Malaysian News: transit agency integration, toll roads, buses, proton, ports October 4, 2004
1. A new bill has been introduced to the legislature to consolidate all public transportation functions previously divided over 10 agencies into one new agency for KL.
2. The Malaysian government has been paying toll road owners compensation over the last 5 years so that tolls would be increased at a slower rate. This may raise questions as to how fiscally feasible the private toll road industry in Malaysia is and what concessions have to be given for new toll road construction.
3. SHort opinion piece describing buses that stop so that the drivers can solicit riders as a nuisance that should be reduced or eliminated
4. Some school bus operators increase fares without permission - good example of difference between US and Malaysia - also discussion of process for resolving this issue
5. Discussion of pros and cons of proposed Proton merger with foreign auto company
6. Proton has been looking for a foreign auto manufacturer to partner with - current belief is that Proton will partner ith VW, in a move rewarded by Malaysian market
7. This is a follow up article from a couple of weeks ago - shippers and agents had previously refused to input container data into new data tracking system at ports and threatened to shut down ports when new system came online. The system came on line over the weekend and the shippers and agents backed down and are supplying the necssary information
8. More stats for container throughput for major Malaysian ports
************************************************************************ *** ***1. New bill to consolidate public transit functions under one new agency*** ************************************************************************ **** http://thestar.com.my/news/story.asp?file=/2004/10/4/nation/9041239&sec=nation
Urban transport to be centralised
BENTONG: The public transportation system in the Klang Valley is set to improve within the next three years with the setting up of the Urban Transportation Authority, Transport Minister Datuk Seri Chan Kong Choy said.
“We are in the midst of preparing the legislation – called the Urban Transportation Authority Act – to put everything under one roof,” he told reporters after opening the Selangor MCA Youth's “Building Tomorrow Today” seminar here yesterday.
“We hope to table the Bill in Parliament next year,” he said.
Currently, he said various aspects of public transportation, such as project planning, enforcement and implementation, were fragmented among 10 ministries and government departments including the Transport Ministry, Federal Territories Ministry, local councils, Housing and Local Government Ministry and the police.
The integration of the public transportation system will involve the merging of several bus and light rail transit companies such as Intrakota, Park May, Putraline and Star-LRT.
Once completed, commuters can look forward to a single ticketing system and increased connectivity, Chan said.
The authority will also look into various problems such as irregular feeder bus services as well as poor connectivity and the lack of shaded walkways between interchange stations.
************************************************** ***2. Government compensation to toll road owners*** ************************************************* http://www.nst.com.my/Current_News/NST/Wednesday/National/20040929084928/Arti cle/indexb_html
Compensation to ensure gradual toll increases Patrick Sennyah, Carol Murugiah and Aniza Damis
DEWAN RAKYAT, Sept 28: ------
THE Government has paid out RM1.04 billion in compensation to highway concessionaires as part of efforts to increase gradually toll rates over a five-year period from 1999. Works Minister Datuk Seri S. Samy Vellu said the companies were further compensated by the Government, which extended their concession period, in the form of RM10.8 billion in toll charges.
Replying to questions raised by MPs debating the Budget 2005, Samy Vellu said compensation had led to lower toll increases than the rates stipulated in the concession agreements.
"The Government decided to compensate the companies to ease the burden of highway users." To a query from Chow Kon Yeow (DAP-Tanjong), Samy Vellu said buying back part or the whole concession was not feasible as it was too costly. On another matter, he said the Government had no plans to build a road to Bario in Sarawak despite three fatal helicopter crashes in the area recently.
He said it was not economical to build such a road as Bario was isolated and sparsely populated.
Responding to Ronald Kiandee (BN-Beluran), Samy Vellu said air travel would remain the main mode of transportation to the highlands in Sarawak.
However, after much persuasion, the minister told Madius Tangau (BN-Tuaran) that the Sarawak Public Works Department would be instructed to look into the possibility of building a "suitable" road into Bario.
Samy Vellu also responded to queries on the delay in the construction of the Malaysia External Trade Development Corporation (Matrade) building, which was supposed to have been completed years ago.
"The PWD detected several structural defects in the building in 1998 ...and appointed two new contractors to undertake repair works."
******************************************************************* ***3. Short opinion piece on private bus operators vying for riders*** ******************************************************************* http://www.nst.com.my/Current_News/NST/Wednesday/Letters/20040929111857/Articl e/indexb_html
TRANSPORT: Get rid of touts at Puduraya
Sept 29: ------
BUS touts at Puduraya are a nuisance and are giving the city a bad name. It is not a new problem at Puduraya but it is getting from bad to worse.
At every entrance, and in front of the ticket counters, they harass everyone at the bus terminal.
You just have to walk past any entrance of Puduraya and they will approach you.
They park their buses beside the roads in front of Menara Maybank, in front of Impiana Hotel and even at the traffic lights junction of Jalan Tun Tan Cheng Lock, blocking the roads, the view of motorists and causing traffic jams.
