Malaysia and China Sign Strategic Air Cargo Partnership
This partnership will establish new air cargo routes and enhance Kuala Lumpur International Airport (KUL) as a logistics hub
Malaysia Airports Holdings Berhad (MAHB) and China Henan Aviation Group Co. (CHAGC) signed an agreement to boost air cargo services between Malaysia and China. The signing took place at the Crowne Plaza Hotel in Zhengzhou and was attended by Malaysia’s Transport Minister, Loke Siew Fook, and Henan Province's Executive Vice Governor, Sun Shougang.
This partnership, which coincides with the 50th anniversary of Malaysia-China diplomatic relations, aims to strengthen global trade. It will create new air cargo routes between Zhengzhou Xinzheng International Airport (CGO) and Kuala Lumpur International Airport (KUL), as well as routes connecting Europe with Malaysia. This will also help KUL become a regional logistics hub. The focus will be on improving infrastructure for shipping and re-exporting goods.
Minister Loke Siew Fook emphasized the importance of China as one of Malaysia's biggest trading partners. In 2022, trade between the two countries made up 17% of Malaysia's total global trade, valued at RM2.8 trillion. “This collaboration shows our commitment to working together and growing prosperity for both nations,” he said.
CHAGC manages CGO, a major air cargo hub in China, and has projects in Budapest and Leipzig. They plan to expand in Asia, especially in Malaysia, to support China’s Belt and Road Initiative, enhancing air connectivity in the region.
MAHB Acting Group CEO Mohamed Rastam Shahrom stated, “This agreement shows our dedication to improving Malaysia’s role in global trade. By expanding our air cargo services, we are creating new opportunities for economic growth.”
MAHB has been expanding KUL’s cargo facilities as part of the KLIA Aeropolis Master Plan, which aligns with Malaysia’s National Transport Policy and the New Industrial Master Plan 2030. KUL handled 700,000 metric tons of cargo in 2023 and hosts over 200 logistics providers. Recent developments include the KLIA Air Cargo Terminal 1, Cainiao Aeropolis eWTP Hub, and a DHL Express automated sorting facility.
Looking ahead, MAHB plans to develop the Aeropolis Industrial Park to focus on high-value sectors like aerospace and electronics. The new partnership will enhance air cargo connectivity, creating a stronger logistics network between Malaysia, China, and beyond. Direct cargo flights by Raya Airways and commercial flights by China Southern will start in mid-2024.
Related Article
