GEORGE TOWN, Jan 10 ― FedEx Express launched its RM17.6 million FedEx Penang Gateway facility in Batu Maung today.

The new facility is an integrated warehouse and sorting facility for both FedEx and TNT operations in the region.

It will serve as a major hub in the northern region of Malaysia and also as a key gateway for FedEx Asian and Trans-Asian flights.

FedEx Operations senior Vice President Kawal Preet said the new facility will connect Malaysia’s northern region to the world.

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“At FedEx, we are committed to the growth of Penang’s logistics infrastructure, optimising both our regional and global connectivity to support local businesses and creating more possibilities for large, medium and small enterprises to import and export,” she said at the launch of the facility.

FedEx Malaysia managing director SC Chong said the facility will also serve Kedah and Perak.

“The business trend here is moving towards the mainland, we can see a future there,” he told a press conference later.

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The new facility, covering 52,000 sq ft, is a one-stop logistics hub to connect northern Malaysia to Asia Pacific and beyond, he added.

“Customers can benefit from access to more routes and a smoother custom clearance process as we continue to improve our capabilities to better support the customer experience,” he said.

The facility is the first of its kind in Malaysia to feature x-ray scanning for all outbound packages.

Equipped with advanced conveyor belts and sorting systems, the facility can handle more than 2,700 packages per hour.

The facility will have two dedicated Boeing 767 freighters capable of next-business-day delivery flights to major cities in the United States and Asia Pacific.

It also has 71 ground operations vehicles covering more than 60 local routes in Penang, Kedah and Perak.

Chong said the facility has approximately 350 support team members out of its total 1,400 employees nationwide.

Earlier, Penang Chief Minister Chow Kon Yeow said the new facility is the largest logistics facility in the state.

He said logistics is a thriving industry in Penang as it supports the supply chain ecosystem of the manufacturing sector.

Chow said it will serve the growing supply chain ecosystem in Seberang Perai particularly with more factories setting up in Batu Kawan.

“The logistics industry plays an important part to support the manufacturing sector in Seberang Perai,” he said.

FedEx currently has 12 stations across Malaysia in Penang, Negeri Sembilan, Perak, Kuantan, Johor, Sabah, Sarawak and Kuala Lumpur with plans to launch two more stations, another one in Penang and Johor.

FedEx plans to launch another facility in Batu Kawan, on the mainland side of Penang.

FedEx is the world’s largest express transportation company that provides delivery to more than 200 countries and territories.