PENANG is keen to draw lessons from the FedEx North Pacific Regional Hub in Japan on managing air cargo and logistics operations, said Chief Minister Chow Kon Yeow.
Chow noted that FedEx North Pacific Regional Hub has earned recognition for its efficiency in handling air cargo and managing its logistics hub.
“Today, we want to learn practical aspects — how you ensure smooth cargo flows, how land and road access is planned, the technology used for tracking and customs, and how partnerships with private logistics firms are fostered.
“We hope to bring home actionable ideas that can be tested in Penang immediately, not just remain as plans on paper. These are the areas we want to better understand, so we can execute them effectively back home,” he said during his visit to FedEx North Pacific Regional Hub in Kansai Airport today.
Chow is leading a state delegation to Osaka this week, where Penang is also making its debut at the Malaysian Pavilion during the World Expo 2025.
Among those present were Kansai Airport Commercial Aeronautical Division executive officer and deputy chief commercial officer Hayato Shingu, Aero Commercial Department general manager Kayo Nakajima, Cargo Development Group assistant manager Ai Takiguchi, Cargo Development Group manager and head Ryota Tsuji, Relation Division counsellor Akira Kodama, senior supervisor Junko Kishino, and assistant manager Mariko Watanabe.
Among other notable figures that joined Chow were Deputy Chief Minister II Jagdeep Singh Deo, Penang State Secretary Datuk Zulkifli Long, state Financial Officer Datuk Zabidah Safar, PDC board of directors member Goh Choon Aik, who is also the Bukit Tambun assemblyman, PDC general manager Datuk Aziz Bakar, InvestPenang chief executive officer Datuk Loo Lee Lian, and others.
Chow highlighted that Penang International Airport (PIA) is experiencing strong growth.
“In 2024, PIA handled over seven million passengers, and we are now undertaking a major expansion to raise its capacity to 12 million passengers annually.
“This expansion also focuses on enhancing cargo handling and aircraft parking facilities, both of which are critical to establishing a world-class logistics hub.
“Through Penang Development Corporation (PDC), we are developing the Penang International Logistics Aeropark (PILA) on more than 100 acres near PIA. This purpose-built aeropark is designed to give manufacturers and exporters quick access to global markets.
“We are working with private sector partners to introduce modern warehousing, cold chain facilities, and express-freight solutions,” he said.
Chow acknowledged that while the scale of Penang’s project differs from Kansai Airport, the operational insights gained are invaluable.
“Although our site is smaller, we are learning about the operations and challenges that come with building such a hub. We are also identifying similarities and differences to adapt the best practices for Penang.
“We return with good ideas to realise this project with FedEx. PDC and Malaysia Airports Holdings Berhad (MAHB) are finalising the details,” he added.
On Sept 24, FedEx signed a Memorandum of Understanding (MoU) with PDC to establish a new logistics facility within PILA, adjacent to PIA. The MoU exchange was witnessed by Chow during the state mission to Osaka, underscoring Penang’s growing role as a strategic gateway for Malaysia’s trade and logistics sector.
Under the agreement, FedEx will become one of the first global logistics players to commit to PILA, with an investment of approximately RM46 million (USD11 million).
The investment will fund the construction of a 100,000 sq ft fully integrated logistics and air cargo facility within the 42-hectare development.
Scheduled for completion by the end of 2028, the facility will consolidate FedEx’s freight and express operations in Penang under one roof. The move is expected to generate a multiplier effect by providing manufacturers, SMEs, and regional businesses with faster, more reliable access to global markets.
Story and pix by Riadz Akmal and Yap Lee Ying