ECRL targets RM418 million in operating revenue in 2029

The East Coast Rail Link (ECRL) is projected to generate RM418 million in operating revenue in 2029 from passenger and freight services, reported New Straits Times.

This projected figure is comprised of RM204 million from passenger services and RM214 million from freight operations, transport minister Anthony Loke said. A study conducted by consultants in 2025 projected passenger revenue of RM192 million in 2027, increasing to RM198 million in 2028.

“Freight revenue is projected at RM68 million in 2027 and RM71 million in 2028, before increasing to RM214 million in 2029. These projections are subject to actual operational performance, including passenger numbers, freight volumes and changes in market demand,” Loke said.

The long-term business model for the ECRL is based on a combination of revenue from passenger and freight services, with around 70% of projected revenue to come from freight services and around 30% from passenger services, according to the report.

This approach would enable the ECRL to capitalise on not just passenger travel demand, but also on the potential movement of goods between the east coast and the west coast, as well as access to the country’s major ports, the transport minister said.

To ensure operational sustainability, revenue from both services will be used to cover operating, maintenance and related costs. At the same time, ECRL Operation Sdn Bhd (EOSB), as the operator, will optimise non-fare revenue through commercial activities such as space rentals, advertising and other suitable sources,” Loke said.

“This joint venture model also involves sharing operational risks between the two shareholders to increase revenue, optimise asset utilisation and manage operating costs prudently,” he continued.

Meanwhile, the construction cost of the ECRL project spanning 665 km from Kota Bharu to Port Klang was RM52.43 billion, said the transport minister. The project is financed by several sources, including a term loan from China EXIM Bank, sukuk issued by Malaysia Rail Link, development allocations from the transport ministry and financing from the finance ministry.

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