Amir Hamzah (centre) with Razwin (fifth from left), Tio (seventh from right) and representatives of Finance Ministry and Kedah government at the Bukit Kayu Hitam ICD during the working visit.
The newly completed Bukit Kayu Hitam inland customs depot (BKH ICD) and free commercial zone (FCZ) is poised to enhance Malaysia’s position as a regional logistics hub.
It recently hosted a visit by Second Finance Minister Datuk Seri Amir Hamzah Azizan.
Located adjacent to the Bukit Kayu Hitam Immigration Customs Quarantine Security Complex, the 20.2ha development sits along the North-South Expressway designated as Asian Highway 2 – Malaysia’s key route for the Asean Customs Transit System (ACTS).
Through ACTS, the new development facilitates seamless duty-free trucking across borders, linking Singapore to Vietnam and onwards to China.
Established as a joint venture on Dec 3, 2019, its operator Bukit Kayu Hitam ICD Sdn Bhd unites two leading entities: One Northern Hub Sdn Bhd, fully owned subsidiary of PKT Logistics Group Sdn Bhd, holding a 60% share, and Northern Gateway Logistics Sdn Bhd (NGL), a wholly owned subsidiary of Northern Gateway Sdn Bhd (NGX), with a 40% stake.
The inland port’s phased development consists of four distinct segments. Phase 1, the BKH Inland Port, spans 5ha and features a customs office complex covering 1,837sqm.
Phase 2, the BKH Free Commercial Zone (Blackwood Forests), encompasses 3.76ha and is home to four high-capacity warehouses collectively offering nearly 18,580sqm of storage.
Future phases will introduce parking, fuelling, and EV charging stations, followed by the Blackwood Complex, an integrated hub for office space, education, retail and hospitality.
Northern Gateway chief executive officer Razwin Sulairee Hasnan Termizi said,
“Malaysia and Thailand may speak different languages and operate under different legal systems but we’re connected through trade, geography and a long-standing friendship.”
“BKH ICD is a reflection of that friendship – a shared platform that makes cross-border movement simpler, faster and more efficient for Thai manufacturers and regional exporters.”
“It’s also proof that you don’t have to be next to the sea to be at the centre of trade, you just need to be where goods change hands and gain value.”
PKT Logistics Group’s group chief executive and managing director Datuk Seri Dr Michael Tio said,
“Back in 2008, we had envisioned the establishment of One Northern Hub for a simple reason – to ease south Thai exports through Malaysian ports.”
“The launch of Bukit Kayu Hitam ICD and FCZ – the first two components of One Northern Hub – aims to elevate Malaysia’s status to the next Asean Logistics Hub, by making cross-border cargo movements seamless, efficient and secure.”
Since breaking ground in early 2022, BKH ICD has achieved several key milestones.
Full regulatory approvals were secured early this year, paving the way for operational readiness on April 8.
The FCZ was officially launched on June 1, reinforcing its role as a vital trade enabler.
The facility operates daily, from 7am to 10pm, with a handling capacity of 250,000 TEUs (twenty-foot equivalent units) annually.
Equipped with advanced stacking slots for dry and refrigerated containers, the port targets a productivity rate exceeding 10 moves per hour.
Cutting-edge infrastructure, including flexible entry-exit lanes and a next-generation terminal operating system, ensures smooth logistics management.
In alignment with sustainability goals, BKH ICD received GreenRE Gold Certification in March.
The facility integrates efficient lighting, water conservation measures and AI-driven flood lighting management, reducing its carbon footprint while optimising operations.
BKH ICD also appointed University Malaysia Perlis to deploy AI to control flood lighting for the inland port.