Malaysia is advancing its MYR 370 million (USD 80 million) Perlis Inland Port (PIP) project as part of a broader strategy to capture high-value, long-haul freight and position rail as a faster alternative to sea routes for China-Asean trade. Located near the Thai border, the new multi-modal hub is scheduled to begin partial operations in November 2025, aiming to cut the Chongqing-Malaysia transit time from two weeks to under seven days.
Designed to handle 300,000 twenty-foot equivalent units (TEUs) annually, double the capacity of the existing Padang Besar terminal, the facility will support seamless road-rail connectivity and form a key component of the country’s strengthened transport backbone. The project is expected to relieve congestion at the current Padang Besar Container Terminal and support the development of the nearby Chuping Valley Industrial Area, a manufacturing cluster focused on green, halal and high-tech industries. Officials plan for full operations to commence in January 2026 with automated signaling, with a formal inauguration set for February. Analysts view the hub as part of Malaysia’s push to solidify its role in regional logistics networks, aligning with broader China-Asean connectivity efforts under the Belt and Road Initiative and complementing developments such as Thailand’s rail upgrades and Malaysia’s East Coast Rail Link.
However, PIP’s ambitions face operational challenges. Key approvals, including signaling certification, must be delivered on schedule, while cross-border bottlenecks remain a constraint, with freight lines in Thailand still competing with passenger services. Industry experts also highlight that digital interoperability across borders is the most significant barrier to rail competitiveness, citing gaps in electronic documentation and fragmented customs systems. Without improved digital integration and harmonized border processes, rail freight may struggle to achieve the reliability and speed necessary to shift cargo away from traditional road transport.
(Sources: Rail Asia; The Business Times)
