It is expected to provide a further boost for the northern corridor’s logistics sector.

The PIP project, aimed at turning Perlis into an international border town and logistics hub, will be undertaken through a public-private partnership.

The federal government, via the Northern Corridor Implementation Authority (NCIA), will handle external infrastructure development while Mutiara Perlis Sdn Bhd will develop the inland port and other related components.

Mutiara Perlis business development manager, Azim Kazim Shabaruddin said that the Padang Besar Cargo Terminal is currently one of the main gateways of cross-border trade, adding that most of the containers are already heading towards Penang Port’s NBCT.

“Once we commence operations, we plan to enhance the efficiency of cargo handling upstream, which should lead to an increase in containers heading to Penang Port,” he told Bernama in Sungai Nibong near here.

Azim said the completion of the first phase of PIP’s development is expected to see the container handling capacity increase to almost 300,000 20-foot equivalent units (TEUs) per annum.

As PIP continues its operations and moves forward with its second and third phases, he expects the inland port to handle over one million TEUs annually.

“One million TEUs looks intimidating and optimistic but I believe it is achievable. We expect containers from Bangkok, Laos and some parts of China to use PIP before going to their preferred ports, be it in Penang or Singapore.

“Our facility is designed to meet cross-border requirements, and its presence will complement other ports,” he said.

Azim highlighted that Mutiara Perlis is actively engaged in discussions with Penang Port to ensure that the design of PIP corresponds with the infrastructure at NBCT, catering to the needs of customers from Southern Thailand.

He added that eventually, establishing a strategic partnership with Penang Port would be ideal, enabling them to create a dedicated staging area for cargoes destined for NBCT.