Upgraded Cargo Facility Will Boost Trade With Southern Thailand -- Perlis Chief Minister

PADANG BESAR (Perlis, Malaysia) March 10 (Bernama) -- The upgraded Keretapi Tanah Melayu Bhd's or Malayan Railways Limited (KTMB) Cargo Terminal Facility will boost and enhance trade between Malaysia and southern Thailand. Perlis Chief Minister, Azlan Man said the terminal would help in the plan to build the Perlis Inland Port (PIP) here under the 11th Malaysia Plan. "PIP will be the logistics hub and the most important cargo transit centre in the Asean region in a few years away," Azlan said at the launch of the Logistics Integration Programme and Upgrading of Cargo Terminal Facility here Thursday. He said PIP and the terminal were among the key state government projects which would act as catalysts to shape and boost the economy of Perlis and provide jobs in the long run. "The Thai exports, especially from southern Thailand via Padang Besar, are expected to rise when the PIP and the cargo terminal are completed," he said. Azlan said the state government has identified Padang Besar as an industrial and services area, Lembah Chuping (green technology) Arau (higher education) and Kangar (services). Speaking to reporters later, Azlan said, the state government hoped that the cargo terminal would be able to handle up to two million twenty-foot equivalent units (TEUs) of cargo a year when PIP became a successful logistics hub. Meanwhile, KTMB Chairman, Nawawi Ahmad said the cargo terminal project involved the central government's allocation of US$ 5.2 million (RM23.5 million) and was expected to be completed by the end-March next year. He said the terminal would be capable of handling 150,000 TEUs of cargo a year compared with 120,000 TEUs now with the completion of the upgrading work. "Now the containers from southern Thailand alone amounted 400,000 TEUs a year. I hope that with the installation of new equipment such as 'Rubber Tyre Granty Crane' the load can be increased," he said. Nawawi said KTMB would also hold talks with the Customs Department to ensure that cargo clearance could be expedited. Chief Executive of Northern Corridor Implementation Authority (NCIA), Redza Rafiq, said the project was timely to reduce congestion and accommodate 67 per cent of Thai exports through Padang Besar Selatan. NCIA is the main implementing agency for the project, while beneficiaries are KTMB and its unit, Multimodal Freight Sdn Bhd, the terminal operator. Meanwhile, Malaysian Investment Development Authority Chief Executive Officer Azman Mahmud said the logistics industry was the backbone of the supply industry. "As the lead agency for the growth of domestic investments, the ability of empowering logistics service providers was necessary to strengthen internal capabilities and efficiency. "Although Perlis is a small state, its proximity to Thailand in the northern corridor makes it a very strategic investment location," he said in a statement issued in conjunction with the launch. Azman said continued infrastructure development would attract more companies to invest in Perlis over the long-term. "In line with the government's efforts to develop a wide range of basic infrastructure quality, companies will enjoy a more conducive business environment particularly in long-term investments that are sustainable," he said. Azman said 48 manufacturing projects with approved investments of RM1.03 billion were approved in Perlis and they created over 6,000 jobs in the electronic and electrical, food manufacturing and plastic products sectors. "Investors should take advantage of all the programmes and services provided by MIDA such as the less developed areas (LDA) scheme. "Companies who take part in the LDA scheme will qualify for income tax exemption of 100 per cent for up to 15 years," he added. (US$1 = RM4.45) -- BERNAMA