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Malaysia National Transport Policy Review

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Malaysia National Transport Policy Review ReportNo. 706-MA Malaysia NationalTransport Policy Review Public Disclosure Authorized June1988 InfrastructureDivision CountryDepartment 11 AsiaRegional Office FOR OFFICIAL USE ONLY Public Disclosure Authorized Public Disclosure Authorized Documentof the World Bank Public Disclosure Authorized Thisdocument has a restricteddistribution and may beused by recipients onlyin the performanceof their officialduties. Its contentsmay not otherwise bedisclosed without World Bankauthorization. CURRENCY EQUIVALENTS Currency Unit - Ringgit (M$) M$1.0 - US$0.40 US$1.0 - M$2.50 (as of July 1967) FISCAL YEAR January 1 - December 31 WEIGHTS AND MEASURES km = kilometer (0.62 miles) ton = metric ton (1,000 kilograms) ACRONYMSAND ABBREVIATIONS ATS - Air Traffic Services DCA - Department of Civil Aviation EPU - Economic Planning Unit GRT - Gross registered tonnage HPU - Highway Planning Unit JKR - Road Department KLIA - Kuala Lumpur International Airport KN - Kontena Nasional KNS - Sabah State Railways KTM - Malayan Railway LLM - Malaysian Highway Authority HAS - MalaysianAirlines System MCW - Ministry of Communications and Works (Sabah) HID - Ministry of Infrastructure Development (Sarawak) MOT - Ministry of Transport MPE - Ministry of Public Enterprises HPW - Ministry of Public Works RTLB - Road Transport Licensing Board TEU - Twenty foot equivalent unit FOROFFICIAL USE ONLY MALAYSIA TRANSPORTPOLICY REVIEW Table of Contents Page No. Introduction ..................................................... i Executive Summary and Recommendations.............................. iii I. TRANSPORT AND THE ECONOMY. .................................1 A. Country Background .. 1 B. Economic Setting .. 1 C. Transport Investments .. 2 D. TransportAdministration and Planning.................. 4 II. TRANSPORT FLOWS IN ?ENINSULARMALAYSIA . 5 A. Freight Flows .. 5 B. Passenger Traffic....................... * 6 C. Transport Corridors...................... < 7 III. THE TRANSPORT SYSTEM....................................... 8 A. Road Transport......................................... 8 Motor Vehicles and Motorization...................... 8 Highway Network and Traffic.......................... 9 Road TransportIndustry .............................. 10 Road TransportRegulatory System ..................... 12 Road Safety.......................................... 14 Institutionsin the Subsector........................ 14 Planning, Finance and Expenditures................... 15 B. The Railway Subsecter.................................. 15 The Rail Network..................................... 15 The Malayan Railways................................. 16 The Future of the Railway............................ 17 C. The Aviation Subsector................................. 19 Infrastructureand Equipment......................... 19 Institutionsin the Subsector........................ 20 D. Maritime Transport..................................... 22 E. Intermodalismand Containerization..................... 23 IV. TRANSPORT IN SABAH AND SARAWAK .. 25 A. MacroeconomicPerspective .............................. 25 B. The Transport System................................... 25 C. Traffic Flows.......................................... 29 D. Transport Expendituresand Financing................... 30 E. Transport Agencies ..................................... 30 Thisdocument hss a restricteddistribution and may be used by recipientsonly in the performance of their officialduties. Its contents may not otherwisebe disclosedwithout World Bankauthorization. V. TRANSPORTCAPACITY ANALYSIS ... 31 A. Road Transport and Infrastructure .. 31 B. Rail Fleet and Infrastructure . 33 C. Coastal ShippingFleet and Port Infrastructut2......... 34 D. Air Fleet and Airport Infrastructu-e . 36 VI. RECOMMENDATIONS............................................ 40 VII. FUTURE ROLE OF THE BANK.................................... 46 TABLES 1.1 Gross Domestic Product by IndustrialOrigin 1.2 Public Revenue and Expenditurefor Transport,1982-86 2.1 Road Freight Traffic in PeninsularMalaysia, 1986 2.2 Malayan Railways: Freight Traffic, 1976-85 2.3 Cargo Movements Between the Four Major Ports, 1980-86 2.4 Compositionof Cargo Originatingfrom Singaporeto Peninsular Malaysia Ports, 1986 2.5 Summary of Freight Movementswithin and between Corridors,1986 3.1 Road Network by State, Surface Type and Jurisdiction,1985 3.2 Progress of Constructionof North-SouthExpressway 3.3 Growth of Truck Fleet by Permit Type ir.Peninsular Malaysia, 1982-86 3.4 Comparison of Road Freight Rates in Thailand and Malaysia 3.5 Road User Taxes, 1984 3.6 Road User Revenues, 1982-86 3.7 JKR and LLM Expenditureson Roads, 1982-86 3.8 Malayan Railways: PassengerTraffic, 1976-85 3.9 