SEGAMAT: Cargo movement across northern Johor, southern Pahang, Melaka and Negri Sembilan is set to become more efficient following the reactivation of the Segamat Inland Port, which is expected to strengthen rail freight, lower logistics costs and support the government's road-to-rail agenda.
Transport Minister Anthony Loke said the inland port, established in 1997, had failed to fulfil its original purpose and had remained largely inactive as a cargo terminal in recent years.
"Segamat Inland Port was set up to collect containers and cargo from importers and exporters, particularly manufacturers in the surrounding areas. However, it did not achieve its original objective and was not utilised as a cargo terminal.
"Today, we are reactivating it to ensure more cargo is transported by rail," he said after witnessing the exchange of lease agreements and strategic collaboration documents for the inland port's reactivation on Thursday (June 25).
Infinity Logistics and Transport was selected through an open tender to operate the inland port.
Loke said the inland port would serve as a logistics hub for northern Johor, with the private sector expected to attract manufacturers from Segamat, Muar, Batu Pahat, Melaka, Negri Sembilan and southern Pahang to use the facility.
He said the project would help spread economic development beyond southern Johor, where industrial growth has been concentrated around Johor Baru, Pasir Gudang and the Port of Tanjung Pelepas.
"Northern Johor also has strong industrial potential, particularly the furniture industry in Muar, which relies heavily on exports," he said.
Loke said manufacturers would be able to consolidate containers at Segamat before transporting them by rail directly to major ports, making logistics more efficient while reducing the number of heavy lorries on the roads.
He cited a glass manufacturer in Melaka that exports through Port Klang as an example of a company that could benefit from the rail service.
Loke noted that the inland port would be equipped with Customs facilities, allowing import and export clearance to be carried out on site.
He added that operations had already begun on a phased basis, with trains using a dedicated spur line connected to KTM's main railway network without disrupting existing rail services.
"The spur line allows cargo trains to enter the terminal, load or unload containers, and rejoin the main line without affecting other train operations," he said.
Loke said the rail network would eventually enable cargo from Segamat to be transported to Port Klang, Pasir Gudang and the Port of Tanjung Pelepas, as well as to northern peninsular Malaysia, Thailand and Kuantan.
He stressed that the success of rail freight would depend on an integrated multimodal transport system, with lorries handling first- and last-mile deliveries between factories and the inland port before cargo continues its journey by rail.
Infinity Logistics and Transport managing director Datuk Seri Chan Kong Yew said the company viewed Segamat not merely as a rail terminal.
"We see it as a logistics corridor connecting northern Johor, southern Pahang, Melaka and Negri Sembilan to the nation's ports and global markets.
"We estimate businesses could reduce logistics costs by between 10% and 15% by shifting freight from road to rail," he said when met.
Chan said the company had already secured commitments from major customers and leading shipping lines ahead of the official launch.
He said the inland port is expected to handle about 1,000 twenty-foot equivalent units (TEUs) of cargo a month during its initial phase before expanding to between 50,000 and 60,000 TEUs annually at full capacity.
At full operations, he said, the inland port is expected to handle up to 50,000 to 60,000 TEUs a year, equivalent to two to three block trains daily, while taking an estimated 40,000 heavy vehicles off the roads annually.
Also present were Port Klang Authority chairman Ean Yong Hian Wah, Sekijang MP Datuk Seri Dr Zaliha Mustafa, Deputy National Unity Minister Yuneswaran Ramaraj, Johor Public Works, Transport, Infrastructure and Communications Committee chairman Mohamad Fazli Mohamad Salleh and Johor Deputy State Secretary (Development) Ahmad Nazir Mohd Nazir.
