KUALA LUMPUR: Malaysia Rail Link Sdn Bhd (MRL) is targeting 1.4 million passengers annually for the East Coast Rail Link (ECRL) from next year, based on an initial load factor assumption of 60 per cent.
MRL chief executive officer Datuk Seri Darwis Abdul Razak said the company hoped to achieve a higher load factor, with 90 per cent being a more favourable outcome.
"For the initial operations of ECRL from 2027, our current assumption is a 60 per cent load factor. Hopefully, we can achieve more than that. If we can reach a 90 per cent load factor, that would be better," he told a press conference on ECRL fares today.
Asked whether the government would need to provide operating subsidies to maintain fares at the announced levels, Darwis said there was currently no subsidy for ECRL operations.
He said MRL hoped to cover at least the railway's operating costs through passenger and freight revenue, although relying solely on passenger revenue to recover the project's costs would be challenging given the scale of investment involved.
"Like I said, don't just look at the financial return of the project operation because what is important is the economic spillover that is going to develop along the alignment," he said.
Beyond its financial returns, Darwis said the ECRL's wider economic benefits, including the economic activities generated along its route, should also be taken into account when assessing the project's overall value.
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