PIP Handles 100,000 TEU In Four-and-a-half Months

PADANG BESAR, Aug 28 (Bernama) -- The Tuanku Syed Sirajuddin Free Trade Zone - Perlis Inland Clearance Depot (PIP) has handled 100,000 twenty-foot equivalent units (TEUs) of cargo in the four-and-a-half months since it began full operations in April.

Economy Minister Akmal Nasrullah Mohd Nasir said the achievement demonstrates PIP’s significant potential as a strategic gateway for cross-border trade, thus strengthening Malaysia’s position as a regional logistics hub.

“We understand that PIP’s collaboration has involved areas such as Belawan in North Sumatra, Indonesia, which could facilitate the expansion of this logistics route to cover three countries on this side,” he told a press conference during his visit to PIP here today.

As such, he is confident that PIP’s cargo handling could reach 180,000 TEUs by year-end, while highlighting plans to add value to economic activities at PIP, including the development of an On-Dock Depot to provide container preparation services.

“At the same time, PIP is also looking into building a warehouse or facilities to support packaging or the breaking down of bulk goods as well as logistics management and distribution, while creating opportunities for the local economic ecosystem,” said Akmal Nasrullah.

He said the PIP development project was a public-private partnership, with Mutiara Perlis Sdn Bhd serving as the developer and operator, while the federal government provided infrastructure funding through the Northern Corridor Implementation Authority (NCIA).

The minister said the federal government had allocated RM327 million to build a bonded road, flyover and railway spur line, leveraging Perlis’ location to offer more competitive logistics costs, high-value investments and greater economic opportunities for the people.

He highlighted that 63 per cent of the service contractors are from Perlis and Kedah, and added that Perlis has the potential to become a logistics and transportation hub.

Meanwhile, in a statement from NCIA, Akmal Nasrullah said PIP’s links with Penang Port and Indonesia’s Belawan New Container Terminal (BNCT) had established a 388-km logistics corridor connecting Indonesia, Malaysia and Thailand.

He said the corridor had the potential to reduce the cost and transit time of goods compared with conventional routes, while strengthening regional supply chain connectivity.

“PIP can support Malaysia’s efforts to attract high-value investments under the China Plus One supply chain strategy by offering competitive access to ASEAN and the Greater Mekong Subregion markets,” he said.

He said the government would continue to strengthen the country’s logistics infrastructure and connectivity to enhance Malaysia’s competitiveness as a regional trade and investment hub, while ensuring that economic development benefited a wider segment of the population.

-- BERNAMA