KTM to implement Touch 'n Go in July

After a recent flurry of news in The Star, it seems KTM will implement Touch ‘n Go (TnG) on their Komuter trains in July 2005. Hence making three commuter trains systems (Putra, Star and KTM Komuter) in Klang valley allowing TnG usage at their gates, leaving only ERL and Monorail not allowing so.

On 22 April 2005 Leong Shen-li wrote, “The Government spent RM10mil to set up electronic fare-card readers at KTM Komuter, monorail and Express Rail Link stations to allow commuters to use Touch ‘n Go fare-cards on all systems … But one-and-a-half years later, the fare-card readers remain idle because the rail operators and Rangkaian Segar Sdn Bhd, which runs the Touch ‘n Go system, are still wrangling over the commission rate … Sources said Rangkaian Segar wants 2.5%, while the rail operators were prepared to pay less than 2%.

On 23 April 2005 Transport Minister Datuk Seri Chan Kong Choy weighed in, “Excuses given by rail operators and the Touch ‘n Go card operator for not launching the fare-card system will not be accepted.” And Rangkaian Segar Sdn Bhd CEO, Swinder Grewal said it “would be sensitive” to the issue of commission rates in further discussions with the rail operators.

On 24 April 2005 KTM Berhad said in a statement “it will implement the Touch ‘n Go system for its Komuter train service in July following the Government’s call for a common ticketing system for public transportation in the Klang Valley.” with no mention about any agreement on the commission rate.

For reference the full press articles follows, with my highlightings in bold

(1) The Star 22 April 2005 …

One-card system for public transport stalled
BY LEONG SHEN-LI
PETALING JAYA: The Government spent RM10mil to set up electronic fare-card readers at KTM Komuter, monorail and Express Rail Link stations to allow commuters to use Touch ‘n Go fare-cards on all systems. This was to make public transport in the Klang Valley more efficient.

But one-and-a-half years later, the fare-card readers remain idle because the rail operators and Rangkaian Segar Sdn Bhd, which runs the Touch ‘n Go system, are still wrangling over the commission rate.

Sources said Rangkaian Segar wants 2.5%, while the rail operators were prepared to pay less than 2%.

This disagreement, they added, had resulted in the operators holding back implementation of the system.

“The system is ready. All that is needed is for the operators to agree and the cards can be accepted immediately,” the sources said.

However, there are indications that KTM Komuter is likely to adopt the system in July although KTM Bhd is still unhappy with the commission issue and will continue to push for a lower rate.

Under the common ticketing system, all public transport systems in the Klang Valley are to accept Touch ‘n Go cards, allowing commuters to hop from one system to another without needing to buy new tickets.

Currently, KTM Komuter, KL Monorail, KLIA Ekspres and KLIA Transit, which carry a total of about 150,000 passengers a day, do not accept the cards, but the two light rail transit systems – Putraline and Starline – do.

Public transport operators have been reluctant to accept Rangkaian Segar’s rate, saying the high commission will eat into their already narrow profit margins.

Rangkaian Segar, they argue, should recognise that public transport operators are not profit-oriented, unlike operators of privatised expressways, and should adjust the commission rate accordingly.

“However, Rangkaian Segar looks unlikely to budge on this matter,” a source said.

According to the sources, the operators have also appealed to the Government to step in but it has been reluctant to intervene directly because commissions are deemed “a commercial matter”.

Nevertheless, the Transport Ministry has organised several meetings between the different parties since the issue surfaced.

The sources said a breakthrough with KTM was finally reached last week.

But KTM was still unhappy with the commission issue and would continue to push for it to be reduced, they said.

Similar breakthroughs were not expected in negotiations with KL Infrastructure Group Bhd, the monorail’s operator, and Express Rail Link, which operates the KLIA Ekspres and KLIA Transit.

“The two seem adamant about standing firm,” said a source.

When contacted, KTM Bhd managing director Datuk Mohd Salleh Abdullah declined to comment on the commission issue, but confirmed that KTM was looking at implementing the Touch ‘n Go system in July.

