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Neutral impact on industry players if ECRL cancelled - analysts

Last update: 13/06/2018
 

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, June 13 (Bernama) -- Neutral impact is expected on ports and last-mile delivery players if the East Coast Rail Line (ECRL) is cancelled or delayed, according to analysts.

This is due to the complexity of costs of intermodal logistics to be borne by companies in having to use other transportation such as trucks to transport cargo to rail, said Malaysian Industrial Development Finance Bhd (MIDF) Research Analyst Adam Mohamed Rahim.

"Even though the ECRL claims to take a shorter time to transport rather than solely using ships passing through the Straits of Malacca, the cargo volume using a ship is way higher than using railway.

"For example, ships from China unload cargo at Kuantan Port and then may use trucks to transport to rail. The railway then carries the cargo to Port Klang and when unloaded, it will need trucks to transport the cargo from rail to port.

"This process will incur higher charges for the companies than by using ships," he told Bernama.....

 
 

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