PENANG has obtained planning permission to develop the proposed Penang International Logistics Aeropark, which seeks to complement the air cargo activities at the Penang International Airport in Bayan Lepas.
Chief Minister Chow Kon Yeow, in a statement, said that the state has obtained approval for the master plan in developing a new logistics hub to underpin the ecosystem of the northern region's manufacturing sector.
The project, deemed a strategic one, is jointly developed by the Penang Development Corporation (PDC) and the Malaysia Airport Holdings Berhad (MAHB).
Currently, PDC is conducting earthworks and rehabilitation with the first phase of developing an air cargo warehouse, which is also listed as a free commercial zone terminal, expected to be ready by 2029.
The approval is a big injection of confidence in Penang's ability to function as a logistics hub to complement its existing manufacturing facilities, particularly in the area of electronics and electrical.
Once ready, Chow said that the warehouse can handle a cargo capacity of up to 500,000 tons by 2050, with a cargo warehouse space exceeding two million sq. ft.
The first phase, upon completion by 2029, will support an additional capacity of up to 100,000 tons annually.
The approval is in line with the state's aspiration to become an international city under its Penang2030 Vision, the state's structure plan and the expansion of the international airport, said Chow.
The launching of the new logistic hub in what is believed to be Bayan Lepas is expected to be officiated by Prime Minister Datuk Seri Anwar Ibrahim, said Chow.
Meanwhile, it remains to be seen if the new hub is a stiff competitor to the proposed neighbouring Kulim International Airport in Sidam Kiri, some 81km from Penang.
The Kedah government has been pressing for the inclusion of the Kulim airport, called the aerotropolis concept.
Kedah has defined it as a metropolitan subregion whose infrastructure, land use, and economy are centred on an airport.
The proposed site for Kedah Aerotropolis is at Mukim Sidam Kiri of the Kuala Muda District.
This 9,800-acre development will consist of the Kulim International Airport (KXP) and the Sidam Logistics, Aerospace & Manufacturing Hub (SLAM). - April 14, 2026.
