Deputy Transport Minister confirms the Penang International Logistics Aeropark project has started, aiming to triple cargo capacity and bolster Malaysia’s regional logistics hub status

KUALA LUMPUR: The Penang International Logistics Aeropark development project at Penang International Airport began in the first quarter of this year.

Deputy Transport Minister Hasbi Habibollah said PILA is a phased project to upgrade and expand the capacity of the new cargo terminal.

“Phase 1 targets an increase in cargo handling capacity from 0.16 million tonnes to 0.5 million tonnes per year,” he said during a Dewan Negara session.

This will be achieved through the development of a new cargo terminal, a taxiway, and two parking aprons.

He was responding to a question about measures to prepare aviation and port infrastructure to strengthen Malaysia’s position as a regional logistics hub.

Hasbi said the ministry has conducted engagement sessions with stakeholders to draft strategies for empowering the industry.

This is in line with positioning Malaysia as a regional distribution centre under the National Transport Policy 2019-2030.

Elaborating, Hasbi said a phased reform plan for the air cargo ecosystem began at Kuala Lumpur International Airport.

The plan aims to improve policies, procedures and digitalise operational processes.

“This collaboration involves multiple stakeholders and has been ongoing since the fourth quarter of 2025,” he said.

For the maritime sector, port authorities are committed to exploring space and supporting port expansion initiatives.

Ongoing projects include Phase 1 of the New Deep Water Terminal by Kuantan Port Authority, while Phase 2 is still in planning.

Johor Port Authority is planning the development of Phase 3 of the Tanjung Pelepas Free Zone, expected to begin this year.

This includes new berth development to reach 16 million TEUs by 2029.

He also said the construction of spur lines from main railway lines is a strategic step for direct port connectivity.

“Related projects include the spur line linking the East Coast Rail Link project to Port Klang and Kuantan Port,” he said.

The extension of siding tracks at the North Butterworth Container Terminal is also part of this strategy.

 The Sun Malaysia