Pe­nang Port may lose 20% of cargo traf­fic vol­ume

The Star Malaysia - StarBiz - - News -

BUT­TER­WORTH: Pe­nang Port may be at risk of los­ing 20% of its cargo traf­fic vol­ume un­less its lo­gis­tics’ ef­fi­ciency im­proves, said In­done­si­aMalaysia-Thai­land Growth Tri­an­gle (IMT-GT) Joint Busi­ness Coun­cil (JBC) Malaysia chair­man Datuk Faudzi Naim Noh.

He said Thai­land is de­vel­op­ing a deep-sea port off the Chana dis­trict in Songkhla prov­ince, which faces the Gulf of Thai­land and the South China Sea.

Faudzi said the port could serve as a di­rect seaborne gate­way to China and other coun­tries in East Asia, which means that freight traf­fic from East Asia would travel via South China Sea in­stead of “loop­ing” around Penin­su­lar Malaysia via the Straits of Malacca to reach their des­ti­na­tions.

“Cur­rently, some 80% of south­ern Thai­land’s freight is shipped through Pe­nang Port but there is a dis­tinct pos­si­bil­ity that up to 80% of goods from north­ern Malaysia would go through Chana once the port there be­gins op­er­a­tions.

“As such, Pe­nang Port stands to lose 20% of its cur­rent cargo traf­fic vol­ume,” he said in his speech at the In­ter-modal Lo­gis­tics in Dig­i­tal­i­sa­tion Con­fer­ence.

Faudzi also said key agencies such as Pe­nang Port Sdn Bhd and Kere­tapi Tanah Me­layu Bhd needed to en­hance their lo­gis­tic ser­vices and up­grade their equip­ment well in ad­vance for the up­com­ing lib­er­alised re­gional trans­port en­vi­ron­ment and chal­lenges from new ship­ping struc­ture in neigh­bour­ing coun­tries. — Bernama

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