GEORGE TOWN (April 1): Chief Minister Lim Guan Eng said air cargo movements and volume at the Penang International Airport (PIA) have not dropped, as evidenced by the expansions of numerous logistic companies in Penang over the years.

Lim said that logistic companies, including Nippon Express Co Ltd, TNT Express NV, and Deutsche Bahn AG’s DB Schenker, would not be expanding their operations and plants in Penang, if there was no increase in cargo volume.

He was responding to allegations by Kedah Menteri Besar Datuk Seri Mukhriz Mahathir that there was a 10.5% annual decline in cargo traffic at PIA.

Lim said Mukhriz should ‘talk sense’, adding that “logistic companies would not expand their operations or centres here, unless they have increased volume to transport”.

“We also know that the manufacturing industry has seen a double-digit growth,” he said.

Hence, Lim said Mukhriz’ comment that PIA was experiencing a continuous drop in its air cargo traffic, is inaccurate.

The Malaysia Airport Holdings Berhad annual report for the financial year ended Dec 31, 2013, showed domestic and international cargo movements at PIA in 2013 rose by 24.7% to 153.7 million, from the previous year; while transit cargos amounted to 41.8 million.

Furthermore, Lim said PIA was a centrally-located airport in the northern region and one of the highest growth recorded for MAHB in 2014, despite the tragedy of three Malaysian airlines.

“The PIA has seen an increasing usage and I am sure the time has come for expansion. Look at it in terms of volume, value and opportunity. Penang is still the preferred destination, compared to Perlis and Kedah.

“Shouldn’t we be expanding our existing advantage, instead of spending more money starting from zero? It does not make sense, though the plan to build an airport is between the state and federal government,” he said.

He reiterated Penang’s plea to the federal government to improve PIA at a cost of RM600 million under the 11th Malaysia Plan, along with the offer to reclaim acres of land to expand the airport.

Yesterday, Mukhriz said the first phase of the estimated RM1.6 billion KXP would kick-off as an air cargo airport. He claimed feedback from industries have revealed there was a lack of cargo-handling capacity at PIA, as there was only one runway.

Mukhriz said manufacturers and industry players in Kulim Hi-Tech Park, other parts of Kedah, as well as Penang, had told him KXP would meet immediate demand, as some of them were forced to move their cargoes by road to the Kuala Lumpur International Airport (KLIA).

Mukhriz had also said the KXP air cargo airport would not affect PIA’s business, because the latter was focused on passenger travels, adding there was a 10% rise in domestic and international passenger travels to 6.03 million last year.