Real Estate Development

Railway land is divided into two parts, Titled Land and Reserve Land.

1. Titled land
   1. Titled land can be used for railway purposes or mixed depending on the condition of the grant of title. However, the priority is to the railway industry for any development undertaken.
   2. Titled land is divided into 2, namely:
      1. Permanent
      2. State Leases (99/999 years)
2. Land Reserve
   1. Reserve land can be developed for railway purposes only.
   2. Reserve land is divided into 3, namely:
      1. Measured and gazetted reserve
      2. Measured and gazetted reserve
      3. Reserve not measured and gazetted

Railway land in Peninsular Malaysia has an area of 30,755.41 acres. This land covers an area of land (8,024.418 acres), leases (1,062.858 acres) and reserves (20,606.097 acres). The value of railway land in the whole of Peninsular Malaysia is RM 8,625,299,403.00 (assessment in 2005).

1. Estate Pocket (Pocket Land)
   1. Land separated from the operational railway. The land is at a site formerly used as quarters or as a quarry for the use of train. The total land area is 1,431.84 acres pocket.
   2. The land is very suitable for the development in various forms of development in accordance with the approval of the Town and Country Planning Department and the Local Authority (LA). The pocket land has a high value, especially in urban areas and major business centers.
2. Surplus Land
   1. Land which are attached together with the operation of trains area, whether used or not as the railway station and surrounding area. The total surplus land area is 2,791.16 acres.
   2. This land has the potential to generate rental income either short term or long-term lease or development benefit to the railway industry.
   3. The land is also only allowing the development of related industries such as the development of the KL Sentral railway and inland port.
3. Operation Land (ROW)
   1. Land that is fully involved with the railway’s operation such as the railway track and also part of the railway station. The total land area of operation land (ROW) is 26,532,41 acres.
   2. The land is reserved for the usage in railway operations. However, the results can be generated along the track to ensure the safety of railway operations accounted for if the rental / lease granted.

Railway lands that are undeveloped yet consists of pocket land, surplus land and reserve land in which those lands are in potential of development because:

1. Railway lands are located in strategic locations that is near to the commuter stations, LRT and monorail, urban areas, ports and others where it is the focus of the public because public transport is efficient, economical and easy to the surrounding areas.
2. Proposals of development for the reserve land status should be the concept of railway in which the proposal should involve the development of commuter station or integration of the station or (commuter, LRT-PUTRA, STAR-LRT or Monorail) to meet the land use.

Railway lands can be developed through the development proposals submitted by the private sector, government agencies or through the Ninth Malaysia Plan (RMK) to the Railway Assets Corporation. Here are the steps to be followed for the application of the proposed development on railway land:

Step 1:

Developers need to identify that the land to be developed are the property of the Railway Assets Corporation prior to submitting any application to the Development Unit or check the status of the land through the Land and Mines Office (PTG) of the State or the Development Unit, the office of the Railway Assets Corporation.

Step 2:

The developer must submit a development proposal in writing (formal letter) to the General Manager, Railway Assets Corporation by attaching the following information:

1. Company Profile:
   • Information Company
   • Company Background
     • The target (goal), objective history of the company, executive, organization chart, the number of employees, type of business, the financial information and the experience of (the project has been and is being carried out)
   • Other
     • The certificates and awards, a list of customers, the news about the company and community involvement activities.
2. Proposal Development:
   • Title of the proposed development
   • Plan and key site location plan
   • Issues, goals and objectives of the proposed development
   • The concept of the proposed development (type of development, the design of buildings - including the components of the proposed concept plan (conceptual plan) or master plan (master plan) if available)
   • Return on investment (ROI) either in the form of cash or in-kind
   • Other appendix (cross section, perspective, 3D models, etc.)

The proposed development will be processed after the Railway Assets Corporation received a letter of application and the information from the applicant. The Railway Assets Corporation will review the application and the applicant will receive a response within 90 working days.

The proposed development will be assessed by the Railway Assets Corporation Development Committee before being brought to the Board of Directors of RAC to obtain the views / comments. If the RAC Board agrees, development proposals will be appointed to the Ministry of Transport for the preparation of Cabinet papers for consideration.