Erl Needs Strong Marketing To Compete With Grab Buses Says Expert

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Transport expert Goh Bok Yen anticipates that Express Rail Link Sdn Bhd will soon be able to function without needing government subsidies.PETALING JAYA: Express Rail Link Sdn Bhd (ERL) needs a strong marketing strategy to remain competitive against alternatives like buses and e-hailing services such as Grab, says a transport expert.
Goh Bok Yen said Grab’s emergence posed a competitive challenge to ERL, which began operating in 2002 without competition from e-hailing services.
“They should have their own marketing strategy (to overcome this challenge). Of course, you are also competing with the buses,” he told FMT.
Goh’s comments come after the government extended ERL’s concession agreement for train services to KLIA for another 30 years, until 2059.
Goh Bok Yen,Calling the extension a positive step forward, he anticipated that ERL would soon be able to function without needing government subsidies.
“Projects of this nature normally only require subsidies at the beginning. I would say this is a logical move,” he said.
The concession agreement will also empower ERL, which operates KLIA Transit and KLIA Ekspres, to introduce a “market-driven” fare system – a prospect welcomed by Malaysian Public Transport Users Association president Ajit Johl.
Ajit said that ERL’s move to market-driven pricing was a positive and welcome decision, given the competition from Grab and other alternatives that offered cheaper fares.
Ajit Johl.“It is encouraged because it opens up more competition and makes people more competitive. Costs will always drive (competition), especially in public transport.
“When the operator has recouped their investment and achieved the expected returns, the company becomes financially independent, allowing the operator to set their own rates, which is exactly what they have done,” he told FMT.
Ajit said ERL should enhance its service quality or at least maintain its current level of service, even in the event of fee reductions.
“There will always be a market for ERL, just as there will always be a market for ride-sharing services.
“If you’re travelling solo, ERL may be the more economical option, but if you’re travelling with a group, Grab could offer cost savings. There will always be both solo and group travellers,” he said.
Ajit also said it was time that ERL began offering group packages to attract more passengers.
“Consider providing food options, because the journey can range from 45 minutes to an hour, as well as enhancing the onboard experience with additional vending machines and similar amenities. It’s basically about making it a more comfortable ride,” he said.
On Jan 23, transport minister Loke Siew Fook said implementing a market-driven fare system would release the government from its obligation to compensate ERL. - FMT

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