Malaysia announces new port project on Malacca Strait

Posted on July 1, 2024   |  

Malaysia plans to build a new container port in Negeri Sembilan, located on the west coast of the Malay Peninsula, facing the Malacca Strait.

The Malacca Strait is the second busiest shipping lane in the world, carrying 30% of globally traded goods and about 94,000 ships annually. 

It connects key Asian economies such as Japan, Taiwan, South Korea, and India.

As companies seek to reduce reliance on China, Malaysia's new port could attract more shipping traffic and logistics operations, potentially rerouting shipping lanes and establishing new manufacturing and distribution centers.

The new port, estimated to cost $425 million, will be the first in Malaysia to use artificial intelligence. 

It will feature a 1.8-kilometer jetty, a terminal, and a container operation area of 809,300 sq m.

The Malaysian government is investing significantly in its ports due to it's strategic location along the Malacca Strait. 

Port Klang, for example, aims to double its capacity with an expansion of $8.1 billion.

Singapore is building the world's largest automated terminal at Tuas Port, which is set to be completed by 2040.

Thailand has proposed a $36 billion land bridge project to connect two seaports, bypassing the Malacca Strait and potentially reducing ship journey times by 4 to 9 days.