Kuala Lumpur: Phase 1 of the Perlis Inland Port (PIP) project in Chuping is set for completion by the third quarter of this year and will handle 300,000 twenty-foot equivalent unit (TEU) containers annually. Transport Minister Anthony Loke announced this development, highlighting the project’s significant capacity increase compared to the Padang Besar Container Terminal (TKPB), which handles a maximum of 150,000 TEU annually.

According to BERNAMA News Agency, Loke explained that the PIP addresses the growing demand that TKPB can no longer accommodate. The new facility is strategically located a few kilometres from the Malaysia-Thailand border in the Chuping region. The government, in collaboration with the private sector, has invested over RM300 million in supporting infrastructure, including a five-kilometre bonded road and a railway spur line.

The announcement was made during a press conference following the signing of a strategic agreement between Keretapi Tanah Melayu Bhd (KTMB) and Perlis Inland Port Sdn Bhd (IPPSB), a subsidiary of Mutiara Perlis Sdn Bhd. Loke noted that the PIP’s development will occur in three phases, ultimately reaching a total handling capacity of one million TEU annually.

Last year, container handling at TKPB saw a 21 percent increase, driven by active cargo routes from Prai to Thailand’s Kantang, Surat Thani, and Bang Klam, as well as from Port Klang to Hat Yai. The rise in cargo traffic from southern Thailand brought TKPB’s capacity to nearly 80 percent.

Operations at TKPB will gradually transition to PIP upon the completion of Phase 1, aiming to manage the increased cargo traffic from southern Thailand and alleviate congestion at Padang Besar. The PIP, strategically located at Malaysia’s northern border, is poised to become a major cargo handling centre between Malaysia and Thailand.

The PIP project is expected to generate over 500 local jobs, enhancing the northern corridor’s economic growth. It will facilitate a more integrated industrial ecosystem in Perlis, Kedah, Penang, and Perak, with rail access to major ports like Port Klang and Penang Port.

The agreement with KTMB positions the company as a key player in container handling, improving efficiency in cargo operations at the PIP. This aligns with the government’s commitment to strengthening transportation infrastructure, particularly in rail and logistics services.

Loke emphasized the government’s dedication to developing Perlis as a strategic transport and logistics hub in northern Peninsular Malaysia, marking a significant step in enhancing the region’s connectivity and trade capabilities.