They shout for passengers in front of their buses.
It seems like the authorities are oblivious to the situation. There is a police booth a short walk away.
These touts are so visible from the booth. The authorities should act against them to ensure that nobody is victimised.
E.C. LIM Kuala Lumpur
****************************************************************** ***4. Some school bus operators increases fares without permission*** ****************************************************************** http://www.nst.com.my/Current_News/NST/Monday/National/20041004082424/Article/i ndexb_html
‘Do not increase school bus fare’ R. Sittamparam
JOHOR BARU, Oct 3: ------
The Commercial Vehicle Licensing Board and Road Transport Department will act against school bus operators who increase their fares without approval. Entrepreneur Development and Co-operatives Minister Datuk Khaled Nordin said they would have to face the consequences if they insisted on increasing rates on the back of the recent increase in fuel prices.
He said fares could not be increased until a study on the review of transport and school bus fares was completed at the end of the year.
"If school bus operators go against our directive and do what they wish, they will have to face the consequences," Khaled told reporters after opening the Menara Optometry Centre at Plaza Angsana here.
Khaled said this when asked to comment on the Federation of Malaysian Schoolbuses Association's announcement yesterday that it was increasing fares by six per cent or between RM2 and RM3.
Association chairman Chee Ah Tey had said they could not wait for the CVLB approval for a price hike as the increase in diesel price had taken effect.
He said the decision was in answer to mounting pressure from association members, adding that the six per cent fare hike was only based on the increase in diesel price and not other costs.
He said the association had earlier submitted a memorandum to the CVLB for a 20 per cent fare hike.
Meanwhile, lorry operators nationwide have to wait for Second Finance Minister Tan Sri Nor Mohamed Yakcob to return from abroad next week to discuss their proposition to forgo higher rates in return for lower road tax.
Ministry Parliamentary Secretary Datuk Dr Hilmi Yahya said Nor Mohamed could only do so then as he is currently abroad.
He said the Pan Malaysia Lorry Owners' Association (PMLOA) should not increase rates until it had met Nor Mohamed and his senior officials.
PMLOA president Er Sui See had said yesterday that lorry owners nationwide were prepared to forgo a hike in rates following an increase in fuel prices if road tax for vehicles was reduced. Dr Hilmi said PMLOA's proposal for a reduction in road tax was only submitted three weeks ago.
"It is too short a time for the ministry to study their proposition." Er said yesterday that association members would not implement a proposed seven per cent increase in rates if the Government accepted the proposition on road tax.
At present, owners of lorries which are classified under general cargo have to pay RM6,865 in annual road tax for a 36-tonne vehicle compared to RM1,200 for container lorries.
PMLOA will convene an emergency meeting next week to discuss the matter.
************************************************************ ***5. Discussion of Proton merger with foreign manufacturer*** *********************************************************** http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_441346e4 -cb73c03a-18e609b0-41dc93b3
Proton’s uncertain future 28-09-2004
Tying up with a big carmaker – like General Motors Corp or Ford Motor Co – will improve Proton’s fortunes. That’s the general consensus. But we’re not sure if there is a common ground.
Every joint venture (JV) to date has resulted, principally in local assembly plants, to take advantage of the tax differential between assembled (CKD) and fully imported cars (CBU). There’s no ‘new’ platform or model developed with major input from the local partners. A Toyota Camry or Honda Accord in Malaysia is little different from those plying the roads anywhere else in the world.
National MPV, Naza Ria is basically a Kia Carnival with a different badge – albeit with high percentage of local parts. Second national carmaker, Perodua may be developing a compact car intended for the Asean market. But partner Daihatsu is undisputedly in the driving seat.
Is Proton ready to give up control? Or worse, give up national prides like the Campro engine, the GEN.2 and possibly, even the brand name itself – to become just another assembly line?
At the same time, Proton has, arguably, outgrown partnerships like that with Mitsubishi Motors Corp, which provided its products and manufacturing technology during the start-up phase. The national carmaker is now focussing on homegrown products. Underlining this shift is Mitsubishi’s recent sale of half of its 16% stake in Proton.
Going it alone This seems to be the chosen path, for now. Proton is acquiring an assembly facility in Indonesia for US$18 million (RM68.4 million) and is considering setting up shop in China. New export markets will help broaden earnings base and more importantly, achieve critical mass and economies of scale. That however is easier said than done. Proton would’ve to jostle with deep-pocketed auto giants for global market share.
The national carmaker has come a long way in setting up its own research and product development unit. But its budget pales in comparison to the financial muscle of foreign carmakers. These companies produce a plethora of models that are constantly renewed to keep interest fresh. These days, the average age of a car model can be as short as three years! Proton is still selling Saga model, first launched in 1985.
Proton is also acquiring motorcycle manufacturer, MV Agusta, as part of its longer-term diversification plan. It’ll put up an initial €70 million (RM327 million) fresh capital in a company currently undergoing reorganisation under the Bankruptcy Law of Italy. Little is known on its plans to turn Agusta around or how much time and money will be needed to do so.
