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Sunday, July 2, 2023

'Penang airport can still handle demand, no need Kulim airport'

 


The Transport Ministry said the existing facilities at the Penang International Airport (LTAPP) can still handle cargo and passenger demand based on the findings of the National Airport Strategic Plan (NASP) consultant.

The ministry, in a statement, said it has no objection to the Kedah Aerotropolis MRO Centre of Excellence (KAAMROCE) and Sidam Logistics Aerospace Manufacturing (Slam) as part of a mixed development under the Kedah Aerotropolis.

However, for now, there is no need for the development of a new airport.

The ministry also urged the Kedah state government to use the existing Sultan Abdul Halim Airport (LTSAH) in Alor Setar or LTAPP to support KAAMROCE and Slam.

The statement clarifies the federal government’s stance on issues surrounding the Kulim International Airport (KXP) following claims that Putrajaya was being oppressive in distributing budget for the KXP, which Prime Minister Anwar Ibrahim refuted recently.

The ministry said currently, it is conducting the NASP study which is expected to be completed by the end of this year.

No private players

The study is aimed at determining the direction of airport development in Malaysia in terms of physical infrastructure development, airspace requirements, as well as economic and strategic impacts, among other things.

The study, the ministry added, was to ensure the development is implemented based on actual needs - supported by valid and accurate data.

“LTAPP currently still has sufficient capacity to handle any increase in passenger handling up to 20 million passengers per annum until 2042.

“Thus, the construction of KXP can only be considered after the LTAPP reaches the maximum capacity of 20 million passengers per annum projected in 2042.

“It should be emphasised that so far, there is no proposal for private participation capable of financing the cost of the KXP project,” the Transport Ministry stated.

Comparing the KXP cargo projection provided by KXP Airportcity and the LTAPP projection provided by Malaysia Airports Holdings Berhad (MAHB), the ministry said the proposed KXP cargo projection was found to be quite high for a new airport, compared to the cargo projection at the already established LTAPP that has an extensive air connectivity network.

“Therefore, the ability of KXP as an international cargo airport based on the cargo projection provided by KXP Airportcity is debatable and unreliable,” the ministry said.

More cargo from passenger flights

Meanwhile, the Transport Ministry said the NASP findings noted that 92 percent of cargo handled at Kuala Lumpur International Airport (KLIA) was from passenger flight services through belly cargo, whereas only eight percent of the cargo was handled by full-fledged freighter services.

It clearly showed that KXP’s reliance on full cargo flight services will not give it a huge boost to become a viable cargo airport as it needs to also rely on passenger flight services to transport cargo.

“The ministry always takes an open approach towards any development proposals from the state government or private investors that bring economic benefits and competitive advantage, as well as contribute to sustainable development.

“And we will also study in depth any development including airports to ensure that the projects are viable and resilient,” it added.

Bernama

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