KUALA LUMPUR, June 27 (Xinhua) -- Malaysia's trade connectivity with China and Southeast Asia received a boost on Thursday with the launch of the ASEAN Express, an international freight train connecting Malaysia to Thailand, Laos and China.
The service connecting new trade routes and multiple inland ports across the region is expected to reduce the transit time of goods within the region significantly, for example taking just nine days from Kontena Nasional Inland Clearance Depot (KNICD) in Selangor state to southwest China's Chongqing Municipality against the 14 to 21 days normally required by sea, Transport Minister Loke Siew Fook said in his speech at the flag-off ceremony.
Loke said the new service would not only improve regional logistics and rail connectivity but also open up new markets and provide more cost savings to local businesses and people.
"This service will provide smoother and more efficient goods flow throughout the region as well as enhance rail cargo transport capacity while reducing logistics costs by an estimated 20 percent from current market rates," he said.
"The shorter transport times are also expected to open up new markets, with the agricultural sector in particular to benefit by allowing perishable products to be transported more quickly by rail. Rail transport also boasts a significantly lower carbon footprint than road haulage, promoting a sustainable future," he said.
For his part, Keretapi Tanah Melayu Berhad Group chief executive officer Mohd Rani Hisham Samsudin said the new service showcases both the Association of Southeast Asian Nations (ASEAN) and Malaysia's competitiveness in the global market.
"The ASEAN Express also has the potential to handle up to 20,000 TEUs (twenty-foot equivalent unit containers) annually from China to the ASEAN market, which opens up significant opportunities for trade and economic growth while reinforcing the strategic importance of our railway network in the regional supply chain," he said.
"Through this connection of key economic hubs, we expect the service to facilitate greater economic integration among our neighbors while also driving regional development and prosperity," he said. ■
