Program Description

In the year of 2013, the Ministry of Transport (MOT) has procured 10 of 6-Car Electric Train Sets (ETS) for Keretapi Tanah Melayu Berhad (KTMB) amounting RM 507 million from CSR Zhuzhou.

This programme is currently at the implementation stage and the ICP agreement (previously known as offset agreement) was signed on 9th December 2014. Five (5) projects have been identified and being incorporated in the offset agreement as follow:


Offset Project 1 – Establishment of CRM Plant in Batu Gajah Perak:

The approach is to assemble the Electric Train Set (EST) locally and to develop local competencies in rail assembly.

Offset Project 2 – Localization:

CSR ZELC is targeting to provide subcontracting works to Malaysia’s local rail companies and other relevant companies for supply of parts and components to the ETS supplied through the Supply Contract

Offset Project 3 – Maintenance, Repair & Overhaul (MRO):

As a strategic approach in meeting with the ultimate target to establish the JV – MRO SCS and MRO ETS which has the capability to produce a significant value added impact to the local rail industry, a more sustainable business in long term, but yet managed to maintain the competitiveness among the Asean countries, CSR ZELC as the Supplier and its potential Malaysian local JV partner shall form a joint venture to develop a business strategies, namely as the Transfer of Knowhow Programme, Equity Transfer Programme and Transition of Workforce Programme.

Offset Project 4 – Long Term Railway Education :

CSR ZELC will facilitate a railway education collaboration programme between HVCRT and Malaysia Railway Academy (MyRA) as an endeavour to further improve MyRA functions in the provisions of technical trainings as well as skills enhancement in EMUs, such as Electric Train Set (ETS) and Six Car Set (SCS).

Offset Project 5 – New Green Technology:

CSR ZELC has provided two (2) units of Electric Locomotives to KTMB without any cost for the duration of two (2) years. Throughout the programme, CSR ZELC will undertake design, manufacturing, testing and commissioning, delivery and after-sales service activities in relation to the Electric Locomotives with CSR ZELC’s own funds. This endeavour will accord KTMB the opportunity to undertake the Electric Locomotives development and manufacturing activities jointly with CSR ZELC’s team as well as deploy the trial units for mainline testing and commercial activities in Malaysia.

TDA as the ICP Management Unit (IMU) of this programme is monitoring the progress and monthly meeting was held with CSR Zhuzhou for updates gathering.

The First Tier Agreement was signed on 12th  December 2014