Background

Located in the state of Penang, in the north-west of Peninsular Malaysia, Penang Port is the oldest and longest established port in Malaysia. The port serves as the primary gateway to the Northern region of Malaysia and Southern Thailand, serving the basins of the Straits of Malacca and the Gulf of Bengal.

Pursuant to the privatisation agreement dated 31st December 1993 (“Privatisation Agreement”) entered between the Government of Malaysia, Penang Port Commission (“PPC”) and Penang Port Sdn Bhd (“PPSB”), Penang Port shall operate, manage, provide operational facilities, and port services in the Port of Penang to control, maintain, construct, improve, and develop the Port commencing 1st January 1994.

Penang Port’s terminal, the North Butterworth Container Terminal (NBCT) was gazetted as a Free Commercial Zone (FCZ) on 1 February 2021, which enables Penang Port to be the focal point for shipping and transshipment activities.

Penang Port will capitalise on its FCZ status to tap into the Bay of Bengal market by undertaking transshipment activities for containers moving between the Bay of Bengal and the Far-East.