KPL
In a significant step toward strengthening regional trade and connectivity, Penang Port Sdn Bhd and Thanaleng Dry Port Co., Ltd. of the Lao People’s Democratic Republic (Lao PDR) signed a Memorandum of Cooperation (MoC) on May 25.
(KPL) In a significant step toward strengthening regional trade and connectivity, Penang Port Sdn Bhd and Thanaleng Dry Port Co., Ltd. of the Lao People’s Democratic Republic (Lao PDR) signed a Memorandum of Cooperation (MoC) on May 25.
The agreement marks the beginning of a strategic partnership aimed at enhancing multimodal logistics infrastructure across Southeast Asia.
The MoC was formally signed by Mr. Chanthone Sitthixay, CEO of PTLH, and Datuk Azman Shah Mohd Yusof, CEO of MMC Ports, in the presence of the Prime Ministers of Malaysia and Laos, underscoring the high-level commitment to cross-border collaboration.
The partnership is centered on the development of a rail-sea trade corridor that connects the China-Laos Railway to Malaysia’s western seaboard, through Penang Port.
This initiative is expected to significantly improve regional logistics efficiency, supporting Laos' long-term vision of transitioning from a landlocked to a land-linked economy.
Datuk Azman Shah emphasized the transformative potential of the project, stating, “This route will reduce transit times, lower transportation costs, and strengthen ASEAN connectivity. It positions Malaysia—and particularly MMC Ports—as a key regional logistics hub.”
MMC Ports, which operates five major ports across Malaysia, aims to leverage this cooperation to reinforce its role in regional cargo flow, offering streamlined services and enhanced infrastructure. The agreement also includes commitments to system integration, joint marketing, staff exchanges, and documentation simplification, all designed to boost operational effectiveness across the corridor.
For Laos, a country with no direct access to the sea and a modest-sized economy, the agreement represents a vital lifeline to international markets. Malaysia’s well-established maritime routes to India, Africa, and beyond make Penang Port a strategic gateway for Lao exports and imports.
In 2024, bilateral trade between Malaysia and Laos reached approximately USD 20.9 million, with Malaysia exporting USD 14.2 million and importing USD 6.7 million. Malaysia is currently the fifth-largest investor in Laos, with 46 projects totaling USD 942 million in value.
The newly signed MoC is expected to open up further economic opportunities, improve logistics competitiveness, and foster stronger ties between the two nations in the years to come.
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