By REENA RAJ
IPOH, Malaysia: THE Perak government is looking into the possibility of having a stake in an electric locomotive and train manufacturing plant to be developed in Batu Gajah.
Menteri Besar Datuk Seri Dr Zambry Abd Kadir said they were studying the project which would be completed in two years.
He said the venture by China's CSR Zhuzhou Electric Locomotive Co Ltd (CSR ZELC) would have a big impact on the state's technology and investment.
"After the project is completed, the plant will be a production centre for locomotives and coaches for the Asian and Middle Eastern markets, and it will eventually be a regional centre for the development of the rail industry," he said, adding that the total investment for the plant's development would be RM400 million.
"Its production capacity, after five years of operations, is expected to reach RM25 billion," he said after a briefing on the project by CSR ZELC representatives for state executive councillors, here, yesterday.
Dr Zambry said the plant would also conduct servicing and tests on locomotives and trains.
He said that CSR ZELC was completing negotiations with land owner Railway Assets Corporation and the state government on the surrounding land.
"Construction of the plant will begin soon as CSR ZELC has completed its study." The company is one of China's major electric locomotive manufacturers and a subsidiary of China South Locomotive and Rolling Stock Corporation Limited.
Keretapi Tanah Melayu Bhd signed an agreement with CSR ZELC, two years ago, for the purchase of 38 six-car-train units worth RM1.89 billion, excluding maintenance, repair and overhaul expenses, as part of the National Key Results Area programme to improve Klang Valley's public transportation.
(c) 2012 ProQuest Information and Learning Company; All Rights Reserved.

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