RAC and Proton are collaborating on the development of a Cargo Hub Terminal and dedicated railway spur line linking Proton Tanjung Malim to RAC’s railway network
The project supports the expansion of Proton City, Tanjung Malim, where Proton and key automotive suppliers will relocate under the Automotive High Tech Valley (AHTV) initiative
AHTV aligns with the National Automotive Policy, which focuses on attracting investment, strengthening industry capabilities, advancing research and development, and supporting the growth of Next Generation Vehicles (NxGV) in Malaysia
This development is expected to help Proton increase its production capacity from 70,000 units per year in 2023 to 500,000 units annually by 2035
The initiative will also enhance KTMB’s rail cargo services and support the ‘Road to Rail’ initiative by the Ministry of Transport (MOT), which aims to shift freight transportation from road to rail to improve logistics efficiency and sustainability
A Memorandum of Understanding (MoU) for the development of the Cargo Hub Terminal was signed on 4 September 2025 between RAC, KTMB and MSB, witnessed by the Prime Minister, marking a significant step in strengthening Malaysia’s rail-based automotive logistics ecosystem