Perlis Inland Port poised to boost Malaysia‑Thailand trade to $30

The Perlis Inland Port (PIP) is set to become a major logistics hub on the Malaysia‑Thailand border, with officials saying its expanded capacity could help achieve the bilateral trade goal of US$30 billion by 2027 [1]. The project, built on a 202‑hectare site, will replace the Padang Besar Cargo Terminal and initially handle 600,000 TEUs per year, double the current capacity [3].

Key takeaways

• Phase 1 of PIP will have a handling capacity of 300,000 TEU, later expanding to 600,000 TEU with potential to reach two million TEU [1][3].
• The port is expected to generate over 500 local jobs and spur economic growth in Perlis and neighboring states [1].
• Direct rail links to Malaysia’s double‑track network and Thailand’s railway will lower logistics costs and support greener transport [3].
• The development aligns with the Northern Corridor Economic Region’s broader industrial plans, including the Chuping Valley Industrial Area and Kedah Rubber City [3].
• Officials cite the port’s role in diversifying trade routes and expanding access to ASEAN, China, Central Asia and Europe via the Trans‑Asian Railway [3].

Expanding capacity and infrastructure

The Transport Minister, Anthony Loke, announced that Phase 1 of the Perlis Inland Port is slated for completion in the third quarter of this year, offering a handling capacity of 300,000 TEU—twice the 150,000 TEU capacity of the existing Padang Besar Container Terminal (TKPB) [1]. The new facility will feature warehousing, storage, and a bonded road network, supported by a railway spur line and flyover funded by the federal government at a cost of RM327.45 million [1].

Construction of the port includes a partnership between KTM Bhd and Inland Port Perlis Sdn Bhd for railway park operation and maintenance, ensuring seamless rail connectivity to major Malaysian ports such as Port Klang and Penang Port, as well as to Thailand’s rail system [1]. The upgraded rail corridor is expected to reduce reliance on a single transportation route, improve logistics efficiency, and lower trade operating costs [3].

Strategic role in the Malaysia‑Thailand trade target

During the opening of the Tuanku Syed Sirajuddin Free Commercial Zone at PIP, Loke highlighted the port’s strategic location along the border as a catalyst for a “major logistics and trade hub” that can link ASEAN markets with the Middle East and Eurasia [3]. By replacing the Padang Besar Cargo Terminal, which has reached its maximum capacity of 150,000 TEU per year, PIP will initially handle 600,000 TEU annually and could expand to two million TEU once fully completed [3].

The minister linked this capacity boost to the bilateral trade target of US$30 billion (RM119 billion) set for 2027, stating that the value‑added services and facilities at PIP—such as warehousing and distribution—will help achieve the goal [1][3]. The port’s integration with the Trans‑Asian Railway network is also expected to open new routes to China, Central Asia and Europe, further enhancing Malaysia’s position as a preferred trade hub [3].