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Port Klang is likely to suffer a financial setback due to a 20% reduction in cargo handling services due to the land bridge project across southern Thailand, but the Port of Penang is expected to benefit.
Analysts point out that the land bridge could be an ideal alternative route for the Strait of Malacca to be fully loaded, potentially diverting %-20% cargo volumes from Malaysia and Singapore.
The Port of Penang can serve as an alternative port of call for shippers to unload containers and ship them to Thailand by rail, provided that it is more efficient than Thai ports.
However, some argue that additional handling charges may offset the cost savings of shorter travel times.
In addition, the project has raised geopolitical concerns that could affect Malaysia’s bargaining chips in bilateral relations with China.
(Source: freemalaysiatoday Image source: freepik)
