Perodua today signed a memorandum of understanding (MoU) with Malaysia Rail Link (MRL), which itself signed an MoU with Kuantan Port. It is for potential long-term collaborations for the East Coast Rail Link’s (ECRL) freight transportation services, which will come on stream by January 2027.
The MoUs were signed by Perodua president and CEO Datuk Seri Zainal Abidin Ahmad, MRL CEO Datuk Seri Darwis Abdul Razak and Lee Chun Fai, chairman of Kuantan Port and Group CEO/MD of IJM Corp, witnessed by transport minister Anthony Loke, who praised Perodua for being the first mover.
We often think of the ECRL as a passenger train service, but the MoU between MRL and Perodua will explore the possibility of transporting its products (cars and parts) to the East Coast of Peninsular Malaysia to supplement the market leader’s growing need for logistical support.
The three parties said the MoU is poised to spur businesses to switch the movement of cargo from the traditional road method to the 665-km ECRL network. No estimations on cost and volume were shared, but one would imagine that goods transport via ECRL would be faster and more reliable than using trucks, not to mention more environmentally friendly. Loke said in his speech that the move from road to rail will reduce the number of commercial vehicles on the road, which will in turn improve road safety.
“We are looking to diversify the way we transport our products, and ECRL is a viable option to this need. This MoU will let us explore in detail all opportunities for both parties,” Zainal said.
“The inking MoU has significant meaning for MRL as we unlock ECRL’s value, not just as a viable transportation for the public but also a reliable logistic service for local and international businesses,” Darwis said, calling ECRL a game-changer for logistics to the East Coast.
“The ECRL serves as a key enabler in enhancing regional connectivity and economic development, underpinned by its ‘landbridge’ connecting Kuantan Port wharf to the wharves at Northport and Westports in Port Klang. This crucial ‘last-mile’ connectivity between Kuantan Port and Port Klang will streamline the transfer of goods between ports and address the issue of double-handling of cargo,” the MRL chief added.
“The MoU with MRL and Perodua marks a pivotal step in optimising our logistics network. Leveraging the ECRL, Kuantan Port aims to enhance connectivity and efficiency, offer competitive logistics costs and improve delivery times. This strategic collaboration will enhance our logistics capabilities, establish Kuantan Port as a key gateway to the East and strengthen trade links within the region,” Lee said.
“It will facilitate smoother goods movement, support the economic development of the East Coast, and drive significant economic benefits, including job creation and enhanced trade opportunities,” he added.
Looking to sell your car? Sell it with Carro.
