Butterworth KTM Station, Air Cargo Terminal Upgrade To Drive More Balanced Development In Penang

By Farhana Poniman

GEORGE TOWN, Dec 28 (Bernama) -- The upgrade of Butterworth KTM Station and the expansion of the air cargo terminal at Penang International Airport could be important catalysts for achieving more balanced development between Penang Island and Seberang Perai.

State Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari said the two projects complement each other, particularly by strengthening the mobility ecosystem and improving the state’s logistics capacity.

“Upgrading KTMB Butterworth will reinforce Seberang Perai’s role as a major mobility hub, while the airport cargo project will increase logistics and air cargo capacity on the island. As a result, economic growth can be distributed more evenly,” he told Bernama.

Zairil stated that the proposed works at Butterworth KTM Station include construction and improvement of waiting areas, a multi-level lobby, escalators, a drop-off zone and other supporting facilities.

He said the design and planning of the upgrade started in January 2025 and were completed in July of the same year, and the federal government will handle the tender process, and construction is expected to start in early 2026.

Zairil said that although the state government is not involved in planning the project, it views the station as the main transport node in Seberang Perai.

“Butterworth KTM Station is a key gateway for the electric train service (ETS), intercity trains and transit services. Its integration with the public transport network, including the planned Penang LRT, is crucial to ensure smooth journeys,” he said.

Zairil added that the upgrade will focus on physical connectivity, timetable coordination, ticketing and travel information integration, and transit-oriented development (TOD), among others.

Regarding the expansion of the Penang International Airport’s Air Cargo Terminal, he said preliminary works are expected to begin in the first quarter of 2026, with construction completed in the fourth quarter of 2028.

Once finished, the terminal’s annual cargo capacity is estimated to increase by 337,280 tonnes, from the current 150,000 tonnes.

As of October 2025, recorded cargo totalled 117,000 tonnes, and full-year tonnage is projected to reach about 150,000 tonnes, with potential annual growth of around 4.5 per cent through 2030.

Zairil said the project complements efforts to expand cargo facilities, including plans for the Penang International Logistics Airpark (PILA), which will operate as the Second Air Cargo Complex Free Zone.

He said Penang has the potential to become a more competitive logistics and trade hub with a more efficient logistics network and greater cargo capacity.

Zairil said the increased flight and cargo capacity will not only strengthen logistics networks but also attract new investments, particularly in high-tech sectors.

“Both projects can broaden the benefits of development across the state and support more balanced economic growth, while strengthening Penang’s position as a regional hub,” he added.

-- BERNAMA