ALOR SETAR: Malaysia’s Finance Minister II Datuk Seri Amir Hamzah Azizan has visited Bukit Kayu Hitam (BKH) Inland Customs Depot (ICD) and the free commercial zone during a recent working visit.
In a statement dated June 1, PKT Logistics Group Sdn Bhd group chief executive and managing director Datuk Seri Dr Michael Tio said the visit marked a significant milestone for the company. It showcased the operational readiness of BKH ICD’s world-class inland port and free commercial zone, which were designed to enhance Malaysia’s logistics and transportation sector.
Tio said: “Established as a joint venture on Dec 3, 2019, Bukit Kayu Hitam ICD Sdn Bhd unites two leading entities, One Northern Hub Sdn Bhd, a fully owned subsidiary of PKT Logistics Group Sdn Bhd, and Northern Gateway Logistics Sdn Bhd, a wholly owned subsidiary of Northern Gateway Sdn Bhd.
“Strategically positioned adjacent to the Bukit Kayu Hitam Immigration Customs Quarantine Security Complex, this 50-acre development is located on the North-South Expressway, which is also designated as Asian Highway 2, Malaysia’s key route for the ASEAN Customs Transit System,” he said.
The statement said that through the ASEAN Customs Transit System, BKH ICD facilitates seamless duty-free trucking across borders, linking Singapore to Vietnam and onwards to China.
The inland port’s phased development comprises four distinct segments. Phase one is the 12.4-acre BKH Inland Port, which features a customs office complex spanning 19,775 square feet (sq ft).
Phase two, the BKH Free Commercial Zone (Blackwood Forests), encompasses 9.3 acres and is home to four high-capacity warehouses known as Summer, Spring, Autumn and Winter. Collectively, they offer about 200,000 sq ft of storage space.
The statement said future phases will introduce parking, fuelling, and electric vehicle (EV) charging stations, followed by an integrated hub for office space, education, retail, and hospitality known as the Blackwood Complex.
Tio said that in 2008, the company had envisioned the establishment of One Northern Hub to ease southern Thai exports via Malaysian ports.
“Today (June 1), the launch of BKH ICD and free commercial zone, the first two components of One Northern Hub is to elevate Malaysia’s status to the next ASEAN logistics hub by making cross-border cargo movements seamless, efficient and secure. At the same time, we also aim to bring socioeconomic development to our surrounding communities,“ he said.
Since breaking ground in early 2022, BKH ICD has achieved several key milestones. Full regulatory approvals were secured in early 2025. It was operational on April 8, 2025.
Tio said the free commercial zone was officially launched on June 1, 2025, reinforcing its role as a vital trade enabler. Operational efficiency is a core pillar of BKH ICD’s success, and the facility operates seven days a week from 7 am to 10 pm with a capacity to handle 250,000 TEUs (20-foot equivalent units) annually.
“Equipped with advanced stacking slots for dry and refrigerated containers, the port targets a productivity rate exceeding 10 moves per hour. Cutting-edge infrastructure, including flexible entry-exit lanes and a next-generation terminal operating system, ensures smooth logistics management,“ Tio said.
