With the launch of the new block train service, up to 100 containers for customers of a French logistics firm will move weekly from southern Thailand through Padang Besar to NBCT. – CHAN BOON KAI/The Star
CARGO shipping out of Penang Port is set to increase substantially with the setting up of a new block train service between Penang and Padang Besar in Perlis.
The train will carry up to 7,500 TEU (20ft Equivalent Units) of containers each month from southern Thailand to the North Butterworth Container Terminal (NBCT) where the cargo will then be shipped around the world.
A block train service is one in which all the cargo is transported from a single point of origin to the same destination, allowing for efficient transport.
Up to 100 containers dedicated to customers of French logistics company CMA CGM S.A. will move weekly from southern Thailand through Padang Besar to NBCT where there is a 14,000sq m open container depot.
The depot also handles special containers for specific products and non-dangerous liquid cargo.
Southern Thailand, which is half the size of Peninsular Malaysia, does not have a large international port on its west coast and relies on Penang Port for its export economy.
Penang Chief Minister Chow Kon Yeow said the state welcomed the initiative as it was aligned with the 12th Malaysia Plan which aimed to make the country a logistics hub in South-East Asia by 2025.
“I believe this new service will help strengthen Penang Port as a prominent logistics hub.
“Last year, the state recorded an all-time high of RM76.2bil in total approved manufacturing investments, a 440% year-on-year increase.
“Despite the challenges of the Covid-19 pandemic, Penang’s exports climbed 14% last year, reaching its all-time high of RM354bil. This makes the state the nation’s highest export contributor,” he said after flagging off the block train at NBCT.
CMA CGM Malaysia general manager Ravindra Sahu said the block train would provide seamless rail and sea multimodal solutions to exporters.
Also present at the flagging-off were Infinity Logistics and Transport Ventures Limited managing director Datuk Seri Chan Kong Yew, Penang Port Sdn Bhd chief executive officer Datuk V. Sasedharan and Bagan MP Lim Guan Eng.
Penang Port Commission chairman Datuk Tan Teik Cheng, when contacted, said the new service was a significant milestone for the port as it would benefit its users and increase revenue.
“This is good news for us with Penang Port now gazetted as a Free Commercial Zone.
“Last year, we imported and exported about 1.3mil TEUs, and we expect to achieve 1.5mil TEUs by the end of this year,” he said.