(2) The Star 23 April 2005 …

No more excuses, says Chan
BY EDWARD RAJENDRA and ROYCE CHEAH
PORT KLANG: Excuses given by rail operators and the Touch ‘n Go card operator for not launching the fare-card system will not be accepted, Transport Minister Datuk Seri Chan Kong Choy said.

“The parties concerned must resolve the matter right away as it is impeding the country’s vision to have an efficient public transportation system,” he said yesterday.

Chan said the issue should have been resolved much earlier as the infrastructure was already in place.

The minister was commenting on a report in The Star yesterday that KTM Komuter, KL Monorail, KLIA Ekspres and KLIA Transit still do not accept Touch ‘n Go fare-cards despite the Government having set up electronic fare-card readers at KTM Komuter, monorail and Express Rail Link (ERL) stations one-and-a-half years ago.

This is due to disagreement over the commission rates between Touch ‘n Go operator Rangkaian Segar, which wants 2.5%, and the rail operators, which are prepared to pay less than 2%.

Chan is perplexed as to why this standoff is dragging on.

“It is not fair to the consumers.

“The Government has spent RM10mil to equip the stations with the electronic fare-card readers, so it’s certainly not right if we have companies squabbling over commission rates and stalling our public transport plan,” he said.

Chan was speaking to reporters after witnessing the delivery of the first of 11 locally built economy-class coaches to KTM Berhad, to boost its intercity services, at the ARA Rails Integrated Complex here.

When contacted, Rangkaian Segar Sdn Bhd, said it would continue to work towards a common ticketing system.

Its chief executive officer, Swinder Grewal said it “would be sensitive” to the issue of commission rates in further discussions with the rail operators.

“It is in our interest to have these rail operators (ERL and KL Monorail) join up with us, so we will definitely look into their concerns,” she said, adding that the parties last met in December last year.

ERL chief executive officer Dr Aminuddin Adnan said Rangkaian Segar’s proposed rates were not reasonable.

Dr Adnan said negotiations would come to a standstill if Rangkaian Segar did not come back to them with a reasonable proposal.

Earlier report:
One-card system for public transport stalled

(3) The Star 24 April 2005 …

KTM to implement Touch ‘n Go in July
KUALA LUMPUR: KTM Berhad said in a statement it will implement the Touch ‘n Go system for its Komuter train service in July following the Government’s call for a common ticketing system for public transportation in the Klang Valley.

The statement was made following a report in The Star on Friday that KTM Komuter, KL Monorail, KLIA Ekspres and KLIA Transit still do not accept Touch ‘n Go fare cards despite card readers being set up at the stations one-and-a-half years ago.

The delay was due to a disagreement between Touch ‘n Go operator Rangkaian Segar, which wanted 2.5% in commission, and the rail operators who were willing to pay only 2%.

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About sabre23t

An analyst, researcher, civil engineer & information technologist working in a transportation company.
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2 Responses to KTM to implement Touch 'n Go in July

  1. Pingback: Sabre 2/3rd Tiger v3 » Blog Archive » Pradonet’s multicard ticketing system

  2. DSP SALLEH BIN MOHAMAD says:

    Saya adalah pemilik kas touchngo 1832616161. Di Stesyen Komuter KTM Bank Negara mesin touchngo selalu rosak dan tidak berfungsi menyebabkan pelanggan tidak selesa dan mengalami kerugian kerana dikenakan tambang dari distinasi yang paling jauh. Kenapa kepentingan pelanggan tidak dilindungi. Bukan kesilapan pelanggan, disebabkan mesin rosak pelanggan dikenakan secaj. Pelanggan gagal mendapatkan penjelasan daripada staff KTM bertugas distesyen kerana perkara ini bukan bidangkuasa tugasan mereka. Dicadangkan pihak touchngo selalu membuat pemeriksaan dan ujian disetiap stesyan KTM komuter pada setiap awal pagi. Terima kasih.

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