The Railwaymen Union of Malaya (RUM) has threatened to picket if the second attempt to privatise state-owned railway corporation Keretapi Tanah Melayu Berhad (KTMB) is confirmed.

The privatisation of the ailing railway company is tied-in with the controversial multi-billion ringgit contract to electrify and lay 616km of double-tracks, reportedly awarded to consortium partners Malaysian Mining Corporation Berhad (MMC) and Gamuda Berhad.

Contacted yesterday, RUM president Abdul Razak Hassan said the union is ready for further action if the privatisation takes place without consulting the union.

"We've had enough of this failed privatisation exercise. We do not need another one only to revert to the government a few years from now. We will definitely oppose any attempt to privatise KTMB.

"What is the point of privatisation when it does nothing for the welfare of the workers?" he added.

Review decision

Razak said the government still had time to review its decision before any agreement is signed with MMC-Gamuda.

"We have postponed the picket until after Hari Raya. The rest of our planned action will be in accordance with the Industrial Relations Act," he added.

The union had planned a nationwide picket on the eve of former premier Dr Mahathir Mohamad's retirement on Oct 31 to protest the non-payment of bonus and the erosion of staff benefits.

However, the picket was called off soon after the management announced the bonus payment. But three of the four demands have not been met.

RUM is against the prospective transfer of KTMB to the joint-management of MMC-Gamuda JV, the proposed privatisation of the railway corporation and the freeze of loan benefits to workers following the previous botched privatisation exercise.

The initial privatisation attempt, which involved a four-member consortium Marak Unggul Sdn Bhd, was considered a failure after the government re-assumed control in January 2002.

The consortium took over KTMB's daily operations in 1997 as part of a major financial and structural reform of one of the region's oldest railway services.

RUM is vexed over the back and forth transfer of the company between the public and private sectors since privatisation was initiated slightly more than a decade ago.

The controversial awarding of the country's single largest privatisation contract to MMC-Gamuda has stirred a hornet's nest in the form of public outcry, both local and abroad.

Lucrative deal

Meanwhile, opposition MP for Kubang Kerian Husam Musa told reporters that MMC-Gamuda JV would eventually obtain control of KTMB via its double tracking contracts.

"Gaining control of the railway company also means getting hold of its assets like the huge land bank which is worth a lot, including KTMB land in Singapore," he said at the parliament lobby Monday.

"The government has also spent huge sums to upgrade the company's infrastructure, particularly in a series of project under the 8th Malaysia Plan," added the PAS leader.

On the double-tracking project, Husam said the consortium announced the offer of 70 percent earthworks for the northern sector (Ipoh-Padang Besar) to Indian Railway Construction Co Ltd (Ircon) at RM3.4 billion while 70 percent of earthworks for the southern sector (Seremban-Johor Baru) went was offered to China Railway Engineering Corporation (CREC) for RM2.3 billion.

Both Ircon and CREC were initially promised the main contract before MMC-Gamuda pulled the rug from under their feet, reportedly past the tender deadline.

"MMC-Gamuda also announced that it has allocated RM10 billion for earthworks, RM4 billion for system works and the rest for contingency.

"Based on these figures, the consortium would be making a profit of RM5.8 million for every kilometer in the northern sector and RM8.6 million for the same in the south, roughly 63.7 percent of the profit from earthworks alone based on the price offered to the sub-contractors," he said.

Husam added that MMC-Gamuda will gain RM4.5 billion for earthworks alone and a project overall of RM6.1 billion.

He also debunked the official line that the contract was awarded to MMC-Gamuda based on the lowest bid of RM14.5 billion, as opposed to the RM19 billion reportedly tendered by the Indian and Chinese contractors.

Despite repeated calls to review the MMC-Gamuda contract and to re-initiate the deal based on an open tender, Prime Minister Abdullah Ahmad Badawi said there was no such proposal.