The Land Transport Commission (SPAD) will reportedly submit a paper to the Cabinet by as early as next month in regards to a possible fare hike for the LRT and Monorail services for the third-quarter of 2015.
According to The Sun Daily, the Land Public Transport officials are readying a proposal, and have been since last week. A main point of the motion is to illustrate the operating costs which have ballooned to over 28 times since 1996, justifying a review of fares and services.
A source told the daily that Prasarana will be spending RM960 million in order to outfit their rail systems with 50 new coaches to replace existing ones as well as new technology upgrades over the next four years.
"Prasarana Malaysia Berhad as the asset owner and operator for LRT and monorail through Rapid Rail Sdn Bhd has been exposed to increased electricity tariff by Tenaga Nasional Berhad, at least three times in the last seven years. There is also the huge cost of procuring new rolling stock in the last 36 months for the existing Ampang and Kelana Jaya lines and together with the extension lines," he said.
The most recent fare revision for Prasarana’s rail services were conducted in 2002. An anonymous government source told The Sun that the proposal will also detail the consequences of the planned fare hike on commuters within the Klang Valley as well as economic shortfalls for the government should the current fare structure remain unchanged.
"We are studying the details and we will present it to the Cabinet next month. Anything that concerns the people especially on fares, SPAD has been instructed not to make any decision about it and to let the Cabinet decide," he said.