PENANG (Sept 23): Penang Port Sdn Bhd is awaiting government approval for its RM2.2 billion expansion plan at the North Butterworth Container Terminal, which is expected to be rolled out in phases once the green light is received.
The expansion is part of Penang Port’s long-term concession agreement, which runs until 2055, according to its chief executive officer Datuk Sasedharan Vasudevan.
"When the government granted us the concession for Penang Port, expansion was part of the deal,” Sasedharan said. The concession for Penang Port is valid until 2055, meaning for another 30-year period.
The master plan, submitted in 2023, aims to boost the port’s capacity in line with growing industrial activities in the northern region, particularly in the solar and paper manufacturing sectors.
Sasedharan said the phased expansion is intended to capture the rising container market demand and accommodate the increasing export activity driven by these industries. Upon approval, it will take an estimated 18 to 24 months to begin reclamation and construction works.
Currently, Penang Port’s quayside capacity stands at 2.3 million twenty-foot equivalent units (TEUs), with plans to increase this to 4.1 million TEUs by 2045–2050. The yard capacity will also rise from 2.2 million to 2.9 million TEUs once the expansion is complete.
The plan also includes expanding the existing berth from 1.5km to 2.9km, constructing a new gatehouse to reduce congestion, and creating 70 hectares of new container yard space along with 107 hectares for logistics warehousing.
For this year, Penang Port anticipates its container throughput at the terminal to be lower than it expected of 1.55 million TEUs due to the ongoing Red Sea crisis continuing to disrupt global shipping routes. For 2023, Penang Port's TEUs stood at 1.44 million.
Since becoming a private entity under Seaport Terminal (Johore) Sdn Bhd, Penang Port has invested over RM700 million in upgrading its infrastructure. These investments include improvements to ferry services, berth expansion, IT systems, and the development of a modern cruise terminal.