Malaysia's largest port plans to double itscapacity over the coming decades, aiming to chase neighbouring hub Singapore asthe shift in global supply chains adds to the competition in Southeast Asia'slogistics sector.
Port Klang, the world's 12th-largest port and second only after Singapore in Southeast Asia in terms of capacity in 2021, plans to increase itsannual capacity from 14 million TEUs to 27 million TEUs, with operatorWestports Holdings investing 39.6 billion MYR (8.34 billion USD) over thecoming decades.
According to Ruben Emir Gnanalingam, executive chairmanand group managing director of Westports, the expansion will take over 40years, and it is expected to commence this year.
Westports is a prominent port operator in Malaysia, with itsnet profit increasing 11% to 779.43 million MYR in 2023. In December, Westportsextended the concession period at Port Klang by 58 years, from 2024 to 2082.
The expansion plan was approved by the federal governmentlast August. The project at the port just southwest of Kuala Lumpur willinclude land reclamation along the coast to increase container terminalfacilities from the current nine terminals to 17.
The expansion comes as companies rebuild their supplychains, including diversification away from China, to minimise risks arisingfrom geopolitical tensions.
Gnanalingam noted the growing competition from neighbouringcountries along the strait like Singapore and Thailand. For example, Singapore'sTuas Port was officially opened in 2022 and is set for completion in 2040 witha capacity of 65 million TEUs annually./.
