The depot, which will primarily focus on Southern Thailand-based exporters, seeks to facilitate cross-border shipments to mainly Penang Port as well as other Malaysian ports.
PKT Logistics’ wholly-owned subsidiary, One Northern Hub Sdn Bhd, inked a joint-venture (JV) agreement yesterday with Northern Gateway Logistic Center Sdn Bhd, which is wholly-owned by Northern Gateway Sdn Bhd (NGSB), to develop the ICD.
For context, NGSB is a wholly owned entity of the Minister of Finance (Incorporated). It also serves as the master developer of SBEZ in Bukit Kayu Hitam, Kedah.
A newly formed JV company, Bukit Kayu Hitam ICD Sdn Bhd, will undertake the development of the depot.
PKT Logistics’ One Northern will bear 60% of the ICD’s total cost of investment of RM200mil, while the balance 40% by Northern Gateway Logistic Center.
Finance Minister Lim Guan Eng, who witnessed the signing ceremony, said that the government will be supporting the development by providing RM25mil in 2019 and another RM50mil in 2020 to build external infrastructure such as roads and utilities linked to the depot.
The ICD, announced in Budget 2019 by Lim, will be established on a 50-acre land which can be linked to Bukit Kayu Hitam Immigration, Customs, Quarantine and Security Complex.
The integrated logistics hub ICD will be part of the larger 4,400-acre SBEZ and aims to cater to an annual throughput of 200,000 containers along with warehouses and cross-dock facilities for cargo consolidation and container stuffing.
According to PKT Logistics chairman Datuk Wira Jalilah Baba, the development of ICD will be done in three phases and is expected to be completed by 2022.
“Currently, the land has been cleared.
“Once we have received the necessary approvals, we will begin construction early next year.
“We hope Bukit Kayu Hitam ICD will help to boost both logistics and manufacturing activities in Malaysia, Kedah and South Thailand, thus acting as the catalyst for growth of the surrounding areas in Bukit Kayu Hitam and also across the border in Thailand, ” she said.
Meanwhile, Northern Gateway Sdn Bhd chief operating officer Razwin Sulairee Hasnan Termizi said that the government is looking at creating an access to rail transportation for SBEZ.
“At this moment, Bukit Kayu Hitam has no connectivity to rail. In the masterplan for SBEZ, there is a provision for us to undertake the construction of a spur line connecting SBEZ to the main artery.
“We will choose the point where it is economical.
“We are going to embark on a study to look at the possibility to have rail connectivity early next year, ” he said.
Source: The Star