Transport minister Loke Siew Fook said Malaysia currently handles only a third of Changi’s cargo volume even though KLIA’s physical area is larger and its capacity is actually higher.

“We’ve identified several obstacles and weaknesses, particularly in customs clearance, which is slower compared to Singapore. The loading and transfer times are also longer.

“These are the gaps we need to close,” he said, adding that a policy paper will be presented to the Cabinet.

Loke was speaking to reporters after chairing a closed-door meeting with the National Logistics Task Force today.

However, he said the responsibility of turning KLIA into a regional air cargo hub did not lie with the ministry alone.

“We also need cooperation from the finance ministry’s customs department and other agencies to streamline regulations and ensure KLIA’s processes become more efficient.”

Loke said the meeting this afternoon also discussed efforts to shift freight transport from road to rail in a bid to reduce traffic congestion, accidents involving heavy vehicles and carbon emissions.

The government is targeting to increase the share of rail freight from the current 1% to at least 10%, he added.

“This is especially so for bulk materials such as minerals, coal, cement and bricks. These can and should be moved by rail.

“We want to reduce the number of heavy lorries on the road.”

Loke said improvements to first-mile and last-mile connectivity were also being implemented, with more locomotives and wagons being leased, and new spur lines built to connect rail terminals to industrial zones.

“Hauliers should not worry about losing business. The associations support this initiative because first-mile and last-mile deliveries will still rely on trucks.”