NORTHERN Gateway Logistic Centre Sdn Bhd and One Northern Hub Sdn Bhd inked a joint venture to develop and operate a new truck and inland clearance depot (ICD) at Special Border Economic Zone (SBEZ) in Kota Perdana, Bukit Kayu Hitam, Kedah.
Northern Gateway Logistic Centre is a wholly-owned subsidiary of Northern Gateway Sdn Bhd, a company reporting to the Finance Ministry, while One Northern Hub Sdn Bhd is a fully-owned subsidiary of PKT Logistics Group Sdn Bhd.
The partnership by the ratio of 60:40 — One Northern Hub and Northern Gateway Logistic Centre respectively — is expected to form a new venture for Bukit Kayu Hitam ICD Sdn Bhd to carry out the development.
PKT Logistics chairman Datuk Jalilah Baba said the ICD construction is projected to begin in the first half of next year, and reach completion by 2022 in three phases, at a cost of RM200 million.
She said the facility will utilise a designated land parcel of about 20ha, within the SBEZ area of 1,780ha. The ICD would sit next to Immigration, Customs, Quarantine and Security Complex in Bukit Kayu Hitam.
“Named Bukit Kayu Hitam ICD, this integrated logistics hub will cater to an annual throughput of 200,000 containers, along with warehouses and cross-dock facilities for cargo consolidation and container stuffing.
“It will be self-sustainable as it will also contain a petrol station and a multi-storey tower providing office space, a logistics institute, recreational facilities and more,” she said after the signing ceremony in Putrajaya yesterday. The ceremony was witnessed by Finance Minister Lim Guan Eng.
Jalilah said the ICD aims to improve the competitiveness of Malaysian ports as a gateway for South Thailand exporters by simplifying and streamlining the logistics operations of shipping lines, forwarders, hauliers and customs clearance agents. To date, Thailand is Malaysia’s fifth-largest trading partner globally and second among the Asean countries, with a total trade value of RM 105.4 billion in 2018.
“With an integrated and sustainable ICD in Bukit Kayu Hitam, Northern Gateway and PKT Logistics aim to attract more South Thailand transshipment cargo through local ports, by making all crossborder truck processes for shipping lines, forwarders and customs clearance agents as efficient as it can be,” Jalilah added.
In his speech, Lim said the government has been supporting the ICD surrounding development by providing RM25 million this year and an additional RM50 million for next year to build external infrastructure and utilities to ensure the project’s success.
“We are supporting the SBEZ not just by providing money, but also cutting red tape and laying down the red carpet for investors and businesses by designing SBEZ as a free industrial and commercial zone.
“The zone will house resource-based and export-driven industries, with links to industrial powerhouses along the west coast of Peninsular Malaysia and Thailand,” he said.
Meanwhile, Northern Gateway COO Razwin Sulairee Hasnan Termizi said the company will also look into connecting a rail track from Kota Perdana to the country’s railway main artery.
“As of now, Bukit Kayu Hitam has no railway connectivity. So, we are looking to do a feasibility study by early next year. We are considering three points with up to 30km of connection,” he said.
“In terms of competitiveness and a large volume of cargo, you cannot beat the train as the main option. This provision (of having a railway system) was also outlined in the Kota Perdana master plan,” he added.
On a holistic view, Razwin Sulairee said the SBEZ would also complement the upcoming Kulim International Airport, which aims to become the air freight hubs in the northern area.