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Butterworth KTM Station, Air Cargo Terminal Upgrade Poised to Foster Balanced Development in Penang

Butterworth: The upgrade of Butterworth KTM Station and the expansion of the air cargo terminal at Penang International Airport are set to act as significant catalysts for fostering more balanced development between Penang Island and Seberang Perai. According to BERNAMA News Agency, State Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari emphasized that the two projects will complement each other by enhancing the mobility ecosystem and improving logistics capacity across the state. Zairil highlighted the potential of the Butterworth KTM Station upgrade to solidify Seberang Perai's role as a major mobility hub, while the expansion of the airport cargo terminal is expected to significantly boost logistics and air cargo capacity on the island, thereby promoting more evenly distributed economic growth. Zairil detailed that the proposed upgrades at Butterworth KTM Station will include new construction and improvements such as waiting areas, a multi-level lobby, escalators, and a drop-o ff zone, along with other supporting facilities. He mentioned that design and planning commenced in January 2025 and were finalized in July of the same year. The federal government is set to manage the tender process, with construction likely to start in early 2026. Although the state government is not directly involved in the planning of the project, Zairil noted that the Butterworth KTM Station is viewed as a crucial transport node in Seberang Perai. He emphasized its role as a key gateway for various train services and its integration with the planned Penang LRT, highlighting the importance of ensuring seamless journeys through physical connectivity, timetable coordination, ticketing and travel information integration, and transit-oriented development. Regarding the air cargo terminal expansion at Penang International Airport, he stated that preliminary works are anticipated to begin in the first quarter of 2026, with construction expected to conclude by the fourth quarter of 2028. Once completed, the te rminal's annual cargo capacity is projected to increase by 337,280 tonnes, up from the current 150,000 tonnes. As of October 2025, recorded cargo totaled 117,000 tonnes, with full-year tonnage expected to reach about 150,000 tonnes, and a potential annual growth rate of around 4.5 percent projected through 2030. The air cargo project is part of broader efforts to expand cargo facilities, including plans for the Penang International Logistics Airpark (PILA), which will function as the Second Air Cargo Complex Free Zone. Zairil asserted that these developments hold the potential to transform Penang into a more competitive logistics and trade hub, with an enhanced logistics network and increased cargo capacity. Zairil concluded that the enhanced flight and cargo capacity will not only fortify logistics networks but also attract new investments, particularly in high-tech sectors. He stressed that both projects are expected to extend the benefits of development throughout the state and advance more balanced econ omic growth, while reinforcing Penang's stature as a regional hub.

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