Malaysia is developing a new inland port in the northern state of Perlis with an investment of MYR 492 million (USD 105 million) to strengthen trade and regional rail connectivity with China and Thailand. The Perlis Inland Port (PIP), slated for completion by the third quarter of 2025, will have the capacity to handle up to 300,000 Twenty-Foot Equivalent Units (TEUs) of cargo annually, doubling the capacity of the existing terminal in Padang Besar, located at the Thailand-Malaysia border.
The PIP will connect with two rail routes: the current Padang Besar–Penang Port line and a proposed link via the East Coast Rail Link (ECRL) from Kota Bharu, Kelantan. This inland port is a key step in Malaysia’s integration into the Pan-Asian Railway Network, aimed at connecting Southeast Asia with China. The ECRL, a MYR 50.27 billion (USD 10.7 billion) rail infrastructure project funded through loans from China’s Exim Bank, is expected to be completed by 2028 and will stretch 665 km from Port Klang to Kelantan. With Padang Besar’s current terminal nearing capacity, handling 80% of its 150,000 TEU limit in 2024, PIP will help accommodate rising cross-border cargo volumes such as rubber, timber, and latex. It also supports the Northern Corridor Economic Region (NCER) strategy, which promotes logistics and industrial growth across Perlis, Kedah, Penang, and Perak.
The port is being developed by Mutiara Perlis, a joint venture between private firm Mutiara Infra and the Perlis state government, with MYR 327.45 (USD 70 million) in federal funding allocated for supporting infrastructure like a railway spur and flyovers. The project is expected to create over 500 jobs, helping Malaysia meet its goal of increasing bilateral trade with Thailand to USD 30 billion by 2027, up from USD 24.8 billion in 2023. Malaysia is also in discussions to extend the ECRL into Thailand’s railway network, potentially enabling a direct connection to China-backed projects in Laos and Thailand and realizing the Pan-Asia Railway’s central corridor from Kunming to Singapore.
(Sources: The Straits Times; Channel News Asia)
