Railway Assets Corporation (RAC) has been shortlisted as a finalist for Transport Innovator of the Year at the Transport Expo Asia (TXA) Awards 2026, thanks to two initiatives that rethink how Malaysia can use its existing railway assets. From changing how freight locomotives are funded and maintained to turning unused space beneath a railway viaduct into a community destination, RAC’s work brings innovation beyond the trains themselves.
Rethinking How Freight Trains Are Kept Running
Traditionally, Malaysia has purchased trains outright using government funds, with maintenance costs managed separately. RAC’s rolling stock leasing strategy takes a different approach.
The corporation has sold 44 freight locomotives to Malaysian manufacturer SMH Rail Sdn. Bhd. for refurbishment and is leasing them back over 25 years. The agreement requires at least 39 locomotives to remain available to Keretapi Tanah Melayu Berhad (KTMB), with the supplier responsible for scheduled maintenance and overhaul. Meanwhile, 246 older wagons are being replaced with new locally built units.
The model spreads costs over the fleet’s working life and ties payments to availability, rather than relying on a large upfront purchase. Six cargo hub terminals are also planned to support the Ministry of Transport’s Road to Rail initiative.
Once operational, the six cargo hubs are projected to handle about 306,780 twenty-foot equivalent units (TEU) of cargo annually. By shifting more freight from road to rail, the programme is expected to reduce the need for lorry journeys, with RAC estimating that it could take 539,160 lorry trips off the roads each year. The projection illustrates how RAC’s freight strategy could help ease road congestion while making greater use of Malaysia’s existing railway network.
Giving Railway Land Back to the Community
RAC’s innovation takes a more visible form in Kluang, Johor. Beneath the Gemas-Johor Bahru Electrified Double Track viaduct, land that might otherwise have remained fenced off, has been transformed into Laman Rel Mahkota, a linear park and community space.
The project combines public recreation with commercial and cultural activities without requiring new land acquisition or major infrastructure construction. Its potential has already been demonstrated through public events. Keretapi Sarong 2025 attracted more than 5,000 visitors, while the Kluang Rail Festival 2025 drew nearly 30,000.
These gatherings have brought people back to the railway area for reasons beyond catching a train. The project also offers a model that could be adapted to other towns where elevated railway lines leave underused spaces beneath them.
An Approach with Wider Implications
Both initiatives reflect a broader question facing transport authorities: how can existing infrastructure deliver more value without continually requiring new public spending?
RAC’s leasing model is being applied more widely across the rail sector, while its community-space concept offers another way to integrate railway infrastructure into urban life. Together, these initiatives reflect RAC’s railway innovation by showing how existing rail assets can support both more efficient operations and stronger community connections.
As a finalist for Transport Innovator of the Year at the TXA Awards 2026, RAC brings a distinctive perspective to transport innovation. Its work shows that progress is not measured only by new trains or new tracks, but also by better ways to maintain what already exists and make infrastructure more useful to the people and businesses around it.
