Malaysia seeks trade boost with China, Thailand via inland port

KL building new $148m facility in Perlis as it eyes expanding regional connectivity via railway

- Hazlin Hassan

KUALA LUMPUR - Malaysia is building a new RM492 million (S$148 million) inland port in northern Perlis state with the aim of boosting trade with China and Thailand, as part of its broader ambitions to expand regional connectivity via railway.

When completed by the third quarter of 2025, the Perlis Inland Port (PIP) is expected to handle up to 300,000 twenty-foot equivalent units (TEUs) of cargo annually, shoring up the 150,000 TEU capacity of the existing terminal at Padang Besar, a township that sits on the border with southern Thailand and has both road and rail checkpoints.

The plan is to align the new inland port with two rail lines, one of them the existing Padang Besar-to-Penang Port link.

The other is a potential new route via the upcoming East Coast Rail Link (ECRL) in Kelantan state capital Kota Bharu via Sungai Golok.

Both these routes could link Malaysia to China's Pan-Asian Railway network.

These rail routes, which Malaysia hopes will eventually connect to Kunming, China, are expected to strengthen Kuala Lumpur's role in facilitating trade across the region. The cargo transported from Thailand includes timber, sawn wood, rubber and latex.