Transport Ministry: KXP not a priority as PIA can still meet demand for cargo, passenger services

KUALA LUMPUR: The Kulim International Airport (KXP) project can only be considered after the Penang International Airport (PIA) reaches its maximum capacity of 20 mppa (million passengers per annum), which is projected in 2042.

The Transport Ministry in a statement said it should be emphasised that so far, no private participation proposal is capable of financing the cost of the KXP project.

"The ministry always takes an open stance towards any development proposal from the state government as well as private investors who bring economic benefits, competitiveness and contribute to sustainable development.

"In this development, the ministry will thoroughly examine any development proposal including the construction of an airport to allow the project to be viable and sustainable.

"As such, any development proposal of any airport must be supported by the increasing demand for passengers and cargo, based on valid and accurate data to ensure its performance and capability," read the statement.

The ministry said the National Airports Strategic Study Plan (NASP) is ongoing and expected to be ready by the end of the year.

The study, among others, aims to determine the direction of airport development in Malaysia, in terms of physical infrastructure development, airspace requirements, and economic and strategic studies.

"This is to ensure that the construction of an airport is carried out based on actual needs and relies on valid and correct data."

The ministry, together with NASP consultants, has examined the Main Master Plan Construction of Kedah Aerotropolis, which contained technical and commercial reports prepared and provided by consultants appointed by the Kedah state government.

Among the findings based on the NASP study, as much as 92 per cent of cargo at Kuala Lumpur International Airport (KLIA) is through passenger flights via belly cargo (belly freight), while only eight per cent was handled by fully-fledged freighter services.

"This data clearly illustrates that KXP's reliance on cargo full-service flights will not deliver a big jump for KXP to become a cargo airstrip. KXP should also depend on the services of passenger flights to transport cargo.

"Based on a comparison of KXP cargo offers provided by KXP Airportcity and PIA (which was provided by Malaysia Airports Holdings Bhd), KXP cargo offering projection was found to be rather high for a new airport, compared to PIA.

"KXP is a new airport, as such its ability as an international cargo airfield based on data provided by KXP Airportcity can be disputed and unreliable."

The ministry said PIA has sufficient capacity to meet any increase in terms of passengers up to 20 mppa until 2042.

"As such, the ministry is of the view that for the time being there is no need for a new airport to be built under the Kedah Aerotropolis project, after taking into account that the existing facilities at PIA are still able to meet the demand for cargo and passenger services."

Yesterday, Prime Minister Datuk Seri Anwar Ibrahim denied claims that the federal government is oppressing any state in terms of the distribution of allocations or development, including the issue surrounding the approval of the proposed KXP in Kedah.

Anwar said any proposal to build an airport required careful study before it could be implemented as it involved several important aspects, especially national security, in addition to having to go through certain procedures and regulations.

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