Penang: Cooperation between PT Belawan New Container Terminal (BNCT), Mutiara Perlis Sdn Bhd, and Penang Port Sdn Bhd is expected to strengthen the regional logistics and trade sector. In a statement today, the Consulate General of the Republic of Indonesia in Penang said BNCT would serve as a key gateway in Sumatra to strengthen the distribution of goods across regional markets, while Penang Port would function as a transshipment hub and Perlis Inland Port as a land logistics link to Southeast Asian and East Asian countries.

According to BERNAMA News Agency, the Memorandum of Cooperation (MoC) between the three parties was signed today in conjunction with the opening of the Tuanku Syed Sirajuddin Free Trade Zone - Perlis Inland Clearance Depot (PIP) by the Raja of Perlis, Tuanku Syed Sirajuddin Jamalullail. The Indonesian Consulate General in Penang indicated that the synergy among the three parties was expected to improve supply chain efficiency, accelerate cross-border cargo flows, and connect integrated digital systems to ensure seamless movement of goods.

Indonesian Consul General in Penang, Wanton Saragih, stated that the collaboration had the potential to accelerate economic growth in Indonesia, Malaysia, and Thailand, while also developing an alternative corridor linking ASEAN with East Asia. 'This connectivity will accelerate the flow of Indonesian commodities from the Sumatra region, such as palm oil, coffee, cocoa, tea, and other agricultural products, to Penang, Kedah, and Perlis, as well as surrounding areas,' he said.

Operationally, the approximately 255-kilometre route between Belawan Port and Penang Port will be extended by 133 kilometres to Perlis Inland Port, bringing the total route length to about 388 kilometres. The Indonesian Consulate General in Penang highlighted that this route was more efficient than the conventional Belawan Port-Singapore route, which was almost twice as long.