PDC, MAHB approve formation of JVco to implement Penang International Logistics Aeropark project

GEORGE TOWN (May 5): The Penang Development Corporation (PDC) and Malaysia Airports Holdings Bhd (MAHB) have approved the setting up of a joint venture company, Syarikat Usahasama PILA Sdn Bhd, to implement the Penang International Logistics Aeropark (Pila) project.

In a statement Tuesday, Chief Minister Chow Kon Yeow said the majority of the key matters in the agreement regarding the joint venture company have been finalised, with the agreement signed on April 13.

He said that Pila is a strategic joint venture between PDC and MAHB to develop a new cargo terminal that will strengthen the logistics ecosystem of the Northern Region and support the growth of Penang’s industrial sector.

“The approval of the planning permission for the master plan has been obtained, and currently, earthworks and soil treatment are actively being carried out at the project site,” he said in the statement, which was issued following his visit to the Pila site here on Tuesday.

Chow said the first phase of the project involves the construction of a new free commercial zone-class air cargo warehouse building, which is expected to be completed and operational by 2029.

He said that the development of Pila is expected to accommodate a cargo capacity of up to 500,000 tonnes per year by 2050, with the provision of warehouse space exceeding two million square feet.

“For the first phase, the Air Cargo Warehouse building is expected to support an additional capacity of up to 100,000 tonnes per year,” he said.

The chief minister said the project also includes constructing a cargo terminal and additional aircraft taxiways to increase operational capacity and attract more cargo flights to Penang.

Chow said the project is very important for meeting the logistics needs of the state’s industrial sector, particularly the electrical and electronics (E&E) and semiconductor industries, which continue to grow despite facing global challenges.

He elaborated that without additional logistics facilities, local companies have to rely on external hubs for cargo delivery, which increases costs and delivery times.

“With this facility, we are striving to attract the flow of cargo back to Penang with the concept ‘made in Penang, fly from Penang’,” he said.

Chow added that the strategic project is expected to be launched by Prime Minister Datuk Seri Anwar Ibrahim in the near future.

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