Penang: The Penang Development Corporation (PDC) and Malaysia Airports Holdings Bhd (MAHB) have approved the establishment of a joint venture company, Syarikat Usahasama PILA Sdn Bhd, to execute the Penang International Logistics Aeropark (PILA) project.
According to BERNAMA News Agency, Chief Minister Chow Kon Yeow announced that the majority of key matters concerning the joint venture company have been finalized, with the official agreement signed on April 13. The PILA project represents a strategic collaboration between PDC and MAHB to develop a new cargo terminal aimed at enhancing the logistics ecosystem in the Northern Region and supporting the growth of Penang's industrial sector.
Chow confirmed that planning permission for the project's master plan has been secured, with ongoing earthworks and soil treatment actively underway at the site. The first phase of the project will involve constructing a new free commercial zone-class air cargo warehouse building, anticipated to be completed and operational by 2029.
The development of PILA is projected to handle a cargo capacity of up to 500,000 tonnes per year by 2050, with warehouse space exceeding two million square feet. The initial phase will see the Air Cargo Warehouse building supporting an additional capacity of up to 100,000 tonnes annually.
The chief minister further explained that the project includes building a cargo terminal and additional aircraft taxiways to boost operational capacity and attract more cargo flights to Penang. This development is crucial for addressing the logistics needs of the state's industrial sector, particularly for the electrical and electronics (E and E) and semiconductor industries, which continue to expand despite global challenges.
Chow highlighted that without expanded logistics facilities, local companies must rely on external hubs for cargo delivery, leading to increased costs and delivery times. The new facility aims to redirect the flow of cargo back to Penang under the concept 'made in Penang, fly from Penang.'
Chow also mentioned that the strategic project is expected to be launched by Prime Minister Datuk Seri Anwar Ibrahim in the near future.