PADANG BESAR, May 30 — The government is confident that the development of the Perlis Inland Port (PIP) will contribute significantly towards achieving the Malaysia-Thailand bilateral trade target, which is projected to reach US$30 billion by next year.

Transport Minister Anthony Loke said the close ties between Malaysia and Thailand have long been the foundation of economic development in the border areas of both countries, and the PIP would further strengthen these economic relations through more efficient, faster and integrated cross-border trade facilitation.

“Perlis’ strategic location along the Malaysia-Thailand border gives the state a significant advantage in emerging as a major logistics and trade hub in the region. PIP has the potential to become a key land trade gateway linking ASEAN countries with broader markets in East Asia and Eurasia,” he said.

He said this at the opening ceremony of the Tuanku Syed Sirajuddin Free Commercial Zone at PIP today, officiated by the Raja of Perlis, Tuanku Syed Sirajuddin Jamalullail.

Also present were Raja Muda of Perlis, Tuanku Syed Faizuddin Putra Jamalullail and Perlis Menteri Besar Abu Bakar Hamzah.

Loke said the PIP is expected to catalyse local economic growth through the creation of new jobs, increased business activity and the inflow of high-quality investments into Perlis.

He said the facility would also complement other strategic developments under the Northern Corridor Economic Region (NCER), including the Chuping Valley Industrial Area, the Kedah Rubber City and the Kedah Science and Technology Park, creating a competitive and mutually reinforcing economic ecosystem.

“Through its direct connection with Malaysia’s double-track rail network and Thailand’s railway system, the facility will provide wider access to markets across Asean, China, Central Asia and Europe through the Trans-Asian Railway network.

“This development is expected to reduce dependence on a single transportation route, improve logistics efficiency and lower trade operating costs,” he said.

At the same time, using the railway as a main cargo transportation mode also supports the nation’s aspiration of a greener and more sustainable transportation system by reducing carbon emissions and traffic congestion, said Loke.

“The facility is developed to replace the Padang Besar Cargo Terminal, which has reached its maximum operational capacity of 150,000 twenty-foot equivalent units (TEUs) per year.

“With an area spanning 202.34 hectares and its comprehensive modern logistics facilities, the PIP offers an initial handling capacity of 600,000 TEUs per year and has the potential to expand to two million TEUs once completed,” he said.

Loke added that the PIP would serve as a strategic platform to expand Malaysia’s trade network with countries in the Mekong region, China and Central Asia, further strengthening the country’s position as a preferred trade and logistics hub in the region. — Bernama