SIMIC

MALAYSIA is building a new MYR492 million (US$111 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 TEU 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, according to Singapore's The Strait Times.



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.



The ECRL project, costing MYR50.27 billion, is being built by a Chinese firm with loans from China's Exim Bank. Slated to be completed by 2028, the 665km line will connect Malaysia's Port Klang in Selangor to the east coast states of Pahang, Terengganu and Kelantan.



"PIP will play an important role in the connectivity of the country's main rail network with international rail services such as the Pan-Asian Railway and Asean Express, which will open new opportunities for trade and economic cooperation between Malaysia, Thailand, Laos and China," said Transport Minister Anthony Loke.



Malaysia is hoping to achieve its target of US$30 billion in bilateral trade with Thailand by 2027, compared with $24.8 billion in 2023.



China has been Malaysia's top trading partner for the past 16 years, with 2024's total trade valued at MYR484.12 billion.