Doubling the capacity of Port Klang

Malaysia's largest port plans to double its capacity over the coming decades, chasing neighbouring hub Singapore as the shift in global supply chains adds to the competition in Southeast Asia's logistics sector.
Reflecting Malaysia's position as one of Asia's manufacturing and commodity hubs, Port Klang handles products from electronics and palm oil to petrochemicals and automobiles. The expansion comes as companies rebuild their supply chains, including diversification away from China, to minimize risks arising from geopolitical tensions.
The key stakeholder in this expansion is Westports located in Port Klang, and the number one seaport in the Straits of Melacca that handles gateway and transhipment container cargo.
Westports Holdings is planning to add as many as eight container terminals to the current 31 it operates at Port Klang over the next two to four decades, as it looks to double its container handling capacity to around 28 million 20-foot-equivalent unit containers a year.

The change involves construction of a 4.8 km wharf with possibilities to handle 13 million extra containers / year, growing from 14 million today to upward of 28 million, which would close to double the capacity of today with the new terminals CT10-CT17
RM 39.6 billion overall investments will be made also (including work on the already existing terminals) over the next 58 years
Westports said it will fund the development capital expenditure with a combination of internally generated funds, borrowings, dividend reinvestment and/or private placements
Start Q3 2024, with the expansion planned to take 40+ years
CT10 operational Q2 2027, CT11 operational Q2 2029
Economically the expansion would contribute RM19bn to GDP from value-added impact such as goods and services, sectoral linkages, supply chain effects, salaries paid by beneficiary businesses, and 6,000 additional full-time job opportunities for Malaysians

To learn more about the Port Klang expansion, contact steve.chai@business-sweden.se