Will diversification bear fruit? Proton is embarking on its diversification strategy at a time when the dominance of its local, bread and butter operation is under threat. Proton cars sell primarily because it’s the most affordable in its class. But new entrants like General Motors (Chevrolet), Hyundai and Kia are targeting its traditional market while old rivals Toyota and Honda are also producing smaller – and cheaper – cars.
Competition also comes in the form of increasingly popular 4WDs and MPVs – as alternatives to the conventional ‘passenger cars’. The choices available to a car buyer today are far more than say, 10 years ago. And Proton is losing the battle for market share.
Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.
******************************** ***6. Proton may partner with VW*** ******************************** http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_527861ab -cb73c03a-18e609b0-31b1eff7
01-10-2004: Proton shares up on report of JV with Volkswagen By Joseph Chin
Proton Holdings Bhd rose as much as 3% or 25 sen in mid-morning trade on Oct 1 on news reports that it was in talks with Volkswagen AG for a partnership.
Proton opened at RM8.25, of five sen above yesterday's closing price of RM8.20. Within the two hours of trade, there were 122,500 shares done at prices ranging from RM8.25 to RM8.45.
At 11am, it was trading at RM8.45, up 25 sen.
The Asian Wall Street Journal reported the joint venture with Volkswagen could provide a launch pad for the German carmaker in Southeast Asia. The tie-up would enable Volkswagen to utilize Proton's production capacity to make the cars for sale in the region.
On Sept 29, Proton chief executive officer Tengku Tan Sri Mahaleel Tengku Ariff said the national carmaker was expected to sign a partnership agreement with a foreign carmaker by year-end. Proton had been talking to several foreign companies but would only tie up with one.
********************************************************************** ***7, New freight tracking system implemented without problem in ports*** *********************************************************************** http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_4fb565c1- cb73c03a-18e609b0-7fb182c1
01-10-2004: Port Klang congestion averted By Jimmy Yeow
The massive congestion that was expected to happen at the country’s biggest port — Port Klang — today has been averted after shipping lines and agents backed off from their threat of not inputting the container export data.
The shipping lines and agents have agreed to undertake the task of keying in the container seal numbers, export container numbers and container reference numbers at an 11th hour meeting arranged yesterday.
The meeting, chaired by Klang Port Authority chairman Datuk Yap Pian Hon, was attended by representatives of Northport Malaysia Bhd, shipping associations and hauliers.
In a statement issued after the meeting, Yap said the Aug 10 decision for shipping lines to key in the export and container details from today would be implemented accordingly.
Yap said yesterday’s meeting also agreed to form a task force to monitor developments as a result of the new arrangement as well as to look into improving the process.
Expressing his appreciation that all the parties involved had helped to settle the matter, he said they were accepting the new arrangement in national interest and for the sake of the port industry.
Yap said yesterday’s meeting also agreed to form a task force to monitor developments as a result of the new arrangement as well as to look into improving the process.
**************************************************** ***8. More container throughput stats in major ports*** **************************************************** http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_63fbe3ce- cb73c03a-18e609b0-9428f642
Higher container throughput By Jimmy Yeow & Ng Kar Yean
Johor Port and Port of Tanjung Pelepas (PTP) posted a sharp rise of 18.24% in their combined throughput to 3.63 million twenty-foot equivalent units (TEUs) for the first nine months of 2004 from 3.07 million TEUs a year ago, Transport Minister Datuk Seri Chan Kong Choy says.
He said Port Klang recorded a 9.47% rise in container throughput during the same period to 3.93 million TEUs from 3.59 million TEUs a year ago.
Chan said terminal operators in Port Klang and Johor had a combined market share of 88% of the container throughput for the first nine months of this year.
Speaking to reporters after officiating the 3rd Maritime & Logistics Conference 2004 in Kuala Lumpur on Oct 4, Chan said the strong growth in container traffic for the Janaury-September period indicated that local ports were in line of achieving the 11.5 million TEUs target this year or 12.75% more then the 10.2 million TEUs last year.
On another matter, Chan said his ministry would decide by year-end on whether to redevelop Sultan Abdul Aziz Shah Airport in Subang into a base for low-fare airlines or build a low-cost terminal in KLIA after his trip to the United States to study a similar low-cost hub there.
Chan had just returned from a study tour to Germany which also took him to Hanh Airport near Frankfurt, which serves as the low-cost hub for the Rhine area. During the visit, he also urged Lufthansa German airline to consider flying direct to Kuala Lumpur daily from four times a week via Bangkok since early this year.
On the newly formed Rangkaian Pengangkutan Integrasi Deras (Rapid) KL to integrate the Klang Valley public transport system, Chan said the government was in the midst of preparing its legislation and other relevant works.
Rapid KL would take over Syarikat Prasarana Negara Bhd’s operations in light rail Putra and Star, and Intrakota and CityLiner bus services.