PUTRAJAYA, Aug 13 — The Penang International Logistics Aeropark (Pila) is set to significantly boost air cargo facilities and capacity in Malaysia’s northern region, said Transport Minister Anthony Loke.

He said the project, an expansion of the existing Penang air cargo hub, would provide much greater capacity and strengthen the region’s role as an air logistics centre.

“This will be an expansion, a further expansion, and to make it a Penang Air Logistics Complex. It will be much bigger with increased capacity, and this will definitely boost our air cargo facilities in the northern region,” he told the media after the Ministry of Transport’s monthly assembly here today.

Loke said construction of the project, undertaken by Malaysia Airports Holdings Bhd (MAHB) in collaboration with Penang Development Corporation (PDC), had already begun and the project would be launched soon.

“We have invited the Prime Minister to launch the project between MAHB and PDC. It is next to the current Penang cargo hub,” he said.

Loke said the development was part of MAHB’s plans to upgrade its air cargo facilities not only at Kuala Lumpur International Airport (KLIA), but also in Penang.

“As far as we are concerned, MAHB has a lot of plans to upgrade its air cargo facilities not only in KLIA but also in Penang. Penang will be one major project. There will be expansion of the current air cargo hub.

“All the investment in air cargo hubs will be done by MAHB, not by the government per se. Definitely we will facilitate,” he said.

The Pila project is a private-sector-led investment by MAHB, with the government facilitating its implementation in collaboration with PDC.

This approach is aligned with the government’s broader efforts under Pila to encourage private-sector participation and investment in strategic infrastructure.

In May, it was reported that the boards of PDC and MAHB had approved the formation of a joint venture company, Pila Sdn Bhd, with the agreement signed on April 13, 2026.

The first phase of the project involves the construction of a new free commercial zone-class air cargo warehouse building, which is expected to be completed and operational by 2029.

The development of Pila is expected to accommodate a cargo capacity of up to 500,000 tonnes per year by 2050, with warehouse space exceeding two million square feet. — Bernama