A 2.20-acre parcel of land within the Butterworth Deep Water Wharves (BDWW) has been earmarked for a new logistics and commercial development, following the launch of a Request for Proposal (RFP) by Penang Port Sdn. Bhd. to identify a long-term developer and operator for the site.

Located within the operational boundaries of Butterworth Deep Water Wharves, the 8,897.35 sq m (95,770 sq ft) site currently accommodates an existing warehouse and open storage yard. The land is expected to be redeveloped into a facility that supports port-related activities, further strengthening the role of Butterworth as a key logistics gateway in Northern Malaysia.

According to the RFP, the successful proposer will be granted a sub-lease of up to 27 years to develop and operate the site. While the final development concept will depend on the selected proposal, Penang Port envisions uses such as logistics operations, warehousing, value-added services and other commercial activities that complement cargo handling and regional trade.

One of the site’s key advantages is its location within the Butterworth Deep Water Wharves, offering direct access to port infrastructure and efficient connectivity to Penang’s major industrial corridors. The location is approximately 9km from the Prai Industrial Area, 18km from Penang Science Park, 23.2km from the Bayan Lepas Free Industrial Zone and 31.5km from Kulim Hi-Tech Park.

The site also falls within a Free Commercial Zone (FCZ), subject to regulatory approvals and applicable requirements. This designation is expected to enhance its attractiveness for companies involved in import-export activities, regional distribution, supply chain management and value-added logistics services.

As Penang continues to strengthen its position as a regional hub for semiconductor manufacturing, electrical and electronics industries, and advanced manufacturing, demand for modern logistics infrastructure has been steadily increasing. The proximity of the proposed development to major industrial clusters could help improve cargo movement and supply chain efficiency for businesses operating throughout the Northern Corridor.

The proposed project also reflects the continued evolution of Butterworth Deep Water Wharves beyond its traditional role as a cargo handling facility. Strategic investments in logistics infrastructure within the port are expected to support higher cargo throughput while creating opportunities for businesses that rely on efficient multimodal connectivity between sea, road and rail transport.

According to the RFP schedule, a briefing and site visit will be held on 30 June 2026, with proposal submissions closing on 30 July 2026.

PROPOSED REDEVELOPMENT SITE:

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