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MoU on Kuantan Port, ILSTC to Strengthen Logistics, Economic Cooperation

By Bridging News
ILSTC 2024-08-20
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Chongqing - Wang Kaile, General Manager of New Land-sea Corridor Operation Co., Ltd., recently signed a memorandum of understanding (MoU) with Lee Chun Fai, Group Chief Executive Officer of IJM Corporation Berhad and Chairman of Kuantan Port Sdn Bhd in Kuantan, Malaysia.

The MoU signing ceremony between Kuantan Port and New Land-sea Corridor Operation Co., Ltd. on August 15. (Photo/Wang Chengjun)

Anthony Loke Siew Fook, Minister of Transport of Malaysia, witnessed the MoU signing. The signing occurred during the Kuantan Port International Conference 2024, marking the port's 50th anniversary at the Sultan Ahmad Shah International Convention Centre.

The signing marks a new step to boost logistics and economic ties between Beibu Gulf and Kuantan ports. By leveraging their strengths in China-Malaysia industrial parks and the New International Land-Sea Trade Corridor (ILSTC), they will enhance connections between central and western China and Kuantan.

Founded in 1974, Kuantan Port has become a key hub on Malaysia's East Coast. The Old and New Port areas handle 55,000 and 180,000 deadweight tons (DWT), respectively, and play a crucial role in regional industry and the ILSTC offshore network.

The Kuantan Port. (Photo/Wang Chengjun)

Wang Kaile, General Manager of New Land-sea Corridor Operation Co., Ltd., expressed his enthusiasm for the collaboration, highlighting Kuantan Port's pivotal role in the ILSTC. "As a key hub, Kuantan Port provides a critical foundation for cross-border capacity cooperation and international connectivity. Our company is dedicated to leveraging this partnership to further integrate logistics, economy, trade, and industry," Wang said.

The conference also witnessed key agreements between Port Consortium Sdn Bhd, North Port (M) Bhd, and Malaysia Rail Link (MRL) to formalize their collaboration on the East Coast Rail Link (ECRL) land bridge, which will connect Kuantan Port to Port Klang.

Darwis Abdul Razak, CEO of MRL, emphasized the significance of the ECRL land bridge in enhancing port-to-port connectivity and facilitating easier access between Peninsular Malaysia's East and West Coasts. He further explained that the direct link between Kuantan Port, facing the South China Sea, and Northport along the Straits of Malacca will reduce cargo vessel travel time by up to 2.5 days on the region's busiest shipping routes.

Minister Anthony Loke commended the involved parties on the contract signing and expressed his optimism for strengthened strategic cooperation through the ILSTC.

The ILSTC logistics network, which has evolved from a single route into a comprehensive system, now spans 123 countries and regions, connecting 514 ports. Transit times from Chongqing to ASEAN countries have been slashed from an average of 32 days to just 18 days, while logistics costs have decreased by approximately 50%. This remarkable progress underscores the ILSTC's role as a driving force in global trade, solidifying its position as a cornerstone of international logistics and economic growth.
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