Kuehne+Nagel and City Zone Express have taken the lead as anchor tenants at the new Bukit Kayu Hitam Inland Container Depot (BKH ICD) Hub, a strategic facility aimed at transforming cross-border logistics between Malaysia and Thailand. The hub, which officially commenced operations on May 1, 2025, is a centerpiece of the Special Border Economic Zone (SBEZ) and is designed to boost efficiency and trade in the region.

The SBEZ, a large-scale development spanning over 11,000 acres, was initially launched by Malaysia in 2018 to leverage Southern Thailand’s economic momentum. After a temporary halt due to the COVID-19 pandemic, the project was revived in 2021 and became fully operational in the first quarter of 2025.

The BKH ICD Hub is strategically located less than 500 meters from Malaysia’s customs checkpoint and features Free Commercial Zone warehouses. The facility offers a comprehensive suite of services, including a container yard with a capacity for 250,000 TEUs, container repair facilities, reefer container systems, and dedicated 24/7 customs lanes.

Kuehne+Nagel and City Zone Express have consolidated their existing border facilities into a dedicated 1,700-square-meter space within the new hub. This partnership is expected to significantly speed up customs clearance through in-house customs capabilities, seamless cross-docking, and a dedicated lane for Thai trucks after clearance.

Chellan Ganesan, Head of Road Logistics for Asia and the Pacific at Kuehne+Nagel, emphasized the strategic importance of the new hub. “We see this as a strategic fit to our Roadmap 2026 and Vision 2030 initiatives in advancing cross-border road transportation in this corridor,” Ganesan commented. “With BKH ICD, we are setting a new standard for regional logistics and paving the way for a smarter, more efficient future for cross-border movements.”

The collaboration is timely, as Malaysia and Thailand are targeting US$30 billion in bilateral trade by 2027. Land transport via key border checkpoints is predicted to surpass marine transport in efficiency, making strategic facilities like the BKH ICD Hub crucial for accommodating the rise of international trucking.

The hub also includes a trucker’s lounge and on-site restaurants, with a commitment to improving driver welfare by promoting rest and reducing fatigue.