Chief Minister Chow Kon Yeow recently visited the Penang International Logistics Aeropark (PILA), a joint venture between the Penang Development Corporation (PDC) and Malaysia Airports Holdings Berhad (MAHB), highlighting its role in enhancing the state’s logistics capabilities.

Chow, who also chairs PDC, said the project is aimed at developing a new cargo terminal to support Penang’s growing industrial sector, particularly the semiconductor and electrical and electronics (E&E) industries. He noted that demand for advanced technologies, including artificial intelligence, continues to drive industrial growth, leading to increasing production and export needs.

He emphasised that the project addresses a longstanding gap in cargo handling capacity. Without adequate facilities, goods from Penang have had to be transported to other hubs such as Singapore. With PILA, cargo can be handled locally, improving efficiency and reinforcing Penang’s position as a regional manufacturing hub.

The project is being undertaken through a dedicated joint venture company, PILA Sdn Bhd, following approvals from both PDC and MAHB boards. The agreement was formalised in April 2026, with funding supported by PDC and contributions from the federal government.

Spanning 42 hectares with an estimated development value of RM1 billion, PILA has already secured leasing interest from both local and international logistics operators. The development aligns with Penang’s Vision 2030 and the State Structure Plan, which includes the expansion of Penang International Airport to accommodate future growth.

Construction is currently underway, with earthworks and soil treatment in progress. The first phase, comprising a Free Commercial Zone air cargo warehouse, is expected to be completed by 2029. Upon completion, this phase alone is projected to add capacity for 100,000 tonnes of cargo annually.

In the long term, PILA is expected to handle up to 500,000 tonnes of cargo per year by 2050, supported by more than two million square feet of warehouse space. A formal launch of the project is currently being planned, and is expected to be officiated by Prime Minister Datuk Seri Anwar Ibrahim.

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