferring all its rolling stocks, rail assets and land to RAC, and the latter will lease back these assets to KTMB. RAC currently holds assets worth some RM8 billion.

Abdul Aziz said subsequent to the RNAA, KTMB will still be the contractor to maintain the asset’s communication and signalling equipment.

“Because KTMB has the human resources, probably they will form a subsidiary company, and RAC will outsource communication and signalling equipment maintenance services to this company,” he added.