In a statement today, chief minister Chow Kon Yeow said the majority of the key matters in the agreement on the joint venture company had been finalised, with the agreement signed on April 13.

He said Pila was a strategic joint venture between PDC and MAHB to develop a new cargo terminal that would strengthen the logistics ecosystem of the northern region and support the growth of Penang’s industrial sector.

“The approval of the planning permission for the master plan has been obtained, and earthworks and soil treatment are actively being carried out at the project site,” he said in the statement, issued after his visit to the Pila site here today.

Chow said the first phase of the project involved the construction of a new free commercial zone-class air cargo warehouse building, which is expected to be completed and operational by 2029.

He said the development of Pila was expected to accommodate a cargo capacity of up to 500,000 tonnes per year by 2050, with the provision of warehouse space exceeding two million square feet.

“For the first phase, the air cargo warehouse building is expected to support an additional capacity of up to 100,000 tonnes per year,” he said.

The chief minister said the project also included a cargo terminal and additional aircraft taxiways to increase operational capacity and attract more cargo flights to Penang.

Chow said the project was important for meeting the logistics needs of the state’s industrial sector, particularly the electrical and electronics and semiconductor industries, which continue to grow despite facing global challenges.

He said that without additional logistics facilities, local companies had to rely on external hubs for cargo delivery, which increased costs and delivery times.

“With this facility, we are striving to attract the flow of cargo back to Penang with the concept ‘made in Penang, fly from Penang’,” he said.

Chow said the strategic project is expected to be launched by Prime Minister Anwar Ibrahim in the near future.