KUALA LUMPUR – Malaysia Airports Holdings Bhd (MAHB) has signed a memorandum of understanding with China Henan Aviation Group Co Ltd (CHAGC) to enhance air cargo connectivity and logistics between Malaysia and China.
The agreement, aimed at bolstering trade and logistics, was formalised during a document exchange ceremony at the Crowne Plaza Hotel in Zhengzhou, Henan Province, China, today.
The MoU outlines plans for establishing new air cargo routes between Zhengzhou Xinzheng International Airport (CGO) and KL International Airport (KUL), linking Europe with Malaysia, and strengthening KUL as a regional logistics hub.
Additionally, the collaboration focuses on expanding the infrastructure to support transshipment and re-export activities, leveraging CHAGC’s expertise to enhance KUL’s cargo capabilities, and bringing substantial benefits to both nations and the broader Asean region.
The event was attended by Transport Minister Anthony Loke Siew Fook and Henan Province Executive Vice-Governor Sun Shougang.
This strategic partnership coincides with the 50th anniversary of Malaysia-China diplomatic relations and aims to cement Malaysia’s role as a pivotal player in global trade.
“China has been one of Malaysia’s largest trading partners. In 2022, the value of trade between our two countries was 17.1% of Malaysia’s total global trade worth of RM2.8 trillion.
“Last year, our mutual commitment was reaffirmed during the Malaysia-China Business Forum with the announcement of RM170 billion in investments from China – a
testament to the confidence of Chinese investors in Malaysia.
“This latest collaboration between MAHB and CHAGC further reinforces the joint commitment to enhancing cooperation and fostering mutual prosperity between our two nations,” Loke said.
CHAGC, which manages CGO, one of China’s leading air cargo hubs, also has a global presence with cargo terminal projects in Budapest Ferenc Liszt International Airport and Leipzig/Halle Airport.
The company is looking to expand its overseas projects in Asia, particularly in Malaysia, to complement China’s Belt and Road Initiative and enhance air connectivity between the regions.
MAHB’s acting group chief executive, Mohamed Rastam Shahrom, said: “This MoU with CHAGC underscores our commitment to enhancing Malaysia’s position in global trade. By expanding our air cargo connectivity and logistics capabilities, we are creating new opportunities for economic growth and development in the region.”
MAHB has been actively developing the KUL cargo facilities as part of its KLIA Aeropolis Master Plan, aligned with Malaysia’s National Transport Policy 2019-2030 and the New Industrial Master Plan 2030.
KUL currently handles 21 scheduled freighters transporting cargo to and from 40 countries, hosting over 200 third-party logistics providers and freight forwarding agents. In 2023, KUL recorded approximately 700,000 metric tonnes of cargo movements.
Significant developments under the master plan include the conversion of the former LCCT into KLIA Air Cargo Terminal 1 in 2017, increasing KUL’s cargo terminal capacity to two million sqft.
In 2020, the Cainiao Aeropolis eWTP Hub was completed, offering one million sqft of Regional Distribution Centre space in collaboration with Alibaba’s logistics arm, Cainiao. Earlier this year, DHL Express launched a state-of-the-art, fully automated sorting facility with a capacity of 10,000 parcels per hour.
Looking ahead, MAHB said it plans to accelerate growth at KUL with the first phase of Aeropolis Industrial Park, covering 200 acres and focusing on high-value sectors such as aerospace, electronics and electrical, as well as halal and cold chain logistics.
The new partnership with CHAGC will enhance air cargo connectivity, creating a robust logistics network between Malaysia, China, and beyond, MAHB said.
Direct air routes from CGO to KUL will be expanded, with Raya Airways operating three weekly cargo flights starting in August 2024 and China Southern commencing seven weekly commercial flights on June 21, 2024. – June 8, 2024