BANGKOK: Bukit Kayu Hitam-ICD (BKH-ICD) hosted an event in Hatyai on May 17, with leading shipping lines and major forwarding players from South Thailand to introduce and provide progress updates on the upcoming new inland port at Bukit Kayu Hitam, Kedah.

The event was also attended by Thai consul-general in Penang Raschada Jiwalai, Sadao Customs House director Phadermdach Mungkung and Songkhla Chamber of Commerce vice-president Dr Pairoj Chaichiratikul.

Linked and situated adjacent to the Bukit Kayu Hitam Immigration, Customs, Quarantine and Security (ICQS) Complex, the new inland port is expected to play a pivotal role in simplifying and streamlining cross-border trade.

The said development is a strategic joint venture partnership with One Northern Hub Sdn Bhd, a wholly-owned subsidiary company of PKT Logistics Group Sdn Bhd (PKT Logistics) and Northern Gateway Sdn Bhd (NGX), a wholly-owned subsidiary of the Ministry of Finance Malaysia to develop the Delapan Special Border Economic Zone (SBEZ) in Bukit Kayu Hitam, Kedah.

The BKH-ICD Inland Port will be equipped with the latest technology, including a terminal operating system, gate control system, security system and provisions for rubber tyred gantry crane operations.

It is able to handle a capacity of up to 240,000 laden twenty-foot equivalent units (TEUs) per annum.

“We envision that BKH-ICD will provide significant benefits to forwarders, exporters, and shipping lines around the region,” said PKT group chief executive and managing director Datuk Seri Dr Michael Tio.

“This is an opportune time as border trade between Malaysia and Thailand surged to RM79bil during 2021 and is projected to grow 6% yearly.

“By tapping on this huge trade flow, BKH-ICD aims to shape the socio-economic growth in Bukit Kayu Hitam and its surrounding areas in this public-private partnership with NGX.

“Spanning 20.2 hectares (50 acres) of land with an estimated development value of RM200mil, BKH-ICD is a sustainable logistics hub consisting of four parcels, notably BKH-ICD Inland Port (Phase 1) and Blackwood Forest Warehouses (Phase 2) where construction is progressing for both with an estimated completion by Q1 2024.

The Blackwood Complex (Phase 3) construction will begin in the third quarter of this year with the logistics hub designed as a state-of-the-art ecosystem to promote efficient, sustainable logistics operations and also serves as a focal point for locals and transit tourists.

“This strongly correlates to PKT Logistics’ mission statement where we build sustainable logistics hubs with environmentally friendly warehouses and engage the communities around us,” said Tio.

“Supporting the inland port with its warehousing needs is the Blackwood Forest, with 19,974.2 sq m (215,000 sq ft) of storage space coupled with offerings of tastefully designed and comfortable office lounges for shipping lines, forwarders and others.”

Blackwood Complex will have provisions for an educational institution, retail, co-working space, gym and lounge, offices, service apartments and multi-storey car parks.

“Besides serving the inland port users, it will also be a strategic rest stop for cross-border tourists serving as an ideal rest and recreation centre with a food court, convenience stores, cafes and more,” Tio further added.

Meanwhile, NGX’s chief executive officer Razwin Sulairee said the partnership with PKT Logistics at Delapan presents excellent competitive advantages to mitigate unpredictable challenges impacting current and future investors.

“Our development is set against a backdrop of a post Covid-19 economic drought and a multitude of regional and global political setbacks.

“However, these operational and situational challenges have presented us with some clear advantages to create valuable solutions for our global and regional partners.

“Businesses setting up at Delapan can enjoy countless benefits to alleviate supply chain and logistical issues caused by potential disruptions affecting maritime regions like the South China Sea, in which case, an estimated US$3.37 trillion worth of annual global trade may be affected.”

“Therefore, we present Delapan as a strategic alternative to supply chain challenges faced by our partners.”

He added that Delapan is strategically located at KM0.8 of the North-South Expressway, at the crossroads of Asia Highway Network 2, linking travellers directly between Malaysia, Singapore, Thailand, IndoChina, China and potentially beyond.

“This makes Delapan the fastest solution for easy and uninterrupted access to global markets via road transportation and terrestrial networks without unpredictable delays as a result of the situation at the South China Sea.”

He said in the shadow of the Covid-19 economic meltdown, businesses cannot afford to lose from more unpredictability.

“We aim to provide our partners with a solid alternative to mitigate further losses from factors outside of their control, as best as possible.”

NGX is Delapan Special Border Economic Zone’s (Delapan SBEZ) master developer, which has plans to enhance Malaysia’s position as a strategic gateway for border trade between Malaysia and Thailand.

The company is a wholly owned subsidiary of the Finance Ministry of Malaysia.

For sales enquiries, contact Victor Ch’ng at 012-438 4797 or email to bkhicd@pktgroup.com.