Malayan Railways: Passengers,Passenger-Kilometers and Revenue, by Class of Service (1981-85) 3.10 Malayan Railways: Ratios and Key Statistics,1981-85 3.11 Malayan Railways: Income Statement,1981-85 3.12 Malayan Rai3ways: Summary Balance Sheet, 1981-85 3.13 Malayan Railways: Income Account, 1980-86 3.14 Malayan Railways: ExpenditureAccount, 1980-86 3.15 Airports and Airport Facilities,1984 3.16 Investmentin Aviation Subsector,1971-85 3.17 PassengerAir Traf:ic, 1979-86 3.18 DCA: Airport Revenues,Peninsular Malaysia, 1982-86 3.19 DCA: Revenues and Expenditures,1982-86 3.20 MalaysianAirline System: Ratios and Key Statistics,1983-86 3.21 MalaysianAirline System: Summary Balance Sheet, 1983-86 3.22 Malaysian Airline System: Income Statement,1982-86 3.23 Port Throughputand Capacity, 1985 3.24 Revenues and Expendituresof Federal Ports, 1982-86 3.25 DevelopmentExpenditures for Federal Ports, 1984-86 3.26 Marine Department: Revenues and Expenditures,1982-86 3.27 Malayan Railways: Container Traffic, 1974-86 3.28 Road Container Traffic, by Company (1982-86) 3.29 Coastal Container Traffic in PeninsularMalaysia, 1980-86 4.1 Sabah State Railways: Revenues and Expenditures,1982-86 4.2 Transport Expendituresand Financing in Sabah and Sarawak, 1981-90 5.1 Trucking Industry Capacity Utilizationand Forecastsof Fleet Needs in PeninsularMalaysia, 1986-95 5.2 Forecasts of Bus Fleet Requirementup to 1995 5.3 Government Road InvestmentProgram, 1987-2008 5.4 RecommendedHighwe.y and Bridge Capacity Improvements 5.5 Sabah: Future Road and Bridge Projects 5.6 Sarawak: Future Road and Bridge Projects 5.7 Malayan Railways: Wagon Turnaround Time, 1982-86 5.8 Load Factors of Major Aircraft Types 5.9 MAS Fleet Development,1986/87-1991/92 MAPS PeninsularMalaysia (IBRD 20248) 8 sh and Sarawak (IBRD 20249) At movementswithin and between Traffic Corridors of Peninsular Malaysia (IBRD 19999). Documents and Data in the Report File 1. BackgroundPaper on Freight and PassengerTrarsport in Peninsular Malaysia 2. BackgroundPaper on Railways Transportation 3. BackgroundPaper on the Aviation Subsector in Malaysia 4. BackgroundPaper on Transportationin Sabah and Sarawak 5. Background Paper on Capacity Requirementsin Transportation 6. Background Paper on East-WestMalaysia Freight and PassengerTraffic 7. TechnicalNotes: (1) Transportationand Economic Efficiency in Sabah and Sarawak (2) Privatizationin Transport for Sabah and Sarawak (3) Transport Intensityin PeninsularMalaysia with some InternationalComparisons (4) Traffic Forecast for East-WestMalaysia Trade (5) Pricing and National TransportPolicy in Malaysia (6) Forecast of Rail Traffic in PeninsularMalaysia (7) Forecast of ContainerTraffic in Peninsular Malaysia (8) Coastal Traffic Projectionsin Peninsular Malaysia (9) Air Traffic Forecast for PeninsularMalaysia (10) Road TransportForecast (11) The Impact of the North-SouthToll Expressway on TransportationCosts MALAYSIA TRANSPORTPOLICY REVIEW INTRODUCTION i. Over the last 15 yeaLs, Malaysia's economy has undergone fundamental changes. With the oil crisis of the early 1970s and the country's development of its own petroleum industry,Malaysia found itself in a situationof rapidly increasingrevenues and high economic growth. As the economy expanded, pressures on the transportsystem began to be felt and major investmentsin transportwere subsequentlyundertaken. ii. With the collapse of the oil price and decliningterms of trade for its other exports, Malaysia is now sufferingfrom a rather severe economic slowdownwhich is foriing the Governmentto find ways of meeting its transport requirementswithout relying solely on additional infrastructureinvestments. Strategies are also needed to deal with the problems brought about by the rapid and often uncoordinateddevelopment of the transport system during the past decade. iii. This report,which attempts to respond to these needs, represents the outcome of the first serious dialogue between the Bank and the Malaysian Government on the domestic transport sector in over 15 years. As a sector document it differs from the usual Bank report in that it is a cooperative effort between the Government and the Bank. A team in the Ministry of Transport (MOT) was set up with four full-timeministry staff, supportedby technicalassistance, to fully participatein data collection,analysis and report writing. Consultantswere also engaged by the Bank to produce back- ground papers on specific topics, and these papers combinedwith the MOT team's output form the basis of the report. It should be noted, however, that the views expressed in the report, the issues singled out, and the recodmmenda- tions made, all reflect the Bank's own position. iv. From the beginning, the main objectiveof the report was to identify the critical bottlenecksto transportefficiency given that Governmentwas interested in minimizing
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