Malaysia's largest port to double capacity

Malaysia's largest port plans to double its capacity over the coming decades, aiming to chase neighbouring hub Singapore as the shift in global supply chains adds to the competition in Southeast Asia's logistics sector.

Port Klang, the world's 12th-largest port and second only after Singapore in Southeast Asia in terms of capacity in 2021, plans to increase its annual capacity from 14 million TEUs to 27 million TEUs, with operator Westports Holdings investing MYR39.6 billion ($8.34 billion) over the coming decades.

According to Ruben Emir Gnanalingam, executive chairman and group managing director of Westports, the expansion will take over 40 years, and it is expected to commence this year.

Westports is a prominent port operator in Malaysia, with its net profit increasing 11% to MYR779.43 million in 2023. In December, Westports extended the concession period at Port Klang by 58 years, from 2024 to 2082.

The expansion plan was approved by the federal government last August. The project at the port just southwest of Kuala Lumpur will include land reclamation along the coast to increase container terminal facilities from the current nine terminals to 17.

The expansion comes as companies rebuild their supply chains, including diversification away from China, to minimise risks arising from geopolitical tensions.

Gnanalingam noted the growing competition from neighbouring countries along the strait like Singapore and Thailand. For example, Singapore's Tuas Port was officially opened in 2022 and is set for completion in 2040 with a capacity of 65 million TEUs annually.