By Harizah Hanim Mohamed
KUALA LUMPUR, Sept 2 (Bernama) -- Port operators hope stronger connectivity between ports and major transport infrastructure will be prioritised in the upcoming Budget 2027 to improve supply chains and ensure Malaysia's logistics ecosystem keeps pace with growing trade and investment.
Budget 2027 is scheduled to be tabled in Parliament on Oct 9.
Kuantan Port chief commercial officer Mazlim Husin said greater connectivity between ports, rail networks and industrial areas is important to improve cargo movement, particularly with the East Coast Rail Link (ECRL) set to strengthen links between the east and west coasts of Peninsular Malaysia.
"All the initiatives we need from the government to promote the connectivity of the port with major infrastructures such as ECRL are very important.
"The alignment along the ECRL, the development of industry is very important for the government to promote because this is going to be feeding all the cargo onto the ECRL," he told Bernama recently.
On his wishlist for Budget 2027, Mazlim hoped the government would enhance connectivity between major infrastructures to ensure that supply chains become more efficient and shorter in the future.
He said the infrastructure connectivity between Peninsular Malaysia and Sabah and Sarawak is currently almost non-existent, highlighting the need for better integration between ports and other major transport infrastructure.
Kuantan Port’s Geographical Advantage
Mazlim said Kuantan Port could play an important role in strengthening connectivity between Peninsular Malaysia and Sabah and Sarawak, given its geographical advantage compared with ports on the West Coast of the peninsula.
"At the moment, most of the cargo from Peninsular Malaysia goes through the ports in the West Coast of Peninsular Malaysia.
"But if you look at the physical distances between Kuantan Port and the ports in Sabah and Sarawak, it's closer, which means less time to travel by ship as well as less bunkering or fuel cost," he said.
Mazlim said the shorter distance presented an advantage in establishing better connectivity through Kuantan Port, particularly given the significant cargo movement between Peninsular Malaysia and Sabah and Sarawak.
"There are a lot of cargoes that travel between Peninsular Malaysia and Sabah and Sarawak, including cars," he said.
He said the ECRL would further improve east-west connectivity once fully operational.
"It will be more efficient, of course, because eventually in 2028, Port Klang and Kuantan Port will be connected by rail.
"So, there will be very close and very efficient connectivity," he said.
Mazlim said Kuantan Port has existing capacity to accommodate additional cargo volumes and also has the physical space to expand further in the future.
Beyond domestic connectivity, he said Kuantan Port is also exploring greater connectivity with China through Jinzhou Port and Chongqing via the international inland corridor.
"Because of our collaboration with the Chinese company, we are also exploring, we have the connectivity between us and China through Jinzhou Port and to Chongqing, through the international inland corridor.
"So that's very important for trade between China and Malaysia," he said.
Supporting Infrastructure Must Keep Pace
Meanwhile, Westports Malaysia Sdn Bhd chief executive officer Vijaya Kumar Puspowanam hoped Budget 2027 would place greater emphasis on infrastructure supporting the port and supply chain ecosystem, particularly road capacity and maintenance.
He said Westports is prepared to undertake investments to expand its port capacity, with the company committed to fully finance its expansion without burdening the government.
"So, as the government said that the budget is taking consideration of geopolitical situations, for we in the private sector, the commitment that we have given the government is that the expansion of port will be fully financed by us.
"We'll take care of that. No burden on the government. The government only gives us some kind of incentives to motivate us to put those investments in," he said.
Vijaya said the government could instead channel resources towards the infrastructure supporting the broader supply chain ecosystem, particularly as foreign direct investments attracted to Malaysia over recent years begin translating into greater import and export activities.
"What we hope the government will do is all the savings that they get from not needing to put the investment into the port, divert it to the other sectors which support our ecosystem, especially the supply chain ecosystem," he said.
He noted that investments in sectors such as data centres also generate cargo movement, with materials required for their development having to be brought into the country.
While Westports has a master plan to provide sufficient port capacity for the next 15 to 20 years, Vijaya said the surrounding infrastructure has not kept pace.
"Probably the government has to put more budget allocation, especially for maintenance of the roads or at least increasing the quality of the roads.
"Coming to the ports, probably if you ask all the stakeholders, especially Port Klang, the road capacity has been lagging for many years.
"While we are trying to catch up, we are not catching up fast enough," he said.
Vijaya said maintenance should be given equal attention, considering that about 10,000 to 11,000 trucks enter the port daily, resulting in substantial wear and tear on surrounding roads.
"So we hope the government would not only be looking at adding capacity, but also in maintenance as maintenance is very important.
"Like I said, we have many trucks coming in to the port, so whatever you put in, you know the type of wear and tear happening, so you have to build something more resilient to cater for this type of traffic which is on a daily basis," he said.
He said improving the infrastructure surrounding the port would also help address difficulties in attracting truck drivers into the industry, as congestion could leave drivers stuck in traffic for two to four hours.
"If we can remove that kind of hassles, then we have probably a more resilient ecosystem," he said.
Mazlim also said the government should remain sensitive to geopolitical developments, including the impact of US tariffs imposed.
"Hence, the government has to consider offering incentives to ensure we are not affected negatively by the tariffs. That is very important factor for trade," he said.
-- BERNAMA