Phase 1 Of Perlis Inland Port To Handle 300,000 TEU Annually, Set For Completion By 3Q - Loke

PADANG BESAR, March 24 (Bernama) -- Phase 1 of the Perlis Inland Port (PIP) project in Chuping, which is expected to be completed in the third quarter (3Q) of this year, is capable of handling 300,000 twenty-foot equivalent unit (TEU) of containers annually.

Transport Minister Anthony Loke stated that this capacity is an increase compared to the maximum capacity of 150,000 TEU per year handled at the Padang Besar Container Terminal (TKPB).

“Previously, cargo transshipment was done at TKPB, which can no longer accommodate the demand and a new area has been developed in the Chuping region, a few kilometres from the Malaysia-Thailand border.

“The PIP is being developed through a strategic collaboration between the government and the private sector, where the government has spent more than RM300 million on supporting infrastructure, including a five-kilometre bonded road and a spur line or a railway track,” he said.

Loke made this statement during a press conference after the signing of a strategic agreement for the operation and maintenance of the PIP between Keretapi Tanah Melayu Bhd (KTMB) and Perlis Inland Port Sdn Bhd (IPPSB), a subsidiary of Mutiara Perlis Sdn Bhd, here today.

He said the development of the PIP will be carried out in three phases and is expected to have a total capacity of handling one million TEU annually.

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Earlier, Loke said that last year, container handling at TKPB increased by 21 per cent compared to the previous year, with active cargo routes from Prai to Kantang, Surat Thani, and Bang Klam, as well as from Port Klang to Hat Yai.

He highlighted that the increase in cargo traffic from southern Thailand throughout the year caused container handling at TKPB to approach 80 per cent of its maximum capacity.

“Therefore, the operations at TKPB will be gradually moved to PIP once Phase 1 of PIP is completed. 

“The transfer of operations from TKPB to PIP aims to accommodate the increase in cargo traffic from southern Thailand and reduce congestion at Padang Besar,” Loke said.

He said that the PIP would not only act as a catalyst for industrial and logistics activities in the northern corridor but its strategic location at the country’s northern border positions it as a potential major cargo handling centre between Malaysia and Thailand.

The project is expected to create over 500 job opportunities for the local residents, contributing to the economic growth of the northern corridor and the well-being of the people, said the minister.

“The benefits are not just for the people of Perlis. The PIP will create a more integrated ecosystem for industries in the states of Perlis, Kedah, Penang, and Perak, supported by rail access to major ports in the country, including Port Klang and Penang Port,” he said.

Regarding the agreement between KTMB and IPPSB, Loke said that KTMB would play a key role in container handling, improving cargo storage and retrieval efficiency, and implementing best industry practices to accelerate trade movement at the PIP.

He stated that the agreement is an important step in the government’s efforts to strengthen the country’s transportation infrastructure, especially in the rail and logistics services sector.

“This agreement also represents the government's ongoing commitment to developing Perlis as a strategic transport and logistics hub in the northern region of Peninsular Malaysia,” Loke said.

-- BERNAMA